WORLD COAL INSTITUTETHE COAL RESOURCEA COMPREHENSIVE OVERVIEW OF COAL
THE COAL RESOURCEWHERE DOES COAL COME FROM? WHAT IS ITUSED FOR? IS IT USED ANYMORE?               Coal is one of the world...
The Coal Resource: A Comprehensive Overview of Coal   1Contents2     SECTION 1 WHAT IS COAL?2     Types of Coal3     Where...
2    World Coal Institute    SECTION ONEWHAT IS COAL?>> Coal is the altered remains of prehistoric vegetation   that origi...
The Coal Resource: A Comprehensive Overview of Coal                3  has a correspondingly higher carbon and           Co...
4   World Coal Institute                             While it is estimated that there is enough                           ...
The Coal Resource: A Comprehensive Overview of Coal   5Coal Reserves Showing Regional Shares (at end of 2003)             ...
6    World Coal Institute    Large opencast mines can cover an area of many square    kilometres and use very large pieces...
The Coal Resource: A Comprehensive Overview of Coal   7 SECTION TWOCOAL MINING>> Coal is mined by two methods – surface or...
8   World Coal Institute                               deposit than underground mining as all coal         process, the co...
The Coal Resource: A Comprehensive Overview of Coal   9Underground Mining Operations                                      ...
10   World Coal Institute                 Graded embankment                           Topsoil and subsoil            Overb...
The Coal Resource: A Comprehensive Overview of Coal   11                 Spoil pile              Dragline bucket          ...
12     World Coal Institute     Coal is traded internationally, with coal shipped huge distances     by sea to reach marke...
The Coal Resource: A Comprehensive Overview of Coal   13  SECTION THREETHE GLOBAL COALMARKET>> Coal is a global industry, ...
14   World Coal Institute                            Top Ten Coal Producing Countries Worldwide, 2003 (Mt)                ...
The Coal Resource: A Comprehensive Overview of Coal   15Major Inter-Regional Coal Trade Flows, 2002-2030 (Mt)             ...
16   World Coal InstituteTotal World Electricity Generation (% by Fuel, 2002)                                             ...
The Coal Resource: A Comprehensive Overview of Coal   17  >> Coal-based power is not dependent on the       Major Coal Exp...
18     World Coal Institute     Coal currently supplies 39% of the world’s electricity. The availability of low cost     s...
The Coal Resource: A Comprehensive Overview of Coal   19  SECTION FOURHOW IS COAL USED?>> Coal has many important uses wor...
20   World Coal Institute                            Percentage of Electricity Generated from Coal in Selected            ...
The Coal Resource: A Comprehensive Overview of Coal   21  used for economic, efficient transmission via      Top Five Coki...
Coal resource-overview-of-world-coal-institute--report-2009
Coal resource-overview-of-world-coal-institute--report-2009
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Coal resource-overview-of-world-coal-institute--report-2009
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Coal resource-overview-of-world-coal-institute--report-2009
Coal resource-overview-of-world-coal-institute--report-2009
Coal resource-overview-of-world-coal-institute--report-2009
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Coal resource-overview-of-world-coal-institute--report-2009

  1. 1. WORLD COAL INSTITUTETHE COAL RESOURCEA COMPREHENSIVE OVERVIEW OF COAL
  2. 2. THE COAL RESOURCEWHERE DOES COAL COME FROM? WHAT IS ITUSED FOR? IS IT USED ANYMORE? Coal is one of the world’s most important We hope that we will answer any questions you sources of energy, fuelling almost 40% of may have about the coal industry but if you would electricity worldwide. In many countries this like further information, a number of other World figure is much higher: Poland relies on coal for Coal Institute (WCI) publications may be helpful. over 94% of its electricity; South Africa for 92%; China for 77%; and Australia for 76%. >> The Role of Coal as an Energy Source (2003) Coal has been the world’s fastest growing energy describes the role that coal plays in our world source in recent years – faster than gas, oil, today and examines this role in the context of nuclear, hydro and renewables. wider issues, such as increasing energy demand, energy security and environmental Coal has played this important role for centuries challenges. – not only providing