The South African Coal Chain 2011

Transcription

1 The South African Coal Chain Mt Stocks 181.4Mt Washing Local Use 24.0Mt 50.4Mt 4.0Mt 40.0Mt 18 Exports 64.0Mt 303.6Mt Run-of-Mine Production Discards 51.8Mt Synfuels 44.0Mt Electricity 120.8Mt 1.4Mt 40.0Mt 80.8Mt Screening 122.2Mt Source : XMP Consulting

2 Traditional and emerging trends in market flows and pricing Atlantic Market (320Mtpa) Pacific Market (395Mtpa) Influence of Russia as price setter AfricCoall/ X Prevost 2012 South African exports are expected to increasingly be diverted to India and other Asian consumers Increasing Asian demand will stimulate new flows, decreasing availability for High Grade Steam coal (reflecting tightness in Asian market),.

3 Challenges in the Coal Industry - 1 Run-of-mine coal qualities are generally poor (high ash) Beneficiation of coal is a must (difficult) Bulk of the best quality coals have been mined out in conventional areas Remaining coal resources lie in relatively remote coalfields Infrastructure in those areas is as yet lacking (also many are difficult to mine conventionally) 20

4 CONSEQUENCE Challenges in the Coal Industry - 2 Increasing export tonnages to the East leaves poorer grades for local markets Increased costs to obtain better more consistent qualities of coal Variable combustion efficiencies occur due to poor feedstocks Environmental constraints increasingly stringent post 2012; C tax pending? New Process technologies will be required to increase combustion efficiencies FBC, IGCC, co-firing, UCG; linked to CCS. Must be compatible with local coal qualities 21

5 Quality (Grades) of Local Coal Products Proportions sold by grade (CV MJ/kg ad) GRADE CALORIFIC VALUE Mass% Proportional % (GCV MJ/kg ad) Special > ,5 Grade A <28,5 > 27, ,3 Grade B <27,5 > 26, ,3 Grade C <26,5 > 25< ,4 Grade D < 25, ,5 22

6 Microphotos of Coal LOW ASH COAL HIGH VOLATILES ALL VOLATILES COMBUSTIBLE HIGH ASH COAL (CLAYS) HIGH VOLATILES MOST VOLATILES INCOMBUSTIBLE Clay s CLEAN COAL Vitrinite - no visible minerals DIRTY COAL Vitrinite + abundant layered clays (black) 23

7 Eskom 2012

8 EXAMPLE OF COMBUSTION PROBLEMS CAUSING REDUCED COMBUSTION EFFICIENCY LARGE SCALE POWER GENERATING PULVERISED FUEL BOILER Subcritical pf boiler Extreme difficulty in ignition Mark 7 burner design 8m added to height of boiler 1m extra between rows of burners Tube mills required for extra fine pf Burner mouths melted Pop-corn fly ash blocked air heaters Unusually high % of fly ash Ignition and combustion difficulties when using coal from different sources 25

9 Clean Coal Technology options in the South African Coal Value Chain Adapted from the WCA 26

10 South African Emissions Reduction Programme Increased Efficiency of South African Power Plant SACRM 27

11 CLEAN COAL TECHNOLOGY R&D IN SOUTH AFRICA SPECIFIC FOCUS AREAS CURRENT AND ON-GOING RESEARCH AND DEVELOPMENT BENEFICIATION fundamental understanding of coal for mineral liberation; increased efficiency in current processes; development of new processes; dry coal processing; fine coal beneficiation and use; discards beneficiation and/or use COMBUSTION increased efficiency through fundamental understanding of coal behaviour organic-char and minerals-ash; advanced feed coal assessment and use; advanced in-boiler observation; boiler adaptation to available qualities; new combustion technologies (CFBC, Supercritical and ultra supercritical). POLLUTING EMISSIONS fundamental understanding of the source and methods of formation of emissions and pollutants; their capture and/or reduction (SOx, NOx, Particulates, Trace elements and CO 2 ). CARBON DIOXIDE CAPTURE, TRANSPORT AND STORAGE - Capture, transport and storage of CO 2 in all possible repositories specific to the country (SACCCS) 28

12 CLEAN COAL TECHNOLOGY R&D IN SOUTH AFRICA SPECIFIC FOCUS AREAS NEW AND EMERGING TECHNOLOGIES - CARBON REDUCTANTS IN THE METALLURGICAL INDUSTRY fundamental understanding of coal-based carbon products (coke, char, anthracites new products) and their behaviour and function in metallurgical reduction processes during iron, steel, ferrochrome, ferrosilicon, ferromanganese, vanadium, aluminium manufacturing industries; develop more efficient carbon-based technologies HIGH VALUE COAL-BASED CARBON PRODUCTS development of other high-value materials such as specialised graphite, activated carbons, C- nanotubes, etc, in addition to those derived from gasification and Fischer Tropsch s Coal-to-Liquids (CTL Sasol and COMPS) processes. CARBON DIOXIDE UTILISATION - innovative processes to use CO 2 including as a source of energy. 29

13 CLEAN COAL TECHNOLOGY R&D IN SOUTH AFRICA SPECIFIC FOCUS AREAS NEW AND EMERGING TECHNOLOGIES - ALGAL-BASED TECHNOLOGY algal culture/farming in association with (i) co-firing coal with algae for near-zero emissions; (ii) downstream algal-based industries including but not limited to aquaculture, food, chemicals and liquid fuels CO-FIRING BIOMASS WASTE with coal in large coal-fired stations - utilising waste can reduce CO 2 emissions (max 10% in EU, develop to 20-50%) UNDERGROUND COAL GASIFICATION (UCG) potential for coals inaccessible by mining; globally this could expand resources globally to 18 trillion tonnes (>2700 years); advanced Eskom pilot scale in South Africa technology 30