COAL: SECURE ENERGY - World Coal Association
COAL: SECURE ENERGY - World Coal Association
COAL: SECURE ENERGY - World Coal Association
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WORLD <strong>COAL</strong> INSTITUTE<br />
<strong>COAL</strong>: <strong>SECURE</strong> <strong>ENERGY</strong>
<strong>COAL</strong>: <strong>SECURE</strong> <strong>ENERGY</strong><br />
<strong>Coal</strong>: Secure Energy is the latest in a series of<br />
reports by the <strong>World</strong> <strong>Coal</strong> Institute on the<br />
contribution of coal to global sustainable<br />
development. It develops the position set out<br />
in The Role of <strong>Coal</strong> as an Energy Source [WCI,<br />
2003] on coal’s role in maintaining global<br />
energy security through the key messages:<br />
>> <strong>Coal</strong> reserves are large and will be available<br />
for the foreseeable future without raising<br />
geopolitical or safety issues;<br />
>> Indigenous coal resources enable economic<br />
development and can be transformed to guard<br />
against import dependence and price shocks;<br />
>> <strong>Coal</strong> is readily available from a wide variety of<br />
sources in a well-supplied worldwide market;<br />
>> <strong>Coal</strong> is an affordable source of energy;<br />
>> <strong>Coal</strong> does not need high pressure pipelines or<br />
dedicated supply routes; routes do not need<br />
to be protected at enormous expense;<br />
The development and use of clean coal<br />
technologies, including carbon capture and<br />
storage, allows these energy security benefits<br />
to be realised while meeting the environmental<br />
goals our societies have set.<br />
This report calls for policy support to:<br />
>> Enable the clean and efficient use of coal;<br />
>> Facilitate technology transfer to<br />
developing economies;<br />
>> Promote research, development<br />
and demonstration;<br />
>> Reduce investment uncertainty;<br />
>> Address environmental concerns.<br />
Copies of all WCI publications and further<br />
information on the coal industry are available on<br />
our website: www.worldcoal.org<br />
>> <strong>Coal</strong> can be easily stored at power stations<br />
and stocks can be drawn on in emergencies;<br />
>> <strong>Coal</strong>-based power is well-established<br />
and reliable;<br />
>> <strong>Coal</strong>-based power is not dependent on the<br />
weather and can be used to underpin<br />
renewable energy, particularly wind power.
<strong>Coal</strong>: Secure Energy 1<br />
Contents<br />
2 INTRODUCTION – WHY <strong>COAL</strong>?<br />
4 SECTION 1 <strong>ENERGY</strong> DEMAND & SUPPLY<br />
6 SECTION 2 <strong>ENERGY</strong> SECURITY<br />
8 SECTION 3 <strong>COAL</strong> - PROVIDING <strong>SECURE</strong> <strong>ENERGY</strong><br />
19 SECTION 4 ACHIEVING <strong>ENERGY</strong> SECURITY<br />
20 SECTION 5 POLICY MEASURES<br />
21 ANNEX: <strong>ENERGY</strong> SECURITY DRIVERS<br />
23 REFERENCES
2 <strong>World</strong> <strong>Coal</strong> Institute<br />
INTRODUCTION<br />
WHY <strong>COAL</strong>?<br />
>> Energy, particularly electricity, is essential for<br />
economic and social progress, enhancing people’s<br />
quality of life and lifting many out of poverty. >><br />
The need for affordable, reliable and<br />
dependable power to provide the essential<br />
needs of lighting, heating, cooking, mobility<br />
and communications – as well as driving<br />
industrial growth – is without question.<br />
Modern technologies, requiring high quality<br />
power supplies, underpin today’s societies and<br />
facilitate economic growth in many<br />
underdeveloped countries.<br />
Interruption of energy supplies can cause<br />
major financial losses and create havoc in<br />
economic centres, as well as potential damage<br />
to the health and wellbeing of the population.<br />
As global demand for energy continues to rise<br />
- especially in rapidly industrialising and<br />
developing economies – energy security<br />
concerns become ever more important. To<br />
provide solid economic growth, and to<br />
maintain levels of economic performance,<br />
energy must be readily available, affordable<br />
and able to provide a reliable source of power<br />
without vulnerability to long-term or<br />
short-term disruptions.<br />
Key Messages<br />
<strong>Coal</strong> has long been and will remain one of<br />
society’s most secure forms of energy,<br />
offering many advantages.<br />
>> <strong>Coal</strong> is abundant and widespread.<br />
>> Major developed and developing<br />
economies have large indigenous<br />
coal reserves.<br />
>> <strong>Coal</strong> is readily available from a wide<br />
variety of sources in a well-supplied<br />
worldwide market.<br />
>> <strong>Coal</strong> is affordable.<br />
>> <strong>Coal</strong> is safe to transport and store.<br />
>> <strong>Coal</strong> can be stockpiled at mines, power<br />
stations, or intermediate locations.<br />
>> <strong>Coal</strong>-based electricity is well-established<br />
and highly reliable.<br />
>> <strong>Coal</strong> is not dependent on weather or rainfall.<br />
>> <strong>Coal</strong> is addressing its environmental challenges.
Providing a secure supply of energy comprises<br />
two distinct, yet related issues:<br />
i) long-term security or resource availability; and<br />
ii) short-term security – associated with<br />
supply disruptions of the primary fuel or of the<br />
electricity generated.<br />
The forecast growth in energy demand means<br />
that we will need many sources of energy in<br />
future. A diverse mix of energy sources, each<br />
with different advantages, provides security to<br />
an energy system by allowing flexibility in<br />
meeting each country’s needs.<br />
<strong>Coal</strong> does face environmental challenges and<br />
these too can have implications for energy<br />
security and sustainable development.<br />
However, the coal industry has a proven track<br />
record of developing technology pathways<br />
which have successfully addressed<br />
environmental concerns at local and regional<br />
scales. Ongoing research efforts into<br />
improving the efficiency of coal-fired<br />
electricity generation and technologies for<br />
carbon capture and storage (CCS) offer routes<br />
to reduce carbon dioxide (CO 2 ) emissions now<br />
and in the future, enabling the energy security<br />
benefits of coal-fired power generation to<br />
continue to be realised. 1 <strong>Coal</strong>: Secure Energy 3<br />
<strong>Coal</strong> has a unique role to play in meeting the<br />
demand for a secure energy supply. <strong>Coal</strong> is<br />
well-established – globally it is the most<br />
abundant and economical of fossil fuels - and<br />
is a reliable, secure and affordable fuel for<br />
both power generation and industrial<br />
applications. The production and utilisation of<br />
coal is based on well-proven and widely used<br />
technologies. The use of coal is built on a vast<br />
infrastructure and a strong base of expertise<br />
worldwide. Most of the world’s largest energyusing<br />
economies and many developing<br />
economies have abundant indigenous<br />
supplies of coal.<br />
INTRODUCTION END<br />
1<br />
See the <strong>World</strong> <strong>Coal</strong> Institute report Clean <strong>Coal</strong> – Building a Future through Technology for a more detailed<br />
account of the significant role of clean coal technologies in improving the environmental performance of<br />
coal-fired power stations.
