Clean development of coal and its pathways

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On November 6, the **Energy Administration, Jiangsu Province**, and the International Renewable Energy Agency jointly hosted the “2015 International Energy Transition Forum”, whose theme was “Global Energy Transformation and China’s Energy Transition”. Zhang Yuzhuo, chairman of Shenhua Group, delivered a speech titled \"Clean Development of Coal and Its Pathways\" at the forum. The main points of the presentation are as follows: Currently, coal still accounts for a significant proportion globally; in 2014, it provided 30% of the world’s primary energy and 44% of its electricity supply. It is expected that coal will remain one of the world’s main primary energy sources by 2035. Coal’s role as the primary energy source in China is unlikely to change for a long time to come. Coal is the fossil fuel with the largest reserves in China, accounting for 96%. Moreover, coal has long accounted for around 70% of total primary energy consumption (66% in 2014). It is estimated that by 2030, coal consumption in China will still account for around 55% of the total primary energy consumption. Coal has supported the rapid development of China’s economy. China’s per capita electricity consumption increased from less than 300 kilowatt-hours in 1980 to 4,038 kilowatt-hours in 2014, with coal-fired power generating 75% of China’s electricity supply ； Coal also provides 86% of the energy for China’s steel industry, 79% of the energy for its building materials industry, and about 50% of the raw materials for chemical products. According to research by the Chinese Academy of Engineering, coal contributes over 15% to China’s GDP. At the same time, the extensive exploitation of coal has also led to many problems, mainly environmental issues. For example, extensive coal mining causes damage to groundwater and surface ecosystems, while the suboptimal utilization of coal leads to air pollution. But it’s not a problem with the coal itself; rather, it’s that those who use coal fail to make good use of it. The extensive exploitation of the coal industry is not a scientific approach; therefore, we need to undergo transformation in order to enable clean development in this sector. The strategic positioning of the clean development of coal: The essence of clean coal development lies in its efficient, sustainable exploitation and utilization. It encompasses the entire value chain of coal, including extraction, processing, use, conversion, and comprehensive recycling, aiming to create a new model for coal industry development that is environmentally friendly in terms of ecological impact, ensures safety across the entire system, operates efficiently on an industrial scale, and achieves low carbon emissions throughout the process. The characteristics of clean coal are as follows: 1. Cleanliness: Transforming the ways in which coal is exploited and utilized, turning coal from a \"black\" resource into a \"green\" one” ； 2. High efficiency: Significantly improve the efficiency of coal utilization to achieve resource conservation and intensive development ； 3. Low carbon: Reduce the intensity of greenhouse gas emissions and promote the low-carbon development of high-carbon industries. Clean coal development requires four major transformations: a shift from resource-driven to innovation-driven development ； Shift from focusing on fuel to emphasizing both fuel and raw materials ； A shift from relatively extensive development to intensive, green, and interconnected intelligent approaches ； A shift from traditional high-emission practices to clean and efficient methods with near-zero emissions. Paths for the clean development of coal There are four paths for the clean development of coal: 1. Environmentally friendly green development of coal. Coal extraction must not damage the environment; an environmentally friendly system for coal development should be established. After development, Shenhua’s mining areas become even more beautiful than before. We have protected and restored the surface. At the same time, Shenhua has achieved effective protection and efficient utilization of coal mine water. Shenhua Group’s **Key Laboratory on Water Resource Protection and Utilization in Coal Mining** is one of the only 8 **national-level** key laboratories in the coal industry. Relying on technological innovation, Shenhua has also achieved coordinated development and utilization of coal along with various other resources such as gas and geothermal energy. 2. Coal-fired power generation based on ultra-low emissions: Currently, coal-fired power generation accounts for 60.7% of the country’s total power generation capacity and over 70% of the total electricity produced. For a considerable period in the future, coal-fired power generation will remain the main source of electricity in our country; it is estimated that the installed capacity will be between 1100 and 1300 GW by 2030. Pollution control in coal-fired power generation is at a leading level among various industrial sectors. In terms of emission standards for coal-fired power generation, China’s standards are actually higher than those in the United States. However, due to the large absolute volume of emissions, especially in areas where such plants are concentrated, the intensity of pollutant emissions remains relatively high. However, at present, the emissions of air pollutants from coal-fired power generation can already meet or fall below the emission standards for gas-fired units. Shenhua has established ultra-low emission demonstration projects, with coal-fired power plants emitting even less than natural gas plants. Shenhua’s coal-fired power plants incorporate advanced pollutant treatment technologies to achieve efficient and simultaneous removal of pollutants. Meanwhile, existing units are upgraded to meet ultra-low emission standards, while all newly built units utilize new technological approaches to become model coal-fired power plants that are efficient and clean. The economic and social benefits of ultra-low emissions from coal-fired power generation are significant. The additional cost incurred by coal-fired power generators to achieve ultra-low emissions is less than 0.02 yuan per kilowatt-hour. At present, the feed-in tariff for coal-fired power generation is around 0.3–0.4 yuan per kilowatt-hour, which is much lower than the feed-in tariff for natural gas-powered power generation, which is around 0.8 yuan per kilowatt-hour. In other words, generating electricity from coal achieves the same emissions or even lower ones at half the cost of natural gas. Shenhua currently has 29 coal-fired units that have undergone ultra-low emission