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COAL AND ITS IMPACT ON THE ENVIRONMENT

upported Thailand Business Council for Sustainable Development TBCSD

repared by

Dr. Pojanie KhummongkolMs. Rachanee Bowonwiwat

Thailand Environment InstituteApril, 1995

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I

ONTENTS

T LE OF CONTENTS ILIST OF T LES LIST OF FIGURES IV KNOWLEGEMENTS CHAPTER O L AND ITS IMP T ON THE ENVIRONMENTGENERAL ESTIMATES OFCOAL RESOURCESCOAL EXPLORATION AND PRODUCTION 7

CHAPTER 2 HISTORI L CONSUMPTION AND DEMAND FORE ST 3THE POWER GENERATION SECfOR INDUS RIAL SECfOR

CHAPTER 3 ENVIRONMENTAL IMPACTS OF COAL UTILIZATION 23GENERAL 23ENVIRONMENTAL IMPACTS OF COAL MINING 24ENVIRONMENTAL IMPACfS FROM COAL TRANSPORTATION 25ENVIRONMENTAL IMPACTS OF COAL COMBUSTION 25

CHAPTER 4 OPTIONS ON ONTROL TECHNOLOGIES 45S 2 REMOVAL TECHNOLOGY 52NOXREMOVAL TECHNOLOGy 57SPM REMOVAL TECHNOLOGY 57

CHAPTER 5 OST EFFE TIVE OPTIONS 63THE INCREMENTAL COST OF ONTROL TECHNOLOGY 63RESULTS OF FUEL OPTION SCENARIOS 7

REFERENCES 85APPENDICES 87

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LIST OF T LES

TABLE 1.1 WORLD COALREsOURCES AND PROVEN REsERVES (TCE X 109 )..................6TABLE 1.2 THAILAND s EsTIMATED AND PRoVEN COAL REsERVES, 1988........................7TABLE 3PRODuCTION SCHEDULE OFMAEMOR LIGNITE MINEs 10TABLE 1.4 COAL PRODUCIlONBY PuBUCAND PRIv T SECTOR 1987-1993) 11TABLE 2.1 CEMENT FORECAST FOR 1994-2006 18TABLE 2 2 THAILAND s AND SELECTED COUNTRIES GNP AND CEMENT CONSUMPTION PER

CAPITA 18TABLE 3. 1 SOME SELECfED INDuSTRIAL EMIsSION STANDARDS PROPOSED BY TIIE

INDUSTRIAL ENVIRONMENTDNISION, MINISTRY OF INDUSTRY 26TABLE 3.2 SUMMARY OF TOTAL PoLLUTANTS EMrrrED FROM COAL-FIRED POWER

PLANTs, CEMENTKILNs AND INDUSTRIAL BOILERS ..43TABLE 4.1 MAE MOR POWER PLANTs GENERATING CAPACITIES, SULFUR CONTENTIN

LIGNITE, AND S REDUCTION REQUIREMENT .4 9TABLE 4.2 COMPARATIVE EMISSIONS OF5 USING 0.3 AND 1.0 SULFUR CONTENT

COAL WIn TIIE INDUSTRIAL STANDARD VALUE AT700 PPM 5 ITABLE 4.3 NOx EMISSIONS FROM TIIE LIGNITE/COAL FIRED PLANTs AND TIIE INDUSTRIAL

STANDARD VALUES FOR COMPARISON 57TABLE 4.4 SOME TYPICALDATA ON ELECTROSTATIC PRECIPITATOR AI PUCATIONS .5 8TABLE 5. I COST COMPARISONS OF VARIOUS S CONTROL TECHNOLOGY OPTIONS 66

