COAL AND ITS IMPACT ON THE ENVIRONMENT

Supported by

Thailand Business Council for Sustainable Development (TBCSD)

Prepared by

Dr. Pojanie KhummongkolMs. Rachanee Bowonwiwat

Thailand Environment Institute

April, 1995

I

CONTENTS

TABLE OF CONTENTS I

LIST OF TABLES m

LIST OF FIGURES IV

ACKNOWLEGEMENTS VII

CHAPTER 1 COAL AND ITS IMPACT ON THE ENVIRONMENT 1

GENERAL 1ESTIMATES OF COAL RESOURCES 3

COAL EXPLORATION AND PRODUCTION 7

CHAPTER 2 HISTORICAL CONSUMPTION AND DEMAND FORECAST 13

THE POWER GENERATION SECfOR 13INDUS1RIAL SECfOR 16

CHAPTER 3 ENVIRONMENTAL IMPACTS OF COAL UTILIZATION 23

GENERAL 23

ENVIRONMENTAL IMPACTS OF COAL MINING 24

ENVIRONMENTAL IMPACfS FROM COAL TRANSPORTATION 25

ENVIRONMENTAL IMPACTS OF COAL COMBUSTION 25

CHAPTER 4 OPTIONS ON CONTROL TECHNOLOGIES .45

S02 REMOVAL TECHNOLOGY 52

NOXREMOVAL TECHNOLOGy 57

SPM REMOVAL TECHNOLOGY 57

CHAPTER 5 COST EFFECTIVE OPTIONS 63

THE INCREMENTAL COST OF CONTROL TECHNOLOGY 63

RESULTS OF FUEL OPTION SCENARIOS 70

REFERENCES 85

APPENDICES 87

III

LIST OF TABLES

TABLE 1.1 WORLD COAL REsOURCES AND PROVEN REsERVES (TCE X 109 )•••........•..........6TABLE 1.2 THAILAND's EsTIMATED AND PRoVEN COAL REsERVES, 1988....•.........•...........•7

TABLE 1.3 PRODuCTION SCHEDULE OF MAE MOR LIGNITE MINEs 10

TABLE 1.4 COAL PRODUCIlON BY PuBUCAND PRIvATE SECTOR ( 1987-1993) 11

TABLE 2.1 CEMENT FORECAST FOR 1994-2006 18

TABLE 2.2 THAILAND's AND SELECTED COUNTRIES' GNP AND CEMENT CONSUMPTION PER

CAPITA 18

TABLE 3. 1 SOME SELECfED INDuSTRIAL EMIsSION STANDARDS PROPOSED BY TIIE

INDUSTRIAL ENVIRONMENT DNISION, MINISTRY OF INDUSTRY 26

TABLE 3.2 SUMMARY OF TOTAL PoLLUTANTS EMrrrED FROM COAL-FIRED POWER

PLANTs, CEMENT KILNs AND INDUSTRIAL BOILERS ..43

TABLE 4.1 MAE MOR POWER PLANTs GENERATING CAPACITIES, SULFUR CONTENT IN

LIGNITE, AND S02 REDUCTION REQUIREMENT .49

TABLE 4.2 COMPARATIVE EMISSIONS OF 502 USING 0.3% AND 1.0% SULFUR CONTENT

COAL WIn! TIIE INDUSTRIAL STANDARD VALUE AT 700 PPM 5 ITABLE 4.3 NOx EMISSIONS FROM TIIE LIGNITE/COAL FIRED PLANTs AND TIIE INDUSTRIAL

