1. Coal – security of coal supply considerations of EURACOAL
Paris – 24th May 2005

2. Coal in Europe
Secure energy for Europe
Economic energy for Europe
Clean Coal – three stages in a long-term vision
Working together for the right policies
There is a need for balanced energy and environmental policies
Paris, 24th May 2005, Figure 2

3. Europe is the world‘s third largest consumer of coal behind China and the US
Data in mill. t for 2002
Lignite production
Hard coal production
Hard coal imports
About 490 mill. t/a hard coal and 550 mill. t/a lignite in Europe
Paris, 24th May 2005, Figure 3

4. Coal is key to power generation in states across Europe
TWh
Coal‘s share in %
3,018 30
2,678 26
144 92 76 66 55 63
572 50
246 33
387 32 36 25
284 12 82 12
559 4 44 46 54 37
Share in %
Gross power generation
Paris, 24th May 2005, Figure 4

5. Rising gas prices are higher risk for generators and consumers than coal
Average Generation Costs of New Baseload Power Plants
Paris, 24th May 2005, Figure 5

6. Power requirements of the enlarged Europe will increase with coal remaining a major player
Policies to
limit demand and CO2 emission
+ 54%
4.5
Policies to promote renewables
18 %
GWh
3.0
36 %
Renewables (Hydro)
15 %
Policies needed to increase
efficiency in
generation
Gas
17 %
2 %
Oil
6 %
17 %
32 %
Nuclear
27 %
30 %
Coal
2002
2030
Source: EU Commission, Trend to 2030
Policies are needed to enable all fossil fuels to contribute to the solutions for climate change
Paris, 24th May 2005, Figure 6

7. Clean coal can balance energy security and economic needs with environmental needs
Coal is inexpensive, secure and has no transport risks
The environmental impact of coal use can be minimised by clean coal technologies
Clean coal is the basis for long-term acceptance of coal and is a flexible concept which can be used by all countries
Euracoal defines clean coal in three stages
I Reduction in SO2, NOx, dust
II Improved energy efficiency
III The long-term vision of CO2 capture and storage
Paris, 24th May 2005, Figure 7

8. Niederaußem‘s lignite-fuelled power plant illustrates step-by-step efficiency enhancement
=>43% 1000 MW 2002
=35% 600 MW 1974
=34% 300 MW
=31% 150 MW 1963
Paris, 24th May 2005, Figure 8

9. In the longer term there is a route to near-zero CO2 emission power stations
CO2-capture
pre-combustion at gasification plants
post-combustion at conventional plants
oxy-fuel combustion
CO2-storage
depleted oil and gas fields
deep saline aquifers
unmineable coal seams
mineralisation
Some technologies are well-proven, others need significant R&D. All require demonstration with monitoring & verification of storage sites.
EU Framework Programme VII offers the opportunity to move ahead with demonstration projects and targeted R&D
Paris, 24th May 2005, Figure 9

10. Implementation of emissions trading policies is of key importance for coal and for Europe
Emissions trading will inevitably lead to fuel switching from coal to gas
Increased gas burn within the EU will have an adverse impact on competitiveness and energy security
Coal can provide low carbon solutions
needs right political and investment climate
Implementation of Phase I has been rushed – We need to start planning Phase II now
Paris, 24th May 2005, Figure 10

11. Emissions Trading in Germany Security for investors beyond Kyoto
Trading period 2005/07
Trading period 2008/12
Kyoto
Post-Kyoto
Section 10,NAP-G (National
Allocation Plan Act):
New installations replacing old plants Full allocation Installation-related benchmarks 4 CF
Old plant
+ 14 years
Compliance factor 1
New plant
Paris, 24th May 2005, Figure 11

12. Coal in Europe Different countries, situations and needs for action
Competitive electricity supply is important for Europe‘s economy – coal backs this competitiveness
Past burdens should not hinder future potential to provide Europe with a valuable indigenous resource
Reliable regulatory framework is needed for long-term investment in modernisation new mines / power plants
Regulation of the electricity market should provide a framework to stimulate production and investment
Paris, 24th May 2005, Figure 12