the view of euracoal – the european coal producers ... · securing coal’s position in the...
TRANSCRIPT
Prof. Dr. Franz-Josef WodopiaExecutive Member of the Managing Board
GVSt (German Hard Coal Mining Association), and Member of
Euracoal’s Executive Committee
“The view of Euracoal – the European coal producers’ organisation”
Energy, Climate Change and Clean Coal Conference –University of Sheffield,24th April 2007
Sheffield, 27th April 2007, Figure 2
EURACOAL’s Targets and Tasks
The voice of coal in Europe
– Coal – Lignite – Imported Coal
Securing coal’s position in the European energy mix
Cooperating in achieving equilibrium between
– energy policy requirements,
– market challenges and
– environmental policy initiatives (coal mining and coal utilisation)
Sheffield, 27th April 2007, Figure 3
EURACOAL MembersZPWGK - Polish Hard CoalEmployer´s Association (POL)
DEBRIV - Deutscher Braunkohlen-Industrie-Verein (GER)
GVSt - Gesamtverband des deutschen Steinkohlenbergbaus (GER)
COALPRO - Confederation of the UK Coal Producers (UK)
CdF - Charbonnages de France (FRA)
PPC - Public Power Corporation (GR)
CARBUNION - Federation of SpanishCoal Producers (ESP)
ZSDNP - Czech Confederation of Coaland Oil Producers (CZR)
PPWB - Confederation of the PolishLignite Industry (POL)
Mini Maritza Istok AG (BUL)
MATRA - Matra Erömu Rt (HUN)
PATROMIN - Federation of the RomanianMining Industry (ROM)
VDKI - Verein der Kohlenimporteure (GER)
Hornonitrianske Bane Prievidza (SVK)
Banovici Coal Mine (BOS)
EPS - Electric Power Industry of Serbia (SER)
ISSeP - Institut Scientifique de Service Public (BEL)
University of Nottingham (UK)
IMCL - International Mining Consultants Ltd. (UK)
Coaltrans Conferences Limited (UK)
Euriscoal (BEL)
Fachverband Bergbaumaschinen im VDMA (GER)
Sheffield, 27th April 2007, Figure 4
EURACOAL: Contact Point and InterestRepresentation of Coal interests in Brussels
Nationale Spitzenverbände
Nationaler Kohleverband
Kohlenindustrie
Nationale Spitzenverbände
Nationaler Kohleverband
Kohlenindustrie
Nationale Spitzenverbände
Nationaler Kohleverband
Kohlenindustrie
European Institutions
Commission, Parliament, Council
EURACOAL
National Coal Associations
Coal Industry
National
Institutions
Parliament
Government
Sheffield, 27th April 2007, Figure 5
Climate change is the dominant energy theme today
A Call for Action on Climate Change
Sheffield, 27th April 2007, Figure 6
Climate change is the dominant energy theme today – also for coal
IPCC and Stern Report have given prominent impulses
Sheffield, 27th April 2007, Figure 7
Growth rate in world fuel consumption 2000–2005: It is coal that has experienced the fastest growth worldwide,
not gas, oil or renewables
0 10 20 30 40
Coal
Oil
Natural Gas
Nuclear
Hydro
Wind, otherRenewables
%
34 %
10 %
14 %
8 %
15 %
28 %
GVSt 2006
Sheffield, 27th April 2007, Figure 8
0
4
8
12
16
20
24
28
32
1980 1990 2000 2005 2010 2020 2030
Coal
Oil
Gas
Nuclear
Renewables
8.3
24.4
30.1
40%38%
40%40%
Source: DOE, 2006
Mill. GWh
19.018.2
41%38%
38%
World power generation: Coal is and will be the fuel No. 1
15.2
10.8
Sheffield, 27th April 2007, Figure 9
Reserves of coal are more evenly distributed around the globe than the reserves of oil and gas
N. America123/8/7
Africa34/15/13
MiddleEast0/100/66
Europe16/2/5
FSU117/17/53
Asia Pacific163/6/13
South & Central America9/14/6
(billion tonnes oil equivalent)coal / oil / gas
source: BP 2005
Global Energy Reserves 2004
Sheffield, 27th April 2007, Figure 10
China already dominates world demand …
0
200
400
600
800
1000
1200
1400
1600
1800
Million T
onnes C
oal Equiv
ale
nt
Chin
a
USA
EU25
Indi
a
Russia
Japa
nSo
uth A
frica
Source: IEA
World Coal Consumption 2005 (including lignite)
Sheffield, 27th April 2007, Figure 11
… and most of the world’s coal is produced ‘at home’
Seaborne coal trade has only a small proportion
0
500
1000
1500
2000
2500M
illion T
onnes
Chin
a
USA
Indi
aAus
tral
iaSo
uth A
fric
a
Russi
aIn
dones
ia
Polan
d
Seab
orne
Tra
de
Source: IEA
Top 8 Global Hard Coal Producers in 2005
Sheffield, 27th April 2007, Figure 12
Europe is the world‘s third largest consumer of coal behind China and the US
Sheffield, 27th April 2007, Figure 13
Coal is (and will be) important in EU power generation …
Power-generation structures in selected EU-25 member states
Gross power generation
0 10 20 30 40 50 60 70 80 90 100
