Energy Union and EU Energy and Climate Policy. 11 th European Conference on Coal Research and its Applications
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1 Energy Union and EU Energy and Climate Policy 11 th European Conference on Coal Research and its Applications The Edge Brian Ricketts University of Sheffield Secretary General ÙK 5 September 2016
2 EURACOAL: 33 members from 18 countries DEBRIV - Deutsche Braunkohlen-Industrie-Verein (DEU) GVSt - Gesamtverband Steinkohle (DEU) MMI - Mini Maritza Istok (BGR) PPC - Public Power Corporation (GRC) PPWB - Confederation of Polish Lignite Producers (POL) GIPH Mining Chamber of Industry and Commerce (POL) ZSDNP - Czech Confederation of Coal and Oil Producers (CZE) APFCR - Coal Producers and Suppliers Association of Romania (ROU) BRGM - French Geological Survey (FRA) CARBUNIÓN - Federation of Spanish Coal Producers (ESP) CoalImp - Association of UK Coal Importers (GBR) DTEK (UKR) EPS - Electric Power Industry of Serbia (SRB) GIG - Central Mining Research Institute (POL) HBP - Hornonitrianske bane Prievidza (SVK) Chemical Process and Energy Resources Institute (CERTH/CPERI) (GRC) `Lubelski Węgiel Bogdanka SA (POL) Borsod-Abaúj-Zemplén County Government (HUN) PATROMIN Asociaţia Patronală Minieră din Romania (ROU) Premogovnik Velenje (SVN) RMU Banovići d.d. (BIH) TKI - Turkish Coal Enterprises (TUR) Ukrvuglerobotodavtsy - All-Ukrainian Coal Employer s Association (UKR) VDKi - Verein der Kohlenimporteure (DEU) EMAG Institute of Innovative Technologies (POL) Finnish Coal Info (FIN) Golder Associates (GBR) Geocontrol (ESP) ISSeP - Institut Scientifique de Service Public (BEL) KOMAG Institute of Mining Technology (POL) SUBTERRA Ingeniería (ESP) Trolex Ltd (GBR) University of Nottingham (GBR) 11 th European Conference on Coal Research and its Applications Slide 2
3 EURACOAL history: 1950 to the present 1950 Schuman Declaration 1952 European Coal and Steel Community 1953 Foundation of CEPCEO 1957 European Economic Community 1958 CEPCEO legal entity 1964 European Association for Coal 1973 Oil crisis 1993 Treaty of Maastricht - European Union 1996 CECSO - integration of lignite 2002 EURACOAL - one voice for coal in Europe 2009 Treaty of Lisbon 11 th European Conference on Coal Research and its Applications Slide 3
4
5 EURACOAL aims and objectives Aims Securing coal s position in the European energy mix through appropriate policies, laws and regulations. Objectives Co-operating in achieving a balance between: energy policy requirements competitive markets environmental policy initiatives 11 th European Conference on Coal Research and its Applications Slide 5
6 Coal use and wealth creation Electricity generation is the main use of steam coal 41% of the world s electricity comes from coal. Coking coal (as well as iron ore and limestone) is used for steel manufacturing. Industrial process heating: the cement, glass, ceramic, food and paper industries all use coal. photo courtesy of the American Coalition for Clean Coal Electricity 11 th European Conference on Coal Research and its Applications Slide 6
7 Share of coal in EU electricity, % 80% 70% 60% 50% 40% 30% 20% coal 26.4% oil 1.8% gas 14.3% nuclear 27.5% hydro (exc.pumped) 12.7% other 17.3% EU average = 26.4% 10% 0% Source: Eurostat database nrg_105a last update (*includes peat) 11 th European Conference on Coal Research and its Applications Slide 7
8 Coal is the most affordable fossil fuel Sources: BP, World Bank and McCloskey Coal Information Service bbl = barrels of oil 11 th European Conference on Coal Research and its Applications Slide 8
9 EU fossil fuel import dependence: import bill grew from 1.5% of GDP in 2002 to 4.2% in : billion 95.0 billion 20.8 billion sources: chart - European Commission, data Eurostat DS , In 2012, the EU spent 4.2% of GDP to import 548 billion of oil, gas & coal. 11 th European Conference on Coal Research and its Applications Slide 9
10 Global hard coal & lignite reserves 88% of the EU s conventional energy reserves are in the form of coal and lignite (and 95% of our resources). 11 th European Conference on Coal Research and its Applications Slide 10
11 The future of lignite mining in Germany 11 th European Conference on Coal Research and its Applications Slide 11
12 11 th European Conference on Coal Research and its Applications Slide 12
