Prospects for coal and clean coal technologies in Greece Dr Stephen Mills CCC/261 December 2015 © IEA Clean Coal Centre Prospects for coal and clean coal technologies in Greece Author: Dr Stephen Mills IEACCC Ref: CCC/261 ISBN: 978–92–9029–584-6 Copyright: © IEA Clean Coal Centre Published Date: December 2015 IEA Clean Coal Centre 14 Northfields London SW18 1DD United Kingdom Telephone: +44(0)20 8877 6280 www.iea-coal.org 2 IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Greece Preface This report has been produced by IEA Clean Coal Centre and is based on a survey and analysis of published literature, and on information gathered in discussions with interested organisations and individuals. Their assistance is gratefully acknowledged. It should be understood that the views expressed in this report are our own, and are not necessarily shared by those who supplied the information, nor by our member countries. IEA Clean Coal Centre is an organisation set up under the auspices of the International Energy Agency (IEA) which was itself founded in 1974 by member countries of the Organisation for Economic Co-operation and Development (OECD). The purpose of the IEA is to explore means by which countries interested in minimising their dependence on imported oil can co-operate. In the field of Research, Development and Demonstration over fifty individual projects have been established in partnership between member countries of the IEA. IEA Clean Coal Centre began in 1975 and has contracting parties and sponsors from: Australia, Austria, China, the European Commission, Germany, India, Italy, Japan, New Zealand, Poland, Russia, South Africa, Thailand, the UK and the USA. The Service provides information and assessments on all aspects of coal from supply and transport, through markets and end-use technologies, to environmental issues and waste utilisation. Neither IEA Clean Coal Centre nor any of its employees nor any supporting country or organisation, nor any employee or contractor of IEA Clean Coal Centre, makes any warranty, expressed or implied, or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed, or represents that its use would not infringe privately-owned rights. 3 IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Greece Abstract Greece’s financial crisis continues to have a major impact on all facets of the country’s economy – recent years have seen this contract by nearly a quarter. The period has seen the deepest and most protracted peacetime recession in the country’s history. Until recently, there were some signs that the recession could be bottoming out. However, in 2015, the financial crisis continued unabated – as yet, there is little to suggest that the Greek economy will enjoy serious recovery in the near future. When significant economic recovery does occur, the energy sector will have a major role to play. The country has a high energy import dependency. Almost all of its oil and gas is sourced from abroad; this amounts to almost two thirds of its gross inland energy consumption. Importing energy is also expensive – reportedly, the current level is ~US$20 billion per year. Compared to other EU member states, the overall diversification of the energy mix is rather limited. Greece’s main indigenous energy resource is lignite, used to generate a significant proportion of the country’s electricity. However, its overall quality is poor. The state-owned energy company Public Power Corporation S.A. (PPC) is the largest lignite producer with the right to exploit almost two thirds of the country’s known reserves. More than 93% of Greece’s energy is provided by fossil fuels, compared to the European average of 75% (Montague, 2015). In January 2015, a new government was elected. This heralded a change of direction in energy policy, with earlier plans to privatise parts of the energy sector curtailed. However, conditions demanded recently by EU and IMF creditors, prior to disbursement of the next tranche of Greece's financial bailout, means that once again, privatisation schemes may be back on the table. This is likely to encompass natural gas and electricity supply. There was a renewed focus on the potential of the country’s lignite resources. In order to minimise the cost of imported energy and improve security of energy supply, the present government previously announced its intention to increase their use, primarily for electricity generation. However, this stance may have since softened, with emphasis shifting towards the greater use of renewable technologies. The report examines the situation prevailing in the Greek energy sector, and how this might change in the future. Existing and proposed clean