Virginia Coal & Energy Alliance's 39th Annual Coal Conference Highlights

 

 

May 25, 2018 - Opportunities for metallurgical coal and a new framework for coal markets and efficient coal power technologies were the primary topics of discussion during the final day of the Virginia Coal and Energy Alliance’s 39th annual conference and exposition held in Kingsport, Tenn., earlier this week.

The theme for this year’s conference, held in conjunction with the Southern States Energy Board, was “A New Vision for Coal.” 

On the first day of the conference, attendees heard from Congressmen Morgan Griffith (Virginia-9th) and Phil Roe (Tennessee-1st), as well as Assistant Secretary of the Department of Energy (fossil fuels division) Steve Winberg. 

Additional speakers included Jack Richardson, Warrior Met Coal; William Murray, Dominion Energy; Chris Beam, Appalachian Power; Darlene Phillips, PJM Interconnection; and Virginia Delegate Israel O’Quinn.

On day two of the conference, presenters included Assistant Secretary of Mine Safety and Health David Zatezalo; U.S. Department of Interior Policy Advisor Tucker Davis; RAMACO Carbon Director of Research and Development Charles Atkins; Southern States Energy Board Executive Director and Secretary Ken Nemeth; East-West Strategic Advisors’ Michael Moore; National Energy Technology Laboratory’s Tom Sarkus; and Jackson Walker’s Mike Nasi.

Zatezalo detailed various safety initiatives at MSHA and reminded those present of MSHA’s mission, which he said was to provide fair and consistent enforcement; engineering and education. He spoke about citation history and about new rulemaking and enforcement initiatives related to seat belt safety, conveyor belt safety, diesel exhaust and silica and dust standards.

Davis talked about the new optimism within the industry since President Trump had taken office. He noted that the prior administration had “turned a blind eye as communities fell apart. They didn’t understand when you shut down coal, you shut down business.”

Since Trump took office, Davis noted work has been ongoing to dismantle regulations which crippled the industry and work has been ongoing to reverse what happened to the industry in the past eight years, he said.

“We are working to restore the promise of the American dream to coal miners and their families,” he said.

He spoke about the uptick in coal exports and what happens when markets are allowed to work for themselves.

“The war on coal is over,” Davis said. “We are committed to getting government out of your way. America is open for business. This is what change looks like.”

Atkins focused his remarks on a “Coal to Products” presentation, noting that while past eras had enjoyed monikers like the bronze age and the iron age, it is now time for a “carbon age.”

Taking the carbon from coal -- which he said is the cheapest source of carbon -- will see coal utilized in a different way from current use. Carbon fiber, he said, can replace rebar, be used to make roof shingles and much more.

“It’s a fast growing field with lots of opportunities,” Atkins said. “Carbon is the advanced material of the future.”

A new research center, he said, is being developed to advance the technology and to look at how to ramp things up to result in commercial utilization of coal carbon for a variety of products. Carbon fiber he said is stronger, lighter and cheaper than some other materials and he pointed out that most coal is 70 percent pure carbon. Many race cars are already comprised of carbon fiber, but that use is just now creeping into regular markets, he added. Carbon fiber is used for submarines and now he said, uses for coal carbon for building products, such as bridge supports molded around existing infrastructure to add strength are also being seen.

Utilizing carbon for design in 3D printing and advanced manufacturing are also being explored.

Just as California has its silicon valley, Atkins suggested coal could have its “Carbon Valley.” He suggested because of the proximity to mining locations the place for that valley was in the areas around and near mine sites.

“It starts with a lump of coal and the power of carbon,” Atkins concluded. 

Nemeth spoke about coal and its affordability, reliability and resiliency. Coal he said is energy, security, and independence.

He noted the U.S. leads the world in carbon reduction and he said new technologies continue to help the industry to transform itself.

“What we need to be successful now in energy is regulatory certainty,” Nemeth said. “Without it, the industry cannot build new technologies. Long-term strategies require long-term commitments and we need to drive that home to Congress.”

Moore spoke about technology advances which have led to increases in fossil fuel production and changing consumption patterns. A growing population worldwide, changes in the energy supply mix and demographics, he said, are all part of the total picture. Institutional investors, he said, expect more from their investments in energy and in the end, he said, “nobody’s vision is clear now, but we have a lot energy and can do a lot with it.”

Fossil fuels, he said are a huge part of the wealth of nations, adding, the value of coal has not changed, rather, how it is utilized has changed.

Sarkus gave an update on some of the research ongoing at NETL, noting there have been 80 major carbon capture demonstration projects completed thus far, with three major projects still ongoing. Developing those projects to a point they are ready for commercialization, however, he said is a process which can take 20-30 years.

He also spoke about rare earth elements and their capture from coal and coal waste. Those elements, he said are needed in the manufacture of cell phones, magnets and many other niche uses from night vision optics to defense applications to metal alloy batteries.  “There are extensive research and development programs ongoing in this field,” he said.

Nasi spoke about energy transparency and the need for consumers to understand the big picture.

“The U.S. is filled with consumers who don’t know what they are paying for,” he said. 

The erosion of baseload energy sources is a major concern he added, noting that on a January day this year, had it not been for coal, there would have been widespread blackouts in power availability.

“Without the available capacity from partially utilized coal units, PJM would have experienced shortfalls leading to interconnection-wide blackouts,” a DOE quote he shared noted. Coal made up 73 percent of the electricity needed on that January day.

“Had coal been removed,” Nasi said, referring to coal’s place in the energy mix, “a shortfall would have developed leading to the system collapse.” Because the ability was there to ramp up its use, the shortfall was avoided.

There needs to be real conversation and real understanding that resilience of an energy source has an economic value in the market, Nazi said, adding subsidies are now hidden from consumers by placing them in tax bills, instead of on utility bills.

“All fuels receive subsidies, but there is massive disparity in the return on investment (dollars/megawatt),” he said. 

Consumers have been paying for fossil fuel units which still have years of life in them, but which are being shut down prematurely as a result of factors unrelated to their ability to function.

Direct and indirect subsidies distort markets and when it comes to the nuts and bolts of it all, Nasi said, adding, “the world needs our technology, not our ideology.” 

Domestic decarbonization he said, will not move the needle. Whether a person believes climate change is real, or not, he said the science is the science and that meeting 2025 levels established for carbon reduction will only amount to a 0.4 percent reduction in CO2 concentration, a decrease in projected sea level rise of less than 2/100th of an inch and a global temperature reduction of 0.02 degrees.

In 2025, he said, even if the U.S. continues on that path, all of it would be offset within six weeks in China.

Nemeth wrapped up the conference along with VCEA Chairman Jeff Taylor, noting the optimism in the industry again is evident as is that coal will remain a vital part of the energy mix in the United States.

Dates for next year’s conference were announced and will see the 40th annual event held May 20-21, 2019.

 

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