Energy Mix Strategies for oil importing country – Important in the scenario of energy security and global warming:

Energy Mix Strategies for oil importing country – Important in the scenario of energy security and global warming:

A. We are aware of the problems of environmental pollution and the adverse consequences of global warming causing due to CO2 emission. To restrict environmental pollution, to mitigate the CO2 emission and rate of increase of CO₂ concentration in the atmosphere, responsive long term energy mix strategies exploiting the maximum potential of non-greenhouse gas emitting energy sources need to be developed and implemented as rapidly as possible. The future energy mix will not only depend on environmental issues, but also will depend on technological, economic, supply, logistics and political factors. It is generally accepted that for many decades fossil fuels will continue to be the major energy source world over. Natural gas being the lowest fossil fuel greenhouse gas emitter will increase the share in energy scenario world over. Countries having or exporting fossil fuels cannot easily turn away from their use and likewise the industrially & economically dynamic countries of Asia such as China, Japan and India cannot radically shift from fossil fuels towards uncertain and currently costly renewable for their growing power needs.

B. National and regional factors are the most important in guiding country's energy mix. Percentage share of energy differ considerably today and they will in the future. For example, today China is more than 90% dependent on various forms of fossil fuels. On the other hand, France and Sweden have reduced their dependence on fossil fuels to less than 50% and 35% respectively by using nuclear and hydro-power to a great extent. Moreover, out of all the fossil fuels coal is the workhorse of global electric power sector and is used to generate more than half of the electricity world consumes. Coal is also world’s most abundant fossil fuel, with supplies projected to last almost 250 years or more. As coal-fired power plants generally produce the lowest-cost electricity and coal is abundant, most of the country’s economic and energy security depend on the continued use of the fuel.

C. Therefore, on the global level, it is difficult to make a policy decisions to foster a reduced reliance on fossil fuel. Decision makers are confused on how to proceed for country’s energy mix for the future as there is general support for cost effective energy efficiency techniques and on the supply side an endorsement of an increased use of renewable and sustainable energy sources. In fact, both the efforts are necessary at present; but ‘renewable and sustainable energy sources’ have limited potential over the near term. However, in the developed and industrialized countries, the significant energy efficiency gains and use of renewable energy sources have been seen over the past two decades, that changed the dependence on fossil fuels and energy scenario to a great extent on their industrial and residential front.

D. The supply potential from renewable energy sources, at present, is difficult to assess since they are only emerging technologies and currently not suitable for meeting large energy demand of a country. With differing relevance for the various renewable energy sources, technological improvements are needed and basic challenges exist in reducing costs, improving efficiency and reliability, solving energy storage problems and integrating the technologies into existing energy systems. In most of the developed countries many decision makers in the opinion that, non-hydroelectric renewable energy sources, such as solar and wind will not be economically competitive for large scale production in the foreseeable future and that they will play no more than a limited role in the decades to come. They opine that, even with adequate support and subsidies the share of such renewable energy sources could reach only 5-8% (including about 3% non-commercial energy share) of primary energy supply by 2020.

E. Fortunately, hydroelectric has already been extensively developed and in use in Europe and North America (some 50% of the estimated maximum economic potential). Its greatest potential lies primarily in Asia, South America and Africa, where the trend will likely be towards small capacity units as concerns grow about the damaging environmental and social impacts of large dams.

F. Energy security and implementing proper energy mix strategies for oil importing countries are very much crucial especially in the scenario of rapid industrialization. For those countries, in my opinion, renewable energy must be developed in parallel with nuclear power and a clean-up of coal-fired power station technology, if these nations are to meet increasing demand without relying on enormous and potentially debilitating natural gas imports. For a nation the provision of sufficient, affordable and secure energy is crucial for any modern economy. Many countries are facing the challenge of bridging the widening gap between energy supply and demand. At the same time, across the globe, those same economies are facing challenges such as climate change, limited resources and rising costs. Therefore, for oil importing countries, energy mix should shift more towards, nuclear power and clean coal technology.

G. There are very large amounts of remaining oil, gas and coal left in the world and in the absence of concerted government initiatives, it may take many years before alternative energy sources such as wind and solar become a significant part of the world’s energy mix. It is true that some renewable sources such as bio-fuels and wind have attained ten-fold production increases throughout the past ten years. However, global energy demand is increasing at such a rate that, if we ignore hydro-electricity, renewable energy - as a proportion of total energy supply - may well remain at less than 2 per cent of the total market for many years to come. It may be noted here that, global climate change may be best addressed in the short term by energy conservation, by increasing fuel efficiency, and by subsurface storage of the carbon dioxide that results from burning fossil fuels. At the same time, the greatest advantages of nuclear power is that it avoids the wide variety of environmental problems arising from burning fossil fuels, apart from economically generating a high amount of electrical energy in one single plant using small amount of fuel.

