COAL AND ITS IMPACT ON THE ENVIRONMENT

Supported by
Thailand Business Council for Sustainable Development (TBCSD)
Prepared by
Dr. Pojanie Khummongkol
Ms. 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 1
ESTIMATES OF COAL RESOURCES 3
COAL EXPLORATION AND PRODUCTION 7
CHAPTER 2 HISTORICAL CONSUMPTION AND DEMAND FORECAST 13
THE POWER GENERATION SECfOR 13
INDUS1RIAL 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 10
9
) .................. 6
TABLE 1.2 THAILAND's EsTIMATED AND PRoVEN COAL REsERVES, 1988........................7
TABLE 1.3 PRODuCTION SCHEDULE OF MAE MORLIGNITE MINEs 10
TABLE 1.4 COAL PRODUCIlON BYPuBUCANDPRIvATE 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 ENVIRONMENTDNISION, MINISTRY OFINDUSTRY 26
TABLE 3.2 SUMMARY OFTOTAL PoLLUTANTS EMrrrEDFROM COAL-FIRED POWER
PLANTs, CEMENT KILNs AND INDUSTRIAL BOILERS ..43
TABLE 4.1 MAE MOR POWER PLANTs GENERATING CAPACITIES, SULFURCONTENTIN
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 I
TABLE 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 COALFOILOWINGTHE 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
CORRESPONDINGTO 1700 MW, 2400 MW AND 3800 MW POWERl'LANTs 15
FIGURE 2.3 LiGNITE DEMAND FORECAST FORTHE 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 FROMMAE 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 NO
x
MmGATION REQUIREMENT FOR LIGNITEFIRED 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 LiGNITEFIRED 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 NO
x
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 PuLPAND 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 SCHEMATICOF A PLATE ANDWIREELEcTROSTATIC PREcIPITATOR .59
FIGURE 4.9 SCHEMATICS OF A BAGHOUSE wrrn CLEANING BY PuLsEJET 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 COMPARISONwrrn GAS AND NUCLEAR OPTIONS 73
VII
ACKNOWLEDGEMENTS
This one-year project was financiallly supported by the Thailand Business Council for
Sustainable Development (TBCSD). The report was prepared by the Thailand
Environment Institute (TEl).
We would like to thank the TBCSD for its financial support which made this study
possible. A special recognition goes to Dr. Phaichitr Uathavikul for his valuable advice
throughout this study. Our gratitute are extended to Mr. Camilo J. Lim for his significant
contribution in preparing this report.
Special thanks are extended to the Project Advisory Committee-consisting of TBCSD
members from various private companies for their comments and shared information. We
would like to express our special thank to Khun Kitti Kumpeera of the EGAT for his
assistance and infonnation.
We would also like to express our appreciation to government agencies which provided
infonnation for this study. Without their support, the study would not have been
possible. Last but not least, our thanks go to Mr. Ivan Decosta for helping to edit this
work.
CHAPTERl
COAL AND ITS IMPACT ON
THE ENVIRONMENT
General
Energy consumption per capita can be used as one of many indicators to verify the social
quality and stability of a country. On a global scale, a country's development progresses
with a l'Jgher gross domestic product. As the country develops, more domestic spending
on food, transports and leisures are anticipated. All of these factors would unavoidably
contribute to greater consumption of energy. The world's energy demand seems certain
to grow by at least a few percentage points per year. Failure to meet this demand would
lead to serious social and political repercussions.
Thailand projection of demand growth also suggests that commercial energy
consumption 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 0.58
TOE per capita by 1992. This is an increase of 15 percent on the average. By the year
2006, energy per capita for Thailand is expected to reach 1.1 TOE. This is about a two
fold increase of energy consumption in the next 10 years. On a per capita basis, the
global 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 consumed
3.2 TOE.
1 World Resources (1994-1995).
2 Chapter 1
Figure 1.1 Commercial Energy Consumption Per Capita in Thailand
2
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 natural
gas, the world as well as domestic production will certainly decline in the near future due
to resource exhaustion. Coal is the only fossil fuel with high potential to be the
remaining global supply of energy for at least another 200 years, at the current rate of
consumption'. Coal, therefore, will likely to become the choice of a long term supply of
energy. It is projected that coal demand will increase at least, at a rate greater than the
average increase in fossil fuel demand over the next few decades. The world
consumption of coal in 1991 was approximately 4,000 million tons. Thailand coal
consumption was only about 0.4 percent of the world consumption or 16 million tons for
the 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 of
advanced coal conversion process. Coal provides great flexibility with regard to heat
release. 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 for
controlled changes of the intensity of heat release which render adjustments of
temperature and total heat output easy. Storage of coal is also very simple and in this
respect compares favorably with other fossil fuels. The flexibility of coal makes it the
most viable economic resource in the energy future.
Increasing consumption of coal will unavoidably affect the environment. Coal is
considered to be dirty when compared to other fuels. The most detrimental pollutant is
the acidic gas in the form of sax, followed by particulate matters, ashes and NO
x
'
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 coal
consumptions from both domestic and overseas supplies are expected to rise
continuously, government policy relating to coal production and utilization should be laid
down 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 overview
status 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 the
general process was affected by important local conditions. These conditions, which
could occur at ali stages of coal formation induded plant growth, deposition and
decomposition of vegetable matter, deposition of non-vegetable matter and
time/temperature conditions of the coal formation. These variables created the differences
of the characteristics of the various kinds of coal. The percentage distribution of coal
over the geological formations, shown in Figure 1.2, is extracted from the Energy
Resources 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 number
of methods for describing and assessing such deposits. Because of the long history of
coal, 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 the
possibilities of finding coal.
Globally, coal is not only very abundant III supply but also quite widely
distributed. In general, coal can be classified as:
1. Geological resources- resources which may become of economic value in the
future.
2. Technically and Economically Recoverable Reserves- reserves actually
recoverable under the technical and economic conditions prevailing today.
The maximum depths for geological resources of hard coal could be 2000 m and
for 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 hard
coal 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 10
9
ton coal equivalent (TCE) and 663 x 10
9
TCE,
respectively. The estimated coal reserves were revised to 1039 x 109 TCE in 1990. At
the present rate of world's coal consumption of about 5.0 x 10
9
TCE per year, it is
projected that coal will be available for up to 209 years.' It is also anticipated that coal
mining technology will improve and coal in the deeper seams can then be extracted and
utilized for another one thousand years' .
Thailand Coal Resources
Coal reserves in Thailand belong to the tertiary period. It is a low quality coal
classified as lignite, estimated to be between 18-65 million years old. Higher quality Thai
coal is found only in Loi and Udom Thani. It originated from the carboniferous periods
with approximate age of between 280-345 million years. The geological reserves of coal
in Thailand are estimated to be 2,150 million tons from 16 basins (11 in the north and 5
in the south)." Of these estimates, the proven reserves are approximately 1,229 million
tons. Table 1.2 indicates coal availability in Thailand. Although Thailand has a
substantial number of coal basins only a few are economically mineable. It was estimated
that EGAT mineable coal reserves were approximately 819 million tons. The mineable
coal reserves under private concessions are estimated to be less than 25 million tons and
more than 75 percent of these reserves are under the Lanna Lignite Co. Ltd.'s
concessionaire'. Domestic coal consumption in 1992 was 15.5 million tons. At this rate
of consumption, coal will last for the next 150 years if reserves in the deeper seams can
be 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 be
exhausted within the next 50 years.
fable l.l World Coal Resources and Proven Reserves (TCE x 10
9
). 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 0.0
9.4 0.1
158.6 28.4
470.5 275.6
214.4 34.8
29.6 59.9
50.0 41.9
35.5 39.0
141 100.0
32.9 1511
1.9 164
61.8 341
9.5 333
187 123
746.1 239
249.2 242
89.5 144
91.9 358
74.5 161
241 300
I
n