STANDARD VALUES FOR COMPARISON 57

TABLE 4.4 SOME TYPICAL DATA ON ELECTROSTATIC PRECIPITATOR AI'PUCATIONS .58

TABLE 5. I COST COMPARISONS OF VARIOUS S02 CONTROL TECHNOLOGY OPTIONS 66

v

LIST OF FIGURES

FIGURE 1.1 COMMERCIAL ENERGY CONSUMPTION PER CAPITA IN 1'HAILAND..............•..••.2

FIGURE 1.2 PERCENTAGE OF THE TOTAL COAL FOILOWING THE CARBONIFEROUS PERIoDs.3

FIGURE 1.3 LIGNITE PRODUCTION IN THAILAND (1979-1993) 8

FIGURE lA.COAL PRODUCTION BY PROVINCES .....•.........•..................................................•9

FIGURE 2.1 HiSTORICAL LiGNITE CONSUMPTION IN THE POWER SECTOR, 1974-1993 13

FIGURE 2.2 COAL CONSUMPTION UNDER THE THREE DEMAND SCENARIOS

CORRESPONDING TO 1700 MW, 2400 MW AND 3800 MW POWER l'LANTs 15

FIGURE 2.3 LiGNITE DEMAND FORECAST FOR THE ExiSTING POWER PLANTS AT MAE MOH

AND IMPORTED COAL FOR THE 2400 MW lPP POWER PLANTs, 1994-2006 15

FIGURE 2.4 HiSTORICAL CONSUMPTION OF COAL IN THE CEMENT INDUSTRY 16

FIGURE 2.5 CEMENT PRODUCTION DURING 1980-1993 AND DEMAND FORECASTS (1994-

2006) BASED ON MOVING AVERAGE MODEL AND NESDB MODEL. 17

FIGURE 2.6 COAl DEMAND IN THE CEMENT INDUSTRIES (1994-2006) 19

FIGURE 2.7 PULP AND PAPER: PRODUCTIONS AND DEMANDS 21

FIGURE 2.8 COAL DEMAND IN THE PULP AND PAPER INDUSTRy .....................................•... 21

FIGURE 3.1 ENVIRONMENTAL IMPACTS OF COAL PREPARATION AND UTILIZATION 23

FIGURE 3.2 ESTIMATED AMOUNT OF S02 RELEASED FROM MAE MOH POWER PLANT UNITS

1-13ANDTHE EMISSION STANDARD LiMITATION PRoPOSED AT 700 PPM 28

FIGURE 3.3 EMISSIONS OF S02 FROM MAE MOH POWER PLANTS UNITS 1-13 29

FIGURE 3.4 S02 MmGATION REQUIREMENT FOR 2400 MW POWER PLANTS UNDER THREE

EMISSIONS SCENARIOS 30

FIGURE 3. 5 NOx EMISSION FROM MAE MOH POWER GENERATION UNITS 1-13 30

FIGURE 3. 6 TOTAL NOx MmGATION REQUIREMENT FOR LIGNITE·FIRED POWER PLANTS 31

FIGURE 3.7 TOTAL NOx MmGATION REQUIREMENT IN 2400 MW COAL-FIRED POWER

PLANT 32

FIGURE 3. 8 SPM EMISSIONS FROM THE POWER GENERATION SECTOR 33

FIGURE 3. 9 SPM MmGATION REQUIREMENT FOR TIlE LiGNITE·FIRED MAE MOH POWER

PLANTS 33

FIGURE 3.10 SPM MmGATION REQUIREMENT FOR 2400 MW COAL-FIRED POWER PLANT.34

FIGURE 3.11 ACTUAL AND PROJECTED C02 EMISSIONS (1990-2006) OF LIGNITE FIRED 35

FIGURE 3.12 PROJECTED ASH DISCHARGE FROM POWER GENERATION 36

FIGURE 3. 13 ACTUAL AND PROJECTED EMISSIONS OF S02 FROM THE CEMENT INDUSTRY

AND THE S02 REDUCTION REQUIREMENT IN COMPARISON WTIH THE INDUSTRIAL

STANDARD LIMIT 37

FIGURE 3.14 ACTUAL AND PROJECTED EMISSIONS OF NOx IN COMPARISON WTIH TIlE

INDUSTRIAL STANDARD VALUE 38

FIGURE 3. 15 ACTUAL AND PROJECTED EMISSIONS OF SPM IN COMPARISON WTIH TIlE

INDUSTRIAL STANDARD V ALUE 38

FIGURE 3. 16: EMISSIONS OF C02 FROM THE CEMENT INDuSTRY 39

FIGURE 3. 17: TOTAL ASH DISCHARGE FROM THE CEMENT PRODUCING PLANTS 40

VI

FIGURE 3. 18 EsTIMATES OF S02 EMISSIONS FROM THE PuLP AND PAPER INDUSTRY .••..•..41

FIGURE 3.19: EsTIMATES OF ACTIJAL SPM EMISSIONS FROM THE PuLP AND PAPER

INDUSTRy..•................•....•.......................................................•...•............................... .42

