Innovative Coal Extraction Technology

Introduction Although innovative coal extraction technology can be approached from many angles, this paper focuses on three: innovation in response to rising costs, to changing mining conditions, and to regulatory issues. Before exploring these three subjects, however, a basic question needs to be raised. Why Innovation? Coal is widely heralded, and quite correctly so, as the United States' "ace in the hole." It has been said that the U.S. is to coal what the Arabs are to oil. The implication is that we have nearly inexhaustible reserves - that coal is cheap, plentiful, and easy to extract. Indeed, because our current productive capacity is estimated to be 15-20% greater than demand, we have been given a false sense of security about the ease of future coal extraction. Therefore, innovative measures are being concentrated on developing technologies for the demand side of coal, including power generation, synthetic fuels, and industrial applications. What is often forgotten is that the unit cost of producing energy from these new technologies depends critically on the cost of the coal feedstock -in some cases the coal consumed accounts for more than one-third the total cost. Thus, while the developers of the end-use technologies struggle to improve the overall thermal efficiency of their process by one or two per¬centage points to make the energy produced competitive in the marketplace, they often are unaware of the risk of a 3 to 6% increase in coal costs wiping out the expensive, hard-earned results of their research. Energy planners are just beginning to realize that coal is not a uniform commodity available at low cost in infinite quantities. Coal is a heterogeneous material whose cost and quality vary widely with local conditions. To produce the massive amounts of projected coal-based energy at reasonable costs, we urgently need devel¬opments in extraction technology, as well as in end-use technology. Thus, coal extraction, coal conversion and utilization, and end -use energy consumption must be viewed as highly interdependent parts of an energy supply network (Fig. 1). And current emphasis on conversion and utilization must be balanced by more emphasis on upstream technologies, including coal extraction. Even more important, the impacts of innovation (or the lack thereof) in any one technology area in the energy supply network need to be discussed and understood by those working in each of the other areas. Why innovation in coal ex¬traction technology? Figuratively, we are all in the "coal boat" together - geologists, miners, transporters, processors, power producers, distributors, and consumers. Innovation is required from each of these sectors to overcome the obstacles that prevent greater use of our most abundant national energy resource. All other links in the coal energy supply network depend on large volumes of coal produced at reasonable costs. Declines in productivity, therefore, must be reversed; the more difficult mining conditions that will be encountered call for new methods and equipment, and regulatory issues must be resolved if the coal ex¬traction link is to be a strength rather than a weakness in the planned U.S. transition to an economy based more on coal and less on imported petroleum. Innovation Tailored to Regional Conditions Once the importance and urgency of innovative coal extraction technology has been grasped, the next step - implementing a research program - becomes quite