"
....
......
Region
World
Developing Countries
Oil-exporting
Developing:
OPEC
Non-OPEC
Oil-importing
Developing:
Mrica
Asia and Oceania
Latin America
Industrialized
Countries
OECD industrialized:
North America
Western Europe
Pacific
Non-OECD
Industrialized:
Central Europe
Former Soviet Union
Geological
Resources
I 980(b)
10,750
Proven
Reserves
1980
21
662.9
Hard Coal
711.0
240.5
8.9
1.8
Proven Reserves
3
/
1990
Soft Coal
328.2
52.6
24.0
0.1
Total
1039.2
293.1
ReservelProduction
1990
Year
209
163
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)
North
ChiangMai
WaingHang 127.00 92.90 12-16
Tak
Mae Tuen 1.23 1.23 0.32 7-34
Mae Lamao 4.06 1.63 0.05 21-38
Lumpang
Ngao 105040 46.60 4-17
Jae Hom 44.83 12.67 5-19
MuangPan 2.83 0.70 5-9
Mae Teep 11.00 11.00 0043 10-34
Mae Tan 0.80 0.80 0.01 10-21
MaeMoh 1491.50 820.90 29.856 8-10
WangNua 25.30 7.30 6-21
Lumpoon
Li 53.30 28.00 4.06 16-28
South
Krabi
Krabi 120.80 83.60 6.30 7-20
Chaiburi- 13.50 13.50 9-17
KaoPhanom
Nakornsrithamarat
Sin Poon 91.06 91.06 10-18
Petchaburi
NongYa Plong 2.39 lAO 0.39 6-33
Surathani
Kien 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 not
initiated 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. In 1960, the deposits of
the Li Basin in the North had also been located. The production of coal was not started
until a large proven coal reserve of 650 million tons at Mae Moh were recovered by
EOAT in 1972. Not long after that discovery, the power plants at Mae Moh were soon
constructed for electricity generation. The National Energy Administration (NEA) under
8 Chapter 1
the Ministry of Science, Technology and Energy
8
had also extracted coal from the Li
Basin for tobacco curing and cement production. The private sector did not enter the coal
industry until 1987 and after the government had reviewed new fuel policy strategies in
1990, coal exploration and production increased significantly. Exploration of coal by the
private 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 5.18
million tons in 1985 and peaked at 15.5 million tons in 1993. Only in the latter half of
19805 did the private sector start to participate in coal exploration and extraction. As
shown in Figure 1.3, the production of coal in Thailand increased significantly in the past
decade. The growth of lignite production during 1990-1993 was around IS percent. More
than 70 percent of the lignite recovered was extracted by the EGAT, and the rest by
private firms. Of this amount, more than 80 percent was used in the power generating
sector while the remaining was consumed by the cement industry, paper and pulp
processing and tobacco-curing industry.
16000
14000
!
12000
10000
....

