Energy Union and EU Energy and Climate Policy
11th European Conference on Coal Research
and its Applications
The Edge Brian Ricketts
University of Sheffield Secretary General
ÙK 5 September 2016
EURACOAL: 33 members from 18 countries ■ DEBRIV - Deutsche Braunkohlen-Industrie-Verein
(DEU)
■ GVSt - Gesamtverband Steinkohle (DEU)
■ MMI - Mini Maritza Istok (BGR)
■ PPC - Public Power Corporation (GRC)
■ PPWB - Confederation of Polish Lignite Producers (POL)
■ GIPH – Mining Chamber of Industry and Commerce (POL)
■ ZSDNP - Czech Confederation of Coal and Oil Producers (CZE)
■ APFCR - Coal Producers and Suppliers Association of Romania (ROU)
■ BRGM - French Geological Survey (FRA)
■ CARBUNIÓN - Federation of Spanish Coal Producers (ESP)
■ CoalImp - Association of UK Coal Importers (GBR)
■ DTEK (UKR)
■ EPS - Electric Power Industry of Serbia (SRB)
■ GIG - Central Mining Research Institute (POL)
■ HBP - Hornonitrianske bane Prievidza (SVK)
■ Chemical Process and Energy Resources Institute (CERTH/CPERI) (GRC)
■ `Lubelski Węgiel „Bogdanka” SA (POL)
■ Borsod-Abaúj-Zemplén County Government (HUN)
■ PATROMIN – Asociaţia Patronală Minieră din Romania (ROU)
■ Premogovnik Velenje (SVN)
■ RMU “Banovići” d.d. (BIH)
■ TKI - Turkish Coal Enterprises (TUR)
■ Ukrvuglerobotodavtsy - All-Ukrainian Coal Employer‘s Association (UKR)
■ VDKi - Verein der Kohlenimporteure (DEU)
■ EMAG Institute of Innovative Technologies (POL)
■ Finnish Coal Info (FIN)
■ Golder Associates (GBR)
■ Geocontrol (ESP)
■ ISSeP - Institut Scientifique de Service Public (BEL)
■ KOMAG Institute of Mining Technology (POL)
■ SUBTERRA Ingeniería (ESP)
■ Trolex Ltd (GBR)
■ University of Nottingham (GBR)
11th European Conference on Coal Research and its Applications – Slide 2
EURACOAL history: 1950 to the present 1950 Schuman Declaration
1952 European Coal and Steel Community
1953 Foundation of CEPCEO
1957 European Economic Community
1958 CEPCEO legal entity
1964 European Association for Coal
1973 Oil crisis
1993 Treaty of Maastricht - European Union
1996 CECSO - integration of lignite
2002 EURACOAL - one voice for coal in Europe
2009 Treaty of Lisbon
11th European Conference on Coal Research and its Applications – Slide 3
Aims
■ Securing coal’s position in the European energy mix through
appropriate policies, laws and regulations.
Objectives
■ Co-operating in achieving a balance between:
■ energy policy requirements
■ competitive markets
■ environmental policy initiatives
EURACOAL – aims and objectives
11th European Conference on Coal Research and its Applications – Slide 5
Coal use and wealth creation
• Electricity generation is the main use of “steam coal” – 41% of the world’s
electricity comes from coal.
• “Coking coal” (as well as iron ore and limestone) is used for steel
manufacturing.
• Industrial process heating: the cement, glass, ceramic, food and paper
industries all use coal.
photo courtesy of the American Coalition for Clean Coal Electricity
11th European Conference on Coal Research and its Applications – Slide 6
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% coal 26.4%
oil 1.8%
gas 14.3%
nuclear 27.5%
hydro (exc.pumped) 12.7%
other 17.3%
Share of coal in EU electricity, 2014
Source: Eurostat database nrg_105a last update 28.01.2016 (*includes peat)
EU average = 26.4%
11th European Conference on Coal Research and its Applications – Slide 7
Coal is the most affordable fossil fuel
Sources: BP, World Bank and McCloskey Coal Information Service bbl = barrels of oil
11th European Conference on Coal Research and its Applications – Slide 8
EU fossil fuel import dependence: import bill
grew from 1.5% of GDP in 2002 to 4.2% in 2012
sources: chart - European Commission, data – Eurostat DS 018995, 15.01.14
In 2012, the EU spent 4.2% of GDP to import €548 billion of oil, gas & coal.
2012: €423.7 billion €95.0 billion €20.8 billion
11th European Conference on Coal Research and its Applications – Slide 9
Global hard coal & lignite reserves
88% of the EU’s conventional energy reserves are in the form of coal and lignite (and 95% of our resources).