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v

LIST O IGUR S

FIGURE COMMERCIAL ENERGY CONSUMPTION PE R CAPITA IN HAILAND 2FIGURE 1.2 PERCENTAGE OF THE TOTAL COAL FOILOWING THE CARBONIFEROUS PERIoDs.3FIGURE 1. 3 LIGNITE PRODUCTION IN THAILAND 1979-1993) 8FIGURE lA.COAL PRODUCTION BY PROVINCES ................................................................ 9FIGURE 2. 1 HiSTORICAL LiGNITE CONSUMPTION IN THE POWER SECTOR 1974-1993 13FIGURE 2.2 COAL CONSUMPTION UNDER THE THREE DEMAND SCENARIOS

CORRESPONDING TO 1 7 0 0 M W , 2400 M W AND 3800 M W POWER l LANTs 15FIGURE 2. 3 LiGNITE DEMAND FORECAST FOR THE ExiSTING POWER PLANTS AT M A E M OH

N IMPORTED COAL FOR THE 2400 M W lP P POWER PLANTs 1994-2006 15FIGURE 2.4 HiSTORICAL CONSUMPTION OF COAL IN THE CEMENT INDUSTRY 16FIGURE 2. 5 CEMENT PRODUCTION DURING 1980-1993 AND DEMAND FORECASTS 1 9 9 4 -

2006) BASED ON MOVING AVERAGE MODEL AND N E S D B MODEL. 17FIGURE 2 .6 COAl DEMAND IN THE CEMENT INDUSTRIES 1994-2006) 19FIGURE 2 .7 PULP AND PAPER: PRODUCTIONS N DEMANDS 21FIGURE 2 .8 COAL DEMAND IN THE PULP AND PAPER INDUSTRy ........................................21FIGURE 3. 1 ENVIRONMENTAL IMPACTS OF COAL PREPARATION AND UTILIZATION 23FIGURE 3 .2 ESTIMATED AMOUNT OF S 2 RELEASED FROM MAE MO H POWER PLANT UNITS

1-13ANDTHE EMISSION STANDARD LiMITATION PRoPOSED AT 7 0 0 PPM 28FIGURE 3. 3 EMISSIONS OF S 2 FROM MA E MO H POWER PLANTS UNITS 1-13 29FIGURE 3.4 S 2 MmGATION REQUIREMENT FOR 2400 M W POWER PLANTS UNDER THREE

EMISSIONS SCENARIOS 30FIGURE 3. 5 NO x EMISSION FROM M AE M OH POWER GENERATION UNITS 1-13 3 0FIGURE 3. 6 TOTAL NOx MmGATION REQUIREMENT FOR LIGNITEFIRED POWER PLANTS 31FIGURE 3 7 TOTAL NO x MmGATION REQUIREMENT IN 2400 M W COAL FIRED POWER

PLANT 3 2FIGURE 3. 8 SPM EMISSIONS FROM THE POWER GENERATION SECTOR 33FIGURE 3. 9 SPM MmGATION REQUIREMENT FOR TIlE LiGNITEFIRED M AE M OH POWER

PLANTS 3 3FIGURE 3.10 S PM MmGATION REQUIREMENT FOR 2400 M W COAL FIRED POWER PLANT.34FIGURE 3.11 ACTUAL AND PROJECTED C 2 EMISSIONS 1990-2006) OF LIGNITE FIRED 3 5FIGURE 3.12 PROJECTED AS H DISCHARGE FROM POWER GENERATION 3 6FIGURE 3. 13 ACTUAL AND PROJECTED EMISSIONS OF S 2 FROM THE CEMENT INDUSTRY

N THE S 2 REDUCTION REQUIREMENT IN COMPARISON WTIH THE INDUSTRIALSTANDARD LIMIT 37

FIGURE 3.14 ACTUAL AND PROJECTED EMISSIONS OF NOx IN COMPARISON WTIH TIlEINDUSTRIAL STANDARD VALUE 3 8

FIGURE 3. 15 ACTUAL AND PROJECTED EMISSIONS OF SPM IN COMPARISON WTIH TIlEINDUSTRIAL STANDARD V ALUE 38

FIGURE 3. 16 : EMISSIONS OFC FROM THE CEMENT INDuSTRY 3 9FIGURE 3. 17: TOTAL AS H DISCHARGE FROM THE CEMENT PRODUCING PLANTS 4 0