4 <strong>World</strong> <strong>Coal</strong> Institute<br />
SECTION ONE<br />
<strong>ENERGY</strong> DEMAND<br />
& SUPPLY<br />
>> Global economic growth, the primary driver of energy<br />
demand, is conservatively forecast to average 3.2% per<br />
annum between 2002 and 2030, with China, India and<br />
other Asian countries expected to grow most quickly. >><br />
Population growth will continue, with the world’s<br />
population expected to reach over 8 billion by<br />
2030, from its current level of 6.4 billion.<br />
As a result, and if governments continue with<br />
their current policies, global energy demand is<br />
projected to grow almost 60% by 2030 – to<br />
16.5 billion tonnes of oil equivalent 2 per year<br />
[IEA, 2004a].<br />
Fossil fuels will account for the bulk of this<br />
increase and will continue to dominate the<br />
total demand for energy for the foreseeable<br />
future. While nuclear energy provides a<br />
significant proportion of energy in some<br />
economies, it can face serious public<br />
opposition. Renewable energies are growing<br />
fast, but make up only a small part of global<br />
energy production – the International Energy<br />
Agency (IEA) predict that by 2030 only 14% of<br />
total energy demand will be met from<br />
renewable sources.<br />
trade. Energy exports from non-OECD<br />
countries are expected to grow by more than<br />
80% between 2002 and 2030 [IEA, 2004a]. Oil<br />
will continue to dominate international trade<br />
and gas imports are expected to rapidly<br />
increase. While this will enhance prosperity<br />
and security in the exporting countries, it may<br />
adversely affect energy security in importing<br />
countries due to increased dependence on<br />
imports from a limited, and potentially<br />
unstable, supply.<br />
In contrast, many countries enjoy sizeable<br />
indigenous coal resources while others are able<br />
to take advantage of a diverse, rapidly growing<br />
and well-supplied international market.<br />
SECTION ONE END<br />
Two-thirds of the increase in world primary<br />
energy demand between 2002 and 2030 will<br />
come from developing countries, predominantly<br />
developing Asian economies. Demand in China<br />
grew by almost 14% in 2003 alone [IEA, 2004a]<br />
– and much of this was for coal.<br />
Increasing demand and the shifting<br />
geographical location of available reserves will<br />
result in significant increases in oil and gas<br />
2<br />
Common energy unit – equal to the net heat content of 1 tonne of crude oil, or 10 7 kilocalories. 1 tonne of oil equivalent<br />
is approximately 1.5 tonnes of hard coal.
<strong>Coal</strong>: Secure Energy 5<br />
Global Primary Energy Demand (Mtoe)<br />
Source: IEA, 2004a<br />
7000<br />
6000<br />
5000<br />
4000<br />
3000<br />
■ Oil<br />
■ Natural Gas<br />
■ <strong>Coal</strong><br />
■ Other<br />
■ Nuclear<br />
■ Hydro<br />
■ New Renewables<br />
2000<br />
1000<br />
0<br />
1971<br />
2002<br />
2010<br />
2020<br />
2030<br />
Regional Shares in <strong>World</strong> Primary Energy Demand (2002)<br />
Regional Shares in <strong>World</strong> Primary Energy Demand (2030)<br />
10%<br />
9%<br />
52% 10,200 Mtoe<br />
48% 16, 625 Mtoe<br />
38%<br />
43%<br />
■ OECD<br />
■ Developing countries<br />
■ Developing countries<br />
■ OECD<br />
■ Transition economies 3<br />
■ Transition economies 3<br />
Source: IEA 2004a<br />
Source: IEA 2004a<br />
3<br />
Transition economies are defined by the International Energy Agency as Albania, Armenia, Azerbaijan, Belarus,<br />
Bosnia-Herzegovina, Bulgaria, Croatia, Estonia, FR Yugoslavia, FYR Macedonia, Georgia, Kazakhstan, Latvia, Lithuania,<br />
Moldova, Romania, Russia, Slovenia, Tajikistan, Turkmenistan, Ukraine & Uzbekistan. For statistical reasons, Cyprus,<br />
Gibraltar and Malta are included in this group.
6 <strong>World</strong> <strong>Coal</strong> Institute<br />
SECTION TWO<br />
<strong>ENERGY</strong> SECURITY<br />
>> Energy security has been defined as “the continuous<br />
availability of energy in varied forms, in sufficient<br />
quantities and at affordable prices” [UNDP, 2001]. >><br />
Variable Daily Urban Electricity Demand (UK) – Factor of Winter Maximum<br />
■ Winter<br />
■ Summer<br />
Source: WPD, 2004<br />
1.0<br />
0.9<br />
0.8<br />
0.7<br />
0.6<br />
0.5<br />
0.4<br />
0.3<br />
0.2<br />
0.1<br />
0<br />
00:30<br />
02:00<br />
03:30<br />
05:00<br />
06:30<br />
08:00<br />
09:30<br />
11:00<br />
12:30<br />
14:00<br />
15:30<br />
17:00<br />
18:30<br />
20:00<br />
21:30<br />
23:00<br />
00:30<br />
A key issue is resource availability – the actual<br />
physical amount of the resource, for example<br />
oil, gas, coal or uranium, present around the<br />
world. In the case of renewable energies, this<br />
could be considered as the amount of time the<br />
wind blows at the right speed, or the number of<br />
‘sun hours’ at a particular location.<br />
A different aspect of energy is the need for<br />
system reliability – the continuous supply of<br />
energy, particularly electricity, to meet<br />
consumer demand at any given time.<br />
There are many drivers governing the secure<br />
supply of energy (see Annex p.21). Different<br />
sources of energy meet different needs –<br />
some are best suited to baseload generation,<br />
others to peaking, and others to meet<br />
environmental considerations. A diverse mix is<br />
one way to ensure security of supply. <strong>Coal</strong> has<br />
particular attributes that make a positive<br />
contribution to energy security as part of a<br />
balanced energy mix.<br />
SECTION TWO END
<strong>Coal</strong>: Secure Energy 7<br />
Electricity Systems – the Need for Flexibility<br />
For most consumers, electricity is provided<br />
by a grid or network, and is the product of a<br />
system, not of a single source. To remain<br />
secure and stable, the system needs to<br />
operate within narrow technical limits and<br />
requires a degree of flexibility and<br />
controllability in generation.<br />
System operation is complicated by the fact<br />
that electricity cannot be stored directly in<br />
the same way as commodities (e.g. coal<br />
stockpiles at power stations) and demand<br />
varies not only from year to year and<br />
between seasons but hour to hour, even<br />
minute to minute.<br />
The minimum electricity requirement is<br />
known as ‘baseload’. However, on a typical<br />
winter morning, demand can increase by 50%<br />
or more (‘peakload’ at maximum) over less<br />
than two hours as people get up, turn on<br />
lights, cook and use other electrical<br />
equipment, and as offices and factories<br />
start operations, with a similar drop in<br />
demand in the evening.<br />
Some of the variation is predictable, but<br />
much depends on short-term factors – the<br />
screening of a popular television programme,<br />
or a sudden change in the weather can<br />
have a significant impact on demand for<br />
electricity. In some countries, consumers<br />
have “interruptible” supplies, which are<br />
cut off at will by the electricity supplier,<br />
but all people value electricity highly and<br />
ideally want a continuous supply at<br />
whatever level they need it.<br />
In practice, therefore, electricity systems<br />
have to match supply and demand by<br />
producing sufficient supply, not only to<br />
meet the overall level of demand, but also<br />
to maintain the stability and security of<br />
the system, minute by minute. They also<br />
need to have enough generating capacity<br />
available to operate, sometimes at short<br />
notice, when required. Since demand varies<br />
significantly and (to an extent)<br />
unpredictably, some generation at least<br />
has to be flexible, predictable and<br />
controllable if the system as a whole is<br />
to meet requirements.<br />
Baseload generation will operate 24 hours<br />
a day, 7 days a week, with additional plants<br />
being brought on line to provide the<br />
peakload power as and when required.