electricity, but also an essential fuel for steel and cement production, >> Clean Coal – Building a Future through and other industrial activities. Technology (2004) discusses how the environmental challenges facing coal – The Coal Resource provides a comprehensive specifically the use of coal – can be overcome overview of coal and the role it plays in our lives. through the development and use of clean coal It covers how coal is formed, how it is mined, technologies. through to its use and the impact it has on our societies and natural environment. It describes >> In 2001 the World Coal Institute published coal’s important role as an energy source and Sustainable Entrepreneurship, the Way how coal – along with other sources of energy – Forward for the Coal Industry – in will be vital in meeting the world’s rapidly conjunction with the United Nations growing energy needs. Environment Programme (UNEP) – looking at coal within the wider context of sustainable development. Copies of all WCI publications and further information on the coal industry are available on our website: www.worldcoal.org
  3. 3. The Coal Resource: A Comprehensive Overview of Coal 1Contents2 SECTION 1 WHAT IS COAL?2 Types of Coal3 Where is Coal Found?4 Finding Coal7 SECTION 2 COAL MINING7 Underground Mining7 Surface Mining8 Coal Preparation9 Coal Transportation10 Safety at Coal Mines11 Coal Mining & the Wider Community13 SECTION 3 THE GLOBAL COAL MARKET13 Coal Production13 Coal Consumption14 Coal Trade16 Energy Security19 SECTION 4 HOW IS COAL USED?19 History of Coal Use20 How is Coal Converted into Electricity?21 Importance of Electricity Worldwide22 Coal in Iron & Steel Production24 Coal Liquefaction24 Coal & Cement25 Other Uses of Coal27 SECTION 5 COAL & THE ENVIRONMENT27 Coal Mining & the Environment27 Land Disturbance27 Mine Subsidence28 Water Pollution28 Dust & Noise Pollution28 Rehabilitation29 Using Methane from Coal Mines29 Coal Use & the Environment31 Technological Response31 Reducing Particulate Emissions32 Preventing Acid Rain33 Reducing Carbon Dioxide Emissions36 Coal & Renewable Energy37 Overcoming Environmental Impacts39 SECTION 6 MEETING FUTURE ENERGY DEMAND39 The Role of Coal40 Making Further Environmental Gains41 Coal & Our Energy Future42 FURTHER READING
  4. 4. 2 World Coal Institute SECTION ONEWHAT IS COAL?>> Coal is the altered remains of prehistoric vegetation that originally accumulated in swamps and peat bogs. >> The build-up of silt and other sediments, maturity and transforming it into the range together with movements in the earth’s crust known as ‘sub-bituminous’ coals. Peat (known as tectonic movements) buried these swamps and peat bogs, often to great depths. Further chemical and physical changes occur With burial, the plant material was subjected until these coals became harder and blacker, to high temperatures and pressures. This forming the ‘bituminous’ or ‘hard coals’. Under Brown Coal caused physical and chemical changes in the the right conditions, the progressive increase vegetation, transforming it into peat and then in the organic maturity can continue, finally into coal. forming anthracite. Sub-bituminous Coal formation began during the Types of Coal Carboniferous Period – known as the first The degree of change undergone by a coal as it coal age – which spanned 360 million to 290 matures from peat to anthracite – known as Bituminous million years ago. coalification – has an important bearing on its physical and chemical properties and isDefinition The quality of each coal deposit is determined referred to as the ‘rank’ of the coal.Coal is a fossil fuel. It is a by temperature and pressure and by the lengthcombustible, sedimentary, of time in formation, which is referred to as its Low rank coals, such as lignite and sub-organic rock, which is ‘organic maturity’. Initially the peat is converted bituminous coals are typically softer, friablecomposed mainly of carbon, into lignite or ‘brown coal’ – these are coal- materials with a dull, earthy appearance. Theyhydrogen and oxygen. It isformed from vegetation, types with low organic maturity. In comparison are characterised by high moisture levels andwhich has been consolidated to other coals, lignite is quite soft and its low carbon content, and therefore a low energybetween other rock strata colour can range from dark black to various content.and altered by the combined shades of brown.effects of pressure and heat Higher rank coals are generally harder andover millions of years to Over many more millions of years, the stronger and often have a black, vitreousform coal seams. continuing effects of temperature and lustre. They contain more carbon, have lowerPhotographs courtesy of the pressure produces further change in the moisture content, and produce more energy.Australian Coal Association lignite, progressively increasing its organic Anthracite is at the top of the rank scale and
