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Some estimates show that current cap-and-trade proposals could drive up annual energy costs thousands of dollars per household in areas dependent on coal-powered electricity plants.
That’s a hefty price to pay when there’s no guarantee that it will have an impact. The Intl. Energy Agency estimates that carbon dioxide emissions will grow by almost 60% through 2030. Almost all of the growth will come from developing countries such as China and India, which rely on coal to meet more than 70% of their electricity needs. This means that there could be no change in global carbon dioxide emissions 20 years from now — even if the United States shut down all of its coal-fired power plants.
Taking the carbon out of coal
There is extensive research under way to find ways to deal with the carbon dioxide emitted by coal. One strategy is to trap the carbon dioxide and pump it underground. If successful, it would not only remove a significant hurdle for coal-fired power plants but could pave the way for using coal to make diesel fuel (see OEM Off-Highway, July 2007).
The stimulus bill passed by Congress earlier this year allocates $3.4 billion to develop clean coal technologies, but the Electric Power Research Institute and the Coal Utilization Research Council estimate that it will take $29 billion over the next 15 years to make any of these technologies commercially viable.
The mining industry’s concern is that cap-and-trade legislation could be so disruptive to the coal industry that no one will want to invest in technology that is, at best, more than a decade away. If investors shy away from coal plants, or if environmentalists win even a partial moratorium on new coal plant permits, there may be no long-term financial stomach for coal.
“We can’t expect to build a plant with 65% carbon capture if we don’t first build with 20% capture,” Hal Quinn, president and CEO of NMA, testified before Congress earlier this year. “As with any technological advance, we must walk before we can run. Toyota would not have developed the Prius if it had to await development of plug-in hybrid vehicles.”
Dave Jensen is a contributing editor from Milwaukee, WI.