FIGURE 4.1 SCHEMATICS OF S02 LIMESTONE SCRUBBING REMOVAL SYSTEM....•...•..........46

FIGURE 4.2 SCHEMATICS OF S02 DRY SORBENT INJECTION SYSTEM........................•...... ..47

FIGURE 4. 3 SCHEMATICS OF A SPRAY DRYER SYSTEM...........•...•..•...••.••...•.............••...... .48

FIGURE 4.4 COMPARATIVE STUDY OF TEcHNOLOGY OPTIONS FOR S02 REDUCTION 50

FIGURE 4.5 SCHEMATICS OF FLUIDIZATION SYSTEM TO REMOVE S02 52

FIGURE 4.6 SCHEMATICS OF TwO-STAGE COMBUSTION 54

FIGURE 4.7 SCHEMATIC OF FLUE GAS REcIRCULATION SYSTEM 55

FIGURE 4.8 SCHEMATIC OF A PLATE AND WIRE ELEcTROSTATIC PREcIPITATOR .59

FIGURE 4.9 SCHEMATICS OF A BAGHOUSE wrrn CLEANING BY PuLsE JET 60

FIGURE 4.10 SCHEMATICS OF CYCLONE SEPARATOR 61

FIGURE 4.11 COMPARATIVE STUDY OF TEcHNOLOGY OPTIONS OF 62

FIGURE 5.1 ELECIRICITY PRODUCTION COSTS OF NEW LIGNIIElCoAL FIRED POWER PLANT

IN COMPARISON wrrn GAS AND NUCLEAR OPTIONS 73

VII

ACKNOWLEDGEMENTS

This one-year project was financiallly supported by the Thailand Business Council forSustainable Development (TBCSD). The report was prepared by the ThailandEnvironment Institute (TEl).

We would like to thank the TBCSD for its financial support which made this studypossible. A special recognition goes to Dr. Phaichitr Uathavikul for his valuable advicethroughout this study. Our gratitute are extended to Mr. Camilo J. Lim for his significantcontribution in preparing this report.

Special thanks are extended to the Project Advisory Committee-consisting of TBCSDmembers from various private companies for their comments and shared information. Wewould like to express our special thank to Khun Kitti Kumpeera of the EGAT for hisassistance and infonnation.

We would also like to express our appreciation to government agencies which providedinfonnation for this study. Without their support, the study would not have beenpossible. Last but not least, our thanks go to Mr. Ivan Decosta for helping to edit thiswork.

CHAPTERl

COAL AND ITS IMPACT ON

THE ENVIRONMENT

General

Energy consumption per capita can be used as one of many indicators to verify the socialquality and stability of a country. On a global scale, a country's development progresseswith a l'Jgher gross domestic product. As the country develops, more domestic spendingon food, transports and leisures are anticipated. All of these factors would unavoidablycontribute to greater consumption of energy. The world's energy demand seems certainto grow by at least a few percentage points per year. Failure to meet this demand wouldlead to serious social and political repercussions.

Thailand projection of demand growth also suggests that commercial energyconsumption per capita will continue to rise steadily as shown in Figure 1.1. In 1988,Thailand consumed 0.36 ton oil equivalent (TOE) per capita and had increased to 0.58TOE per capita by 1992. This is an increase of 15 percent on the average. By the year2006, energy per capita for Thailand is expected to reach 1.1 TOE. This is about a twofold increase of energy consumption in the next 10 years. On a per capita basis, theglobal consumption of commercial energy in 1991 stood at 1.4 TOE 1 where the United

States, the largest consumer of energy, consumed about 7.6 TOE, while Europe consumed3.2 TOE.

