Global perspective on the use of low quality coals Stephen J Mills CCC 180 ISBN 978-92-9029-500-6 January 2011 copyright © IEA Clean Coal Centre Abstract This report examines the global situation with regard to the scale, location and major uses of low quality coals and addresses the individual countries where they currently play, or in the future, are likely to play, an important role in energy production. Around half of the world’s estimated recoverable coal reserves comprise low value coals, predominantly lignites, subbituminous coals, and high-ash bituminous coals. By rank (on a tonnage basis) anthracite and bituminous coals account for 51% of the world’s reserves, subbituminous coal 32%, and lignite 18%. For decades, many coal-producing countries have witnessed a steady decline in the quality of the coal produced. Often, this reflects the increasing exhaustion of reserves of higher grade coals and a growing reliance on reserves of lower quality. For instance, this overall downward trend in coal quality has been occurring in the USA since the 1950s although similar trends can be observed in many other parts of the world. Despite the drawbacks associated with their use, many countries are turning increasingly to the use of indigenous reserves of lower quality coals. In some cases, these comprise the only significant energy resource available. Often, such coals are mined relatively inexpensively via opencast techniques. Their use provides a secure source of energy and helps reduce dependence on imported supplies. Industry observers are convinced that the long-term future of coal-derived energy supplies will include the greater use of low rank and low quality coals, a trend that is already discernible in many parts of the world. Abbreviations CCC (IEA) Clean Coal Centre CCS carbon capture and storage CFB circulating fluidised bed CFBC circulating fluidised bed combustion CTL coal-to-liquids CV calorific value DRB demonstrated reserve base EDR economic demonstrated reserve EOR enhanced oil recovery EPRI Electric Power Research Institute, USA ESP electrostatic precipitator EU European Union FBC fluidised bed combustion FEED front end engineering and design FGD flue gas desulphurisation Gt gigatonne (1 billion tonnes) IDGCC integrated drying gasification combined cycle IGCC integrated gasification combined cycle LHV lower heating value MoU memorandum of understanding MPa megapascals NETL National Energy Technology Laboratory, USA OECD Organisation for Economic Cooperation and Development PCC pulverised coal combustion PRB Powder River Basin R&M renovation and modernisation SC supercritical SCR selective catalytic reduction SNCR selective non-catalytic reduction SNG synthetic natural gas TRIG transport integrated gasification technology UCG underground coal gasification USC ultra-supercritical US DOE Department of Energy, USA US EPA Environmental Protection Agency, USA WCI World Coal Institute WEC World Energy Council ZEP zero emissions platform 2 IEA CLEAN COAL CENTRE Contents Abbreviations . 2 Contents. 3 1 Introduction . 7 1.1 What constitutes a ‘low grade’ or ‘low quality’ coal?. 7 1.2 Declining coal quality and the growing importance of low grade/value coals . 9 1.3 Advantages and disadvantages of using low grade/quality coals . 11 1.4 Lignite/brown coal production and consumption . 12 1.5 Subbituminous coal production and consumption . 15 1.6 High ash bituminous coal production and consumption . 16 1.7 Upgrading of low grade and low rank coals . 17 1.8 Introduction to case studies . 18 2 North America . 19 2.1 USA . 19 2.1.1 Subbituminous coals . 20 2.1.2 Lignites . 21 2.1.3 US Clean coal and CCS projects using low value coals . 22 2.2 Canada . 22 2.3 Mexico . 25 3 Europe. 27 3.1 Bulgaria . 27 3.2 Czech Republic . 28 3.3 Germany. 30 3.4 Greece . 32 3.5 Hungary . 33 3.6 Kosovo . 34 3.7 Poland . 35 3.8 Romania . 36 3.9 Serbia and Montenegro . 37 3.10 Slovakia . 38 3.11 Slovenia . 39 3.12 Spain . 39 3.13 Turkey . 41 4 India . 43 4.1 Hard coals . 43 4.2 Lignite . 44 5 Pakistan. 45 5.1 The Thar coalfield developments. 45 6 Australia and New Zealand . 47 6.1 Australia. 47 6.1.1 Victorian lignite/brown coals . 47 6.1.2 Lignite-based CCT and CCS projects and proposals . 48 6.2 New Zealand . 50 6.2.1 South Island lignite . 51 Global perspective on the use of low quality coals 3 7 China. 53 7.1 Coal use . 53 7.1.1 Power generation. 53 7.1.2 Gasification and IGCC applications . 54 7.1.3 Non-power uses. 54 8 Southeast Asia. 56 8.1 Indonesia . 56 8.1.1 The power generation ‘Crash Programme’ . 57 8.1.2 Non-power coal use . 58 8.1.3 Coal exports . 58 8.2 Thailand . 59 8.3 Malaysia. 60 8.4 Vietnam . 60 8.4.1 Lignite use for power generation . 61 8.5 Laos . 62 8.6 Myanmar . 63 8.7 The Philippines . 63 9 South and Central America. 66 9.1 Argentina . 66 9.2 Brazil . ..