Coal industry, target of new EPA rules, expands exports
Coal industry, target of new EPA rules, expands exports
Wendy Koch, USA TODAY 5:49 p.m. EDT June 25, 2013
While President Obama aims to crack down on coal-fired power plants, the coal industry finds lucrative and booming markets abroad, even in developed countries such as Germany and Japan.
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A coal mine in Wright, Wyo.(Photo: Matthew Brown, AP file)
Story Highlights
- Coal industry looks abroad to expand sales as U.S. market toughens
- Obama seeks to crack down on pollution from new and existing coal plants
- Industry criticizes Obama plan, but environmental groups welcome it
The U.S. coal industry, under increasing pressure at home after President Obama's call Tuesday for tougher anti-pollution rules, is ratcheting up a more promising part of its business: exports.
Coal exports set a monthly record in March, driven largely by rising demand from its top customer, China, and other Asian countries, according to the most recent data from the Energy information Administration. While domestic consumption has had recent dips, exports have steadily climbed — from 39.6 million short tons in 2002 to a record 125.7 million short tons last year.
"Many coal producers are looking offshore as a way to offset softer markets in the United States," says Luke Popovich, spokesman of the National Mining Association. He says U.S. demand for coal has dipped because of relatively low natural gas prices and electric use, but he expects it will rise again. He says federal regulations on coal-fired power plants are "a more lingering problem."
Popovich says Obama's new proposal to cut greenhouse gas emissions from U.S. coal-fired power plants will do little to help the climate, because increasing amounts of coal are being burned worldwide.
As part of his plan to tackle climate change, Obama directed the Environmental Protection Agency on Tuesday to work with states and industry to develop carbon pollution standards for existing power plants. His administration proposed such limits for new plants last year but delayed issuing final rules in April.
"We limit the amount of toxic chemicals like mercury and sulfur and arsenic in our air or our water, but power plants can still dump unlimited amounts of carbon pollution into the air for free. That's not right, that's not safe, and it needs to stop," Obama said in a speech at Georgetown University. He said technological advances can help reduce pollution by capturing and storing carbon so it's not emitted into the air.
Obama said the United States can't go it alone. "I'm calling for an end of public financing for new coal plants overseas — unless they deploy carbon-capture technologies. ... I urge other countries to join this effort," he said, adding that his administration will launch talks to help other countries build a low-carbon economy.
Environmentalists, who had been pressuring Obama to do more on climate change, welcomed his remarks.
'Power plants need to be cleaned up," says David Hawkins of the Natural Resources Defense Council, which sought rules on existing plants in a report this year. His group says power plants account for 40% of the nation's carbon footprint
"This is a no-brainer opportunity," Hawkins says, adding Obama has the authority under the Clean Air Act to limit greenhouse gas emissions and thus doesn't need Congress' approval.
The coal industry criticized Obama's plan, saying additional regulations could raise energy prices and shutter more power plants.
"If the Obama administration fails to recognize the environmental progress the industry has made and continues to adopt more regulations, coal power could cease to exist which would be devastating for our economy," Robert M. Duncan, president of the American Coalition for Clean Coal Electricity, said in a statement. His group says 15% of plants plan to close because of existing EPA rules and more will be forced to follow with new limits.
The U.S. Department of Energy forecasts that coal, the largest single source of U.S. electricity, will provide a shrinking share of such power in the future — from 51% in 2003, to 42% in 2011 and 35% in 2040.
Coal faces a rosier future abroad. Its demand will increase in every region of the world except in the USA, according to a December report by the International Energy Agency. It provides 40% of the world's electricity, similar to its U.S. share.
"The world will burn around 1.2 billion more tons of coal per year by 2017 compared to today – equivalent to the current coal consumption of Russia and the United States combined," IEA's Maria van der Hoeven said in announcing the findings. "Coal's share of the global energy mix continues to grow each year, and if no changes are made to current policies, coal will catch oil within a decade."
Popovich says coal demand is rising even in developed countries such as Germany and Japan that are cutting back on nuclear power.
The Obama administration has boosted research funding for capture and sequestration technology and launched demonstration projects. Yet no U.S. power plant has installed such technology, which will be needed for coal-fired power plants to meet the EPA's proposed standard for new plants.
http://www.usatoday.com/story/news/nation/2013/06/25/coal-industry-exports-obama/2455903/
