Frank Clemente Ph.D. Senior Professor of Social Science & Energy Policy Penn State University

Similar documents
The Central Role Of Coal in

The Global Value of Coal:

Equal Energy Access: The Power of Coal September 14, Gregory H. Boyce Chairman and Chief Executive Officer Peabody Energy

Coal is the Cornerstone of Our Energy Future. Frank Clemente Ph.D. Professor of Social Science Penn State University

Outlook for Energy Market in Asia (India and ASEAN)

Advanced Coal Technologies. Laufer Energy Symposium. Dianna Tickner Peabody Energy April 5, 2013

WORLD ENERGY OUTLOOK Dr. Fatih Birol Chief Economist Head, Economic Analysis Division

Coal: Advanced Energy For Life G20 Energy Access Workshop

Energy Historical Trends in ASEAN+3

Overview of Market Development in Asia =Future Energy Demand in Asia=

Energy Outlook for ASEAN+3

21st Century Coal: Powering Progress and Global Development

THE CASE FOR COAL THE POWER OF HIGH EFFICIENCY COAL

Ensuring energy security in ASEAN countries: Current trends and major challenges

The Peabody Plan and the Social Benefits of Coal A Model for the World

Thank you. I am honored to be among members of this Congress who are creating solutions to advance the human condition. I began with a video because

OECD/IEA Dr Fatih Birol IEA Executive Director Oslo, Norway 20 November 2018

Coal in Japan and the World Our Collective Energy Future

World Energy Outlook Dr. Fatih Birol IEA Chief Economist 24 November 2010

Coal Low Cost Fuel for the Future

OECD/IEA Dr Fatih Birol IEA Executive Director Berlin, 16 November 2018

World Energy Investment 2017

Energy Outlook and Energy Saving Potential in East Asia

Toshiyuki Shirai Senior Energy Analyst, IEA. October 27, Manila

The Global Energy Scene

Energy Efficiency & the Energy Future in ASEAN Amit Bando, Executive Director, IPEEC Bangkok, Thailand 5 June 2013

Sharing Knowledge & Experiences, Developing Capacity Asia-Pacific Initiatives on SE4ALL

World Energy Outlook 2010 Renewables in MENA. Maria Argiri Office of the Chief Economist 15 December 2010

The Outlook for Energy

World Energy Outlook 2009 Key results and messages of the 450 Scenario

Developing a Regional Roadmap on Energy Connectivity. China Electric Power Planning & Engineering Institute Bangkok

China s Progress in Energy Efficiency and. CHINA JAPAN U.S. Cooperation

Energy Perspectives 2016 Long-term macro and market outlook

Coal markets: recent developments

OBJECTIVES AND PROGRESS Main Objectives: 1. to provide policy makers with an understanding of the energy trends and challenges being faced by the regi

World Energy Outlook 2010

Business as Usual (BAU) Preliminary Scenario Results

SOUTHEA ST ASIA ENERGY OUTLOOK EXECUTIVE SUMMARY. World Energy Outlook Special Report

OECD/IEA Brent Wanner, Senior Energy Analyst Stockholm, 24 November 2015

IEA s Medium Term Coal Market Report 2016

Victor Zhou, International Copper Association. Copper Production, Flow and Usage in Southeast Asia Current and Future

Global Strategic Energy Challenges

2017 Outlook for Energy: A View to 2040

The Future of Global Energy Markets: Implications for Security, Sustainability and Economic Growth

6 th APEC Energy Demand and Supply Outlook

World Energy Outlook Dr Fatih Birol Chief Economist, IEA Istanbul, 20 December

Dr. Fatih BIROL IEA Chief Economist Tokyo, 17 February 2015

World Energy Outlook 2004

Plenary Session 1: Global Shifts: The Future of Energy Security: Finding New Balances. Background Paper

Energy Market in Asia-Pacific and Canada s Potential for Natural Gas Export. Shahidul Islam

Global Energy & CO2 Status Report 2017

Reference Materials Overview of Coal Industry

Carbon, Poverty and the Energy Transition Dilemma

Electricity and Heat. HP Chung UNESCAP Statistics Division. Workshop on Energy Statistics for ASEAN Countries

Growth in China s resource use still has some way to go

ENERGY AND CO 2 EMISSIONS SCENARIOS OF POLAND

WORLD ENERGY OUTLOOK 2007: FACT SHEET CHINA HOW WILL CHINA MEET ITS RAPIDLY GROWING ENERGY DEMAND? WILL IT BECOME A MAJOR COAL IMPORTER?