8000
'"
6000

4000
.2000
0

""
....
....
...
""
""
....
""
""
""
....
....
""
....
Figure 1.3 Lignite Production in Thailand (1979-1993)'
As shown in Figure 1.4, lignite was extracted mainly from Northern Provinces
where large coal reserves are found. More than SO percent of lignite production was
from Mae Moh lignite reserves in the district of Mae Moh, Lampang province. Most of
the 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 of
Science, 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 industrial
sectors on an average of 25 and 12 million tons per year, respectively. Previous chapters
have visualized the long tean effects of pollutants associated with coal consumptions up
to year 2006; and the methodology to control the amount of the estimated emissions with
the most economical cost of environmental investment. Some options from this study can
be brought up for consideration in this chapter.
Coal, beside being an abundant source of energy for a long tean supply, is also
favorable in its price stability. It is also suitable for use in power generation since its
clean coal technology is well defined. However, if Thailand has to abide by the
Greenhouse Gases Convention signed in December 1994, then coal will be at a
disadvantage because of its higher C02 emissions. Emission reduction of C02 can be
done by increasing combustion efficiency in coal-fired power plants. The government can
impose regulations on improvement of plant efficiency in coal-fired power plants in order
to 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 content
less than I percent, the S02 emission does not exceed 700 ppm. If a new standard for
S02 emission at its source is reduced to 500 ppm, the required sulfur content should be
less than 0.5 percent. Also the sulfur content has to be lower than 0.3 percent if the
emission standard regulation is very stringent at 300 ppm. All the above conditions, based
on this study do not require any control option.
Due to the government policy of supporting the IPP program, coal imported for
electricity generation is subjected to only I percent tax change. This tax structure has
been effective since November 29,1994. Industrial use of imported coal is not eligible for
the low tax benefit and is still changed up to 25 percent tax rate. It should be noted that
the new tax benefit does not mention about the sulfur and ash contents in imported coal at
all.