  5. 5. The Coal Resource: A Comprehensive Overview of Coal 3 has a correspondingly higher carbon and Countries with the Largest Reserves of Coal, 2003 (billion tonnes) energy content and a lower level of moisture Source: BP 2004 (see diagram on page 4). 250 200Where is Coal Found? It has been estimated that there are over 984 150 billion tonnes of proven coal reserves 100 worldwide (see definitions). This means that 50 there is enough coal to last us over 190 years 0 (see graph). Coal is located worldwide – it can ia a a y a A lia ne an in di ric US ss ra i Ch In ra rm Af Ru be found on every continent in over 70 st Uk Ge Au h ut So countries, with the biggest reserves in the USA, Russia, China and India. Reserves-to-production Ratios, 2003 (Years) Source: BP 2004 Resource 200 The amount of coal that may be present in a deposit or coalfield. This does not take into 150 account the feasibility of mining the coal 100 economically. Not all resources are recoverable using current technology. 50 0 Reserves Reserves can be defined in terms of proved (or measured) reserves and probable (or indicated) reserves. Probable reserves have been estimated with a lower degree of confidence than proved reserves. Proved Reserves Reserves that are not only considered to be recoverable but can also be recovered economically. This means they take into account what current mining technology can achieve and the economics of recovery. Proved reserves will therefore change according to the price of coal; if the price of coal is low, proved reserves will decrease. Source: IEA Coal Information 2004
  6. 6. 4 World Coal Institute While it is estimated that there is enough Finding Coal coal to last us 190 years, this could extend Coal reserves are discovered through still further through a number of exploration activities. The process usually developments, including: involves creating a geological map of the area, then carrying out geochemical and geophysical >> the discovery of new reserves through surveys, followed by exploration drilling. This ongoing and improved exploration allows an accurate picture of the area to be activities; developed. >> advances in mining techniques, which will allow previously inaccessible reserves to be The area will only ever become a mine if it is reached. large enough and of sufficient quality that the coal can be economically recovered. Once this All fossil fuels will eventually run out and it is has been confirmed, mining operations begin. essential that we use them as efficiently as possible. Significant improvements continue to be made in how efficiently coal is used so that SECTION ONE END more energy can be generated from each tonne of coal produced. Types of Coal CARBON/ENERGY CONTENT OF COAL HIGH HIGH MOISTURE CONTENT OF COAL Low Rank Coals Hard Coal 47% 53% % OF WORLD RESERVES Lignite Sub-Bituminous Bituminous Anthracite 17% 30% 52% ~1% Thermal Metallurgical Steam Coal Coking Coal Largely power Power generation Power generation Manufacture of Domestic/ USES generation Cement manufacture Cement manufacture iron and steel industrial Industrial uses Industrial uses including smokeless fuel
  7. 7. The Coal Resource: A Comprehensive Overview of Coal 5Coal Reserves Showing Regional Shares (at end of 2003) ■ Europe and Eurasia 36% ■ Asia Pacific 30% ■ North America 26% ■ Africa 6% ■ South and Central America 2% Middle East coal reserves less than 1% of total reserves Source: BP 2004Gas Reserves Showing Regional Shares (at end of 2003) ■ Middle East 41% ■ Europe and Eurasia 35% ■ Asia Pacific 8% ■ Africa 8% ■ North America 4% ■ South and Central America 4% Source: BP 2004Oil Reserves Showing Regional Shares (at end of 2003) ■ Middle East 63% ■ Africa 9% ■ South and Central America 9% ■ Europe and Eurasia 9% ■ North America 6% ■ Asia Pacific 4% Source: BP 2004
  8. 8. 6 World Coal Institute Large opencast mines can cover an area of many square kilometres and use very large pieces of equipment, such as draglines (pictured here). Photograph courtesy of Anglo Coal.
