The document discusses the continued importance of coal in meeting growing global energy demand, especially in developing Asian countries. It argues that coal will remain a major part of the global energy mix due to its low costs compared to alternatives. New cleaner coal technologies can significantly reduce emissions while coal is used to power economic growth and address energy poverty. The document calls for support to deploy high-efficiency, low-emissions coal technologies in order to lower emissions and ensure reliable, affordable energy access.

1. The role of coal with low carbon solutions
in an Asian dominated growing world
Mick Buffier – Chairman
25 July 2017

2. Why does the world need coal?
1
70% of global steel 90% of global cement
41% of global electricity ~ 20 million ElectricVehicles by 2020

3. Coal remains an important part of the global energy mix
 Energy demand grows
31% (1% pa)
 OECDGDP growth
1.9% pa
 Non-OECDGDP
growth 4.4% pa
 AsiaGDP growth 5%
2

4. As electricity changes, coal retains an edge
3

5. 1.2 billion people live without access to electricity
 1.2 billionpeople
worldwidelive
withoutaccess to
electricity
 2.7 billion(2 in 5)
rely on traditional
fuels for cooking
 By 2040 these
numbers are ~ 500M
and 1.8Bn
respectively, latter
450M in India
4

6. Coal is key in addressing global energy poverty
5

7. Urbanisation and industrialisation are transforming
developing and emerging economies
 Populationgrows
from 7.2 to over
9.2Bn
 Over 6Bn in urban
areas, up from
3.8Bn
 In Asia ~ 1Bn extra
in cities; 3 million
per month
6

8. Coal will drive India’s economic growth…
 Electricity demand in India is
expected to average 5% pa
over the next 25 years
 Coal generation capacity
more than doubles, while
renewables also increase
significantly to meet demand
 IEA indicates that
maintaining an adequate
electricity supply represents
a significant investment
challenge requiring $2 trillion
(in 2013 dollars)
7

9. … and will be critical in powering up SEAsia
 The share of coal in power
generation rises from 32% to
50%
 Renewables-based electricity
generation increases three and
half times from today to 2040
(481TWh)
 IEA highlights $2.4 trillion
investment is required over the
period to 2040.This represents
around 5% of the global total, or
one-third ofChina’s investment
8

10. Coal will be critical to China for decades
 China’s electricity demand
growth will be around 4.8%
to 2020, then decline to
around 2% through to 2040
 Electricity generation from
coal will be 4.3% higher in
2040, despite its share of
generation reducing from
73% to 43%
 Non-hydrorenewables are
expected to increase 1200%
over the same period (25% of
world generation)
9

11. Coal, not gas, leads the charge inAsia…
10

12. … because its costs are far lower
11

13. So the global coal fleet is at its youngest in decades
12

14. …andAsia will dominate global electricity generation to
mee
Source: Platts World Electric Power Plant Database 2015 & Glencore Analysis
13

15. The Paris Agreement includes low emissions coal
14

16. New HELE technology dramatically reduces CO2
15

17.  The most important near-
term action to reduceCO2
emissions is to increase
the efficiency of coal-fired
power plants
 1% increase LHV
efficiency = 2–3% points
decrease in CO2 emissions
Efficiency improvements can significantly
contribute to CO2 emission reductions
17

18. Cleaner coal technologies have addressed
environmental challenges
16

19. Japan: Isogo Power Station – Ultra Supercritical Technology
(Courtesy of J – Power)
China: Waigaoqiao No3 Power Station, Pudong New Area of
Shanghai – 500MW
 Japan andChina have been the most active in
buildingHELE plants
 J-Power upgraded their 1967 sub-criticalIsogo
38% efficient coal-fired power plant to an USC
43% efficiency plant with SOx, NOx, PM reduced
to less than 1/3 of previous levels
 China’sWaigaoqiaoplant has a capacity of
5,000MW andChina is relying on these larger,
advanced units for dispatch to displace higher
emission from older, less efficient power stations
 The units have integrated advanced air quality
control systems, yielding non-carbon air emissions
well belowChina’s latest more stringent
standards, and also below comparable standards
in NorthAmerica and Europe
Cleaner coal is real but needs more action
18

20. “Coal: making the future possible - 60 second advertisement –YouTube”
Australian Coal Isogo story
through Raelene’s eyes
19

21. CCS is real…and happening now
 Boundary Dam, Saskatchewan, Canada
 Coal-fired 110MW CCS 1Mtpa plant
operational October 2014
 $1.4Bn Government and Saskatchewan
Power Co partnership
 The world’s first large scale coal-fired PS
application of CCS - operational in October
2014, at the Boundary Dam power station in
Canada (1 Mtpa CO2 capture)
 An upgrade of a 1960’s coal unit chosen by
Saskpower over gas and renewables
 More large scale applications of CCS are
coming on line
 Petra NovaCarbon Capture
Project (1.4 Mtpa,Texas)
 Abu Dhabi iron & steel CCS
Project (0.8 Mtpa)
 Gorgon LNG CCS Project (4Mtpa)
 A further 14 projects are in advanced
planning (FEED)
20

22. CCS has faced a tumultuous policy environment
21

23. WCA proposes the PACE concept to support HELE
 International platform to help drive deployment of HELE technologies in developing and emerging
economies
 Publicprivate partnership
 Currently seeking partners to help build an initial alliance
22

24. The potential impact of HELE is
significant in a global context
23

25. ASEAN’s Energy Equation
‘CoalandCleanerCoal
Technologies’ (CCT) were
identified as a key
programme area in APAEC
2016 – 2025
‘ASEAN Energy Equation’
provides a comprehensive
analysis of the energy
security and sustainable
development opportunities
that CCT provide
24

26. Cleaner coal is the lowest cost option
among the low-carbon technologies
25

27. Improving coal efficiency delivers cost benefits
locally and emissions reductions globally
Promoting HELE deployment across ASEAN
would result in significant carbon emissions
reduction to global benefit.
Shifting the region’s forecast coal capacity
in 2035 from the current mix to ultra-
supercritical would reduce cumulative
emissions by 1.3 billion tonnes.
This is an equivalent reduction of –
The yearly emissions from China, United
States and the EU (top three CO2
contributors), or
Three years of international shipping, or
More than four years of international
aviation
26

28. Mobilising finance will be an important factor
in realising this outcome…
27

29. 1. Statement emphasising continued commitment to the
deployment of cleaner coal technologies
2. With necessary support from partners, member states
commit to enhanced action, ultimately leading to a
pledge to end the use of subcritical coal (where feasible)
3. Calling on the international community to provide support
for cleaner coal technology deployment
WCA encourages ASEAN Member States to adopt
‘ASEAN’s Energy Equation’sCall to Action’
30

30. There are challenges to high renewable penetration
31

31. German power is still 40% dependent on coal
Source: Clean Energy Wire
32

32. NEM prices $/MWhThurs 20/7
Australia has electricity price challenges (1)
33

33. Australia has electricity price challenges (2)
34

34. Planned closure of existing coal power stations
Source:AEC
35

35. Australia’s future electricity mix? Reliable and affordable?
“Energy system modelling undertaken for the Roadmap identified the generation mix as
summarised in Figure 20, as a plausible projection of generation sources required to meet
wholesale energy requirements and zero net emissions by 2050.”
36

36. Federal Government support for
coal low emission technology
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37. www.worldcoal.org
info@worldcoal.org