H. Therefore, concerted efforts by such economies, in order to have secured energy for their sustainable developments, should involve large scale nuclear expansion, the development of clean coal-fired power stations, implementation of hydro-electric power to maximum potential and a increase in renewable energy sources such as solar and wind.

Green coal for power - To take care of post-Kyoto issues from energy security point-of-view:

Green coal for power - To take care of post-Kyoto issues from energy security point-of-view: a. Coal is the world’s most abundant and important source of primary energy. Turning a potential pollutant into a clean, green fuel for economical power production has become a matter for concern on a global scale. Coal continues to dominate the energy industries as the single most important and widely-used fuel. Delivering around 27 per cent of the world’s consumption of primary energy, almost half of which is used for electricity generation; reserves of coal are spread worldwide throughout some 100 developed and developing countries, sufficient to meet global needs for the next 250 years. b. Although a combination of economic and environmental pressures has forced the closure of older, inefficient, fossil fuelled thermal stations, the massive growth in power demand on a world scale will continue to be met predominantly by coal-fired plant for the foreseeable future. In many of the rapidly developing and industrializing regions of the world the rate of consumption of coal as a primary fuel for electricity generation is actually increasing. In energy-hungry India alone, coal-burn for power generation is forecast to more than double in the next few years to 350 million tonnes per year. Annual coal production in China, the world’s largest producer, has rocketed to over 1,500 million tonnes. Nevertheless, post-Kyoto issues have heightened environmental awareness, forcing the pace of technological change in the use of this abundant but potentially polluting fuel for power generation. The environmental threat posed by the release of even more millions of tonnes of toxic pollutants, acidic and greenhouse gases from both new and existing coal-burning power stations is widely accepted. Currently, signatories to the Kyoto Protocol are focusing on solutions to the problem of global warming, including the reduction of CO2 and other ‘greenhouse’ gases. In many other non- signatory countries, major programmes have been implemented by utilities and power producers to reduce SOx, NOx and CO2 emissions. Additional environmental concerns have also emerged, including the potential health impacts of trace emissions of mercury and the effects of particulate matter on people with respiratory problems. c. In contrast with both natural gas and LPG, hard coal can contain a wide range of compounds including sulfur in addition to useful hydrocarbons. The percentage of sulfur can vary widely, with relatively low concentrations in the highest quality anthracite and very high amounts in lignite, generating large volumes of SOx. As well as the need to treat the fuel prior to firing and control closely the combustion process itself to limit the production of nitrogen oxides, coal-fired stations based on conventional pulverized coal technology can only reduce SOx emissions through the use of post-combustion treatments. Further problems still remain through the safe disposal of fly ash which can contain high levels of toxic compounds including heavy metals. d. Enormous environmental problems faced by operators of older, coal-fired generating plants all over the world, plants were forced to take drastic action after various public protests about the deadly effects of SOx emissions and other emissions. Emissions from coal and lignite-fired units at various power generating stations caused widespread damage, killing livestock and crops downwind of the plant and causing respiratory illness in the population in many countries. The plants were forced to cut output. This tends to place an unacceptably high strain on the commercial viability of an existing power station in many of the developing nations and represents a completely uneconomic option for the majority of obsolescent installations. Power producers in industrialized developed countries are therefore adopting a variety of leading-edge clean-coal technologies for electricity generation. e. New clean coal technologies are providing an attractive and economically viable option to post-combustion systems. Applying the latest combustion, steam and process technologies in new power plant or upgrading existing coal-fired generating facilities provides significant improvements in thermal efficiency, reducing environmental impact and energy costs to the consumer. At the same time, higher thermal efficiencies result directly in reduced fuel costs, improving profitability and market position for the independent power producer. (i) For new and smaller coal-fuelled generating plant, boilers using well-proven circulating fluidized-bed CFB technology provide a cost-effective and efficient system capable of meeting current and future environmental standards. They are now being widely used and successfully operated in coal-fired generating units, burning a very wide range of coal and other fuels with widely differing heat values and mineral content. These can typically include anthracite, semi-anthracite, bituminous and sub-bituminous coal, lignite and even ‘gob’ – a form of high-ash bituminous coal waste. (ii) As an alternative to direct combustion based systems, coal gasification is becoming increasingly attractive, with Integrated Gasification Combined Cycle (IGCC) technology offering one of the best ‘clean’ options for effective power production. Gasification systems use steam and controlled amounts of air or oxygen under high temperatures and pressures to react with coal to form clean synthetic gas or ‘syngas’. Current systems provide efficient clean-up of the gas-stream to produce a mixture of carbon monoxide and hydrogen which can be used subsequently as a ‘clean’ fuel or a basic feedstock for liquefaction. f. Used as a fuel for power generation in a typical IGCC generating plant, a syngas-fired gas turbine drives a generator, with exhaust heat from the gas turbine recovered to produce steam to power a steam turbine in conventional ‘combined cycle’. IGCC power generating systems are presently being developed and operated in Europe and the US, with commercial systems capable of operating at thermal efficiencies approaching 50 per cent. NOx and Sox emissions levels are minimized with the potential for carbon-capture and sequestration of the CO in the sysngas stream being actively researched as design strategies for near-term and future coal-based IGCC plants. Elemental sulfur is removed from the syngas before combustion and is a highly saleable commercial byproduct. If the gasifier is fed with oxygen rather than air, the flue gas contains highly concentrated CO2 which can readily be captured, at about half the cost of that from conventional plants. g. As an alternative to the direct use of syngas as a fuel for electricity generation, it can also be processed using modern gas-to-liquids (GTL) technologies to produce a wide range of liquid hydrocarbon fuels such as gasoline and diesel oil. Coal-to-oil is a long-established technology in coal-rich South Africa. h. Nevertheless, clean coal technology is moving very rapidly in the direction of coal gasification, with a second stage designed to produce a concentrated and pressurized carbon dioxide stream followed by separation and geological storage. This has the potential to provide extremely low emissions of conventional coal pollutants, and as low-as-engineered carbon dioxide emissions – a vital step in the fight to prevent irreversible climate change.

