CLEAN COAL COMBUSTION IN SMALL AND MEDIUM SIZED BOILERS

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1 CLEAN COAL COMBUSTION IN SMALL AND MEDIUM SIZED BOILERS for CENTRAL AND EASTERN ECE ECONOMIES IN TRANSITION

2 WORLD ENERGY DEMAND & RESOURCES Stock in years Stock of energy sources Coal Natural Gas Fuel Oil Share of the energy sources of the total stock 17% 12% 71% Coal Natural Gas Fuel Oil Source: UN/ECE

3 WORLD ENERGY DEMAND & RESOURCES World Energy Demand Energy Demand (Quadrillion Btu) EE Countries & FSU Industrialized Countries Developing Countries Source: EIA International Energy Outlook 2001

4 WORLD ENERGY DEMAND & RESOURCES World Energy Demand by Fuel Type Energy Demand (Quadrillion Btu) Nuclear Renewables Coal Natural Gas Oil Source: EIA International Energy Outlook 2001

5 World Coal Reserves USA FSU China Australia India Germany South Africa Serbia & Poland Other Billion Short Tons Source: EIA International Energy Outlook 2001

6 ENERGY POLICY OBJECTIVES. COAL CONTRIBUTION ECE member states government energy sector policies are: security, competitiveness and ecological soundness of energy supply - Coal will be essential for energy security - Coal will remain competitive for electricity generation, if modern and clean technologies are used. - Coal will be part of the sustainable energy strategies in ECE region and the world

7 REASONS TO USE COAL Coal is one of the only significant domestic energy source Domestic brown coal and lignite are a low-cost and competitive energy source Domestic coal resources are reducing the energy import dependence Coal provides employment for a significant part of the population Coal contributes to economic and social stability Coal is available in large reserves for long-term supply Coal is safe to transport, store and use Coal contributes to the diversification of energy supplies

8 Coal Demand for Power Plants in Central/Eastern Europe and FSU in 1998 Kazakhstan Ukraine Russian Fed. Slovakia Romania Poland Hungary Czech Bulgaria Coal demand (Mt) Source: EC, IEA, UN/ECE 1999

9 COAL COMBUSTION IN SMALL AND MEDIUM SIZED BOILERS IN CEE COUNTRIES Until 1990 a centralized economic system in Central/Eastern European countries with forced industrialisation development and high demand for electricity and heat Oil crisis of the 1970s, required changes of national primary energy source strategies Electricity and heat production were oriented to larger coal use

10 COAL COMBUSTION IN SMALL AND MEDIUM SIZED BOILERS IN CEE COUNTRIES Distributed small and medium sized capacities - developed to supply: Location: usually near by the coal mines Boilers type in coal fired plants: - steam for industrial consumers - hot water to District Heating Systems (DHS). - Steam Boilers - Hot Water Boilers - Warm Water Boilers

11 Romania: 2.5 Mt coal per year/ 2 MtCO 2 /year. CO2 emissions vs. Boiler efficiency CO2 emissions (Mt/year) % 75% 80% 85% 90% Boilers efficiency (%) Source: ISPE Boilers Efficiency vs. CO2 Emissions Study

12 SOLUTION TO PROMOTE CLEAN COAL COMBUSTION IN SMALL AND MEDIUM SIZED BOILERS - locating heat sources closer to the end users - promoting distributed small and medium sized coal fired boilers together with cogeneration schemes - implementing clean coal combustion technologies - adequate legal framework to support the distributed generation of electricity and heat based on clean coal technologies

13 Governmental economic and social strategy to support coal industry restructuring process National Action Plans dedicated to the coal mining areas. Sustainable development and climate change prevention objectives Incentives to implement clean coal technologies Long-term objectives for local coal use Long term PPA and HPA Facilities for JV, IPP and PPP, etc. LEGAL FRAMEWORK

14 Electricity Generation by fuel type Nuclear 36% Hydro 13% Biofuels 2% Oil 6% Other 2% Coal 17% Lignite 10% Gas 14% CO2 Emissions Associated to Electricity Generation Oil 12% Gas 18% Coal 41% Lignite 29% Source: WCI Ecoal, September 2001 Source: WCI Ecoal, September 2001

15 BARRIERS TO PROMOT SMALL AND MEDIUM SIZED COAL FIRED BOILERS Existing capacities: almost all over the rated lifetime - need of time - need important financing. High investment value Long term investment action plans to implement CCCT No Governmental support important social & economic negative impacts. No international action plans to promote CCCT for a sustainable development. The competition with natural gas fired CHP

16 SOLUTIONS TO PROMOTE SMALL AND MEDIUM SIZED COAL FIRED BOILERS Specific legal framework promotion National level A dedicated National Action Plan as part of the National Strategy Dedicated incentives to promote CCCT A National Investment fund set up Support for JV, IPP, PPP Long term PPA and HAS Incentives for CCCT environmental benefits

17 SOLUTIONS TO PROMOTE SMALL AND MEDIUM SIZED COAL FIRED BOILERS International Level EU Countries and accession Countries legal framework harmonisation EU dedicated action plan. Annual country report Dedicated Research and CCCT transfer programs to be initiate CCCT international data base dedicated to SMSB Getting experience based on success projects dissemination Dedicated International Investment Funds to be set up UN/ECE energy division: CCCT promotion dedicated actions. International and National Annual Reports

18 CONCLUSIONS Coal is the world s fossil fuel biggest reserve CCCT for SMSB market - 10% of the total annual coal consumption in CEE countries CCCT implementation - SD and GHGE reduction guaranty CCCT promotion based on National and International dedicated emission standards CCCT international data base CCCT transfer international programs

19 CONCLUSIONS CEE countries development tools for CCCT manufacturers Support for JV, IPP, PPP projects promotion Kyoto protocol financing for : JI, ET, CDM for CCCT implementation CEE countries Governments and consulting, engineering companies & industry common efforts: - to promote CCCT projects - to replicate success stories Incentives (international and national) to attract financing for CCCT projects

20 ACTION PLAN EU Countries and accession Countries legal framework harmonisation EU dedicated action plan. Annual country report Dedicated Research and CCCT transfer programs to be initiate CCCT international data base dedicated to SMSB Dedicated International Investment Funds to be set up UN/ECE energy division: CCCT promotion dedicated actions. International and National level Annual Reports