8 <strong>World</strong> <strong>Coal</strong> Institute<br />
SECTION THREE<br />
<strong>COAL</strong> – PROVIDING<br />
<strong>SECURE</strong> <strong>ENERGY</strong><br />
>> <strong>Coal</strong> is a truly global industry – it is mined commercially<br />
in over 50 countries and is used in over 70 [WEC, 2004b]. >><br />
Location of the <strong>World</strong>’s Main Fossil Fuel Reserves (Gigatonnes of coal equivalent 5 )<br />
■ <strong>Coal</strong><br />
■ Oil<br />
■ Gas<br />
Source: Optima 2005<br />
The world currently consumes over 5500<br />
million tonnes of coal 4<br />
for use in power<br />
generation, steel production, cement<br />
manufacture, as a chemical feedstock and as a<br />
liquid fuel [IEA, 2005a].<br />
<strong>Coal</strong> reserves are large and will be available for<br />
the foreseeable future without raising<br />
geopolitical or safety issues.<br />
258 16 11<br />
North America<br />
97 7 8<br />
Western &<br />
Southern Europe<br />
22 25 11<br />
South America<br />
225 21 86<br />
33 1 1<br />
Former<br />
Soviet Union<br />
Central &<br />
Eastern Europe<br />
2 179 110<br />
Middle East<br />
84 1 1 115 6 3<br />
India<br />
China<br />
55 25 21<br />
Africa<br />
94 6 17<br />
Asia<br />
& Oceania<br />
There is no doubt that there are sizeable<br />
worldwide reserves of coal – at current<br />
production and consumption rates, over 160<br />
years’ worth is available [BP, 2005]. This is in<br />
contrast to ‘conventional’ oil and gas, with<br />
various forecasts indicating a depletion of<br />
supplies as early as the middle of this century.<br />
Although renewable energies cannot be<br />
considered by the same measure there are<br />
issues of concern, particularly their reliability<br />
and intermittency. Nuclear energy also faces<br />
availability concerns, although these revolve<br />
around political acceptability rather than<br />
resource availability. Nuclear safety and<br />
concerns over disposal of nuclear wastes are<br />
clearly key issues.<br />
Mined in over 50 countries around the world,<br />
coal is in a unique position to support national<br />
and regional energy security. <strong>Coal</strong> reserves are<br />
spread even more widely and with new mining<br />
4<br />
4646 Mt of hard coal; 879 Mt of brown coal.<br />
5<br />
A common energy unit based on calorific value. The energy content of one tonne of coal equivalent (tce) is 7000 kcal,<br />
which corresponds to 0.7 tonnes of oil equivalent (toe).
<strong>Coal</strong>: Secure Energy 9<br />
techniques or with different economic<br />
circumstances, further resources could be<br />
recovered and used in the future.<br />
<strong>Coal</strong> reserves are significantly more abundant<br />
and much more widely and evenly dispersed<br />
than other fossil fuels. Oil and gas reserves are<br />
tightly concentrated in the Middle East and the<br />
Former Soviet Union.<br />
Indigenous coal resources enable economic<br />
development and can be transformed to guard<br />
against import dependence and price shocks.<br />
Future Availability of Fossil Fuels –<br />
Reserves-to-Production Ratios (Years)<br />
■ ■ <strong>Coal</strong><br />
■ ■ Oil<br />
■ ■ Natural Gas<br />
Source: BP, 2005<br />
350<br />
300<br />
250<br />
200<br />
150<br />
Many developing and developed countries are<br />
able to use their indigenous coal resources to<br />
provide the energy needed for economic<br />
development. The largest coal producing<br />
countries are not confined to one region – the<br />
top five producers are China, USA, India,<br />
Australia and South Africa. All of these use<br />
their indigenous coal as the primary fuel for<br />
electricity generation, and all except India have<br />
a sizeable coal export market.<br />
100<br />
50<br />
0<br />
<strong>World</strong><br />
North America<br />
South America<br />
<strong>Coal</strong> Liquefaction<br />
Europe/Asia<br />
Africa/Middle East<br />
Asia Pacific<br />
<strong>Coal</strong> has furthered social development through<br />
electrification programmes around the world.<br />
South Africa and China have both achieved<br />
extremely high levels of connection to<br />
electricity supply, and have done so using their<br />
indigenous coal reserves.<br />
<strong>Coal</strong> can also be transformed to liquid and<br />
gaseous fuels to guard against oil import<br />
dependence and price shocks – South Africa<br />
has a well-established coal-to-liquids industry,<br />
and China is currently adopting this<br />
technology. <strong>Coal</strong> gasification is a further<br />
example where indigenous (or imported) fuels<br />
can be transformed to address environmental<br />
concerns while enhancing energy security.<br />
The production of liquid fuels – gasoline and<br />
diesel – from coal is not a new process. The<br />
first patent was registered in 1913, with the<br />
more common Fischer-Tropsch indirect<br />
liquefaction process patented in 1925.<br />
Historically it has been politics rather than<br />
economics that have driven development<br />
since then – for example during the Second<br />
<strong>World</strong> War in Germany, and as a result of trade<br />
embargoes on South Africa from the 1960s.<br />
Today China is addressing its oil import<br />
dependence by building a commercial scale<br />
direct liquefaction plant in Inner Mongolia,<br />
which will produce around 50,000 barrels a<br />
day of finished gasoline and diesel fuel.
