COAL21

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The primary purpose of the COAL21 Annual Review 2005 is to assess and report progress made over the past year towards achieving the objectives of the COAL21 National Action Plan which was formally launched in March 2004. The overall objective of COAL21 is to reduce greenhouse gas emissions from coal-based electricity generation. Click on image to download (pdf - 751 KB) >>

The focus of the Annual Review is on activities and progress on the research, development and demonstration (RD&D) front within Australia. A number of significant international developments that have taken place over the past year are also reported. The Annual Review also provides useful background information on COAL21 and the COAL21 National Action Plan.

The COAL21 National Action Plan is a blueprint for developing the key technologies that will allow coal to continue to be used for electricity generation in Australia with significantly lower greenhouse gas emissions.

The Action Plan identifies the key emerging technologies needed to reduce or eliminate emissions, and outlines the steps Australia should take to bring forward their development and deployment. It also identifies potential abatement targets for 2030, Australia’s role in RD&D and the role of government and industry.

There are opportunities for reducing emissions from all stages of the coal chain including production, utilisation and waste disposal. However, as more than 95 per cent of emissions occur at the point of combustion at power stations, these emissions represent the best opportunity for abatement action.

A number of promising technologies have been identified as being of particular relevance to Australia. These include technologies that enable carbon dioxide (CO2) capture and storage (the pathway to near zero emissions), higher coal-use efficiency, and hydrogen production.

The range of technologies associated with CO2 capture and geological storage (also known as geosequestration) are identified as the key to achieving deep cuts or even near zero emissions in coal-based electricity generation. Other technologies that meet one or more of the criteria include Integrated Gasification Combined Cycle (IGCC), Oxy-fuel Combustion, Lignite Dewatering and Drying and Ultra Clean Coal (UCC). Ultrasupercritical Pulverised Fuel (PF) technology meets the criterion of increased coal-use efficiency, but has not been included in the Action Plan because it is unlikely that Australia could play a meaningful role in its further development.

Each of the priority technologies is at a different stage of development and all require further RD&D before they are likely to be available for commercial deployment. Depending on progress in each case, most could be at least technically mature enough for deployment to commence after 2015.

The Plan outlines actions that should be pursued in Australia to accelerate the development of each of the technologies. These actions are divided into two broad phases: an RD&D phase out to around 2015 and a subsequent deployment phase.

COAL21 assessed the levels of emissions abatement that could possibly be achieved by 2030 through the deployment of advanced technologies, in particular CO2 capture and storage. This assessment was based on scenarios modelled for COAL21 by the Co-operative Research Centre for Coal in Sustainable Development (CCSD). Provided that the assumptions underlying the model were met, an average emissions intensity target for coal-based generation of 650 kilograms of CO2 per megawatt hour (currently 1017) or less could be at least theoretically achievable by 2030. This would result in total annual emissions from coal being lower than they are today despite an assumed 35 per cent increase in total coal-based generating capacity. Achieving this would require the equivalent of around 20 per cent of coal-based generation to be at zero emissions by 2030 through CO2 capture and storage.

It is unlikely that any technology combination that includes CO2 capture and storage will be competitive with conventional PF generation. While costs are certain to fall significantly over time, there is considerable uncertainty about both the cost of abatement and the impact on generation costs. This uncertainty applies to both the current and future costs associated with deploying the key technologies in Australia. A range of estimates have been presented in the literature, but considerable work is needed to further consolidate these and place them in an Australian context.

This uncertainty has precluded any robust identification of realistic, quantitative cost targets until more definitive technical and economic assessments are completed. However, two general cost targets can be endorsed. The first is that options for abating coal-related emissions must be competitive with other options in the Australian generation market. The second is that any impact on the cost of generation must be consistent with the need to maintain an internationally competitive electricity supply.

International collaboration will be essential if Australia is to play a role in the development of the key technologies. Australian RD&D activities must complement rather than replicate overseas programs wherever possible. While a full assessment of existing RD&D was beyond the scope of COAL21, a number of criteria that can be used to assess domestic RD&D programs in this context have been identified.

Governments have an important role to play in supporting and facilitating RD&D, particularly for first-of-a-kind demonstrations of key technologies. Support during the RD&D phase will need to be carefully targeted and encompass both policy and various forms of direct and indirect assistance. Public/private partnerships will also be important during this phase, particularly for pilot and demonstration-scale facilities.

Education and communication will be essential to increase community awareness and understanding of the key technologies and the issues surrounding energy and climate change.

The purpose of this Issues Paper is to highlight some of the key issues that need to be considered in formulating a national plan for reducing greenhouse gas emissions from coal. It is intended to provide a basis for consultations with stakeholders. These consultations are aimed at answering the key questions raised in the Issues Paper, and identifying any other issues that stakeholders believe should be considered. Click on image to download (pdf - 391KB) >>

The COAL21 Action Plan will be based substantially on answers to the questions raised in the Issues Paper and the consultation process.


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