  9. 9. The Coal Resource: A Comprehensive Overview of Coal 7 SECTION TWOCOAL MINING>> Coal is mined by two methods – surface or ‘opencast’ mining and underground or ‘deep’ mining. >> The choice of mining method is largely careful planning to ensure favourable geology determined by the geology of the coal deposit. exists throughout the section before Underground mining currently accounts for development work begins. The coal ‘face’ can about 60% of world coal production, although vary in length from 100-350m. Self- in several important coal producing countries advancing, hydraulically-powered supports surface mining is more common. Surface temporarily hold up the roof while coal is mining accounts for around 80% of production extracted. When coal has been extracted from in Australia, while in the USA it is used for the area, the roof is allowed to collapse. Over about 67% of production. 75% of the coal in the deposit can be extracted from panels of coal that can extend Underground Mining 3km through the coal seam. There are two main methods of underground mining: room-and-pillar and longwall mining. The main advantage of room–and-pillar mining over longwall mining is that it allows In room-and-pillar mining, coal deposits are coal production to start much more quickly, mined by cutting a network of ‘rooms’ into the using mobile machinery that costs under $5 coal seam and leaving behind ‘pillars’ of coal to million (longwall mining machinery can cost support the roof of the mine. These pillars can $50 million). be up to 40% of the total coal in the seam – although this coal can sometimes be recovered The choice of mining technique is site specific at a later stage. This can be achieved in what is but always based on economic considerations; known as ‘retreat mining’, where coal is mined differences even within a single mine can lead from the pillars as workers retreat. The roof is to both methods being used. then allowed to collapse and the mine is abandoned. Surface Mining Surface mining – also known as opencast or Longwall mining involves the full extraction of opencut mining – is only economic when the coal from a section of the seam or ‘face’ using coal seam is near the surface. This method mechanical shearers. A longwall face requires recovers a higher proportion of the coal
  10. 10. 8 World Coal Institute deposit than underground mining as all coal process, the coal is separated from other seams are exploited – 90% or more of the coal impurities by being floated in a tank containing can be recovered. Large opencast mines can a liquid of specific gravity, usually a cover an area of many square kilometres and suspension of finely ground magnetite. As the use very large pieces of equipment, including: coal is lighter, it floats and can be separated draglines, which remove the overburden; power off, while heavier rock and other impurities shovels; large trucks, which transport sink and are removed as waste. overburden and coal; bucket wheel excavators; and conveyors. The smaller size fractions are treated in a number of ways, usually based on differencesDefinition The overburden of soil and rock is first in mass, such as in centrifuges. A centrifuge isOverburden is the layer of broken up by explosives; it is then removed a machine which turns a container around verysoil and rocks (strata) by draglines or by shovel and truck. Once the quickly, causing solids and liquids inside it tobetween the coal seams and coal seam is exposed, it is drilled, fractured separate. Alternative methods use thethe surface. and systematically mined in strips. The different surface properties of coal and waste. coal is then loaded on to large trucks or In ‘froth flotation’, coal particles are removed in conveyors for transport to either the a froth produced by blowing air into a water coal preparation plant or direct to where bath containing chemical reagents. The it will be used. bubbles attract the coal but not the waste and are skimmed off to recover the coal Coal Preparation fines. Recent technological developments Coal straight from the ground, known as run- have helped increase the recovery of ultra of-mine (ROM) coal, often contains unwanted fine coal material. impurities such as rock and dirt and comes in a mixture of different-sized fragments. However, coal users need coal of a consistent quality. Coal preparation – also known as coal beneficiation or coal washing – refers to the treatment of ROM coal to ensure a consistent quality and to enhance its suitability for particular end-uses. The treatment depends on the properties ofDefinition the coal and its intended use. It may requireDWT – Deadweight Tonnes only simple crushing or it may need to gowhich refers to the through a complex treatment process todeadweight capacity of a reduce impurities.ship, including its cargo,bunker fuel, fresh water, Longwall mining involves thestores etc. To remove impurities, the raw run-of-mine coal full extraction of coal from a is crushed and then separated into various size section of the seam using fractions. Larger material is usually treated mechanical shearers. using ‘dense medium separation’. In this Photograph courtesy of Joy Mining Machinery.
  11. 11. The Coal Resource: A Comprehensive Overview of Coal 9Underground Mining Operations Mine Surface Facilities Previously Mined Mined Area Longwall Panel Coal Shearer and Roof Supports Coal Conveyor to Surface Coal Pillars Retained for Roof Support Direction of Mining Mined Area Next Longwall Panel to be Mined Coal Shearer and Roof Supports Continuous Miners Developing Roadways Coal Seam Coal Conveyor Diagram courtesy of BHP Billiton Illawara Coal Coal PillarCoal Transportation Ships are commonly used for international The way that coal is transported to where it transportation, in sizes ranging from will be used depends on the distance to be Handymax (40-60,000 DWT), Panamax (about covered. Coal is generally transported by 60-80,000 DWT) to large Capesize vessels conveyor or truck over short distances. Trains (about 80,000+ DWT). Around 700 million and barges are used for longer distances tonnes (Mt) of coal was traded internationally within domestic markets, or alternatively coal in 2003 and around 90% of this was seaborne can be mixed with water to form a coal slurry trade. Coal transportation can be very and transported through a pipeline. expensive – in some instances it accounts for up to 70% of the delivered cost of coal.