13 ... fossil fuels especially coal, but also oil and, to a lesser degree, gas needs to be progressively replaced without delay. 11 th European Conference on Coal Research and its Applications Slide 13
14 Hans Joachim John Schellnhuber 11 th European Conference on Coal Research and its Applications Slide 14
15 Risks and impacts of climate change the IPCC s burning embers diagram 2 C 11 th European Conference on Coal Research and its Applications Slide 15
16 Scientists should be on tap, but not on top. 11 th European Conference on Coal Research and its Applications Slide 16
17 NO JOBS ON A DEAD PLANET campaign by the European Trade Union Confederation 11 th European Conference on Coal Research and its Applications Slide 17
18 Guardian (350.org) Keep it in the ground campaign 11 th European Conference on Coal Research and its Applications Slide 18
19 PM Donald Tusk on Energy Union FT, 22 April th European Conference on Coal Research and its Applications Slide 19
20 EU s commitment to a clean energy transition is irreversible and nonnegotiable. p.5 COM(2016) 110 on Energy Union Vice President for Energy Union, Maroš Šefčovič and Commissioner for Climate and Energy, Miguel Arias Cañete 11 th European Conference on Coal Research and its Applications Slide 20
21 Carbon capture and storage 11 th European Conference on Coal Research and its Applications Slide 21
22 Poland s CO 2 storage site 11 th European Conference on Coal Research and its Applications Slide 22
23 E.ON Kingsnorth 1600 MW with CCS 11 th European Conference on Coal Research and its Applications Slide 23
24 CCS is not enough. We have to have a narrative that fits with today s political vision. We need to appear to be disappearing, while gaining some respect for the role of coal during the energy transition. 11 th European Conference on Coal Research and its Applications Slide 24
25 750 seats in the European Parliament 11 th European Conference on Coal Research and its Applications Slide 25
26 2030 proposals some good points, some bad 1. A 40% GHG reduction target c.f with no further conditional targets offered at international negotiations 2. A 27% EU-wide binding target for renewable energy in final energy consumption 3. ETS allowance cap to shrink by 2.2% each year from 2021 (c.f. 1.74% now) 4. A new market stability reserve for the ETS from 2021 (Phase IV) from 2019 after revision 5. Carbon leakage protection to continue. Innovation Fund and Modernisation Fund 6. Indicators for energy price competitiveness and energy security? 11 th European Conference on Coal Research and its Applications Slide 26
27 EU Emission Trading Scheme = zero CO 2 in 2058 MtCO 2 -eq. EU ETS is the key instrument designed for the long term. 11 th European Conference on Coal Research and its Applications Slide 27
28 2030 package would be a bonanza for gas ct / kwh CO2 costs per kwh fuel costs per kwh coal gas coal gas Proposal from the European Commission implies fuel switching to gas at a high cost to consumers with EUAs at 55/tCO 2! 11 th European Conference on Coal Research and its Applications Slide 28
29 Flexibility is needed to balance renewables MW 1,200 1,000 BoA 1 to 3 Maximum load ~ 1,000 MW Minimum load ~ 500 MW Maximum ramp rate +/- 30 MW/min Gas-fired CCGT at Lingen Maximum load ~ MW Minimum load ~ 520* / 260** MW Maximum ramp rate +/- 32 MW/min min. load** min. load** BoAplus Maximum load ~ MW Minimum load ~ 350* / 175** MW Maximum ramp rate +/- 30 MW/min minutes * 2 boilers operating ** 1 boiler operating Coal-fired power plants match the flexibility of gas-fired power plants. 11 th European Conference on Coal Research and its Applications Slide 29
30 New coal-fired power plants in the Netherlands Engie (GDF Suez, Electrabel) Maasvlakte (Rotterdam) 800 MW Uniper (Eon) Maasvlakte 3 (Rotterdam) 1116 MW RWE Eemshaven (Groningen) 1560 MW 11 th European Conference on Coal Research and its Applications Slide 30
31 Conclusion: 3-step clean coal strategy TODAY: replace old power plants with new plants TOMORROW: R&D for high efficiency and flexibility DAY AFTER TOMORROW: CO 2 capture and storage demonstration + public CO 2 infrastructure A pragmatic 3-step strategy for a cleaner more prosperous future. 11 th European Conference on Coal Research and its Applications Slide 31
32 Thank you! Brian RICKETTS, Secretary-General European Association for Coal and Lignite AISBL 168 avenue de Tervueren, boîte 11 BE-1150 Brussels Belgium ricketts euracoal.org
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