Power Engineering - Top 10 issues discussed at COAL-GEN 2006

21 August 2006 -- COAL-GEN 2006 Conference and Exhibition was held last week in Cincinnati, Ohio. Following is a list of the top 10 issues discussed during the conference:

1. U.S. power plants burn 1.1 billion tons of coal a year. At that rate, currently producing mines hold a 17-year supply. Economically recoverable coal from new mines that are expected to be developed contain a 230-year supply. Total U.S. coal (not all of which can be economically developed) equals a 3,000-year supply. (Hans Daniels, Global Energy Decisions)

2. By 2010 the Clean Air Interstate Rule (CAIR) will end the notion of "compliance coal" and will have a "profound" positive effect on eastern U.S. bituminous coal production, reversing a decline that began in 1990. (Steve Winberg, CONSOL Energy)

3. Reserve margins nationwide currently average 15 percent. To maintain that level, 15 GW of new capacity a year will need to be added. (M. Richard Smith, Bechtel)

4. The cost of major power plant components has been rising at around 20 percent a year, a rate that is likely to continue. Likewise, labor costs in some places are rising by 20 percent a year. (M. Richard Smith, Bechtel)

5. Coal reserves account for 95 percent of all known Btus available in U.S. energy sources. Oil and natural gas reserves represent 5 percent of known Btus in the United States. (Steven Leer, Arch Coal)

6. On a dollar-per-million Btu basis, Powder River Basin coal costs around 70 cents, natural gas costs around $11.20 and crude oil around $13.43. That offers coal considerable leeway to make technological advances. (Steven Leer, Arch Coal)

7. Eleven million tons of PRB coal currently are burned in Ohio power plants. Non-competitive rail transport costs could eliminate much of the economic advantage found in using PRB coal in those plants. (Guy Pipitone, First Energy)

8. The output of the next 50 coal-fired power plants will not get to market without additional transmission capacity. Federal eminent domain rights may be needed to ensure additional transmission capacity is available. (Guy Pipitone, First Energy)

9. A 50,000-barrel-a-day coal-to-liquids plant will require 6 million tons of coal a year to operate and will produce fuel for $45 to $55 a barrel. Developing the coal capacity to feed the facility will take about five years. (Steve Winberg, CONSOL Energy)

10. U.S. construction employment peaked in 2000 at around 20,000 workers. Estimates suggest that major hurricane-related reconstruction projects in the Gulf Coast region alone will require 35,000 workers in 2009. (M. Richard Smith, Bechtel)

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