1 World Resources (1994-1995).

2 Chapter 1

Figure 1.1 Commercial Energy Consumption Per Capita in Thailand2

To sustain a certain level of economic growth with adequate energy supply,various resource options especially fossil energy need to be reviewed. For oil and naturalgas, the world as well as domestic production will certainly decline in the near future dueto resource exhaustion. Coal is the only fossil fuel with high potential to be theremaining global supply of energy for at least another 200 years, at the current rate ofconsumption'. Coal, therefore, will likely to become the choice of a long term supply ofenergy. It is projected that coal demand will increase at least, at a rate greater than theaverage increase in fossil fuel demand over the next few decades. The worldconsumption of coal in 1991 was approximately 4,000 million tons. Thailand coalconsumption was only about 0.4 percent of the world consumption or 16 million tons forthe same year.

In addition to strong reserves position and great production expansions potential,the other importance of coal is its flexibility of use, supported by new technology ofadvanced coal conversion process. Coal provides great flexibility with regard to heatrelease. This flexibility most obviously relates to the scale of the combustion equipment,which may vary from a small boiler to a large power plant. It is also adaptable forcontrolled changes of the intensity of heat release which render adjustments oftemperature and total heat output easy. Storage of coal is also very simple and in thisrespect compares favorably with other fossil fuels. The flexibility of coal makes it themost viable economic resource in the energy future.

Increasing consumption of coal will unavoidably affect the environment. Coal isconsidered to be dirty when compared to other fuels. The most detrimental pollutant isthe acidic gas in the form of sax, followed by particulate matters, ashes and NOx'Nowadays, however, coal may not cause serious environmental problem if proper

2 Thailand Energy Situation (DEP 1990) and Load Forecast (Thailand Load Forecast Subcommittee.1993).3 World Resources (1994-1995); The figure was converted from PI to tons using coal heating value of

26.36 GI/ton.

Coal and Its Impact on the Environment 3

controls of pollutant errusslOns are employed. In the next century where coalconsumptions from both domestic and overseas supplies are expected to risecontinuously, government policy relating to coal production and utilization should be laiddown in order to prevent adverse environmental impacts from coal.

Estimates of Coal Resources

For long term production and utilization of coal, this section provides an overviewstatus of the world and the domestic coal reserves and supplies.

World Coal Reserves

Coals were mostly formed two to three hundred million years ago and that thegeneral process was affected by important local conditions. These conditions, whichcould occur at ali stages of coal formation induded plant growth, deposition anddecomposition of vegetable matter, deposition of non-vegetable matter andtime/temperature conditions of the coal formation. These variables created the differencesof the characteristics of the various kinds of coal. The percentage distribution of coalover the geological formations, shown in Figure 1.2, is extracted from the EnergyResources Survey (1980).

Neogene and

Paleogene

Cretaceous

Jurassic

Triassic

Permian

Upper and Middle

Carboniferous.

Lower

14.6

28.7

24.3

Carboniferous

o

Figure 1.2 Percentage of the total coal following the Carboniferous Periods

found within each of the geological formation

There are various ways of establishing the probable presence of coal and a numberof methods for describing and assessing such deposits. Because of the long history ofcoal, the geological circumstances associated with coal deposits are fairly well

4 Chapter 1

documented. In particular, the age and sequence of sedimentary rocks will detennine thepossibilities of finding coal.

Globally, coal is not only very abundant III supply but also quite widelydistributed. In general, coal can be classified as:

1. Geological resources- resources which may become of economic value in thefuture.

2. Technically and Economically Recoverable Reserves- reserves actuallyrecoverable under the technical and economic conditions prevailing today.

The maximum depths for geological resources of hard coal could be 2000 m andfor brown coal 1500 m. These depths would reduce to 1500 m and 600 m, respectively,for economically recoverable reserves. Generally, the minimum seam thicknesses of hardcoal and brown coal are 0.6 m and 2.0 m respectively.

As shown in Table 1.1, the world's total coal resources and proven reserves in1980 were estimated to be 10,750 x 109 ton coal equivalent (TCE) and 663 x 109 TCE,respectively. The estimated coal reserves were revised to 1039 x 109 TCE in 1990. Atthe present rate of world's coal consumption of about 5.0 x 109 TCE per year, it isprojected that coal will be available for up to 209 years.' It is also anticipated that coalmining technology will improve and coal in the deeper seams can then be extracted andutilized for another one thousand years' .

