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The Energy Frontier of Combining Coal and Renewable Energy Systems Stephen Mills Senior Consultant the OFFICIAL JOURNAL of WORLD COAL INDUSTRY IEA Clean Coal Centre

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The Energy Frontier of Combining Coal and Renewable Energy Systems Stephen Mills Senior Consultant the OFFICIAL JOURNAL of WORLD COAL INDUSTRY IEA Clean Coal Centre WINTER 2014 CORNERSTONE VOLUME 2 ISSUE 4 THE OFFICIAL JOURNAL OF THE WORLD COAL INDUSTRY The Energy Frontier of Combining Coal and Renewable Energy Systems Stephen Mills Senior Consultant THE OFFICIAL JOURNAL OF WORLD COAL INDUSTRY IEA Clean Coal Centre WINTER 2014 • VOLUME 2, ISSUE 4 Developing Country The Flexibility of German Exploring the Status Needs Are Critical to a Coal-Fired Power Plants of Oxy-fuel Technology Global Climate Agreement Amid Increased Renewables Globally and in China Our mission is to defend and grow markets for coal based on its contribution to a higher quality of life globally, and to demonstrate and gain acceptance that coal plays a fundamental 1 role in achieving the least cost path to a sustainable low carbon and secure energy future. The World Coal Association has been influencing policy at the highest level for almost 30 years. No other organisation works on a global basis on behalf of the coal industry. Our membership comprises the world’s major international coal producers and stakeholders. WCA membership is open to organisations with a stake in the future of coal from anywhere in the world. The WCA has recently appointed Harry Kenyon-Slaney, Chief Executive www.worldcoal.org of Rio Tinto Energy, as its new Chairman. It is an exciting time for the www.worldcoal.org/extract WCA and for the global coal industry. If you have an interest in the twitter.com/worldcoal future of the coal industry, contact us to see how you can get involved: www.youtube.com/worldcoal [email protected] facebook.com/WorldCoalAssociation WCA Members Alpha Natural Resources Inc China National Coal Group Peabody Energy Anglo American Glencore Rio Tinto Energy Arch Coal Inc Joy Global Shenhua Group BHP Billiton Karakan Invest. LLC Vostsibugol Bowie Resource Partners LLC Mitsubishi Development Pty Ltd Whitehaven Coal Limited Caterpillar Global Mining Orica Ltd Xcoal Energy & Resources WCA Associate Members Asociación Nacional De Empresarios De Coal Association of New Zealand Minerals Council of Australia Colombia CoalImp - Association of UK Coal Importers Mongolian Coal Association ASSOCARBONI Fossil Fuel Foundation National Mining Association Associação Brasileira do Carvão Mineral German Coal Association Queensland Resources Council Association of British Mining Equipment Indonesian Coal Mining Association Shaanxi Institute of Geological Survey Companies Iranian Mines & Mining Industries Development Svenska Kolinstitutet China National Coal Association & Renovation Organization UCG Association Coal Association of Canada Japan Coal Energy Center WCA_advert_h273 x w206mm 27 Nov 2014.indd 1 27/11/2014 13:30 FROM THE EDITOR Finding Common Ground enewables and coal are the two fastest growing forms of energy today. The growth of these energy sources is particularly prominent in developing Rcountries, where most expansion in electricity capacity is occurring. Coal and renewables often require less upfront investment, less infrastructure, and are more widely distributed globally than other energy options, making them ideal choices for regions that need to add electricity capacity in the near term. Coal and renewable energy systems can be integrated in such a way that the advan- tages of each energy source can be more fully harnessed. For instance, coal and biomass cofiring and cogasification, the most widespread combinations practiced today, allow for larger, more cost-effective plants than would be possible with only biomass, but a smaller carbon footprint than would be possible using coal with- out carbon capture, utilization, and storage (CCUS). In fact, there are many more examples of optimized systems in which renewable and coal energy systems could be optimally integrated. The main issues facing increased integration of coal and renewable energy sys- tems are not technical. Instead, they are generally institutional. Advocates for such integration are few and far between. However, some of the advantages are worth consideration: Integration can produce more power than a standalone renewable Holly Krutka plant and can be an enabling technology to get high-cost renewables, such as uncon- Executive Editor, Cornerstone ventional geothermal and concentrated solar power, deployed in the near term. Yet such projects are generally not included under renewable portfolio standards or clean energy standards. In addition, negative net greenhouse gas emissions, which can be achieved through cofiring coal and biomass with CCS, are often not recog- nized by emissions trading schemes. The deployment of renewables is already changing