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11. Developing new coal technologies to meet the world's energy needs in a sustainable way
Meeting the growth needs of developing countries and sustaining living standards in developed countries will continue to drive fossil fuel energy demand, which is forecast to rise by more than two-thirds over the next 30 years. Suppliers of fossil fuels, including coal as the largest power generation source, face the challenge of meeting that demand while responding to concerns about greenhouse gas (GHG) emissions. The future path for coal must be to continue the development of low emissions technology.
An eight-fold increase in thermal efficiency over the last century has greatly reduced the amount of coal required per unit of electricity generated, and further significant improvements in efficiency are in prospect. Allied with ultra-low emissions techniques - notably coal gasification and CO2 capture and storage (see accompanying diagram) - technology developments currently being researched have the potential to virtually eliminate GHG emissions from coal-based power. Projects are in place, or are proposed, to move the technologies towards commercial viability in the next decade or two.
As the world's largest coal exporter, we are playing a leading role in realising this potential through a range of activities aimed at raising awareness within the Company and the industry, providing credible and informed input to government policy, and making a major contribution to coal technology R&D. Our activities fall into the following broad areas.
Understanding and managing our own GHG emissions including:
- an emissions inventory system throughout the Group that meets evolving best practice GHG measurement standards and has a high level of external credibility
- coal-based emissions reduction projects, such as the Illawarra Coal Waste Mine Gas Utilisation project that avoids CO2 emissions directly through the use of methane drained from our mines in on-site electricity generation and indirectly by displacing grid-based power
- investigating options for collaborative GHG reduction projects in South Africa, along the lines of the Kyoto Protocol's Clean Development Mechanism.
Industry leadership at a national and international level, such as:
- the World Coal Institute which, under the Company's chairmanship, established sustainability principles and goals for coal and facilitated regional dialogue between producers and utilities on the means of realising them
- our foundation role in the Australian Coal Association Sustainable Development Program, which is dedicated to a more informed debate on coal and sustainable development within and outside the industry in Australia.
Direct participation in coal research and development, such as in Australia where we contribute about A$3.5 million per annum to a range of programs, such as:
- the ‘Coal in a Sustainable Society’ research project that investigated technology-based opportunities for reductions in emissions on a ‘whole of life cycle’ basis
- the Australian Coal Association Research Program, which has a substantial coal utilisation component
- the Cooperative Research Centres on Coal in Sustainable Development and Greenhouse Gas Technologies - as joint initiatives among industry, government and research providers focused, respectively, on improved coal utilisation and CO2 capture and storage
- the Australian Coal Association's ‘COAL21’ Project, aimed at providing a technology road map and action plans for future coal-based power generation in Australia, potentially including demonstration of an ultra-low emissions coal plant.
In addition, we have provided one of the two coal company representatives in the government and industry delegation to the Carbon Sequestration Leadership Forum. The 15-nation forum is aimed at coordinating research and development efforts to realise the technical and commercial feasibility of carbon capture and storage as a key low-emission technology.
Through these activities, the Company is helping to meet its commitment to reduce the GHG emissions intensity of its operations by 5 per cent by 2007 and contributing to long-term global efforts to ensure environmental sustainability in an energy-hungry world.
Capture and storage of CO2 from coal gasification
