NuCoal Energy Corp.
Annual General Meeting (AGM) – NuCoal expects to hold its AGM sometime in the early fall, please watch for the AGM material to be sent out in advance.
Federal Legislation concerning Coal (April 2010) – According to Environment Minister Jim Prentice, there will be a gradual shift over the next two decades and power companies will have to close their coal-fired facilities as they reach the end of their commercial life. Minister Prentice suggests, the only way to either extend their usefulness or to put up new coal-fired plants will be to include technology to manage the carbon dioxide (greenhouse-gas emissions).
The government target is to increase Canada’s reliance on non-emitting (low emitting) sources of power to 90% by 2020, from the current level of 75%, (expected to reduce emissions by 15 mega tonnes - the equivalent of taking 3.2 million vehicles off the road). The planned regulations are much stricter than current proposals for coal-fired power in the U.S.
Although, a timeline has not been indicated, the new standards are expected to be firmed up by early 2011. They will force electricity producers to phase out older, high-emitting coal-fired plants and require newer facilities to match the lower greenhouse-gas emissions of more efficient natural-gas fired plants. “Our regulation will be very clear.” Mr. Prentice said at a press conference. “When each coal-burning unit reaches the end of its economic life, it will have to meet the new standards or close down. No trading, no offsets, no credits.” The federal government intends to set flexible rules that would not force executives to close down the plants at an arbitrary date but they do plan to move fairly quickly because power companies are already starting to plan how they will meet electricity demand later this decade.
The power industry is concerned that the 2020 emission target will drive up costs to energy consumers and it is unclear how some provinces will fill the gap, particularly Saskatchewan, which relies on coal for more than half its power supply. In Saskatchewan, 3 coal-fired stations account for >55% of the province’s power generation and SaskPower has refurbished them all over the past 15 years and there is no plans to have them decommissioned before 2020.
How this proposed Legislation May Impact NuCoal’s development – Any coal project proposed by NuCoal will inevitably include full carbon management strategy. The Federal Legislation on coal fired plants should not have a material impact on NuCoal’s plans going forward.
Industry Highlights
- In the U.S., Bixby Energy Systems (www.bixbyenergy.com) has announced a revolutionary process that efficiently converts coal into syngas without the need for carbon capture.
- In Belgium, Total and UOP, a Honeywell subsidiary, announced the successful demonstration of coal gasification for the production of plastics and other petrochemicals using methanol.
- Increasingly organizations are responding to the need for greater energy security by developing novel coal conversion technologies as well as improving existing processes.
North America
Switching Coal Plants to Natural Gas: Enormous Investment (Gasification News 2010 Hart Energy Publishing) (http://nucoalenergy.ca/news/288/)
- Forcing coal-fired power plants to switch to natural gas to meet future legislated limits on carbon dioxide (CO2) emissions, would be far more costly than is generally assumed in studies that show abundant natural gas supplies in North America.
- In their study release July 7, 2010, the American Public Power Association (AAPA) declares the conversion to natural gas could become a stranded investment, (cannot deliver anywhere near the 85% reduction in carbon dioxide “greenhouse” emissions targeted).
- The AAPA also suggested that investing in CO2 capture and storage (CCS) development, for both coal-fired and gas-fired power, at least theoretically, has a chance of hitting an 85% CO2 reduction target
China
Outpacing U.S., China now the world’s largest gorger of energy (Zeus Globe and Mail July 19, 2010) (http://nucoalenergy.ca/news/285/)
- According to the International Energy Agency, China is now the world’s largest energy consumer, shifting the global economic order.
- Last year China consumed 2.3 billion tonnes of oil equivalent of energy from sources including coal, oil, natural gas, hydro and nuclear, about 4% more than the U.S.
- The U.S. has held the title of the world’s biggest energy user since the early 1900’s.
Technology
Map of gasification projects from around the world making news today (Gasification News, 2010 Hart Energy Publishing) (http://nucoalenergy.ca/news/287/)
Coal-to-Liquids (CTL)
Sasol, Shenhua Seen Closing-in on Coal-to-Liquids (CTL) Project Deal (Gasification News 2010 Hart Energy Publishing) (http://nucoalenergy.ca/news/286/)
- These two giants in the coal conversion industry are close to signing a deal for a proposed 90,000barrels/day CTL plant.
- The estimated capital cost of the project is up to US$10 billion
- They may break ground on the project at the end of this year.
Tenaska Wins US$417 Million Tax Credit for Gasification Plant (Gasification News 2010 Hart Energy Publishing) (http://www.nucoalenergy.ca/news/290/)
- The Taylorville Energy Center (TEC) in Illinois which will gasify coal to produce synthetic natural gas (SNG), as well as integrated gasification combined cycle (IGCC) electric power will receive a substantial tax credit.
- The tax savings will be passed through to the Illinois electric utility customers under the Illinois Clean Coal Portfolio Standard Law (Clean Coal Law).
- To qualify for the credit, the DOE (U.S. Department of Energy) was required to evaluate competing projects and certify that TEC is both technically and economically ‘feasible’ and that it can be operated to capture at least 65% of its carbon dioxide emissions.
Contact us with any questions or comments. We appreciate your feedback.
Thank you and enjoy,
NuCoal Energy Team
- 2010-10-19 October 19, 2010 Notice to Shareholders available under Investors (News Releases).
- 2010-10-07 According to a report by China's Xinhua News Agency, China is expected to have the world's largest coal-conversion industry by 2020.
- 2010-10-06 Prof. Frank Clemente, "the world is turning to coal," by 2030, coal consumption will have increased by 53% and coal-fired power generation by 85%. Coal will account for 48% of global incremental electricity generation over the next 20 yrs.