  12. 12. 10 World Coal Institute Graded embankment Topsoil and subsoil Overburden from benches Overburden being excavated to act as baffle against stripped by motor scrapers dug by shovels and hauled by dragline noise and dust and carefully stored by dump trucks Coal seams Overburden Dragline excavationSurface Coal Mining Operations and Mine Rehabilitation Measures are taken at every stage of coal transportation and storage to minimise environmental impacts (see Section 5 for more information on coal and the environment). Safety at Coal Mines The coal industry takes the issue of safety very seriously. Coal mining deep underground involves a higher safety risk than coal mined in opencast pits. However, modern coal mines have rigorous safety procedures, health and safety standards and worker education andFroth flotation cells at training, which have led to significantGoedehoop Colliery are used improvements in safety levels in bothfor fine coal beneficiation.Photograph courtesy of underground and opencast mining (see graph onAnglo Coal. page 11 for a comparison of safety levels in US coal mining compared to other industry sectors). There are still problems within the industry. The majority of coal mine accidents and fatalities occur in China. Most accidents are in small scale town and village mines, often illegally operated, where mining techniques are labour intensive and use very basic equipment. The Chinese government is taking steps to improve safety levels, including the forced
  13. 13. The Coal Resource: A Comprehensive Overview of Coal 11 Spoil pile Dragline bucket unloads burden Dragline Tipping Subsoil and Grass and backfill overburden topsoil being trees levelled by from benches replaced bulldozers to backfill and shaped After the soils are replaced in their proper sequence, they are ripped to relieve compaction and then cultivated, limed and fertilisedclosure of small-scale mines and those that fail Injury Rates in Selected US Industries, 2003to meet safety standards. (per 100 full-time employees) Source: Bureau of Labor Statistics, US Department of LaborCoal Mining & the Wider CommunityCoal mining generally takes place in rural areas Service Providing Leisure & Hospitalitywhere mining and the associated industries are Trade, Transportation & Utilitiesusually one of, if not, the largest employers in Education & Health Servicesthe area. It is estimated that coal employs over Coal Mining Agriculture, Forestry,7 million people worldwide, 90% of whom are in Fishing & Hunting Manufacturingdeveloping countries. Construction 0 1 2 3 4 5 6 7 8Not only does coal mining directly employmillions worldwide, it generates income andemployment in other regional industries thatare dependent on coal mining. These industriesprovide goods and services into coal mining, However, mining and energy extraction cansuch as fuel, electricity, and equipment, or are sometimes lead to land use conflicts anddependent on expenditure from employees of difficulties in relationships with neighbours andcoal mines. local communities. Many conflicts over land use can be resolved by highlighting that mining isLarge-scale coal mines provide a significant only a temporary land use. Mine rehabilitationsource of local income in the form of wages, means that the land can be used once again forcommunity programmes and inputs into other purposes after mine closure.production in the local economy. SECTION TWO END
  14. 14. 12 World Coal Institute Coal is traded internationally, with coal shipped huge distances by sea to reach markets. Photograph courtesy of Ports Corporation of Queensland
  15. 15. The Coal Resource: A Comprehensive Overview of Coal 13 SECTION THREETHE GLOBAL COALMARKET>> Coal is a global industry, with coal mined commercially in over 50 countries and coal used in over 70. >>Major Coal Importers, 2003 The world currently consumes over 4050 Mt of Coal Consumption(Mt) coal. Coal is used by a variety of sectors – Coal plays a vital role in power generation andJapan 162 including power generation, iron and steel this role is set to continue. Coal currently fuelsRepublic of Korea 72 production, cement manufacturing and as a 39% of the world’s electricity and thisChinese Taipei 54 liquid fuel. The majority of coal is either utilised proportion is expected to remain at similarGermany 35UK 32 in power generation – steam coal or lignite – or levels over the next 30 years.Russia 24 iron and steel production – coking coal.India 24 Consumption of steam coal is projected toUSA 23 Coal Production grow by 1.5% per year over the period 2002-Netherlands 22 Over 4030 Mt of coal is currently produced – a 2030. Lignite, also used in power generation,Spain 22 38% increase over the past 20 