Thailand Coal Resources

Coal reserves in Thailand belong to the tertiary period. It is a low quality coalclassified as lignite, estimated to be between 18-65 million years old. Higher quality Thaicoal is found only in Loi and Udom Thani. It originated from the carboniferous periodswith approximate age of between 280-345 million years. The geological reserves of coalin Thailand are estimated to be 2,150 million tons from 16 basins (11 in the north and 5in the south)." Of these estimates, the proven reserves are approximately 1,229 milliontons. Table 1.2 indicates coal availability in Thailand. Although Thailand has asubstantial number of coal basins only a few are economically mineable. It was estimatedthat EGAT mineable coal reserves were approximately 819 million tons. The mineablecoal reserves under private concessions are estimated to be less than 25 million tons andmore than 75 percent of these reserves are under the Lanna Lignite Co. Ltd.'sconcessionaire'. Domestic coal consumption in 1992 was 15.5 million tons. At this rateof consumption, coal will last for the next 150 years if reserves in the deeper seams canbe extracted. However, with the present coal mining technologies, only the economically

4 World Resources (1994.1995)., Grainger and Gibson (1981)." Survey by the Mineral Resource Department (1988)., Policy and Options of Coal and Lignite Development for Thailand (1989).

Coal and Its Impact on the Environment 5

mineable coal reserves can be extracted. In this case, domestic coal resources will beexhausted within the next 50 years.

fable l.l World Coal Resources and Proven Reserves (TCE x 109). 1/0'>

1/1 million TCE (hard coat) = 27.91 Pl, 1 mitton TCE (soft coat) = 13.96 Pl.21 World Energy Conference (WEC) 1980.3/ World Resources 1994-1995.

61.8 0.09.4 0.1

158.6 28.4470.5 275.6

214.4 34.829.6 59.950.0 41.9

35.5 39.0141 100.0

32.9 15111.9 164

61.8 3419.5 333187 123

746.1 239

249.2 24289.5 14491.9 358

74.5 161241 300

In~

"..........

Region

WorldDeveloping CountriesOil-exporting

Developing:OPECNon-OPEC

Oil-importingDeveloping:

MricaAsia and OceaniaLatin America

IndustrializedCountries

OECD industrialized:North AmericaWestern EuropePacific

Non-OECDIndustrialized:

Central EuropeFormer Soviet Union

GeologicalResourcesI 980(b)

10,750

ProvenReserves

198021

662.9Hard Coal

711.0240.5

8.91.8

Proven Reserves3/1990

Soft Coal328.2

52.6

24.00.1

Total1039.2293.1

ReservelProduction1990

Year209163

Coal and Its Impact on the Environment 7

Table 1.2 Thailand's Estimated and Proven Coal Reserves, 19&&.

Reserves Total Heating

Basin (MT) Production Value

Estimated Proven (MT) (MJ/kg)

NorthChiangMaiWaingHang 127.00 92.90 12-16

TakMae Tuen 1.23 1.23 0.32 7-34Mae Lamao 4.06 1.63 0.05 21-38

LumpangNgao 105040 46.60 4-17Jae Hom 44.83 12.67 5-19MuangPan 2.83 0.70 5-9Mae Teep 11.00 11.00 0043 10-34Mae Tan 0.80 0.80 0.01 10-21MaeMoh 1491.50 820.90 29.856 8-10WangNua 25.30 7.30 6-21

LumpoonLi 53.30 28.00 4.06 16-28

SouthKrabi

Krabi 120.80 83.60 6.30 7-20Chaiburi- 13.50 13.50 9-17KaoPhanom

NakornsrithamaratSin Poon 91.06 91.06 10-18

PetchaburiNongYa Plong 2.39 lAO 0.39 6-33

SurathaniKien Sa 55.42 15041 11-24

Total 2150.42 1228.70 41.412

Source: Department of Mineral Resources (1988)

