Three major contradictions remain in the clean and efficient use of coal

Thread Content

Three major contradictions remain in the clean and efficient use of coal. Author/Source: Sinochem News Network. Date: 2022-03-19. Clicks: 17 —— The coal chemical industry under the backdrop of the \"dual carbon\" strategy and restrictions on high emissions and high consumption (Part 2) China is the world’s largest producer and consumer of coal. Although coal’s share in domestic primary energy consumption is declining year by year, its status as the main energy source will not change for a considerable period of time. A thorough understanding of China’s energy and resource endowments and the fundamental role of coal as an energy source, and the pursuit of clean, efficient, and sustainable utilization of coal, remains an option that is in line with the current national conditions and energy situation. However, achieving clean and efficient use of coal as well as the advanced development of modern coal chemical industries still face three significant challenges that cannot be ignored. 　　Firstly, the fundamental nature of the chemical industry as an energy conversion sector creates a conflict between the development of modern coal chemical industries and the previous policy environment of dual control over energy consumption. Previously, at all levels, **strict controls on energy consumption were implemented, along with efforts to reduce energy use and coal consumption, in order to adjust the energy consumption structure and promote industrial transformation.** However, given our country’s resource endowments, coal chemical industry still holds an important position in the domestic chemical industry. After decades of development, China’s coal chemical technology has become quite mature. The sulfur contained in coal can be fully recovered and utilized, and other air pollutants can also be completely purified, recovered, and disposed of in a harmless manner. Compared to heating and power generation using coal, coal chemical processes result in lower levels of pollutant emissions. As the conversion efficiency and added value of coal continue to improve, coal chemical enterprises adhere to a path of high-level conversion and advanced utilization of coal, which is of great significance for optimizing China’s energy structure and ensuring energy security. To this end, industry experts have been calling in recent years against including both chemical raw material coal and thermal coal in the energy consumption assessment on a one-size-fits-all basis. Relevant policies have now been adjusted, but in some areas the new policies still need to be further implemented. 　　Second, the development of carbon emission reduction technologies and comprehensive carbon utilization methods is slow, which conflicts with enterprises’ vision of carbon neutrality. The high carbon content of coal is an inherent and unchangeable characteristic, yet coal is precisely China’s key energy source. Currently, carbon capture, utilization, and storage (CCUS) is regarded as a key technology for addressing this shortcoming. However, CCUS technology has not yet demonstrated sufficient commercial viability. Based on current estimates, the use of CCUS in the coal power industry will result in an increase in energy consumption by 24%–40%, higher investment costs by 20%–30%, a loss in efficiency of 8%–15%, and an increase in overall power generation costs of over 70%. In the coal chemical industry, the development of carbon sequestration and carbon recycling are prominent challenges facing the sector as a whole. It is necessary to rely on technological innovation to intensify efforts in reducing carbon emissions, offsetting carbon emissions, and promoting carbon recycling, thereby achieving carbon sequestration and value enhancement through the production of coal-based specialty chemicals, as well as improving efficiency in carbon reduction. 　　Thirdly, the concentrated transformation of industries caused by restrictions on high-energy-consuming sectors creates a conflict with the \"red ocean competition\" in downstream industries. Since last year, many regions have undertaken campaign-style efforts to “reduce carbon emissions”, advancing the “dual carbon” strategy ahead of schedule. In some provinces, excessive measures were taken to cut energy capacity and coal consumption, resulting in a disconnect between coal production, transportation, storage, and utilization. In some areas, strict controls on energy consumption are implemented, deliberately reducing the production capacity of coal-fired power plants, which leads to shortages of coal and electricity and poses challenges to the sustainable and healthy development of the coal chemical industry. The increasingly stringent regulations on energy consumption and the policies aimed at curbing the unchecked development of high-energy-consuming and high-emission projects will force enterprises to continuously optimize the structure of their raw materials, products, and energy use, to promote energy conservation, emission reduction, and the comprehensive utilization of resources, thereby pursuing a path of ecological priority and green development. Among them, a considerable number of coal chemical enterprises are planning to transform by shutting down their relevant production lines and shifting directly into the highly competitive fields of new materials and new energy. According to statistics, in 2021 alone, nearly 20 chemical industry listed companies announced plans to build projects related to new energy batteries and similar areas. However, this concentrated transformation of these enterprises will lead to an influx of certain downstream products into the market in the coming years, resulting in new overcapacity and even more fierce \"red ocean competition\".