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VI

FIGURE 3 18 EsTIMATES OFS EMISSIONS FROM THEu AND PAPER INDUSTRY 41FIGURE 3 19: EsTIMATES OF ACTIJAL SPM EMISSIONS FROM THEu AND PAPER

INDUSTRy 42FIGURE 4 1 SCHEMATICS OF S LIMESTONE SCRUBBING REMOVAL SYSTEM 46FIGURE 4 2 SCHEMATICS OF S DRY SORBENT INJECTION SYSTEM 47FIGURE 4 SCHEMATICS OF A SPRAY DRYER SYSTEM 48FIGURE 4 4 COMPARATIVE STUDY OF TEcHNOLOGY OPTIONS FOR S REDUCTION 50FIGURE 4 5 SCHEMATICS OF FLUIDIZATION SYSTEM TO REMOVE S 52FIGURE 4 6 SCHEMATICS OF TwO STAGE COMBUSTION 54FIGURE 4 7 SCHEMATIC OF FLUE GAS REcIRCULATION SYSTEM 55FIGURE 4 8 SCHEMATIC OF A PLATE AND WIRE ELEcTROSTATIC PREcIPITATOR 59FIGURE 4 9 SCHEMATICS OF A BAGHOUSEw CLEANING BY PuLsE JET 60FIGURE 4 1 0 SCHEMATICS OF CYCLONE SEPARATOR 61FIGURE 4 11 COMPARATIVE STUDY OF TEcHNOLOGY OPTIONS OF 62FIGURE 5 1 ELECIRICITY PRODUCTION COSTS OF NEW LIGNIIElCoAL FIRED POWER PLANTIN COMPARISONw GAS AND NUCLEAR OPTIONS 73

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VII

KNOWLEDGEMENTS

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 TBCSDmembers from various private companies for their comments and shared information. Wewould like to express our special thank to Khun Kitti Kumpeera 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.

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H PTERl

COAL ND ITS IMPACTON

THE ENVIRONMENT

GeneralEnergy consumption per capita can used as one many indicators to verify the socialquality and stability 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 these factors would unavoidablycontribute to greater consumption 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 demand growth also suggests that commercial energyconsumption per capita will continue to rise steadily as shown in Figure 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 5 percent on the average. By the year2006, energy per capita for Thailand is expected to reach TOE. This is about a twofold increase energy consumption in the next years. On a per capita basis, theglobal consumption commercial energy in 99 stood at 1.4 TOE where the UnitedStates, the largest consumer energy, consumed about 7.6 TOE, while Europe consumed3.2 TOE.

1 World Resources 1994-1995).

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2 hapter

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 e 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 e theremaining global supply of energy for at least another 2 years, at the current rate ofconsumption . Coal, therefore, will likely to become the choice of a long ter m supply ofenergy. is projected th t coal d eman d will increase a t least, a t a r ate gre ter th n 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. 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 i n 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 e dirty when compared to other fuels. The most detrimental pollutant isthe acidic gas in the form of sax followed by particulate matters, ashes and N OxNowadays, however, coal may n ot cause serious environmental problem if proper2 Thailand Energy Situation DEP 1990) and Load Forecast Thailand Load Forecast Subcommittee.1993).3 World Resources 1994-1995); The figure was converted from to tons using coal heating value of26.36 GI/ton.

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oal n Its Impact on the nvironment 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.

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

World Coal ReservesCoals were mostly formed two to three hundred million years ago and that thegeneral process was affected by important local conditions. These conditions, which

could occur at ali stages of coal formation in u 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, extracted from the EnergyResources Survey 1980 .