10 <strong>World</strong> <strong>Coal</strong> Institute<br />
Main <strong>World</strong> <strong>Coal</strong> Trade Flows 2004<br />
Coking<br />
Steam<br />
Source: IEA 2004<br />
<strong>Coal</strong> is readily available from a wide variety of<br />
sources in a well-supplied worldwide market.<br />
<strong>Coal</strong> is also available via an international<br />
market. The market for coal is well-supplied<br />
and global. <strong>Coal</strong> can be transported to<br />
demand centres quickly, safely and easily by<br />
ship and rail.<br />
A large number of suppliers are active in the<br />
international coal market, ensuring competitive<br />
behaviour and efficient functioning.<br />
Around 16% of global hard coal production –<br />
over 750 million tonnes – is traded<br />
internationally [IEA, 2005a]. Steam coal, used<br />
for electricity generation, makes up the bulk of<br />
this international trade. <strong>Coal</strong> is regarded as a<br />
safe and reliable fuel in countries with little or<br />
no domestic production – such as Japan, the<br />
world’s largest steam coal importer (97.1 Mt in<br />
2004) where 28% of electricity is generated<br />
using coal, and Denmark, where 46% of the<br />
electricity produced in 2004 was generated<br />
from coal [IEA, 2005b].
<strong>Coal</strong>: Secure Energy 11<br />
While oil enjoys a similar global market and<br />
can also be transported quickly and easily,<br />
its market is dominated by what is<br />
effectively a single supplier – OPEC – and<br />
is affected accordingly.<br />
Energy Prices (US$ per tonne of oil equivalent)<br />
■ Oil<br />
■ Gas<br />
■ <strong>Coal</strong><br />
Source: BP, 2005; BP, 2001; IEA, 2005c; MCR, 2005<br />
The gas market is far more regional.<br />
Transportation of the fuel (limited by where<br />
the pipelines run from and to) has constrained<br />
the development of the market to date. This is<br />
changing with the advent of liquefied natural<br />
gas (LNG) transported by large, expensive<br />
vessels but a truly global market will take<br />
many years to develop.<br />
450<br />
400<br />
350<br />
300<br />
250<br />
200<br />
Well-functioning global markets with a variety<br />
of suppliers lessen the risks normally<br />
associated with import dependence. In<br />
contrast, the UK’s increasing dependency on<br />
one fuel source from a specific region (by 2020<br />
around 80% of its electricity is forecast to be<br />
dependent on imported gas from the Former<br />
Soviet Union) weakens that nation’s long-term<br />
energy security [POST, 2004].<br />
150<br />
100<br />
50<br />
1987<br />
1989<br />
1991<br />
1993<br />
1995<br />
1997<br />
1999<br />
2001<br />
2003<br />
March 05<br />
July 05<br />
<strong>Coal</strong> is an affordable source of energy.<br />
<strong>Coal</strong> prices have historically been lower and<br />
more stable than oil and gas prices, and<br />
despite the growth of index and derivative<br />
based sales in recent years, this has typically<br />
remained the case. Placing a cost on carbon<br />
emissions more directly will, in certain<br />
circumstances, put pressure on this inter-fuel<br />
cost relationship. However, coal is likely to<br />
remain the most affordable fuel for power<br />
generation in many developing and<br />
industrialised countries for several decades.<br />
Major Steam <strong>Coal</strong><br />
Exporters (Mt)<br />
Australia 106.7<br />
Indonesia 90.3<br />
PR China 80.2<br />
South Africa 63.7<br />
Russia 51.4<br />
Colombia 51.2<br />
Kazakhstan 22.0<br />
USA 19.0<br />
Poland 16.6<br />
Source: IEA, 2005a<br />
In countries with energy intensive industries<br />
the impact of fuel and electricity prices will be<br />
compounded. High prices can lead to a loss of
12 <strong>World</strong> <strong>Coal</strong> Institute<br />
Oil – Trade Flows <strong>World</strong>wide (million tonnes): Concentration of Reserves<br />
Oil<br />
Source: BP 2005<br />
competitive advantage and in prolonged<br />
cases, loss of the industry altogether.<br />
Countries with access to indigenous energy<br />
supplies, or to affordable fuels from a wellsupplied<br />
world market, can avoid many of<br />
these negative impacts – enabling further<br />
economic development and growth.<br />
Overall costs for coal power stations are<br />
usually lower than for alternative power<br />
generation, and coal will remain one of the key<br />
choices for baseload electricity generation.<br />
<strong>Coal</strong> does not need high pressure pipelines or<br />
dedicated supply routes; routes do not need to<br />
be protected at enormous expense.<br />
<strong>Coal</strong> is a safe and stable product to transport,<br />
and well-developed coal handling and<br />
stockpile management procedures are<br />
followed worldwide to ensure that supplies<br />
are available as needed.<br />
Established rail networks usually transport<br />
indigenous coal supplies. The international<br />
trade of coal is mostly seaborne, with a large
<strong>Coal</strong>: Secure Energy 13<br />
Gas – Trade Flows <strong>World</strong>wide (billion cubic metres): Regional Markets<br />
Source: BP 2005<br />
Natural Gas<br />
LNG<br />
fleet of dry bulk vessels available for<br />
transport. Although there has been<br />
competition for this carrying capacity in<br />
recent years due to China’s rapid economic<br />
growth and need for raw materials, new<br />
vessels have been commissioned to meet<br />
the demand.<br />
There are potential risks to energy<br />
infrastructure worldwide from terrorist<br />
attack – be it industrial, religious or<br />
politically motivated. Concerns have been<br />
raised particularly since the 9/11 attacks in<br />
the United States and the more recent<br />
attacks on infrastructure in Europe.<br />
Where production and transportation are<br />
concentrated, such as at pipelines, refineries,<br />
LNG terminals, oil and gas fields, as well as<br />
identifiable bottlenecks in the transport<br />
system, the risks are clearly higher.<br />
While coal is traded through infrastructure<br />
systems that could in theory be targeted in a<br />
terrorist attack (coal-handling facilities at<br />
ports, coal bulk carriers, power station<br />
stocks), the sheer number of facilities and
14 <strong>World</strong> <strong>Coal</strong> Institute<br />
Indicative Costs of Electricity Generation 6 (US$/MWh)<br />
<strong>Coal</strong> Gas Wind <strong>Coal</strong> with CCS*<br />
Investment 14 - 41 6 - 26 38 - 129 n/a<br />
Operation & Maintenance 2 - 15 1 - 8 5 - 36 n/a<br />
Fuel 1 - 35 28 - 45 - n/a<br />
Total 26 - 69 41 - 64 46 - 144 41 - 52<br />
Source: NEA/IEA, 2005; * IEA, 2004b, cost breakdown not available<br />
their geographical distribution makes it<br />
unlikely that an attack would have any real<br />
impact on the supply and functioning of the<br />
coal or electricity market.<br />
Contrast this to an attack on a major gas<br />
pipeline from Russia to the EU – at the very<br />
least the price shock would be significant, and<br />
brownouts 7 or blackouts 8 probable.<br />
<strong>Coal</strong> can be easily stored at power stations and<br />
stocks can be drawn on in emergencies.<br />
Unlike gaseous, liquid or intermittent<br />
renewable sources, coal can be stockpiled at<br />
the power station and stocks drawn on to<br />
