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This book deals with two inconsistent myths that persistently surround industrial use of coal. The first myth is that the Clean Air Act precluded the use of coal; the second, that industrial use of coal will expand rapidly as a result of purely economic choices. Through analyzing fuel-use decisions actually made by industry, Mr. Alm concludes that environmental quality standards have played a minor role in industrial choice of fuel. Historically, natural gas and oil have been both less costly and more convenient fuels for industry to use. Coal gained a substantial economic advantage over oil after the oil price increases of the last decade, yet it continues to maintain a lower market share than economics alone would suggest. Mr. Alm demonstrates that coal's share of the fuel market will continue to remain low because of the way U.S. businesses view fuel-use choices. For most U.S. firms, energy costs are a relatively small portion of total costs and a minor factor in a firm's ability to compete. Faced with alternative capital projects to expand production facilities or to make mandatory investments, companies do not generally give high priority to coal conversion projects. Moreover, most U.S. firms have little experience with burning coal, and that lack of expertise creates additional psychological and institutional barriers to coal's use. Finally, there is a tendency to prefer high-payoff, short-term investments over projects that promise cost savings many years in the future. These are all strong reasons for coal's lackluster performance in the industrial market—much more potent forces than environmental regulations.
Coal will continue to provide a major portion of energy requirements in the United States for at least the next several decades. It is imperative that accurate information describing the amount, location, and quality of the coal resources and reserves be available to fulfill energy needs. It is also important that the United States extract its coal resources efficiently, safely, and in an environmentally responsible manner. A renewed focus on federal support for coal-related research, coordinated across agencies and with the active participation of the states and industrial sector, is a critical element for each of these requirements. Coal focuses on the research and development needs and priorities in the areas of coal resource and reserve assessments, coal mining and processing, transportation of coal and coal products, and coal utilization.
The U.S. Department of Energy (DOE) was given a mandate in the 1992 Energy Policy Act (EPACT) to pursue strategies in coal technology that promote a more competitive economy, a cleaner environment, and increased energy security. Coal evaluates DOE's performance and recommends priorities in updating its coal program and responding to EPACT. This volume provides a picture of likely future coal use and associated technology requirements through the year 2040. Based on near-, mid-, and long-term scenarios, the committee presents a framework for DOE to use in identifying R&D strategies and in making detailed assessments of specific programs. Coal offers an overview of coal-related programs and recent budget trends and explores principal issues in future U.S. and foreign coal use. The volume evaluates DOE Fossil Energy R&D programs in such key areas as electric power generation and conversion of coal to clean fuels. Coal will be important to energy policymakers, executives in the power industry and related trade associations, environmental organizations, and researchers.
Large U.S. coal reserves and viable technology make promising a domestic industry producing liquid fuels from coal. Weighing benefits, costs, and environmental issues, a productive and robust U.S. strategy is to promote a limited amount of early commercial experience in coal-to-liquids production and to prepare the foundation for managing associated greenhouse-gas emissions, both in a way that reduces uncertainties and builds future capabilities.
In response to new environmental pressures on coal utilization, this report examines the benefits of coal-liquid fuels as an alternative and environmentally more benign fuel source. The evaluation is based on a detailed assessment of the impact of coal-liquid fuels on the various stages of a coal energy utilization cycle and a review of coal production technologies and their applications. The report also includes a crude assessment of costs and savings in the production, transportation, and utilization of coal-liquid fuels.
America has officially entered the “coal cost crossover” – where existing coal is increasingly more expensive than cleaner alternatives. Today, local wind and solar could replace approximately 74 percent of the U.S. coal fleet at an immediate savings to customers. By 2025, this number grows to 86 percent of the coal fleet. This analysis complements existing research into the costs of clean energy undercutting coal costs, by focusing on which coal plants could be replaced locally (within 35 miles of the existing coal plant) at a saving. It suggests local decision-makers should consider plans for a smooth shut-down of these old plants—assessing their options for reliable replacement of that electricity, as well as financial options for communities dependent on those plants. This report should begin a longer conversation about the most cost-effective replacement for coal, which may include combinations of local or remote wind, solar, transmission, storage, and demand response.