APEC Energy Demand and Supply Outlook, 6 th Edition

THE THIRD IEA-IEF-OPEC SYMPOSIUM ON GAS AND COAL MARKET OUTLOOKS. Deep dive into the Asian market Sylvie Cornot-Gandolphe Paris, 14 December 2016

Global and U.S. Coal Outlook American Waterways Symposium

TRADE, SERVICES AND DEVELOPMENT

Trends in Energy Scenario Development

World primary energy demand in the Reference Scenario: an unsustainable path

BP Energy Outlook 2017 edition

World Energy Outlook Dr. Fatih Birol IEA Chief Economist Rome, 18 November 2009

Emerging Global Trade Patterns: USDA s Long-term Agricultural Projections

Assessing the Impact of the Diffusion of Shale Oil and Gas Technology on the Global Coal Market

Japan s Energy Mix and Clean Coal Technology

IEEJ:October 2016 IEEJ2016 The global energy outlook and what it means for Japan Paul Simons Deputy Executive Director, International Energy Agency Ja

The Outlook for Energy:

Powergen Asia Supercritical and Ultra-Supercritical Power Plants SEA s Vision or Reality?

Assessing the Impact of the Diffusion of Shale Oil and Gas Technology on the Global Coal Market

UNECE Expert Group on Resource Classification April, 2016

Impact of American Unconventional Oil and Gas Revolution

The Outlook for Energy:

The Outlook for Coal. Presentation to the Australian Institute of Energy National Conference.

The Outlook for Energy: A View to 2040

Peabody and the Path to 21 st Century Coal

BP Energy Outlook 2017 edition

World Energy Outlook Dr. Fatih Birol IEA Chief Economist Riyadh, 12 January 2010

Coal & Minorities Affordability, Reliability & Economic Development

Outlook for Bulk Commodities John Barber Bureau of Resources and Energy Economics. bree.gov.au

The future of global oil and gas. APPEC 2016, Singapore, 6 September Eirik Wærness, Senior vice president and Chief economist

Perspective on Accelerating RE to reach ASEAN s 23% aspirational target. Asia Clean Energy Forum 2017, ADB, Manila Deep-dive session - 6 June 2017

IEEJ:January 2019 IEEJ2019 Coal 2018 Analysis and Forecasts to 2023 Keisuke Sadamori Director, Energy Markets and Security, IEA IEEJ, Tokyo, 26 th Dec

Socio-Economic and Energy Policy Assumptions

A Path to Marine. A Workshop on Renewable. Environment. Bob Thresher, PhD, PE

developments and economic

Milton Catelin UNECE Committee on Sustainable Development 29 November 2006 Geneva

Global energy markets outlook versus post-paris Agreement Impact on South East Europe

World Energy Outlook Bo Diczfalusy, Näringsdepartementet

U.S. China Fossil Energy Industry Forum. Martin Considine Vice President Btu Conversion

Southeast Asia Access to Energy Brief

OECD/IEA Dr. Fatih Birol Executive Director, International Energy Agency Statoil Autumn Conference Oslo, 28 November 2017

OECD/IEA The IEA gas outlook Ambassador Richard H. Jones Deputy Executive Director

Renewable Energy: Opportunities and Challenges

The Future of Coal Utilization in the U.S.

OECD/IEA Dr. Fatih Birol Executive Director, International Energy Agency Istanbul, 15 December 2017

UNIDO and Sustainable Energy in Asia. Sooksiri Chamsuk UNIDO Regional Office in Thailand

BP Statistical Review of World Energy

Transcription:

Empowering The Central Humanity Role Of Coal Through in Coal America s Future The importance of coal in the global energy mix is now the highest since 1971. It remains the backbone of electricity generation and has been the fuel underpinning the rapid industrialization of emerging economies, helping to Frank Clemente Ph.D. Senior Professor of Social Science & Energy Policy Penn State University fac226@psu.edu raise living standards and lift hundreds of millions of people out of poverty, Fatih Birol, Chief Economist, International Energy Agency, 2013* Frank Clemente Ph.D. Professor Emeritus of Social Science Penn State University fac226@psu.edu Presented at the Coal Forum, Longworth House Office Building, December 5, 2007 1 1

Key underlying premises 1. Electricity is the lifeblood of modern society and the key to a higher quality of life for all. 2. At least 1.3 billion people have no electricity and another 2 billion lack adequate access to power 3. Coal is the leading resource to affordably meet electricity demand and alleviate electricity deprivation 4. Coal conversion to liquid fuel and substitute natural gas will be a global advantage going forward 5. Clean coal technologies work: (a) higher efficiency generation and (b) carbon capture,use and storage are the technological pathways to sustainable energy, economic growth and climate change goals