RomaniaBulgaryFrance
BelgiumItaly
HungarySpain
UKGermany
Czech RepublicGreecePoland
EU 25
coal nuclear power gas oil others (hydro)
Share in %
TWh Share of Coal in %
154 923,179 29
59 605948
84607280 28396 3334 24
1530311855572
453857
42
Data as per: 08/2006
Source: EUROSTAT – Energy / Yearly Statistics 2004
Sheffield, 27th April 2007, Figure 14
… with indigenous coal supply making a major contribution
26%
41%
33%Ligniteproduction
Hard coalimports
Hard coalproduction
399 Mt
215 Mt
171 Mt
Source: European Commission / Euracoal
EU25 Solid Fuel Supply 2005 (adjusted for calorific value)
Sheffield, 27th April 2007, Figure 15
Coal and lignite production is widespread in Europe
Source: IEA
Hard Coal Lignite (HeatAdjusted)
UKOthersHungarySpainBulgariaRomaniaSerbiaCzechPolandGreeceGermany
2005 production
Sheffield, 27th April 2007, Figure 16
Indigenous coal has clear benefits for the economy
The use of indigenous coal deposits reduces import dependence, thereby increasing security of energy supply and maintaining theaccess to the domestic reserves
Domestic coal production helps to maintain the prominent position of European mining and clean coal technologies
Coal creates regional prosperity and employment opportunities
– About 300.000 jobs in the European coal industry (often in regions with high rates of unemployment)
– With indigenous coal, the added value remains in the region
The additional economic prosperity enables the regions to develop their economic structure without any disruptions, but with a long-term vision
Sheffield, 27th April 2007, Figure 17
New European energy policies are emerging
Energy Green Paper of the European Commission published in March 2006: Security – Sustainability – Competitiveness
Commission’s Communication “An Energy Policy for Europe” in January 2007 accompanied by a Strategic Energy Review and, among a range of new European energy policy initiatives,a Communication on “Sustainable Power Generation from Fossil fuels: Aiming for near-zero emissions from coal after 2020
Conclusions of the European Council 8/9 March 2007 with officialCreation of an “Energy Policy for Europe (EPE)” and the Energy Policy Action Plan (2007-2009)
Consultation
Sheffield, 27th April 2007, Figure 18
Call of European Spring Council 2007: Develop a sustainable integrated European climate and energy policy!
„Global warming, together with the need to ensure security of supply and enhance business competitiveness, make it more vital and pressing
for the EU to put in place an integrated energy policy …“
Sheffield, 27th April 2007, Figure 19
The new Energy Policy for Europe (EPE) is largely preoccupied
with “environmental” issues …
Limiting the global average temperature increase to not more than 2° C above pre-industrial levels
Firm commitment of the EU to achieve a 20 % reduction of greenhouse gas emissions by 2020. Provided that other developed countries commit themselves to comparable reductions the European Council has even endorsed an EU objective of a 30 % reduction by 2020 (with a view to collectively reducing GHG emissions by 60 % to 80 % in 2050)
Increase energy efficiency in the EU so as to achieve the objective of saving 20 % of the energy consumption (compared to the projections for 2020)
Binding target of a 20 % share of renewable energies in overall EU energy consumption by 2020
Sheffield, 27th April 2007, Figure 20
… but is also „aware of the huge possible global benefits of asustainable use of fossil fuels“. Therefore the Council :
underlines the importance of substantial improvements in generation efficiency and clean fossil fuel technologies,
urges Member States and the Commission to work towards strengthening R & D and developing the necessary technical, economic and regulatory framework to bring environmentally safe carbon capture and sequestration (CCS) to deployment with new fossil–fuel power plants, if possible by 2020;
welcomes the Commission intention to establish a mechanism to stimulate the construction and operation by 2015 of up to 12 demonstration plants of sustainable fossil fuel technologies in commercial power generation.
welcomes the Commission‘s intention to table a European Strategic Energy Technology Plan during 2007 … to acceleratethe competitiveness of sustainable energies …and low carbon technologies.
