Coal still vital fuel but needs to burn cleaner

Implications: Clifford Krauss reported in the March 20 issue of the International Herald Tribune that today, American coal from Appalachia and Wyoming is being exported to Newcastle-upon-Tyne (UK). The international coal trade is in reorganization with the result that prices for U.S. coal are rising. Thus American domestic purchasers must compete with buyers in Japan and Germany, among others. Environmental pressures in the U.S. have forced utilities to reduce coal-burning power plants in favor of less-polluting fuels. While U.S. utilities buy coal on long-term contracts, when they run out, prices will be at the current high levels. By 2009, prices for electricity will likely be rising. Executives of coal producing companies predict that in spite of that, coal will be the most economical fuel for years to come. But inflation is possible because coal is used for steel making as well as electricity. In 2008, as the dollar value shrinks, the U.S. will export 7-8% of production, up from 5% in 2007.

Analysis:  Setting aside the controversy about climate change and global warming, the people of the world all agree that coal is an atmospheric polluting fuel with dangerous particulate matter in addition to noxious gases. In some parts of the world, fresh water is also jeopardized by slag and ash disposal. In 2006, China accounted for more than 70% of the growth in consumption. That figure is set to rise in 2007 and again this year. The Chinese are acutely aware of the danger of burning coal without treating the contamination problem. They have spent huge sums on pollution control and that will continue as long as coal is an essential fuel. If there is good news, it is that manufacturers of scrubbers and clean-burning furnaces have a bright future in China. But the problem is not confined to Asia. More significantly, coal will continue to provide almost 30% of total energy requirements for into the future. There is a paramount need for combustion improvement and pollution control. Companies that take up this challenge will be rewarded. Veolia and Suez are both working with Chinese authorities to arrest pollution. Fundamentally, no one has come up with a game-changing technology that is affordable.