Stationary Energy

Coal

Coal is an abundant and inexpensive fuel that is used primarily for producing electricity. Coal supplies approximately 35% of America's energy. It produces 40% of the electricity worldwide and more than 50% in the U.S. High natural gas prices have resulted in the growth of coal plant construction in the U.S.

• Consumption:  U.S. consumption of coal doubled between 1950 and 2000. In 2003, the U.S. consumed 1.1 billion tons of coal, accounting for 92% of coal consumption in North America. U.S. coal consumption projections show 1.8 billion tons in 2030. The Energy Information Administration forecasts that electricity consumption will grow by 1.9% per year through 2025. This increase will largely be met by new coal-fired or natural gas-fired plants.

• Supply:  Total recoverable world reserves of coal are estimated at 1,001 billion tons, enough to last approximately 180 years at current consumption levels. The United States is estimated at having 27% of the world's reserves. The Energy Policy modified federal coal leasing procedures to encourage greater coal production on federal lands. For example, it repealed the 160 acre limit on coal lease modifications and now allows additions that would add up to 960 total lease acres.

• Clean Coal Technology:  Coal-based integrated gasification combined cycle (IGCC technology) is a process which involves gasifying coal to generate a synthetic gas that is mostly composed of hydrogen and carbon monoxide. This gas is then used to fuel a combustion turbine. This process offers the potential for cost-effective and cleaner coal energy. In FY 2002, the Administration initiated the Clean Coal Power Initiative (CCPI). This is a cost-shared project between the private sector and the government that seeks to boost the efficiency and reduce emissions from coal-fired power plants. The Energy Policy Act continued funding of the CCPI and authorized $200 million for FY 2006 to FY 2014.