Consol was commenting on the recently released US Environmental Protection Agency (EPA) air quality rules that are expected to reduce sulphur dioxide (SO2) by 73% and nitrogen oxides (NOx) by 61%, and the Clean Air Mercury Rule (CAMR).

 

Power generators in 28 eastern and mid-western states will be affected by the new rules, which provide for lower standards for SO2 and NOx, and the first-ever standards for mercury. According to Consol, this will result in a significant increase in the use of modern pollution control technologies.

 

Generators will have to retrofit new technologies to existing plants to be in compliance with the new EPA rulings. Consol believes that as pollution control equipment is deployed, all US-produced coal will have to undergo emissions reduction.

 

“As a coal's sulphur content becomes less a concern [because of technology], high-Btu coals in the eastern United States should become more attractive as a fuel source to eastern power plants because of those coals' lower delivered cost per Btu,” the company said.

 

The company criticised the mercury rule, saying no coal-type should be given an artificial regulatory or legislative advantage over another, saying a level playing field for various US coals was required.

 

“By keeping all of America's coal resources available for use, this country can take an important step toward energy independence,” Consol said.

 

The proposed rules are expected to have a positive affect on areas east of the Mississippi River, with an increase in mining jobs in the eastern coal producing areas and the creation of a demand for skilled labour to install the pollution control equipment.

 

Consol urged all branches of the US government to work together to reduce uncertainty with regard to environmental regulations affecting coal-fired power plants.

 

“Consistent, predictable, and uniform rules allow companies to develop appropriate plans and to make investments in technology at the lowest cost to their investors or ratepayers," Consol said.