the operation of coal-fired power plants; tomorrow’s plants will need to be smarter and more responsive than those of the past. As is being demonstrated by Germany’s fleet of coal-fired power plants, rapid turndown to 25–40% of full capacity as well as rapid ramping is now not just possible, but has become standard operating procedure. Recently, low-carbon energy production from coal took a major step forward with the commencement of operation of SaskPower’s Boundary Dam project. This monumental CCUS project is now demonstrating that low-carbon coal is within our grasp. As coal and renewables grow globally, improved integration and efficiency as well as deployment of CCUS can ensure that coal and renewables can both con- tribute to decreasing the carbon footprint of the energy sector without sacrificing reliability, energy security, and eventually cost. Further demonstration, develop- ment, and deployment will be necessary to reduce costs, which emphasizes why increased integration of coal and renewables must find support within the global energy discussion today. This issue of Cornerstone offers a wide range of articles that discuss the many areas in which coal and renewables do and could intersect. On behalf of the editorial team, I hope you enjoy it. www.cornerstonemag.net 1 CONTENTS FROM THE EDITOR Finding Common Ground 1 Holly Krutka, Cornerstone VOICES The Rise of Electricity: Offering Longevity, 11 Improved Living Standards, and a Healthier Planet Frank Clemente, Penn State University 11 ENERGY POLICY Understanding the National Enhanced Oil Recovery Initiative 17 Patrick Falwell, Center for Climate and Energy Solutions Brad Crabtree, Great Plains Institute Developing Country Needs Are Critical 21 to a Global Climate Agreement Benjamin Sporton, World Coal Association STRATEGIC ANALYSIS The Flexibility of German Coal-Fired 21 25 Power Plants Amid Increased Renewables Hans-Wilhelm Schiffer, World Energy Council Toward Carbon-Negative Power Plants 31 With Biomass Cofiring and CCS Janne Kärki, Antti Arasto, VTT Technical Research Centre of Finland Evolution of Cleaner Solid Fuel Combustion 36 Christopher Long, Peter Valberg, Gradient 31 4 Cover Story The Energy Frontier of Combining Coal and Renewable Energy Systems Stephen Mills The global demand for energy continues to increase—as the fastest growing sources of energy, coal and renewables are largely responsible for meeting that demand. A Senior Consultant at the IEA Clean Coal Centre explores the projections for coal and renewable deployment as well as opportunities for optimization. 2 TECHNOLOGY FRONTIERS Making Coal Flexible: Getting From Baseload to Peaking Plant 41 Jaquelin Cochran, National Renewable Energy Laboratory Debra Lew, Independent Consultant Nikhil Kumar, Intertek Geothermal Assisted Power Generation for Thermal Power Plants 46 41 Nigel Bean, Josephine Varney, University of Adelaide Shenhua’s Development of Digital Mines Han Jianguo, Shenhua Group Co., Ltd 51 Direct Carbon Fuel Cells: An Ultra-Low Emission Technology for Power Generation 56 Christopher Munnings, Sarbjit Giddey, Sukhvinder Badwal, CSIRO Energy Flagship Exploring the Status of Oxy-fuel Technology Globally and in China 61 Zheng Chuguang, 56 Huazhong University of Science and Technology and Clean Energy Research Center GLOBAL NEWS Covering global business changes, publications, and meetings 67 LETTERS 71 VOLUME 2 AUTHOR INDEX 73 67 Chief Editor Copyright © 2014 World Coal Association Gu Dazhao, Katie Warrick Editorial Office Executive Editor Shenhua Science and Technology Research Holly Krutka, Liu Baowen Institute Co., Ltd 006 mailbox Official Journal of World Coal Industry Shenhua Science and Technology Park, Responsible Editor Future Science & Technology City, Chi Dongxun, Li Jingfeng Changping District Beijing 102211, China Copy Editor Li Xing, Chen Junqi, Zhang Fan Phone: +86 10 57336026 Sponsored by Shenhua Group Corporation Limited Fax: +86 10 57336014 Production and Layout John Wiley & Sons, Inc. Email: [email protected] (Chinese) Email: [email protected] (English) CORNERSTONE (print ISSN 2327-1043, Website: www.cornerstonemag.net online ISSN 2327-1051) is published four times a Published by John Wiley & Sons, Inc. year on behalf of the World Coal Association by The content in Cornerstone does not necessarily Wiley Periodicals Inc., a Wiley Company reflect the views of the World Coal Association or 111 River Street, Hoboken, NJ 07030-5774. its members. www.cornerstonemag.net 3 COVER STORY The Energy Frontier By Stephen Mills Senior Consultant “Although coal and renewable energy IEA Clean Coal Centre sources might appear to be strange bedfellows … we could see increased deployment of combinations of the world’s two fastest-growing energy sources becoming a reality.” he world is undoubtedly hungry for energy and this natural gas, and coal will continue to be used widely, although hunger is growing. There are strong incentives to in some situations, the
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