Coal: Advanced Energy For Life G20 Energy Access Workshop 25 August 2014 Charles Meintjes President, Australia Peabody Energy
3.5 Billion Live Without Adequate Energy Energy Poverty.mp4 2
The Crisis of Energy Poverty Delivering universal access to electricity and safe household fuels is a fundamental condition to end poverty. World Bank President Jim Yong Kim Rajasthan, India youth carry fuel wood 3
Energy Poverty: The World s Number One Human and Environmental Crisis Global Energy Poverty Effects are Devastating Energy Essential for Health and Longevity Half the world s population lacks proper energy access; Energy poverty is fourth leading cause of death globally killing >4 million per year One billion people receive substandard care in health facilities from lack of electricity; 2.5 billion people lack improved water sanitation facilities Energy Access Linked to Economic Growth Coal Key to Solutions for Energy Access In developing world, half of children attend primary schools with no electricity; Lack of electricity stunts economic advancement Coal is abundant, reliable and low cost; Fuels over 30% of global energy use and is world s fastest growing major fuel 4
Energy is a Human Right and a Rapidly Rising Need 3.5 Billion People Lack Proper Access to Electricity 348M 140M 1M 65M 18M 496M 988M 134M 29M 436M 210M 589M Millions of people who lack adequate electricity Millions of people who have no electricity Source: International Energy Agency, World Energy Outlook 2012, The World Bank World Development Indicators 2012, CIA World Factbook 2012.
The Effects of Global Energy Poverty are Devastating Nearly 3 billion people use primitive stoves to burn wood or biomass to cook and heat homes Rudimentary cook stove smoke exposure is equivalent to inhaling 400 cigarettes per hour Some 4 million people die each year from household air pollution Sources: World Health Organization Fact Sheet #297, 2011. Barbara Fraser, Killer Cookstoves: Indoor Smoke Deadly in Poor Countries; Cleaner Stoves Elusive, Environmental Health News, 2012. National Geographic, Five Surprising Facts About Energy Poverty, May 2013. 6
Tons in Billions World Turns to Coal to Improve Quality of Life for Millions of People 8 70 6 60 4 50 40 Years 2 Life Expectancy 30 Coal Consumption 0 20 1000 1250 1500 1750 1900 2012 Source: UN; Yale Environment 360 Blog. 7
Electricity from Coal (TWh) Coal-Fueled Electricity Increases Correspond to Rise in Economic Growth Near-Perfect Correlation Between Coal Use and Global GDP 12,000 10,000 8,000 6,000 4,000 2,000 Since 1970, coal use has increased approximately 335% Global electricity from coal World GDP $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 World GDP (Trillions of 2005 $US) 0 1970 1980 1990 2000 2010 2020 2030 $0 Source: International Energy Agency World Energy Outlook 1995-2013; U.S. Department of Agriculture, 2011. 8
Escalating Energy Prices Create New Urban Poor in Europe EU Energy Price Growth ~37% Greater Than U.S., ~20% Than Japan Industrial Electricity Price Index Rebased (2005=100) 140 130 120 OECD Europe Japan We embarked on a big transition to a low-carbon economy without taking into account the cost and without factoring in the competitive impact Fabien Roques, Head of European Power and Carbon Division, HIS, Paris 110 100 U.S. 90 2005 2007 2009 2011 Source: European Commission, 2013 9
% Unemployment The Lesson of Spain: Still Waiting for Green Jobs Study: For Every Green Job, 2.2 Jobs Were Lost Elsewhere 30 25 20 15 10 5 0 Spain s Rising Unemployment Rate 11.4 18 20 21.7 2008 2009 2010 2011 2012 2013 25 27 22 20 18 16 14 12 Household Electricity Cost (Eurocents/kWh) Spain has already attempted to lead the world in a clean energy transformation. But our research shows that Spain's policies were economically destructive and a source of social harm and net job destruction. Professor Gabriel Calzada King Juan Carlos University Study of the effects on employment of public aid to renewable energy sources Household Electricity Cost (Eurocents/kWh) Source: Ycharts, Eurostat 10