upgrades, accounting for over 40% of the total in the country. If ultra-low emission technologies are fully applied to coal-fired power generation units across the country, emissions of the main pollutants from coal power can be reduced by about 90% compared to 2013. Reducing carbon dioxide emissions from coal-fired power generation is also very important. If the efficiency of global coal-fired power plants increases from the current 35% to around 45%, the global coal-based power generation could reduce carbon dioxide emissions by 4 billion tons. In the future, if advanced ultra-supercritical units are gradually used to replace older units, China’s total carbon dioxide emissions from coal-fired power generation can remain relatively stable despite a continuous increase in the total installed capacity. Shenhua has already built coal-fired power plants with the most advanced technology, achieving an efficiency of 45%, and is working on developing coal-fired power plants with an efficiency of 50%. For example, Shenhua’s newly commissioned Anqing Power Plant is a globally leading high-efficiency low-emission (HELE) power plant, with a coal consumption of 273 g/kWh, a power generation efficiency of over 46%, and an investment cost of only 3,048 yuan per kW. Shenhua is currently testing coal-fired power generation technology using oxygen-enriched combustion. In September of this year, China’s first 35MW industrial demonstration unit for oxygen-enriched combustion completed its first test, with the carbon dioxide concentration in the dry cycle resulting from such combustion reaching 80%. Starting in 2014, all newly built units of Shenhua Group were required to achieve ultra-low emissions; by 2017, all units had been upgraded to meet ultra-low emission standards, with further research being conducted on advanced technologies such as ultra-low emission technology integration and online pollutant monitoring. At the same time, efforts are being made to develop next-generation advanced ultra-supercritical technology, technologies for ultra-low or even zero emissions from coal use, as well as greenhouse gas reduction technologies, with the goal of achieving a coal-fired power generation efficiency of 50% or higher. 3. Modern coal chemical industry based on clean conversion: Coal can also be converted into petroleum, natural gas, chemical materials, etc. At present, China has made breakthrough advances in the technology and industrial demonstration related to the clean conversion of coal, and is generally at the world’s leading level in this field. Shenhua is a global leader in this area. A coal-to-oil demonstration project was established. By the end of 2008, the world’s first million-ton-scale demonstration plant for direct coal liquefaction, built using technology developed independently by Shenhua, was successfully put into operation. Moreover, the operational stability and energy conversion efficiency of the Shenhua coal direct liquefaction demonstration project are continuously improving. The coal liquefied products feature low sulfur content, high density, high calorific value, low freezing point, and good stability, making them clean and high-quality fuels. At the same time, wastewater treatment and water-saving technologies for direct coal liquefaction are also continuously improving; the water consumption per ton of oil produced is only 1/4 of the national industrial average, achieving zero wastewater discharge. In terms of the coal indirect liquefaction (Fischer-Tropsch synthesis) technology, the Shenhua Ningmei 4 million tons per year coal indirect liquefaction project is expected to be completed and put into operation in 2016. In the field of coal-to-olefins, Shenhua has built a 600,000-ton/year MTO demonstration project in Baotou. The coal-to-olefins process is now fairly mature, enabling it to be used on a large scale as a substitute for petroleum-based feedstocks for the production of ethylene and propylene. In the field of coal-to-propylene, Shenhua Ningmei’s 500,000 tons per year MTP demonstration project has successfully achieved the world’s first industrial application of the methanol-to-propylene technology. Regarding the technologies for reducing carbon dioxide emissions in coal-to-oil chemical processes, Shenhua has mastered the core technology for geological sequestration of carbon dioxide in saline layers, and has achieved a sequestration capacity of 400,000 tons. In the future, research and applications related to carbon dioxide capture, utilization, and storage (CCUS), such as using carbon dioxide for oil displacement, geothermal energy extraction, and water displacement, will also be carried out. In short, we can further enhance the technical level and competitiveness of the modern coal chemical industry through technological innovation. 4. Comprehensively develop strategic emerging industries by establishing an intelligent energy system that integrates fossil fuels with non-fossil fuels, in order to clean up conventional energy sources (fossil fuels) on a large scale and expand the use of clean energy sources (non-fossil fuels). China will still rely on coal in the next two decades, so we need to make full use of it. Shenhua strives to integrate technologies, establish industrial models, and combine the revolution in coal technology with the revolution in production and consumption. At the same time, Shenhua will also make comprehensive efforts to develop strategic emerging industries, focusing on coal-based new materials and high-temperature fuel cell (IGFC) power generation technologies. Conclusion: Shenhua’s goal is to become a world-class supplier of clean energy and provider of clean energy solutions. Shenhua has implemented a series of technological innovation projects and demonstration projects, and progress has been made in the clean development of coal ； In the future, further efforts will be made in research and development to support the growth of the clean energy industry, and independent innovation capabilities that are suited to clean energy solution providers will be established. By 2025, the clean development of coal will see these changes: in coal exploitation, the share of scientific-based production capacity will reach 90%, while the rate of ecological restoration will reach 70% ； Coal utilization: by 2025, the average coal consumption per unit of electricity generated from coal-fired power plants is to be reduced to 300 gce/kWh, with pollutant emissions reduced by 80% compared to current levels ； Coal conversion: the conversion efficiency is increased by 8 percentage points compared to the current level, while water consumption is reduced by 25%. In this way, we can make clean use of coal as a traditional energy source.