meet demand without depending on primary<br />
supply. Thanks to the geographical diversity<br />
of coal reserves, some power stations can be<br />
located at mine-mouth and still be close to<br />
demand centres, thereby also minimising<br />
transmission and distribution losses.<br />
<strong>Coal</strong>-based power is well-established and reliable.<br />
Almost 40% of global electricity generation is<br />
currently based on coal [IEA, 2005b]. The<br />
generation technologies are well-established<br />
and technical capacity and human expertise is<br />
widespread. Ongoing research efforts around<br />
the globe ensure that this capacity is<br />
continually being improved and expanded,<br />
facilitating innovation in energy efficiency and<br />
environmental performance.<br />
<strong>Coal</strong>-based power is not dependent on the<br />
weather and can be used to underpin renewable<br />
energy, particularly wind power.<br />
Renewable energy can reduce dependency on<br />
finite energy sources and removes some of the<br />
risk around import dependence. Hydropower<br />
provides many countries with a substantial<br />
amount of their electricity needs, and can<br />
provide a secure supply – as long as there is<br />
enough rainfall to keep reservoirs full.<br />
However, when weather conditions deviate<br />
from normal, severe problems such as the<br />
blackouts experienced in Brazil (see page 16)<br />
can occur.<br />
Renewables can also cause challenges to those<br />
who need to ensure a stable and reliable flow<br />
of electricity through the grid. Wind power has<br />
been the dominant option for integration to<br />
existing energy networks. However, wind<br />
power is expensive, and suffers from reliability<br />
and intermittency problems. It is now generally<br />
accepted by power industry engineers and<br />
energy analysts that the level of wind power<br />
capacity in a grid should not exceed around<br />
10% without the grid operator incurring<br />
6<br />
At 10% discount rate.<br />
7<br />
A decrease in voltage of the electricity supply for a period of time.<br />
Can be extremely damaging to electronic devices such as computers.<br />
8<br />
A complete loss of power.
<strong>Coal</strong>: Secure Energy 15<br />
Oil Trade Bottlenecks<br />
Source: IEA 2004.<br />
Bosphorus<br />
3<br />
20 36<br />
Hormuz<br />
Suez<br />
3.8<br />
15.3<br />
Panama<br />
5 4<br />
0.4 3.3<br />
Bab el-Mandab<br />
Malacca<br />
11<br />
14 20<br />
15.3<br />
Oil flow, 2003 (mb/d) Share of <strong>World</strong> Oil Demand (%)<br />
2003 2030<br />
significant costs to deal with the intermittency<br />
issues. Eltra, the transmission system operator<br />
for western Denmark, reported additional<br />
‘balancing’ costs of around €9 million as a<br />
result of their wind power generation in 2003<br />
[NEA/IEA, 2005].<br />
Wind power therefore has to be balanced by<br />
flexible generation elsewhere in the system. It<br />
is no accident that the countries with the<br />
highest penetrations of wind power also have<br />
high proportions of coal-fired capacity in<br />
their systems (see table on page 18, which<br />
shows the top five wind generators). In all<br />
these countries coal is the largest single<br />
source of electricity and in most 50% or more<br />
of their electric power comes from coal.<br />
Other factors are also involved, of course, and<br />
coal is not the only possible source of<br />
flexibility. However, coal is one of the easiest<br />
ways of providing the flexibility required.<br />
These countries provide a clear illustration of<br />
the complementarity of coal and wind and the<br />
ability of a coal-based network to facilitate the<br />
rapid introduction of wind power.
16 <strong>World</strong> <strong>Coal</strong> Institute<br />
BLACKOUTS & SHORTFALLS<br />
Blackouts and shortfalls – why do they happen?<br />
BRAZIL (2001)<br />
Brazil suffered severe disruption<br />
during 2001 due to its over-reliance<br />
on hydro. 80% of the total electric<br />
power capacity is hydro, providing up to 90% of<br />
total electricity production. Brazil has some of<br />
the world’s largest dams, but reservoir capacity<br />
is small, leading to immediate impacts from<br />
changes in rainfall. In addition, the level of<br />
interconnection is high, causing changes to<br />
rapidly affect the whole grid. Droughts in 2001<br />
combined with increased demand due to<br />
economic growth highlighted the vulnerability of<br />
the system, leading to a highly publicised<br />
electricity shortfall.<br />
Solution - Introducing coal.<br />
According to reports [EIA, 2005], Brazil's<br />
national development bank, Banco Nacional de<br />
Desenvolvimento Economico e Social (BNDES), is<br />
developing a plan to expand the country's coal<br />
industry. BNDES hopes that the proposed<br />
programme will make Brazil self-sufficient in coal<br />
by 2010 and eventually a net exporter of coal.<br />
CALIFORNIA (2000–2001)<br />
A number of events combined over the period<br />
2000-2001 to create one of the most<br />
famous energy crises of the last few<br />
years, causing a series of rolling<br />
blackouts and power emergencies. A number of<br />
studies have been published on the crisis,<br />
considering problems around the flawed<br />
transition to a liberalised electricity market,<br />
financial difficulties of the major utilities, natural<br />
gas shortages (and thus price increases),<br />
droughts in the interconnected states to the<br />
north and policy differences between federal and<br />
state regulators.<br />
Solution – <strong>Coal</strong> and wind together.<br />
As a direct result of the crisis, plans are now in<br />
place for the ‘Frontier Line’ programme. This is a<br />
1300-mile transmission system providing<br />
12,000 MW of electricity - 6000 MW from coalfired<br />
gasification (IGCC) plants and 6000 MW<br />
from wind power [WPSC, 2005].<br />
NE USA & SE CANADA (2003)<br />
More recently in North America,<br />
another major crisis in 2003 caused a<br />
severe blackout affecting around 50<br />
million people, and estimates of economic losses<br />
resulting from the event total approximately<br />
US$6 billion. The blackouts in this case are<br />
attributed to transmission and distribution<br />
problems – particularly ageing equipment and<br />
bottlenecks in the grid – which in turn some say<br />
are due to the effects of market liberalisation<br />
and a lack of investment, plus jurisdictional<br />
issues around the numerous stakeholders who<br />
control, regulate or impact parts of the grid.<br />
Solution – <strong>Coal</strong> and wind together.<br />
The Midwest Independent Transmission System<br />
Operator (MISO) is committed to using coal and<br />
wind power to counter rising gas prices and<br />
provide stability to the grid.<br />
ITALY (2003)<br />
Following a summer of rolling blackouts, Italy<br />
suffered a nationwide blackout at the<br />
end of September 2003, impacting<br />
almost the whole population of 57<br />
million people. With limited natural resources,<br />
and following anti-nuclear sentiment in Italy in<br />
the 1980s, much of the country’s electricity is<br />
imported – and on this occasion trans-Alps<br />
transmission lines from Switzerland were<br />
knocked out.
