Coalpro news briefing - December 2001

COALPRO BRIEFING - DECEMBER 2001

RETAIN "STATUS QUO" FOR SECURITY - Coal Producers

OLD King Coal has come to the rescue of energy-hungry Britain.

Power stations are on course to burn more than 50 million tonnes of the black stuff this year to generate electricity for industry and homes - the biggest coal burn for five years and 10% up on last year.

Coal has replaced failing nuclear and high-cost gas in a Generation Game that has benefitted consumers by keeping power prices lower than they would otherwise be.

Now the UK's coal producers have advised members of a high-powered all-party group of MPs to keep the home lights burning bright by maintaining the "status quo" in Britain's electricity generation market - a move they say will maintain energy diversity and security.

About one-third of Britain's electricity is generated from coal; one-third from gas and the rest from nuclear power, imports from France and renewables. Coal industry leaders have told members of the Trade and Industry select committee reviewing energy policy and security that that energy mix should be broadly retained because it:

• maximises generation options;
• maintains fuel-source flexibility and reduces uncertainties, and
• helps cap the volatile price structure of other fuels, particularly gas -a fuel on which Britain is set to become increasingly reliant on supplies from Russia and the Middle East as our own reserves deplete.

Brian Rostron, Director General of the Wakefield-based Confederation of UK Coal Producers (CoalPro) has told the select committee coal is easy to handle and store - and that there's sufficient untouched coal in Britain to last for at least a further 50 years. In contrast, UK Offshore operators warn that UK gas supplies will begin to decline within the next five years.

MPs have been urged to support the development of new clean coal power plant as a first step, and to encourage the techniques for carbon capture and sequestration to help deliver substantial reductions in CO2 emissions and steer Britain towards a hydrogen economy in the longer term. Carbon capture in a pre-combustion process is already being undertaken at a coal gasification plant in North Dakota from where it is being piped 320km to help recover oil from the Weyburn field in Saskatchewan, Canada. Similar schemes in the UK could enable CO2 to be piped from power stations to help recover more of our offshore oil reserves instead of being released to the atmosphere.