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COAL
utilities are prepared to install CCT only if the re
lated costs are competitive, particularly with
natural gas, and if the technological advantages
have been demonstrated.
All respondents to the CIAB questionnaire
believed that coal was an important long-term ele
ment of a balanced, secure, fuel supply portfolio
for power generation. The use of coal for power
generation was considered essential to the con
tinued economic growth of many countries.
There is considerable power utility interest in ad
vanced CCTs which potentially provide a sig
nificant commercial opportunity. However, a key
concern was the high capital cost of CCT-as
defined for the purposes of this report. CCT was
currently
seen as too expensive and hence a
major barrier to its commercial application.
Several respondents emphasized the substantial
environmental benefits that can be achieved by
the wider application of currently available state-
of-the-art pulverized coal generating tech
nologies combined with flue gas desulfurization,
and low NOx burner technology.
Most power utilities indicated that they will utilize
CCT when the technologies are adequately
demonstrated, the economics are attractive and
the environmental performance needs have been
proved to be needed. But, because these tech
nologies are currently too expensive, caution is
needed in raising
commercial realities.
expectations in advance of
In this regard, several power utilities wish to see
substantial operating experience (several years)
with CCTs from a number of commercial
demonstration plants before being satisfied on
commercial aspects, in particular, their long-term
performance. Others would accept a much
shorter probationary period. It is clear however
that, at the moment, many utilities are concerned
by the lack of a proven track record of truly
commercial-scale operation from which the
operational reliability
could be established.
and overall performance
4-24
Barriers to the commercial deployment of CCT
were regarded as being a function of the per
ceived risk-which would be minimized by the
demonstration plants under construction in
various countries. Figure 1 shows the develop
ment status of IGCC. Most power utilities saw
the Buggenum plant in The Netherlands as a cru
cial test of IGCC, particularly
with respect to
reliability, availability and maintenance aspects.
Some utilities believed that the global wanning
Issue damages the prospects for CCT. While
higher efficiency is the most immediately avail
able option for controlling emissions of C02 from
coal-fired generation-paradoxically, the global
warming discussion hinders the introduction of
higher efficiency, environmentally friendly CCTs
as long as sufficient natural gas is available.
It was suggested that all new technology of sig
nificance requires considerable government sup
port in its early formative years. Examples in
clude nuclear power, the space and aircraft in
dustry, electronics and communications. So far,
most of the development of CCTs had been un
dertaken by private industry. It was felt, by the
majority, the governments could be doing more
to hasten the commercial introduction of CCTs.
Encouragement and assistance with commercial
demonstration projects, "fast
track"
regulatory
conditions and some form of risk sharing were
areas where governments could play an impor
tant future role. A minority of respondents were
opposed to government involvement.
It was considered that manufacturers had
marketed their products effectively but that it was
too early for aggressive marketing of products
still considered to be in their infancy.
In noting the negative image of coal, particularly
with the general public, many respondents felt
that considerable effort was now required to rec
tify this by all participants in the coal chain. In
particular, it was believed that the public and
governments should be made aware not only of
the considerable potential of new technologies
capable of improving the environmental perfor-
THE SYNTHETIC FUELS REPORT, JANUARY 1995