11th European Conference on Coal Research and its Applications – Slide 10
The future of lignite mining in Germany
11th European Conference on Coal Research and its Applications – Slide 11
11th European Conference on Coal Research and its Applications – Slide 12
11th European Conference on Coal Research and its Applications – Slide 13
“ ... fossil fuels – especially
coal, but also oil and, to a
lesser degree, gas – needs to
be progressively
replaced
without
delay. ”
11th European Conference on Coal Research and its Applications – Slide 13
11th European Conference on Coal Research and its Applications – Slide 14
Hans Joachim “John” Schellnhuber
11th European Conference on Coal Research and its Applications – Slide 14
11th European Conference on Coal Research and its Applications – Slide 15
Risks and impacts of climate change – the IPCC’s “burning embers” diagram
2°C
11th European Conference on Coal Research and its Applications – Slide 16
“ Scientists
should be on tap,
but not on top. ”
11th European Conference on Coal Research and its Applications – Slide 16
11th European Conference on Coal Research and its Applications – Slide 17
NO JOBS ON A DEAD
PLANET campaign by the European Trade Union Confederation
11th European Conference on Coal Research and its Applications – Slide 18
Guardian (350.org) “Keep it in the ground” campaign
11th European Conference on Coal Research and its Applications – Slide 18
11th European Conference on Coal Research and its Applications – Slide 19
PM Donald Tusk on Energy Union FT, 22 April 2014
11th European Conference on Coal Research and its Applications – Slide 19
11th European Conference on Coal Research and its Applications – Slide 20
“EU’s commitment to a clean energy transition is irreversible and non-negotiable.” p.5 COM(2016) 110 on Energy Union
Vice President for Energy Union, Maroš Šefčovič and Commissioner for Climate and Energy, Miguel Arias Cañete
11th European Conference on Coal Research and its Applications – Slide 20
11th European Conference on Coal Research and its Applications – Slide 21
Carbon capture and storage
11th European Conference on Coal Research and its Applications – Slide 22
Poland’s CO2 storage site
11th European Conference on Coal Research and its Applications – Slide 23
E.ON Kingsnorth 1600 MW with CCS
11th European Conference on Coal Research and its Applications – Slide 24
CCS is not enough.
We have to have a narrative that fits
with today’s political vision.
We need to appear to be
disappearing, while gaining some respect for the role of coal during the
“energy transition”.
750 seats in the European Parliament
11th European Conference on Coal Research and its Applications – Slide 25
2030 proposals – some good points, some bad
1. A 40% GHG reduction target c.f. 1990 with no further
“conditional” targets offered at international negotiations
2. A 27% EU-wide binding target for renewable energy in
final energy consumption
3. ETS allowance cap to shrink by 2.2% each year from
2021 (c.f. 1.74% now)
4. A new market stability reserve for the ETS from 2021
(Phase IV) – from 2019 after revision
5. Carbon leakage protection to continue. Innovation Fund
and Modernisation Fund
6. Indicators for energy price competitiveness and energy
security
?
11th European Conference on Coal Research and its Applications – Slide 26
EU Emission Trading Scheme = zero CO2 in 2058
EU ETS is the key instrument designed for the long term.
MtCO2-eq.
11th European Conference on Coal Research and its Applications – Slide 27
2030 package would be a bonanza for gas
0
2
4
6
8
10
coal gas coal gas
CO2 costs per kWh
fuel costs per kWh
€ct / kWh
Proposal from the European Commission implies fuel switching to gas at a high cost to consumers with EUAs at €55/tCO2!
11th European Conference on Coal Research and its Applications – Slide 28
Flexibility is needed to balance renewables
0
200
400
600
800
1,000
1,200
0 5 10 15 20 25 30
MW
minutes
BoA 1 to 3
Maximum load ~ 1,000 MW
Minimum load ~ 500 MW
Maximum ramp rate +/- 30 MW/min
Gas-fired CCGT at Lingen
Maximum load ~ 2 × 400 MW
Minimum load ~ 520* / 260** MW
Maximum ramp rate +/- 32 MW/min
* 2 boilers operating** 1 boiler operating
min. load**
min. load**Maximum load ~ 2 × 550 MW
Minimum load ~ 350* / 175** MW
Maximum ramp rate +/- 30 MW/min
BoAplus
Coal-fired power plants match the flexibility of gas-fired power plants.
11th European Conference on Coal Research and its Applications – Slide 29
New coal-fired power plants in the Netherlands
11th European Conference on Coal Research and its Applications – Slide 30
■ Engie (GDF Suez, Electrabel) Maasvlakte (Rotterdam) 800 MW
■ Uniper (Eon) Maasvlakte 3 (Rotterdam) 1116 MW
■ RWE Eemshaven (Groningen) 1560 MW
Conclusion: 3-step clean coal strategy
A pragmatic 3-step strategy for a cleaner more prosperous future.
• TODAY: replace old power plants with new plants
• TOMORROW: R&D for high efficiency and flexibility
• DAY AFTER TOMORROW: CO2 capture and storage
demonstration + public CO2 infrastructure
11th European Conference on Coal Research and its Applications – Slide 31
Brian RICKETTS, Secretary-General
European Association for Coal and Lignite AISBL
168 avenue de Tervueren, boîte 11
BE-1150 Brussels
Belgium
ricketts euracoal.org
www.euracoal.eu
Thank you!