years. Coal will grow by 1% per year. Demand for cokingSource: IEA Coal Information 2004 production has grown fastest in Asia, while coal in iron and steel production is set to Europe has actually seen a decline in increase by 0.9% per year over this period. production. The biggest market for coal is Asia, which The largest coal producing countries are not currently accounts for 54% of global coal confined to one region – the top five producers consumption – although China is responsible are China, the USA, India, Australia and South for a significant proportion of this. Many Africa. Much of global coal production is used countries do not have natural energy resources in the country in which it was produced, only sufficient to cover their energy needs, and around 18% of hard coal production is therefore need to import energy to help meet destined for the international coal market. their requirements. Japan, Chinese Taipei and Korea, for example, import significant Global coal production is expected to reach quantities of steam coal for electricity 7 billion tonnes in 2030 – with China generation and coking coal for accounting for around half the increase over steel production. this period. Steam coal production is projected to have reached around 5.2 billion It is not just a lack of indigenous coal supplies tonnes; coking coal 624 million tonnes; and that prompts countries to import coal but also brown coal 1.2 billion tonnes. the importance of obtaining specific types of coal. Major coal producers such as China, the
  16. 16. 14 World Coal Institute Top Ten Coal Producing Countries Worldwide, 2003 (Mt) USA and India, for example, also import Source: IEA 2004 quantities of coal for quality and logistical reasons. 1600 1400 1200 Coal will continue to play a key role in the 1000 world’s energy mix, with demand in certain 800 regions set to grow rapidly. Growth in both the 600 400 steam and coking coal markets will be 200 strongest in developing Asian countries, 0 where demand for electricity and the need for a a a ia a an A ia d ne steel in construction, car production, and in di ric si n US ss l st ra i la ne Ch In ra Af Ru Po kh st Uk do Au h za In ut Ka demands for household appliances will So increase as incomes rise. Top Ten Coal Consumers Worldwide, 2003 (Mt) Source: IEA 2004 Coal Trade 1600 Coal is traded all over the world, with coal 1400 shipped huge distances by sea to reach markets. 1200 1000 Over the last twenty years, seaborne trade in 800 steam coal has increased on average by about 600 400 8% each year, while seaborne coking coal trade 200 has increased by 2% a year. Overall 0 international trade in coal reached 718 Mt in a a a n ia y A d ea ia 2003; while this is a significant amount of coal an in di ric pa n US ss l r ra la Ch In Ko rm Ja Af Ru Po st Ge of Au h ut p. it still only accounts for about 18% of total So Re coal consumed. Transportation costs account for a large share of the total delivered price of coal, therefore international trade in steam coal is effectively divided into two regional markets – the Atlantic and the Pacific. The Atlantic market is made up of importing countries in Western Definition Europe, notably the UK, Germany and Spain. OECD is the Organisation for The Pacific market consists of developing and Economic Cooperation and OECD Asian importers, notably Japan, Korea Development. It is a group of and Chinese Taipei. The Pacific market 30 member countries who currently accounts for about 60% of world are committed to democratic government and steam coal trade. Markets tend to overlap the market economy. when coal prices are high and supplies plentiful. South Africa is a natural point of convergence between the two markets.
  17. 17. The Coal Resource: A Comprehensive Overview of Coal 15Major Inter-Regional Coal Trade Flows, 2002-2030 (Mt) 29 18 19 21 16 13 22 23 20 16 13 18 64 62 77 35 23 116 14 24 119 15 47 21 14 17 37 66 35 20 103 24 19 12 19 35 51 2002 2030Source: IEA 2004 Australia is the world’s largest coal exporter; International coking coal trade is limited. exporting over 207 Mt of hard coal in 2003, Australia is also the largest supplier of coking out of its total production of 274 Mt. Coal is coal, accounting for 51% of world exports. The one of Australia’s most valuable export USA and Canada are significant exporters and commodities. Although almost three-quarters China is emerging as an important supplier. of Australia’s exports go to the Asian market, Coking coal is more expensive than steam coal, Australian coals are used all over the world, which means that Australia is able to afford including Europe, the Americas and Africa. the high freight rates involved in exporting coking coal worldwide.