ELECTRICITY IS GOOD More People, Living Better, Living Longer Source: developed from The World Bank, 2010b 3

A Transmission Line for Much of the World 4

Scale Sets the Context : Global Electricity Demand Increase of 670% in Demand in Two Generations Source: IEA; WEO 2012 (Current Policy Scenario), WEO 2002, WEO 1996 5

The Scale of Electricity Deprivation In Sub-Saharan Africa, there is only enough electricity to power one light bulb per person 3 hours a day (800 million people) Sources: CIA, World Factbook, 2012; World Bank, 2012; Alan Pasternak, Global Energy Futures and Human Development: A Framework for Analysis, Lawrence Livermore National Laboratory, 2000

The Coming Wave of Rising Expectations Millions Age 24 or Younger Source: CIA World Factbook

Everything, Everywhere, All the Time: Increases needed by 2035 to meet demand Nuclear power 42% Oil production 23% Hydro 56% NG production 60% Coal production 59% Plus a 61% increase in renewables and biomass 8 8

Coal s Ever Growing Role People dependent on coal for at least 40% of electricity 2,300 Million 3,000 Million 4, 000 Million 1990 2010 2030 IEA Current Policies Scenario 9

Incremental Electricity Generation by 2035 Terawatt Hours 1,082 USA 11,770 17,874 Developing Asia World (non-u.s.) Source: EIA

Supercritical Technology has Significant Environmental Benefits 429 GW On Line and Under Construction China and India house 50% of the World s Developing Advanced Coal Fleet China 175 GW ROW 45 GW U.S. 96 GW Other EU 11 GW India 37 GW Japan 20 GW Germany 12 GW S. Korea 17 GW Russia 16 GW

Out of Poverty: Coal Based Energy has Propelled China Forward China is an example for the developing world IEA, 1,094 534 0 Note: Poverty measure follows World Bank Definition of $1 per day income Source: IEA, 2007; EIA, 2008 12 12

Unprecedented urbanization drives demand for coal Urban households in developing Asia consume three times more commercial energy than their rural counterparts. (World Bank) Billions of People

Coal Provides the Building Blocks of Cities Power Steel Cement

PUDONG IN 1990 15

PUDONG TODAY 16

The Future of Shanghai 17

The Scale of Latent Demand for Coal-Based Electricity in India Millions of Indians Sources: IEA; World Bank

India Will Drive the Next Generation of Global Urban Growth Millions of People Incremental Urban Population, 2015-2050. A new Mumbai every year. Source: UN

Coal as the Continuing Cornerstone of India s Power Generation Total: 960 TWh Total: 3,565 TWh Total: 66 TWh Coal 49% Other 51% 1970 Coal 68% Coal Other 69% 32% 2,446 TWh Other 31% 1,119 TWh Coal 69% Other 31% 2010 Sources: IEA, WEO, 2002, 2012 (current policies) 2035

ASEAN: Association of Southeast Asian Nations Brunei Cambodia Indonesia Lao Malaysia Myanmar Philippines Singapore Thailand Vietnam Over 600 million people live in the ASEAN countries almost twice as many as live in the United States. GDP growth is projected to increase at over 4.6%/y through 2035 (IEA Southeast Asia Outlook, 2013, p. 30)

The Continuing Rise of Coal Power in ASEAN Terawatt Hours (TWh) of Generation TWh Through 2035 Coal Gas Other Hydro Coal emerges as the fuel of choice in the power sector as it is relatively cheap and abundant. A shift towards coal is already underway IEA* Source: IEA, Southeast Asia Energy Outlook, pg. 37, 2013

ASEAN Population Without Access to Electricity 15 million 25 million 28 28 28 million 66 million 134 million Rest of ASEAN Myanmar Philippines Indonesia TOTAL Source: IEA, Southeast Asian Energy Outlook, pg. 27, 2013

The Scale of ASEAN Urbanization to 2050 Incremental Urbanization in Millions by 2050 New Urbanites in Millions ASEAN nations will add 239 million people to urban areas by 2050 the equivalent of one St. Louis every 19 days for the next 37 years. *Western plus Northern Europe. Data source is UN Urbanization Prospects, http://esa.un.org/unup/ 2011

The United States is a Developing Nation The Boom is Still Ahead of the U.S. New Population in Millions Source: U.S. Census Bureau

The Continuing Urbanization of America Millions of Americans Through 2050 the urban population will increase each year more than the population of Chicago. Rural Population Source: U.S. Census Bureau

The EIA projects coal will still be the leading source of power generation through 2040 Terawatt Hours (TWh) 252 297 903 1,398 1,829 Wind Hydro Nuclear Gas Coal 27

