Upgraded Coal: Enhancing The Coal-Fired Power Option

The Upgraded Coal Interest Group (UCIG), focuses on clean, low-cost options for coal-based power generation via pre-combustion, co-firing and reburn options. Its mission is to preserve and expand the economic use of coal for energy. By reducing the fuel costs and environmental impacts of coal-fired power generation, existing units become more cost effective and thus new units utilizing advanced combustion technologies are more likely to be coal-fired. Two great forces are reshaping the power generation industry, the Clean Air Act Amendment and deregulation of generation. The Clean Air Act Amendment is forcing change by making it necessary for power producers to plan for reducing emissions of sulfur and nitrogen oxides and possibly trace elements. At the same time, deregulation of generation is forcing utilities to focus their attention closely on the short term impact of any change on cost of power. Fuel is a utility's largest cost element; maximum fuel flexibility will be a utility's best weapon in an environment of rapid change. In a regulated environment, a utility was limited in how involved he might get into fuel supply, in a purely deregulated environment he need only be guided by the impact on the bottom line. It is clear that these two forces will promote a close look at factors such as coal upgrading which can have an impact on the availability of low sulfur coal or emission of NOX and trace elements.