Sheffield, 27th April 2007, Figure 21
Coal responds to the EPE (Energy Policy for Europe) priorities
Tackling climate change and enhancement of energy efficiency:
Continuous modernisation and major efficiency improvements help reducing emissions significantly in the short and medium term
Carbon sequestration in coal-fired power plants and geological storage to be developed for the next decades
Strategic European Energy Technology Plan:
The coal industry has backed the ZEP, and Euracoal welcomes planned coal-based pilot and demonstration plants with CCS
Towards a coherent external energy policy:
Clean Fossil Fuel- and CCS-Projects will strengthen international partnership and cooperation
Sheffield, 27th April 2007, Figure 22
Coal responds to the EPE priorities (2)
Security of supply and solidarity between Member States:
Coal provides a unique contribution to security of supply: Large indigenous reserves. And a lot of Member States have a coal and/or lignite production of their own
Imported coal comes from more diverse sources than oil and gas and it can be safely transported and stored
For Europe an « effective diversification of energy sources » (European Council) is impossible without coal
Completing the internal European energy markets for growth and jobs:
Coal already has a fully functioning internal market
Reasonable and stable prices of solid fuels help competitiveness in Europe and there are big economic advantages of coal-based power generation also in future (see Prognos-Study for Euracoal, which will be published in the next weeks!)
Sheffield, 27th April 2007, Figure 23
The view of the coal industry: Clean coal comes in three stages
Clean coal IRetrofit and new-build in line with state of the art, further significant increase in efficiency
and reduction of SO2, NOx and dust
Clean coal IIResearch and development forincrease in efficiency to > 50 %
Clean coal IIICO2 capture and storage
Pilot and demonstration plants
Timely investment in ultra-modern technology
Sheffield, 27th April 2007, Figure 24
ZEP has already proposed 10-12 large scale CCS projects
Several coal-based CCS projects are already planned, for example:
– RWE (UK and Germany), E.ON (UK), Powerfuel (UK)
– Vattenfall (Germany), General Electric (Poland) etc
Necessary to provide urgent short and long term commercial incentives for these to go ahead:
– Inclusion in EU-ETS
– Clarification of state aid issues
– Early-mover funding mechanisms for pilot projects, establish robust R & D-Funding under FP7 and national programmes
– Long-term sustainable mechanisms for full deployment
Sheffield, 27th April 2007, Figure 25
A lot of political action is needed to make CCS a realityEU - Elements of a Directive on CCS
– Management of the environmental risks associated with CCS
– Effective and reliable permitting of storage sites
– Liability for CCS activities
International maritime and national legal frameworks
Public Acceptance
– Less than 10 % heard of CCS – before explanation only 13 % were positive, after explanation 55 % agreed; meanwhile there is moremedia information
– Public consultation needs to take into account the judgement andknow how of industry and science (as the IPCC Task Force), not only the objections of “green” campaigners
– An early information campaign is necessary to get sufficient public support for the large scale implementation of CCS
Competitiveness of CCS
Sheffield, 27th April 2007, Figure 26
Continuous modernization and increased efficiency is a pre-requisite to CCS …
31 - 36 %
40 - 45 %
η
Feasible today
Possible tomorrow
∆η~+30%
1950 - 1970 1970 - 1990 1990 - 2010 2010 - 2020
∆η~+30%
25 - 31 %
50, 150, 300 300, 600 up to 1.100 Unit size in MW
The right approach: continuous power plant modernization/renewal
Conceivable dayafter tomorrow
after 2020
A zero-CO2 power plant
20
25
30
35
40
45
5045 - >50 %
Sheffield, 27th April 2007, Figure 27
Coal industry‘s general energy policy requirements
Confirmation of coal as a sustainable, secure and competitive part of the EU energy mix in the years to come
Further political commitment to the vision/option of CCS including binding financial support for pilot and demonstration plants andadoption of an adequate legal framework for CO2 storage
Acknowledge the successes in enhancement of efficiency and limiting pollution of European coal power plants in the past andrecognise that increased plant efficiency and continuous modernisation have the potential to preserve resources and reduce CO2 in the short and medium terms
Acknowledge efficiency increase as a pre-requisite for CCS instead of devaluating it
The global problem climate change needs a global solution
Sheffield, 27th April 2007, Figure 28
source: BP, 2006
2005 : 29,1 billion t CO2
Japan
Rest of the world
India
22%
UK Germany
USA
Rest of EU-25
30%
10%4%
18%
6%5%2 % 3%
Russia
China
Energy related CO2-emissions in the world:A global problem, not only a European or a country-specific one
Prof. Dr. Franz-Josef
Wodopia(GVSt)
Thank you very much for your attention
Energy, Climate Change and
Clean Coal Conference –
University of Sheffield,
24th April 2007