Coal is Essential for Energy Security for many – Strategies to enlarge supply base and reduce environmental impacts are the prerequisites:

Coal is Essential for Energy Security for many – Strategies to enlarge supply base and reduce environmental impacts are the prerequisites:

A. More and more frequent environmental problems and disasters – floods, forest fires, tornados, air pollution in big cities – cause growing concerns everywhere. Energy harvesting, conversion, production and use contribute to these environmental burdens.

Hence, improving the environmental performance of the energy sector is of paramount importance. Thus, wider application of cleaner fuels and conversion technologies is a key element in the strategy to improve the environmental performance of the energy sector. Further, the lower price of coal as compare to petroleum based fuels; the interest in coal is renewed because of the more even geopolitical distribution of coal reserves and of larger supply bases of coal allover the world.

In fact, the environmental concerns about coal are not associated with coal itself, but with its utilization in different stages of the energy chain. Novel and more environmentally friendly technologies for coal utilization, commonly known as “Clean Coal Technologies” (CCT), are believed to be able to bring coal back into the picture. Hence, CCT recently enjoy a growing interest almost all parts of the world. At present, this interest mostly focuses on cleaner coal conversion through increased efficiency and CO2 capture technologies, for which large R&D efforts are ongoing worldwide.

B. Market implementation of CCT is expected to cause an increase in coal use. Coal demand could also rise significantly because the recent sharp increase in oil prices has a lower impact on coal than on gas prices. This is explained by the more favorable geopolitical distribution of coal reserves compared to that of gas. As a result, coal has become cheaper in relative terms than oil and gas. All in all, in a scenario of soaring oil & gas prices, coal is predicted to be the energy source with the fastest growing demand. The expected increase in coal demand for power generation raises the question of its secure availability in the future. Thus, enlargement of the coal supply base is essential throughout the world, with adoption of cleaner technology.

C. The enlargement of the coal supply base can take place in four main directions:

(a) More powerful mapping techniques for coal reserves - Modern geophysics and seismic techniques, improve mine planning and exploitation by reducing geological uncertainties and increasing extraction efficiencies. At the same time, they can reduce environmental externalities and energy use for coal extraction.

(b) Improvement of existing under-ground mining technologies - Underground (deep) coal mining accounts for about 60% of world coal production. Current best coal recovery rates for underground mining are 50-60% for the “room-and-pillar” technology and about 75% for “longwall” mining. The implementation of modern automated and computerized mining technologies can increase these recovery rates.

(c) Research and development for underground coal gasification - Underground gasification of coal deposits which are not technically or economically exploitable (anymore) with conventional mining technologies, can add enormous coal supply potential in Europe and worldwide. At present underground coal gasification is at an experimental stage. Significant further efforts are necessary to make it technically and economically viable. In many of the countries like India etc., commercialization of underground gasification technologies may reduce the energy import dependence and enhance energy security scenario, apart from creating new employment.

(d) Utilization of coalmine methane (CMM) gas - Methane gas, released from coalmines, has always raised serious safety and environmental concerns. Methane is highly explosive when accumulated in confined areas. It is also a powerful greenhouse gas with 20- times stronger global warming potential than carbon dioxide. On the other hand, CMM, which consists mainly of natural gas, is a suitable clean fuel. The capture and useful utilization of CMM can bring important synergy benefits in terms of enhanced security of supply and better environmental and safety performance of coal mining.

D. Therefore, for realizing the full potential of CCT, coal is sufficiently

(a) Abundant… only if we keep working on the enhancement of coal reserves,

(b) Cheap… as long as the supply continues to match the demand,

(c) Reliable… as long as the supplies are diversified.

To reach market maturity, clean coal technologies, covering extraction, preparation and conversion, need a long term vision and investment security. In the present pre-commercial stage they need firm political commitment and further R&D support.