Coal: Advanced Energy For Life G20 Energy Access Workshop 25 August - PowerPoint PPT Presentation

Coal: Advanced Energy For Life G20 Energy Access Workshop 25 August 2014 Charles Meintjes President, Australia Peabody Energy

3.5 Billion Live Without Adequate Energy ● Energy Poverty.mp4 2

The Crisis of Energy Poverty “Delivering universal access to electricity and safe household fuels is a fundamental condition to end poverty.” – World Bank President Jim Yong Kim Rajasthan, India youth carry fuel wood 3

Energy Poverty: The World’s Number One Human and Environmental Crisis Half the world’s population lacks proper Global Energy energy access; Energy poverty is fourth Poverty Effects leading cause of death globally killing are Devastating >4 million per year One billion people receive substandard care Energy Essential in health facilities from lack of electricity; for Health and 2.5 billion people lack improved water Longevity sanitation facilities Energy Access In developing world, half of children attend Linked to primary schools with no electricity; Lack of Economic Growth electricity stunts economic advancement Coal is abundant, reliable and low cost; Coal Key to Fuels over 30% of global energy use and is Solutions for world’s fastest growing major fuel Energy Access 4

Energy is a Human Right and a Rapidly Rising Need 3.5 Billion People Lack Proper Access to Electricity 348M 134M 988M 65M 140M 18M 496M 1M 210M 436M 589M 29M Millions of people who lack adequate electricity Millions of people who have no electricity Source: International Energy Agency, World Energy Outlook 2012, The World Bank World Development Indicators 2012, CIA World Factbook 2012.

The Effects of Global Energy Poverty are Devastating ● Nearly 3 billion people use primitive stoves to burn wood or biomass to cook and heat homes ● Rudimentary cook stove smoke exposure is equivalent to inhaling 400 cigarettes per hour ● Some 4 million people die each year from household air pollution Sources: World Health Organization Fact Sheet #297, 2011. Barbara Fraser, “Killer Cookstoves: Indoor Smoke Deadly in Poor Countries; Cleaner 6 Stoves Elusive,” Environmental Health News, 2012. National Geographic, Five Surprising Facts About Energy Poverty, May 2013.

World Turns to Coal to Improve Quality of Life for Millions of People 8 70 60 Tons in Billions 6 50 Years 4 40 2 30 Life Expectancy Coal Consumption 0 20 1000 1250 1500 1750 1900 2012 Source: UN; Yale Environment 360 Blog. 7

Coal-Fueled Electricity Increases Correspond to Rise in Economic Growth Near-Perfect Correlation Between Coal Use and Global GDP $100 12,000 Since 1970, coal use $90 has increased World GDP (Trillions of 2005 $US) 10,000 Electricity from Coal (TWh) approximately $80 335% $70 8,000 $60 $50 6,000 $40 4,000 $30 Global electricity from coal $20 2,000 World GDP $10 $0 0 1970 1980 1990 2000 2010 2020 2030 Source: International Energy Agency World Energy Outlook 1995-2013; U.S. Department of Agriculture, 2011. 8

Escalating Energy Prices Create New Urban Poor in Europe EU Energy Price Growth ~37% Greater Than U.S., ~20% Than Japan Industrial Electricity Price Index “We embarked on a big Rebased (2005=100) transition to a low-carbon OECD economy without taking into Europe 140 account the cost and without factoring in the competitive impact…” 130 – Fabien Roques, Head of European Japan Power and Carbon Division, 120 HIS, Paris 110 100 U.S. 90 2005 2007 2009 2011 9 Source: European Commission, 2013