coal-based activities are discussed. However, major uncertainties (in terms of scope and timescale) remain over many aspects of energy production – the nature of, and rate of economic recovery will undoubtedly have major impacts. Acknowledgements The contribution, comment and input of the following is gratefully acknowledged: Kyriakos Psychas, Greek Ministry of Production, Environment and Energy Staff of the Public Power Corporation S.A. 4 IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Greece Acronyms and abbreviations ADMIE The Independent Power Transmission Operator BAT best available technology boe barrel of oil equivalent (one barrel of oil has the same energy content as 169.9 m3 of natural gas BP British Petroleum CBM coalbed methane CCC [IEA] Clean Coal Centre CCGT combined cycle gas turbine CCT clean coal technology CCS carbon capture and storage CERTH Centre for Research and Technology-Hellas CFBC circulating fluidised bed combustion CFD computational fluid dynamics CHP combined heat and power CRES Centre for Renewable Energy Sources CSLF Carbon Sequestration Leadership Forum CSP concentrated solar power CV calorific value DEPA Public Gas Corporation (Dimosia Epichirisi Paroxis Aeriou) ECBM enhanced coalbed methane recovery EEA European Economic Area EOR enhanced oil recovery EMS Environmental Management System EPC engineering, procurement and construction ESP electrostatic precipitator ETS [EU] Emissions Trading Scheme EU European Union FBC fluidised bed combustion FBG fluidised bed gasification FEED front end engineering design FGD flue gas desulphurisation FIT feed-in tariff FYROM Former Yugoslavian Republic of Macedonia GDP gross domestic product GHG Greenhouse gas GSRT General Secretariat for Research and Technology GVA growth value added HELE high efficiency, low emission HFO heavy fuel oil IEA International Energy Agency IED [EU] Industrial Emissions Directive IGCC integrated gasification combined cycle IGME Institute for Geology and Mineral Exploitation IPP independent power producer ISFTA The Institute for Solid Fuels Technology and Applications JV joint venture LCPD Large Combustion Plant Directive LHV lower heating value 5 IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Greece LNB low NOx burner LNG liquefied natural gas LULUCF land use, land-use change and forestry Mboe million barrels of oil equivalent MEA monoethanolamine MEE Ministry of Environment and Energy MEECC Ministry of Environment, Energy and Climate Change MoU Memorandum of Understanding MPa megapascals MSW municipal solid waste Mtoe million tonnes of oil equivalent NCRT National Council for Research and Technology NERP National Emission Reduction Plan NGCC natural gas combined cycle NREAP National Renewable Energy Action Plan NSDP National Strategic Development Plan NTUA National Technical University of Athens O&M operation and maintenance OCGT open cycle gas turbine OECD Organisation for Economic Cooperation and Development OPEC Organisation of Oil Exporting Countries PCC pulverised coal combustion PCI pulverised coal injection PES primary energy supply PPC Public Power Corporation S.A (Dimosia Epicheirisi Ilektrismou) PV photovoltaic RDF refuse-derived fuel RE renewable energy REN Renewable Energy Policy Network RFCS [EU] Research Fund for Coal and Steel SC supercritical SCR selective catalytic reduction SNCR selective non-catalytic reduction SNG synthetic natural gas TAP Trans Adriatic Pipeline TPES total primary energy supply TUED Trade Unions for Energy Democracy UNFCCC United Nations Framework Convention on Climate Convention USC ultrasupercritical US DOE United States Department of Energy ZEP Zero Emissions Platform 6 IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Greece Contents Preface 3 Abstract 4 Acknowledgements 4 Acronyms and abbreviations 5 Contents 7 List of Figures 9 List of Tables 10 1 Introduction 11 2 Greek energy policy 13 2.1 Economic impacts on PPC 15 3 The Greek energy sector 17 3.1 Oil 17 3.2 Natural gas and liquefied natural gas (LNG) 20 3.3 Nuclear energy 24 3.4 Renewable energy sources 24 4 Greek coal 33 4.1 Lignite production 33 4.2 Public Power Corporation S.A. (PPC) lignite production 34 4.3 Private sector lignite production 35 4.4 The lignite levy 36 4.5 Lignite quality/characteristics 36 4.6 Lignite homogenisation/blending 37 4.7 Lignite beneficiation 39 4.8 Lignite drying 39 4.9 Ash reduction 41 5 Hard coal imports 43 6 The Greek power generation sector 45 6.1 Independent power producers (IPPs) 49 6.2 Electricity imports and exports 51 6.3 The future of the Greek power sector 51 6.4 Decommissioning of old lignite-fired power plants 53 6.5 Development of new coal-fired generating capacity