HOGSBACK

Hogsback on coal's Asian low emissions future

COAL miners must be loving the daily soap opera thread concerning the future of the Liddell power station in New South Wales, PM Malcolm Turnbull, and the Twitter-friendly AGL chief Andy Vesey.

Lou Caruana
Hogsback on coal's Asian low emissions future

While the Australian energy supply paradigm is in disarray and Liddell power station’s shelf life is in doubt, the main game is coal exports. 

Australia’s large coal miners have realised there will be continued demand for Australia’s high quality coal for decades to come and have adjusted their supply chain accordingly to the major ports rather than the legacy power stations. 

According to the International Energy Agency, coal will be the single largest source of electricity in 2040.

The world’s largest coal mining and consuming country, China, is seeking to reform the quality of its coal-fired power generation as it rationalises its vast power generation fleet and its plethora of coal mining operations, both underground using longwall top coal caving techniques and the more conventional dragline and open cut.

Last month China approved the world's largest power company with more than 225 gigawatts of capacity. Electricity producer China Guodian and coal company Shenhua Group will merge and the company will generate most of its energy from coal.

High energy low emission technologies being used in Asia can increase the amount of energy generated from a coal plant while decreasing emissions.

The Economic Research Institute for Association of South East Asian Nations and East Asia embarked on a study on emission regulations in fiscal 2016-17 for coal-fired power plants in ASEAN, with a comparative analysis of emission standards and regulations for CPPs in ASEAN and some OECD countries. 

The results showed that ASEAN countries had relatively high allowable emissions in terms of sulphur oxides, nitrogen oxides, and particulate matter. 

This means ASEAN as a bloc has lower emission standards compared with advanced countries such as Germany, Korea, and Japan where clean coal technology is mandatory, according to ERIA economist Han Phoumin.

China significantly improved its emission standards for CPPs due to government policy to reduce air pollution and encourage clean energy.

Moving the current average global efficiency rate of coal-fired power plants from 33% to 40% by deploying more advanced technology could cut 2 gigatonnes of CO2 emissions, equivalent of India’s annual CO2 emissions.

World Coal Association CEO Benjamin Sporton who has been travelling around Asia and will be in Australia today, says it will be the new coal-fired power station technology that will carry the day.

“I’m more convinced that coal will continue to power development in many regions of the world,” he said. 

“It is therefore essential that we do so with the lowest emissions profile possible. 

“The WCA is committed to supporting the deployment of HELE coal and stand ready to work with key stakeholders worldwide.”  

The ERIA study noted Australia still used some traditional coal-fired plants yet to retire.

Hogsback thinks that maybe Australia should be looking to its northern neighbours about the path ahead when it comes to power generation.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

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