How acid rain legislation might change coal use patterns

At the present time, whether an electric utility uses high-sulfur coal is largely determined by geographical location, clean air legislation, and the age of the power plant. Acid rain legislation may well be the new force to change the use of high-sulfur coal. A number of coal papers were presented at the SME Fall Meeting in St. Louis, MO, Sept. 1986. These papers discussed high-sulfur coal in relation to its economics, trends and prospects, value of cleaned coal, and coal-cleaning technology. The Clean Air Act of 1970 required the reduction of SO, emissions from most stationary electric-generating plant to 0.5 kg (1.2 lbs) SO2, per million Btu of heat input. It was possible for many plants to utilize lower-sulfur coal or a mixture of high-sulfur and low-sulfur coal to meet this emission requirement. This 1970 act greatly increased the use of low-sulfur western coal. The 1978 amendment to the Clean Air Act required all new plants to use Flue Gas Desulfurization (FGD) to meet a requirement of 70% reduction of potential SO2 emissions to 0.3 kg (0.6 lb) SO2 per million Btu of heat input. With the requirement to use FGD, there was little or no demand for low-sulfur western coal in new eastern power plants. If' new acid rain legislation is enacted, it likely will require sizeable reductions in SO2, emissions by existing coal users. There might then be a shift to greater use of low-sulfur coals. The low-sulfur coals could come from either western or eastern mines or from cleaned eastern coals. Economics will dictate the approach older power plants will take to meet new regulationsuse FGD or low-sulfur coal. Coal use for electric power generation has changed from 1970 to 1985. Table 1, (Land, preprint 86-333) shows the change. The table shows that in 1985, US utilities used about 255 Mt (280 million st) of high-sulfur coal. Some 45 to 54 Mt (50 to 60 million st) of high-sulfur coal is being used in plants equipped with FGD and most of this use is in eastern states. This leaves 200 to 209 Mt/a (220 to 230 million st) of high-sulfur coal being used without FGD treatment. These plants are at risk if acid rain legislation is passed. Most of these plants are in the east and are more difficult to supply with low-sulfur coal. Estimates range from $20 to $30 billion capital investment and from $5 to $9 billion dollars per year operating costs to reduce SO2, emissions from those old medium-to-high-sulfur coal-burning plants. G. W. Land, (preprint 86-333), also presents tables relating to power generating costs and coal types. The author's tables are extracted from Land's tables IV and V. Table 2 here presents costs for a new plant. This includes the impact of different heat rates, fuel costs, fuel qualities, operating and maintenance costs, labor costs, and waste disposal costs. Table 3 compares estimated costs to retrofit an older plant with a limestone scrubber versus switching the same plant to low-sulfur eastern or western coal. Costs of switching include upgrading the electrostatic precipitator and - with western coal - costs of derating. Bhagwat, (preprint 86-325), details the trends in high-sulfur coal markets from 1974 to 1984. He also gives some prospects for high-sulfur coal markets, 1984 to 1994. The prospect depends mostly on whether acid rain legislation is enacted. By 1994, if New Source Performance Standards (NSPS) continue to be applied, high-sulfur coal demand from six mid-west and eastern states is expected to increase by 27 Mt (30 million st). • L. A. Khan and J. W. Baxter, (preprint 86-373), discuss several coal cleaning technologies such as froth flotation of fines, bulk oil separation and oil agglomeration, oil agglomeration/flotation, and air-floc flotation. ? (Space limitations preclude listing references. A complete list is available from the author.)