  18. 18. 16 World Coal InstituteTotal World Electricity Generation (% by Fuel, 2002) Energy Security Minimising the risk of disruptions to our ■ Coal 39% energy supplies is ever more important – ■ Gas 19% whether they are caused by accident, political ■ Nuclear 17% intervention, terrorism or industrial disputes. ■ Hydro 16% Coal has an important role to play at a time ■ Oil 7% when we are increasingly concerned with ■ Other* 2% issues relating to energy security . * Other includes solar, wind, combustible renewables, geothermal and waste Source: IEA 2004 The global coal market is large and diverse, with many different producers and consumers from every continent. Coal supplies do not come from one specific area, which would make consumers dependent on the security ofTotal World Electricity Generation (% by Fuel, projected for 2030) supplies and stability of only one region. They are spread out worldwide and coal is traded ■ Coal 38% internationally. ■ Gas 30% ■ Hydro 13% Many countries rely on domestic supplies of ■ Nuclear 9% coal for their energy needs – such as China, the ■ Other* 6% USA, India, Australia and South Africa. Others ■ Oil 4% import coal from a variety of countries: in * Other includes solar, wind, combustible renewables, geothermal and waste 2003 the UK, for example, imported coal from Source: IEA 2004 Australia, Colombia, Poland, Russia, South Africa, and the USA, as well as smaller amounts from a number of other countries and its own domestic supplies. Coal therefore has an important role to play in maintaining the security of the global energy mix. >> Coal reserves are very large and will be available for the foreseeable future without raising geopolitical or safety issues. >> Coal is readily available from a wide variety of sources in a well-supplied worldwide market. >> Coal can be easily stored at power stations and stocks can be drawn on in emergencies.
  19. 19. The Coal Resource: A Comprehensive Overview of Coal 17 >> Coal-based power is not dependent on the Major Coal Exporters, 2003 (Mt) weather and can be used as a backup for ■ Steam wind and hydropower. ■ Coking >> Coal does not need high pressure pipelines Source: IEA 2004 or dedicated supply routes. 120 >> Coal supply routes do not need to be 100 protected at enormous expense. 80 60 These features help to facilitate efficient and 40 competitive energy markets and help to stabilise energy prices through inter-fuel 20 competition. 0 a a a ia a a an ia A d in si ric bi d an US ss l t ra na ne Ch m hs l Af Ru Po st Ca lo do k Au h Co za In ut Ka So SECTION THREE ENDMinimising the risk ofdisruption to our energysupplies is ever moreimportant. Coal supply routesdo not need to be protectedat enormous expense.Photograph courtesy of CN.
  20. 20. 18 World Coal Institute Coal currently supplies 39% of the world’s electricity. The availability of low cost supplies of coal has been vital to achieving high rates of electrification worldwide. Photograph courtesy of Vattenfall.
  21. 21. The Coal Resource: A Comprehensive Overview of Coal 19 SECTION FOURHOW IS COAL USED?>> Coal has many important uses worldwide. The most significant uses are in electricity generation, steel production, cement manufacturing and other industrial processes, and as a liquid fuel. >>Definition History of Coal Use Coal was also used to produce gas for gasPrimary Energy is all energy Coal has a very long and varied history. Some lights in many cities, which was called ‘townconsumed by end-users. This historians believe that coal was first used gas’. This process of coal gasification saw theincludes the energy used to commercially in China. There are reports that growth in gas lights across metropolitan areasgenerate electricity, but a mine in northeastern China provided coal at the beginning of the 19th century,does not include theelectricity itself. for smelting copper and for casting coins particularly in London. The use of coal gas in around 1000 BC. One of the earliest known street lighting was eventually replaced with references to coal was made by the Greek the emergence of the modern electric era. philosopher and scientist Aristotle, who referred to a charcoal like rock. Coal cinders With the development of electric power in the found among Roman ruins in England indicate 19th century, coal’s future became closely that the Romans used energy from coal tied to electricity generation. The first before AD 400. Chronicles from the Middle practical coal-fired electric generating Ages provide the first evidence of coal station, developed by Thomas Edison, went mining in Europe and even of an international into operation in New York City in 1882, trade as sea coal from exposed coal seams supplying electricity for household lights. on the English coast was gathered and exported to Belgium. Oil finally overtook coal as the largest source of primary energy in the 1960s, with the huge It was during the Industrial Revolution in the growth in the transportation sector. Coal still 18th and 19th centuries that demand for coal plays a vital role in the world’s primary energy surged. The great improvement of the steam mix, providing 23.5% of global primary energy engine by James Watt, patented in 1769, was needs in 2002, 39% of the world’s electricity, largely responsible for the growth in coal use. more than double the next largest source, and The history of coal mining and use is an essential input into 64% of the world’s inextricably linked with that of the Industrial steel production. Revolution – iron and steel production, rail transportation and steamships.