Coal Exploration and Production

There is evidence of coal use in Thailand since 1917 but exploration was notinitiated until 1950. At that time, coal deposits in the North at Mae Moh and in the Southat Krabi had been found to have great potential for production. In 1960, the deposits ofthe Li Basin in the North had also been located. The production of coal was not starteduntil a large proven coal reserve of 650 million tons at Mae Moh were recovered byEOAT in 1972. Not long after that discovery, the power plants at Mae Moh were soonconstructed for electricity generation. The National Energy Administration (NEA) under

8 Chapter 1

the Ministry of Science, Technology and Energy8

had also extracted coal from the Li

Basin for tobacco curing and cement production. The private sector did not enter the coalindustry until 1987 and after the government had reviewed new fuel policy strategies in1990, coal exploration and production increased significantly. Exploration of coal by theprivate sector has been very active to locate economically viable coal deposits.

Coal Production in Thailand

Production of lignite has grew from 1.4 million tons in 1979 to more than 5.18million tons in 1985 and peaked at 15.5 million tons in 1993. Only in the latter half of19805 did the private sector start to participate in coal exploration and extraction. Asshown in Figure 1.3, the production of coal in Thailand increased significantly in the pastdecade. The growth of lignite production during 1990-1993 was around IS percent. Morethan 70 percent of the lignite recovered was extracted by the EGAT, and the rest byprivate firms. Of this amount, more than 80 percent was used in the power generatingsector while the remaining was consumed by the cement industry, paper and pulpprocessing and tobacco-curing industry.

16000

14000

!12000

10000....~ 8000

'" 6000~ 4000

.20000~

""........ ..."" ""

...."" "" "".... .... ""....

Figure 1.3 Lignite Production in Thailand (1979-1993)'

As shown in Figure 1.4, lignite was extracted mainly from Northern Provinceswhere large coal reserves are found. More than SO percent of lignite production wasfrom Mae Moh lignite reserves in the district of Mae Moh, Lampang province. Most ofthe lignite extracted from Mae Moh reserves was used to generate electricity by coal-fired

• This name has been changed to the Department of Energy Development and Promotion, Ministry ofScience, TechnoIQgy and Environment, DEDP (1994).

CHAPTER 6

POLICY OPTIONS

AND RECOMMENDATIONS

Importance of Coal for Energy

Coal is foreseen as a long tean supply of energy both domestically and internationally.Thailand expects for the next 10 years, to rely on coal as fuel for her power and industrialsectors on an average of 25 and 12 million tons per year, respectively. Previous chaptershave visualized the long tean effects of pollutants associated with coal consumptions upto year 2006; and the methodology to control the amount of the estimated emissions withthe most economical cost of environmental investment. Some options from this study canbe brought up for consideration in this chapter.

Coal, beside being an abundant source of energy for a long tean supply, is alsofavorable in its price stability. It is also suitable for use in power generation since itsclean coal technology is well defined. However, if Thailand has to abide by theGreenhouse Gases Convention signed in December 1994, then coal will be at adisadvantage because of its higher C02 emissions. Emission reduction of C02 can bedone by increasing combustion efficiency in coal-fired power plants. The government canimpose regulations on improvement of plant efficiency in coal-fired power plants in orderto reduce consumption of coal and consequently C02 emissions.

Importance of Sulfur Content in Coal

Sulfur content in coal is the main determinant of S02 emissions at the stack gas.This detailed study has shown for that plants using good quality coal ie. sulfur contentless than I percent, the S02 emission does not exceed 700 ppm. If a new standard forS02 emission at its source is reduced to 500 ppm, the required sulfur content should beless than 0.5 percent. Also the sulfur content has to be lower than 0.3 percent if theemission standard regulation is very stringent at 300 ppm. All the above conditions, basedon this study do not require any control option.

Due to the government policy of supporting the IPP program, coal imported forelectricity generation is subjected to only I percent tax change. This tax structure hasbeen effective since November 29,1994. Industrial use of imported coal is not eligible forthe low tax benefit and is still changed up to 25 percent tax rate. It should be noted thatthe new tax benefit does not mention about the sulfur and ash contents in imported coal atall.