<strong>Coal</strong>: Secure Energy 17<br />
Blackout in North America 2003<br />
Before<br />
After<br />
Solution – Fuel switching to coal.<br />
The bulk of Italy’s own generation is from oilfired<br />
power stations. Due to the increasing cost<br />
of oil and a need for new and diversified power<br />
generation, many of these stations are being<br />
converted to gas or coal-fired plants. ENEL,<br />
Italy’s largest generator, aims to double its coalfired<br />
capacity to over 10,000 MW, or 50% of its<br />
generating portfolio. The Italian government<br />
has also eased regulations on building new<br />
power plants and sought to encourage greater<br />
investment in the electricity sector<br />
[Argus, 2005].<br />
NEW ZEALAND (1998-2003)<br />
The problems affecting Auckland in<br />
1998 made headline news worldwide.<br />
The loss of electrical service to the<br />
central business district for over one month<br />
provides a chilling example of the impact of<br />
supply failures on a nation’s economic and social<br />
welfare. Two further crises in 2001 and 2003<br />
occurred as a result of an over-dependency on a<br />
single energy source. New Zealand relies on<br />
hydro for over 60% of its electricity, but like<br />
Brazil suffered from small reservoir capacity,<br />
increasing electricity demand due to economic<br />
growth, and particularly dry conditions. Monthly<br />
wholesale electricity prices spiked dramatically<br />
as a result [IEA, 2005d].<br />
Solution – Increasing coal’s share.<br />
There has been a four-fold increase in coal-fired<br />
electricity generation in New Zealand since<br />
2000, with coal now making up almost 10% of<br />
the generation profile [IEA, 2005b].<br />
Photos courtesy of NOAA/DMSP, 2003
18 <strong>World</strong> <strong>Coal</strong> Institute<br />
Fuel Shares of Electricity Generation (%)<br />
Installed Wind <strong>Coal</strong> Solar/Wind Gas Hydro Nuclear Oil Others<br />
Capacity 2003 (GW)<br />
Germany 14.6 50.7 4.2 10.3 3.4 27.9 0.6 2.9<br />
USA 6.4 50.5 0.4 17.5 6.6 19.7 3.3 2.0<br />
Spain 6.2 28.9 5.6 20.1 11.4 22.9 8.6 2.5<br />
Denmark 3.1 46.4 16.5 24.2 0.1 - 4.1 8.9<br />
India 2.1 68.3 0.6 11.5 11.9 2.8 4.6 0.3<br />
Sources: Installed wind capacity data – American Wind Energy <strong>Association</strong>; Fuel shares in electricity generation – IEA 2005. All fuel share data is 2004, except India (2003).<br />
Discrepancies due to rounding.<br />
Diversification<br />
As a result of these positive attributes, several<br />
countries are diversifying their energy mix to<br />
include more coal.<br />
Malaysia, for example, has developed energy<br />
laws and strategies to diversify away from a<br />
predominance of first oil-fired and then gasfired<br />
power generation. <strong>Coal</strong>, as an affordable,<br />
available and secure energy source, is seen<br />
as a significant part of achieving a diverse<br />
energy supply.<br />
Italian generators are also looking to diversify<br />
into coal-fired power generation, specifically<br />
to address the issues raised by the recent<br />
blackout (see page16). Current plans by ENEL,<br />
one of the country’s main energy companies,<br />
include the conversion of several oil-fired<br />
plants to clean coal technologies.<br />
SECTION THREE END<br />
Currently over 10% of Malaysian electricity is<br />
generated from coal, compared to zero 10<br />
years ago, and the national goal is for 40% of<br />
power generation to be coal-fired by 2010<br />
[Energy Commission Malaysia, 2004].
<strong>Coal</strong>: Secure Energy 19<br />
SECTION FOUR<br />
ACHIEVING <strong>ENERGY</strong><br />
SECURITY<br />
>> Achieving energy security requires two major<br />
investments - financial and political. >><br />
The IEA <strong>World</strong> Energy Investment Outlook<br />
[IEA, 2003] forecasts a need for US$16<br />
trillion of investment in energy systems<br />
between now and 2030. Power generation,<br />
transmission and distribution systems make<br />
up $10 trillion of this, or 60% of total energy<br />
investments. Over 50% of this investment is<br />
required to simply maintain the present level<br />
of supply. Global electricity investment in<br />
transmission and distribution will be almost<br />
as large as the total capital needed for the oil<br />
and gas industries combined.<br />
The question is whether this investment is<br />
available – due to the sheer size of the funds<br />
needed, and because of potential barriers to<br />
investment. The investment capacity is there<br />
on a global basis, but ensuring favourable<br />
conditions for these funds to be drawn is<br />
another matter.<br />
Investment in the energy sector continues to<br />
shift to private sector sources, which require<br />
more immediate and substantial returns on<br />
their investments, with little regard for ‘social<br />
dividends’. In many countries, economic and<br />
political barriers remain which will impede the<br />
flow of funds from the private sector – India<br />
may need up to US$665 billion for energy<br />
investments between now and 2030, but this is<br />
unlikely without major reforms to the<br />
electricity sector. Indeed, developing countries<br />
overall will find access to private funds<br />
difficult and - with little recourse to public<br />
sector finances - will struggle to meet the<br />
projected demand. Africa is a region likely to<br />
face particularly difficult challenges.<br />
Public resistance to individual energy sources<br />
and technologies and the need to meet<br />
environmental concerns may also prove barriers<br />
to investment overall.<br />
Political recognition of the need for energy<br />
security is also vital. Energy security policies<br />
need not be at odds with other policies,<br />
including environmental objectives. Indeed<br />
there are synergies by addressing energy<br />
security and environmental agendas together,<br />
rather than in isolation. A number of examples<br />
are given within this paper of countries that are<br />
choosing to use coal to address their energy<br />
security concerns. <strong>Coal</strong> faces environmental<br />
challenges, but through the development and<br />
use of clean coal technologies these challenges<br />
can be, and are being, addressed.<br />
The use of a wide range of clean coal<br />
technologies enables economies to provide<br />
an affordable, reliable and environmentally<br />
acceptable supply of electricity as part of a<br />
diverse energy mix – reducing energy<br />
poverty, providing the means for economic<br />
and social development, and enhancing<br />
industrial competitiveness.<br />
SECTION FOUR END
20 <strong>World</strong> <strong>Coal</strong> Institute<br />
SECTION FIVE<br />
POLICY MEASURES<br />
>> Existing policies and mechanisms (such as those of the<br />