  22. 22. 20 World Coal Institute Percentage of Electricity Generated from Coal in Selected How is Coal Converted into Electricity? Countries (mixture of 2003 & 2002 data) Modern life is unimaginable without Source: IEA 2004 electricity. It lights houses, buildings, streets, provides domestic and industrial 100 heat, and powers most equipment used in 80 homes, offices and machinery in factories. 60 Improving access to electricity worldwide is a key factor in alleviating poverty. It is 40 staggering to think that 1.6 billion people 20 worldwide, or 27% of the world’s population, 0 do not have access to electricity. a a a an ic ce Ge rk y a d lia A an ric in di si n US bl a ee st ra la ne Ch In nm rm pu Af Po kh st Gr do Steam coal, also known as thermal coal, is Re De Au h za In ut Ka h So ec Cz used in power stations to generate electricity. The earliest conventional coal-fired power Electrification Rates for Selected Developing stations used lump coal which was burnt on a World Countries, 2002 (%) grate in boilers to raise steam. Nowadays, the Source: IEA 2004 coal is first milled to a fine powder, which increases the surface area and allows it to 100 burn more quickly. In these pulverised coal 80 combustion (PCC) systems, the powdered coal World average is blown into the combustion chamber of a 60 73.7% boiler where it is burnt at high temperature. 40 The hot gases and heat energy produced 20 converts water – in tubes lining the boiler – into steam. 0 a nd es a a a ria a e da ia in si di ric an qu op in an la ge ne Ch In w bi The high pressure steam is passed into a Af pp ai hi Ug Ni ts do am Th Et h ili Bo In ut Ph oz So M turbine containing thousands of propeller-like blades. The steam pushes these blades causing the turbine shaft to rotate at high speed. A generator is mounted at one end of the turbine shaft and consists of carefully wound wire coils. Electricity is generated when these are rapidly rotated in a strong magnetic field. After passing through the turbine, the steam is condensed and returned to the boiler to be heated once again (see diagram on page 21). The electricity generated is transformed into the higher voltages – up to 400,000 volts –
  23. 23. The Coal Resource: A Comprehensive Overview of Coal 21 used for economic, efficient transmission via Top Five Coking Coal >> Labour that would otherwise be spent power line grids. When it nears the point of Producers (Mt) collecting fuel is freed for more productive consumption, such as our homes, the China 159 use, such as in agricultural and Australia 112 electricity is transformed down to the safer manufacturing industries. This increases Russia 55 100-250 voltage systems used in the USA 40 household income, labour supply and the domestic market. Canada 23 productive capacity of developing Source: IEA 2004 economies. Modern PCC technology is well-developed and World Crude Steel accounts for over 90% of coal-fired capacity >> The intensive collection of biomass for fuel Production (Mt) worldwide. Improvements continue to be made for household consumption in many cases 1970 595 in conventional PCC power station design and 1975 644 degrades the productivity of agricultural new combustion techniques are being 1980 717 land – through desertification (by removing developed. These developments allow more 1985 719 trees) or through depriving soil of nutrients electricity to be produced from less coal – this 1990 770 (by collecting animal waste). 1995 752 is known as improving the thermal efficiency 1996 750 of the power station. More details on these >> Inefficient combustion of unconventional 1997 799 technologies and how they enhance the 1998 777 fuels, especially in households without environmental performance of coal-fired 1999 789 flues, creates health complications. Moving power stations can be found in Section 5. 2000 848 households towards modern energy 2001 850 sources, such as electricity, improves 2002 902Importance of Electricity Worldwide health and productivity. 2003 965 Access to energy, and specifically electricity, Source: IISI is a driving force behind economic and social >> The provision of household electricity development. Dependable and affordable provides for the use of modern appliances access to electricity is essential for improving – such as washing machines – and lighting public health, providing modern information which improves the productivity of home and education services, and saving people labour and frees time. from subsistence tasks, such as gathering fuel. Around 2.4 billion people rely on primitive Converting Coal to Electricity biomass fuels – such as wood, dung and crop residues – for cooking and heating. Improving access to electricity and allowing people to move away from the combustion of fuels in household fires would have a significant health impact. The World Health Organisation has estimated that smoke from burning solid fuels indoors is responsible for 1.6 million deaths each year in the world’s poorest countries. Improving access to energy also supports economic development:

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