Our lack of institutional memory even to 2008 Westar (Kansas) officials.. said the fuel charge is increasing because of the increased costs of natural gas The rising price of natural gas is one of the reasons why Southern California Edison, the largest utility in California, recently warned customers it would be requesting a sharp increase in rates increased natural gas prices already have resulted in electricity bills jumping twice since March for customers of Milwaukee-based We Energies. 2008 About 60 percent of New England power plants run on natural gas or oil, and sharp increases in the costs of these fuels passed through to electricity prices Summer wholesale market prices for electricity in New York City may exceed last summer's prices by 89%. Driving this increase is the major increase in the price of natural gas The 260,000 customers of Virginia Natural Gas will see a 35 percent increase in their annual bill Retail electric companies blame rising natural gas prices, since most of Texas' electricity comes from natural gas-fueled plants Florida Power & Light, the state's largest utility with 4.4-million customers, is also asking for a 16 percent increase (and) estimates that utilities this year will pay 33 percent more for natural gas Note: All quotations from 2008 news releases.

The skewing of America s power system Probable U.S. Generating Capacity by 2020 in GW By 2020, gas generating capacity will exceed that of coal, nuclear, and hydro combined. NERC has warned that increased gas dependence is a risk to electric reliability. Demand from the gas fleet could exceed 35 Bcf/day compared to 21 Bcf/day in 2011. This would require an additional 4.5 Tcf twice the production of the Gulf of Mexico. Source: EIA, 2012 29

Where Will We Get the Gas by 2025? 4,700 Bcf 14,800 Bcf Incremental U.S. Gas Production Potential Incremental U.S. Gas Demand (PIRA, 2013) Note: Incremental dry gas production per EIA AEO Table A.14

Our lack of institutional memory even to 2008 Westar (Kansas) officials.. said the fuel charge is increasing because of the increased costs of natural gas The rising price of natural gas is one of the reasons why Southern California Edison, the largest utility in California, recently warned customers it would be requesting a sharp increase in rates increased natural gas prices already have resulted in electricity bills jumping twice since March for customers of Milwaukee-based We Energies. 2008 About 60 percent of New England power plants run on natural gas or oil, and sharp increases in the costs of these fuels passed through to electricity prices Summer wholesale market prices for electricity in New York City may exceed last summer's prices by 89%. Driving this increase is the major increase in the price of natural gas The 260,000 customers of Virginia Natural Gas will see a 35 percent increase in their annual bill Retail electric companies blame rising natural gas prices, since most of Texas' electricity comes from natural gas-fueled plants Florida Power & Light, the state's largest utility with 4.4-million customers, is also asking for a 16 percent increase (and) estimates that utilities this year will pay 33 percent more for natural gas Note: All quotations from 2008 news releases.

Nuclear is too Expensive: 2,200 MW Levy Plant in Florida (CANCELLED) Projected to Come Online in 2016; Cancelled in 2013 Due to Cost Estimated Cost in Billions Billions $ Levy Plant in Florida: cost estimates increased fivefold in just seven years. The likelihood of someone else going ahead with a new nuclear plant today is very low indeed. Jonathan Arnold, Utility Analyst, Deutsche Bank, August 2013 Year of Estimate

Clean Coal Technologies Work Total Emissions Have Declined While Coal Consumption Increased + 146% + 103% - 89% - 93% Source: USDA 2011, EIA 2012, NETL 2011 33

CCUS-The EOR Opportunity: Proven and Profitable at $80/bbl Oil Over the next 30 years: 87 billion barrels in stranded oil could be recovered in the U.S. alone CO 2 is a necessary feedstock for EOR Maximum needed: 14 billion tons of CO 2 7 billion tons of coal Carbon is a product not a problem. Source: National Energy Technology Laboratory, U.S. Department of Energy, Storing CO 2 and Producing Domestic Crude Oil with Next Generation CO 2 -EOR Technology, Jan. 9, 2009; International Energy Agency: Coal-Fired Power Generation: Replacement/Retrofitting Older Plants, 2008; Management Information Services and Peabody analysis. Source: DOE/NETL_2012/1540-Figure 1.5. 34

A Better Way: The Clean Coal Path to Achieve Our Economic and Environmental Goals Efficiency improvements at Existing Plants Building New Supercritical Plants Demonstrating and Deploying IGCC and Carbon Capture, Utilization and Storage The Goal: Near-Zero Emissions Advancing Carbon Capture, Utilization and Storage and Btu Conversion Retrofitting Existing Coal-Based Generation with Carbon Capture/Storage Up to 90% Lower CO 2 CO 2 -Enhanced Oil Recovery, Producing 4 Million b/d 35 20 years