Kyoto Protocol) may not provide the necessary<br />
incentives to address energy security issues, and<br />
further action should be considered. >><br />
To meet energy security concerns and<br />
environmental objectives, a number of<br />
measures may be taken that will allow coal to<br />
fulfil its vital role in our energy future.<br />
>> Policy support for clean and efficient use of<br />
coal in power generation can encourage the<br />
take-up of existing advanced technologies for<br />
low emissions coal-fired electricity production<br />
– providing secure and clean energy. New<br />
incentives and mechanisms may be necessary<br />
to fully achieve this objective.<br />
>> Policy support for technology transfer to<br />
developing countries, through mechanisms<br />
such as the Clean Development Mechanism,<br />
bilateral and multilateral funds such as the<br />
Global Environment Facility and the Prototype<br />
Carbon Fund.<br />
>> Policy support to reduce investment<br />
uncertainty, through good governance,<br />
transparency and long-term planning can<br />
facilitate the immense amounts of investment<br />
needed in the energy sector to meet growing<br />
demand, particularly in developing countries.<br />
>> Policy support can address environmental<br />
concerns in a non-discriminatory manner –<br />
while recognising the benefits that a diverse<br />
and secure energy mix can bring. Clear, longterm<br />
environmental policies provide certainty,<br />
allowing investments to be made in advanced<br />
coal technologies that bring enhanced<br />
environmental performance.<br />
SECTION FIVE END<br />
>> Policy support for research, development and<br />
demonstration into new technologies such as<br />
carbon capture and storage can provide a very<br />
significant opportunity for the major<br />
reductions in emissions that are required by<br />
our modern societies.
<strong>Coal</strong>: Secure Energy 21<br />
ANNEX<br />
<strong>ENERGY</strong> SECURITY<br />
DRIVERS<br />
>> There are many drivers governing the secure supply<br />
of energy. >><br />
>> Prices – the provision of affordable energy to<br />
the consumer is dependent on the cost of<br />
generation, transmission and distribution. The<br />
impact of oil shocks on national economies –<br />
such as seen in the 1970s – is welldocumented.<br />
The interruption of supply<br />
networks can negatively impact prices and<br />
create economic difficulties for countries<br />
exposed by over-reliance on one energy<br />
source. Sustained price rises and short-term<br />
spikes in oil, gas or electricity can trigger<br />
inflation and recession and this is driving<br />
concerns about recent forecasts of oil prices<br />
rising to US $100 a barrel.<br />
>> Levels of investment required – to meet the<br />
forecast growth in energy demand, the<br />
International Energy Agency has predicted a<br />
need for US$16 trillion in investment. The<br />
availability of that investment – particularly<br />
problematic in many developing countries, and<br />
especially in Africa – will be a significant<br />
factor over coming years. Policy incentives<br />
above and beyond those in place (e.g. Kyoto<br />
mechanism) will be required to ensure a<br />
secure energy mix.<br />
>> Ease of transport – energy must be readily<br />
available, and thus the ease and safety with<br />
which fuels and electricity can be transported<br />
is a key driver for energy security. Oil and gas<br />
can be transported through pipelines and<br />
tankers or LNG vessels. <strong>Coal</strong> can be readily<br />
transported via ship or rail. Transmission and<br />
distribution networks must be capable of<br />
carrying electricity to the consumer and able<br />
to handle the load demands placed upon them.<br />
>> Concentration of suppliers – the reliance on<br />
imported fuels from a limited number of<br />
suppliers may increase the risk of adverse<br />
market influence. Where suppliers are<br />
particularly from politically unstable<br />
countries, there may also be an increased risk<br />
of supply disruption.<br />
>> Availability of infrastructure and expertise –<br />
to achieve a diverse energy mix, countries<br />
must have access to different energy sources,<br />
requiring both infrastructure and expertise,<br />
whether in generation technologies, fuel<br />
handling, access to delivery systems such as<br />
pipelines, ports or electricity interconnections<br />
and transmission lines.<br />
>> Diversification of generation capacity –<br />
avoiding over-reliance on one energy source<br />
is a fundamental of energy security, reducing<br />
exposure to supply disruptions. A wellbalanced<br />
energy system, comprising various<br />
power generation technologies, and with<br />
suitable capacity, allows the advantages of<br />
each to be maximised, allows prices to remain<br />
reasonably stable and ensures a continuing<br />
supply to the consumer.
22 <strong>World</strong> <strong>Coal</strong> Institute<br />
>> International trade & availability of foreign<br />
direct investment – while reducing import<br />
dependence may be seen as a key aspect of<br />
energy security, the availability of a variety of<br />
fuels in a well-functioning and geographically<br />
diverse market can be equally important. In<br />
developing nations, the availability of foreign<br />
direct investment to develop energy resources<br />
either for domestic use or for export earnings<br />
is important.<br />
>> Interconnection of energy systems – the<br />
interconnection of energy systems,<br />
particularly electricity, must also be<br />
considered in terms of security. A limited<br />
market or connection increases the risk of<br />
supply disruption by reducing the options<br />
available to meet demand. The liberalisation of<br />
electricity markets must also be considered –<br />
while reducing costs and increasing efficiency<br />
in the short term, liberalisation may create<br />
situations where overall capacity is reduced,<br />
increasing the risks of supply shortage.<br />
>> Political threats – recent world events have<br />
highlighted the vulnerability of energy supply<br />
systems to political interests and even<br />
terrorist attacks – motivated by economic,<br />
religious or other concerns.<br />
>> Industrial safety – incidents at mines, oil and<br />
gas platforms and refineries, whether caused<br />
by human error, weather or geological<br />
conditions - may disrupt supply chains and<br />
impact fuel availability.<br />
ANNEX END<br />
>> Fuel substitution – diversification in the uses<br />
of fuels may also be important for energy<br />
security. Fuel transformation – such as coal to<br />
gas, gas to liquids and coal liquefaction – can<br />
meet demand even when conventional supplies<br />
may be affected.