Institutions Rethink Energy Policy We have made a clear commitment to battle climate change. But we are also serious about African access to energy. In certain places where the only option is coal, we have to look at that. Jim Yong Kim President of the World Bank 11
Title is Arial 40, Bold Coal s Global Role in Energy 12
Expanding Global Energy Needs Lead to Rising Coal Demand Global Energy Demand (MTOE) 18,000 15,000 Global Electricity Use (TWh) 36,000 +38% +69% +48% 30,000 5,000 Global Coal Demand (MTOE) 12,000 24,000 4,000 9,000 18,000 3,000 6,000 12,000 2,000 3,000 6,000 1,000 0 2010 2020P 2030P 0 2010 2020P 2030P 0 2010 2020P 2030P Source: Peabody Energy Analytics; International Energy Agency (IEA), 2013 World Energy Outlook. Energy and coal demand in Million Tonnes of Oil Equivalent (MTOE). Electricity use in terawatt-hours (TWh). 13
Increasing Urbanisation in Asia Continues to Drive Record Global Coal Demand 200,000 People Added to Cities Each Day 4,000 3,000 2,000 1,000 0 Global Urban Population (Millions) 2010 2015P 2020P Urbanization trends lead to greater coal use to fuel growing electricity and steel demand More than 70 million people expected to be added to cities each year through 2020 Coal is the only affordable fuel, at scale, to meet rising energy needs Source: United Nations, Department of Economic and Social Affairs, Population Division World Urbanization Prospects: The 2011 Revision. 14
Coal: Least Expensive and Most Reliable Form of Electricity Generation Coal: Only a fraction of other fuels costs Provides baseload power; easily transported Energy dense, abundant and increasingly uses advanced technologies Source: Peabody Energy Analytics. 15
Coal and Advanced Technology GreenGen Power Plant and Carbon Research Center; Tianjin, China 16
Today Pittsburgh 1950s Advanced Coal Technologies: U.S. Environmental Success Story U.S. Emissions Rate Declines 90% Since 1970; Coal Use Rises 170% 200% 150% 100% 50% Coal used for Power Generation + 170% + 116% GDP per Capita 0% -50% Regulated Emissions/MWh from Coal - 90% -100% 1970 1980 1990 2000 2013 Source: U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, Clean Air Markets, 2013. 17
Every Advanced Coal Plant Equal to Taking A Million Cars Off the Road A single, large coal plant, if built with the best-available technology, can reduce emissions by the annual equivalent of taking a million cars off the road Maria van der Hoeven Executive Director International Energy Agency December 2012 India 25 GW Japan 31 GW Advanced Coal Generation 569 GW On Line and Under Construction Russia 15 GW Germany 16 GW S. Korea 20 GW China 175 GW U.S. ROW 92 GW 45 GW ROW 45 GW India 37 GW China 325 GW Supercritical and ultrasupercritical operating plants and plants under construction. Source: Platts World Electric Power Plant Database. December 2013. Huffington Post, How to Fix the 21 st Century s Dirty Engine of Growth, Dec. 2012. 18
Next Generation Technologies Offer Continuous Path Forward Efficiency Improvements at Existing Plants Building New Supercritical and Ultra- Supercritical Plants Demonstrating and Deploying IGCC and Carbon Capture, Utilization and Storage The Goal: Near-Zero Emissions Advance Carbon Capture, Use and Storage and Btu Conversion Applications 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 20 years 19
Call to End World s No. 1 Human and Environmental Crisis: Energy Poverty Systemically Changing the Way People Think About Coal Raise awareness and support to: End crisis of global energy poverty, which leads to crippling impacts to human health, standards of living and the environment Increase access to low-cost electricity Improve emissions using today s advanced clean coal technologies 20
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