Neogene an dPaleogene

retaceous

Jurassic

Triassic

Permian

U pp er a nd M id dle arboniferousLower

4 6

8 7

4 3

arboniferouso

Figure 1.2 Percentage of the total coal following the Carboniferous Periodsfound 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

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documented. particular, the age and sequence of sedimentary rocks will detennine thepossibilities of finding coal.Globally, coal is not only very abundant supply but also quite widely

distributed. 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 in

1980 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 .

hailand Coal ResourcesCoal reserves in Thailand belong to the tertiary period. tis 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. toriginated 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). f 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 t n 25 million tons and

more 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 theMineral Resource Department (1988)., Policy and Options of Coal and Lignite Development for Thailand (1989).

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oal and Its Impact on the Environment

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

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World oa lResources and Proven Reserves T Ex 109 . 1/0

lion TCE hard coat 27.91 Pl, 1 mitton TCE soft coat 13.96 Pl.d Energy Conference WEC 1980.

Resources 1994-1995.

61.8 0.09.4 0.1158.6 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

eloping Countries

a and Oceaniain America

industrialized:th Americaern Europe

ral Europeer Soviet Union

GeologicalResourcesI980 b10,750

ProvenReserves198021662.9

Hard Coal711.0240.5

8.91.8

Proven Reserves3/1990Soft Coal

328.252.6

24.00.1

Total1039.2293.1

ReservelProduction1990Year209163

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oal and Its Impact on the Environment 7Table 1.2 Thailand s Estimated and Proven Coal Reserves, 19

Reserves Total HeatingBasin MT Production Value

Estimated Proven MT) MJ/kgNorthChiangMaiWaingHang 127.00 92.90 12-16Ta kMae Tuen 1.23 1.23 0.32 7-34Mae Lamao 4.06 1.63 0.05 21-38LumpangNgao 5 4 46.60 4-17Jae Hom 44.83 12.67 5-19MuangPan 2.83 0.70 5-9Mae Teep 11.00 11.00 43 10-34Mae Tan 0.80 0.80 0.01 10-21MaeMoh 1491.50 820.90 29.856 8-10WangNua 25.30 7.30 6-21LumpoonLi 53.30 28.00 4.06 16-28SouthKrabiKrabi 120.80 83.60 6.30 7-20Chaiburi- 13.50 13.50 9-17KaoPhanomNakornsrithamaratSin Poon 91.06 91.06 10-18PetchaburiNongYa Plong 2.39 l 0.39 6-33SurathaniKien Sa 55.42 5 4 11-24

Total 2150.42 1228.70 41.412Source Department of Mineral Resources 1988)

Coal Exploration and ProductionThere is evidence of coal use in Thailand since 1917 b ut exploration was notinitiated until 1950. At that time, coal deposits in the North at Mae Moh and in the South

at Krabi had been found to have great potential for production. n 1960, the deposits ofthe iBasin in the North had also bee n located. The production of coal was not starteduntil a large pr ove n coal reserve of 650 million tons at Mae Moh were recovered byEOA T in 1972. Not long after that discovery, the power plants at M ae Moh were soonconstructed for electricity generation. The National Energy Administration NEA) under

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the Ministry of Science, Technology and Energy8 had also extracted coal from the LiBasin 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 ThailandProduction 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. More

than 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.

1600014000

1200010000.... 8000 6000 4000

.20000

... .... ... ....... .... ...Figure 3Lignite 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 S percent of lignite production wasfrom Mae Moh lignite reserves in the district of Mae Moh, Lampang province. Most ofthe lignite extracted fromMae 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 nvironment, DEDP (1994).

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CHAPTER 6POLI Y OPTIONS

ND RE OMMEND TIONS

Importance oal for EnergyCoal 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 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. 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 C emissions. Emission reduction of C 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 C emissions.Importance Sulfur ontent in oal

Sulfur content in coal is the main determinant of S emissions at the stack gas.This detailed study has shown for that plants using good quality coal ie. sulfur contentless than I percent the S emission does not exceed 700 ppm. a new standard forS 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 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. I t should be noted thatthe new tax benefit does not mention about the sulfur and ash contents in imported coal atall.

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