<strong>Coal</strong>: Secure Energy 23<br />
REFERENCES<br />
>> Argus, 2005 - <strong>Coal</strong> Daily International 05R-107<br />
June 2005, Argus Media Ltd, London<br />
>> BP, 2001 - Statistical Review of <strong>World</strong> Energy<br />
BP, London<br />
>> BP, 2005 - Putting Energy in the Spotlight -<br />
Statistical Review of <strong>World</strong> Energy<br />
BP, London<br />
>> EIA, 2005 - Country Analysis Brief: Brazil<br />
Energy Information Administration<br />
Washington DC<br />
>> Energy Commission Malaysia, 2004 -<br />
Presentation to WCI workshop<br />
May 2004, Beijing<br />
>> IEA, 2003 - <strong>World</strong> Energy Investment Outlook<br />
2003 Insights<br />
OECD/IEA, Paris<br />
>> IEA, 2004a - <strong>World</strong> Energy Outlook 2004<br />
OECD/IEA, Paris<br />
>> IEA, 2004b - Prospects for CO 2 Capture and<br />
Storage<br />
OECD/IEA, Paris<br />
>> IEA, 2005a - <strong>Coal</strong> Information 2005<br />
OECD/IEA, Paris<br />
>> IEA, 2005b - Electricity Information 2005<br />
OECD/IEA, Paris<br />
>> IEA, 2005c - Oil Market Report<br />
August 2005, OECD/IEA, Paris<br />
>> IEA, 2005d - Saving Electricity in a Hurry<br />
OECD/IEA, Paris<br />
>> MCR, 2005 - McCloskey’s <strong>Coal</strong> Reports<br />
107, 116,<br />
The McCloskey Group Ltd, Petersfield<br />
>> NEA/IEA, 2005 - Projected Costs of<br />
Electricity Generation 2005 Update<br />
OECD/IEA, Paris<br />
>> Optima 2005 - <strong>Coal</strong> – Issues and Options in<br />
A Carbon Constrained <strong>World</strong>, Roger Wicks,<br />
Optima, Volume 51, Number 1<br />
February 2005, Anglo American, London.<br />
>> POST, 2004 - The Future of UK Gas Supplies<br />
UK Parliamentary Office of Science &<br />
Technology, London<br />
>> UNDP, 2001 - <strong>World</strong> Energy Assessment:<br />
Energy & the Challenge of Sustainability<br />
UNDP/UNDESA/ WEC, New York<br />
>> WEC, 2003 - Drivers of the Energy Scene<br />
<strong>World</strong> Energy Council, London<br />
>> WEC, 2004a - Energy Market Reform: Lessons<br />
Learned & Next Steps<br />
<strong>World</strong> Energy Council, London<br />
>> WEC, 2004b - Survey of Energy Resources<br />
<strong>World</strong> Energy Council, London<br />
>> WCI, 2003 - The Role of <strong>Coal</strong> as an<br />
Energy Source<br />
<strong>World</strong> <strong>Coal</strong> Institute, London<br />
>> WCI, 2004 - Clean <strong>Coal</strong> – Building a Future<br />
through Technology<br />
<strong>World</strong> <strong>Coal</strong> Institute, London<br />
>> WPD, 2004 - Long Term Development<br />
Statement<br />
Western Power Distribution (South West)<br />
plc, Bristol<br />
>> WPSC, 2005 - The Frontier Line – A<br />
Transmission Project for the American West<br />
Wyoming Public Service Commission, Cheyenne
24 <strong>World</strong> <strong>Coal</strong> Institute<br />
WORLD <strong>COAL</strong> INSTITUTE<br />
>> The <strong>World</strong> <strong>Coal</strong> Institute is the only organisation working<br />
on a global basis on behalf of the coal industry.>><br />
The <strong>World</strong> <strong>Coal</strong> Institute promotes:<br />
>> <strong>Coal</strong> as a strategic resource, essential for a<br />
modern quality of life, a key contributor to<br />
sustainable development and an essential<br />
element in enhanced energy security.<br />
and represents:<br />
>> A progressive industry, committed to<br />
technological innovation and improved<br />
environmental outcomes within the context<br />
of a balanced and responsible energy mix.<br />
The <strong>World</strong> <strong>Coal</strong> Institute is a non-profit,<br />
non-governmental association, funded by coal<br />
enterprises and stakeholders and operated by<br />
a London-based Secretariat.<br />
The objectives of the <strong>World</strong> <strong>Coal</strong> Institute<br />
are to:<br />
>> Provide a voice for coal in international<br />
policy discussions on energy and<br />
the environment;<br />
>> Promote the role of clean coal technologies<br />
in improving the environmental performance<br />
of coal;<br />
>> Highlight the valuable role affordable and<br />
abundant coal resources play in a world ever<br />
more concerned with energy security;<br />
>> Improve understanding of the importance<br />
of coal as the single largest source of fuel<br />
for electricity generation, and its vital role<br />
in other industries – including steel<br />
production, cement manufacturing,<br />
chemicals and liquid fuels;<br />
>> Form strategic partnerships and alliances to<br />
coordinate actions and maximise resources<br />
to improve the perception of coal worldwide;<br />
>> Ensure decision-makers and opinion formers<br />
are fully informed of the contribution of coal<br />
to social and economic development;<br />
>> Address misconceptions about coal through<br />
the production and dissemination of<br />
information resources.<br />
The <strong>World</strong> <strong>Coal</strong> Institute has strong contacts<br />
and relationships with important international<br />
agencies, including the International Energy<br />
Agency and the <strong>World</strong> Bank, and has accredited<br />
consultative status with the United Nations.<br />
Membership is open to coal enterprises<br />
worldwide, with member companies<br />
represented at Chief Executive level.<br />
For more information on the activities of the<br />
<strong>World</strong> <strong>Coal</strong> Institute, please visit our website:<br />
www.worldcoal.org
For enquiries on how to become a member of<br />
the WCI, please contact the Secretariat:<br />
<strong>World</strong> <strong>Coal</strong> Institute<br />
info@worldcoal.org<br />
www.worldcoal.org<br />
This publication may be reproduced in part for educational or non-profit purposes without<br />
special permission from the copyright holder, provided acknowledgement of the source is<br />
made. The <strong>World</strong> <strong>Coal</strong> Institute would appreciate receiving a copy of any publication that<br />
uses this publication as a source. No use of this publication may be made for resale or for<br />
any other commercial purpose whatsoever without prior permission in writing from the<br />
<strong>World</strong> <strong>Coal</strong> Institute.<br />
First published in the UK in October 2005<br />
Copyright © 2005 <strong>World</strong> <strong>Coal</strong> Institute
26 <strong>World</strong> <strong>Coal</strong> Institute<br />
info@worldcoal.org<br />
www.worldcoal.org