The Lesson of Spain: Still Waiting for “Green” Jobs Study: For Every Green Job, 2.2 Jobs Were Lost Elsewhere Spain’s Rising Unemployment Rate “Spain has already 30 22 attempted to lead the Household Electricity Cost (Eurocents/kWh) world in a clean energy 25 transformation. But our 20 research shows that Spain's policies were % Unemployment 20 economically 18 destructive… and a 27 15 source of social harm 25 and net job destruction.” 21.7 16 20 10 18 – Professor Gabriel Calzada King Juan Carlos University 14 5 11.4 “Study of the effects on employment of public aid to renewable energy sources” 0 12 2008 2009 2010 2011 2012 2013 Household Electricity Cost (Eurocents/kWh) 10 Source: Ycharts, Eurostat

Institutions Rethink Energy Policy “We have made a clear commitment to battle climate change. But we are also serious about African access to energy. In certain places where the only option is coal, we have to look at that.” – Jim Yong Kim President of the World Bank 11

Coal’s Global Role in Energy Title is Arial 40, Bold 12

Expanding Global Energy Needs Lead to Rising Coal Demand Global Energy Demand Global Electricity Use Global Coal Demand (MTOE) (TWh) (MTOE) 36,000 18,000 +69% +38% +48% 5,000 30,000 15,000 4,000 24,000 12,000 3,000 18,000 9,000 2,000 6,000 12,000 1,000 3,000 6,000 0 0 0 2010 2020P 2030P 2010 2020P 2030P 2010 2020P 2030P Source: Peabody Energy Analytics; International Energy Agency (IEA), 2013 World Energy Outlook. Energy and coal demand in Million Tonnes of 13 Oil Equivalent (MTOE). Electricity use in terawatt-hours (TWh).

Increasing Urbanisation in Asia Continues to Drive Record Global Coal Demand 200,000 People Added to Cities Each Day Global Urban Population ● Urbanization trends (Millions) lead to greater coal use to fuel growing electricity 4,000 and steel demand ● More than 70 million 3,000 people expected to be added to cities each year 2,000 through 2020 ● Coal is the only affordable 1,000 fuel, at scale, to meet rising energy needs 0 2010 2015P 2020P Source: United Nations, Department of Economic and Social Affairs, Population Division “World Urbanization Prospects: The 2011 Revis ion ”. 14

Coal: Least Expensive and Most Reliable Form of Electricity Generation Coal: ● Only a fraction of other fuels’ costs ● Provides baseload power; easily transported ● Energy dense, abundant and increasingly uses advanced technologies 15 Source: Peabody Energy Analytics.

Coal and Advanced Technology GreenGen Power Plant and Carbon Research Center; Tianjin, China 16

Advanced Coal Technologies: U.S. Environmental Success Story U.S. Emissions Rate Declines 90% Since 1970; Coal Use Rises 170% 200% Pittsburgh 1950s Coal used for Power Generation 150% + 170% 100% + 116% 50% GDP per Capita 0% Today Regulated Emissions/MWh from Coal - 90% -50% -100% 2013 1970 1980 2000 1990 Source: U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of 17 Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, “Clean Air Markets,” 2013.

Every Advanced Coal Plant Equal to Taking ‘A Million Cars Off the Road’ Advanced Coal Generation “A single, large coal plant, if 569 GW On Line and Under built with the best-available Construction technology, can reduce Russia 15 GW emissions by the annual Germany ROW 16 GW equivalent of taking a million 45 GW S. Korea cars off the road…” 20 GW India China Maria van der Hoeven 25 GW India 175 GW Executive Director 37 GW Japan China International Energy Agency 31 GW 325 GW December 2012 U.S. ROW 92 GW 45 GW Supercritical and ultrasupercritical operating plants and plants under construction. Source: Platts World Electric Power Plant Database. December 2013. Huffington Post, “How to Fix the 21 st Century’s Dirty Engine of Growth,” 18 Dec. 2012.

Next Generation Technologies Offer Continuous Path Forward Efficiency Improvements at Existing Plants Building New Supercritical and Ultra- The Goal: Supercritical Plants Near-Zero Demonstrating and Deploying IGCC and Carbon Emissions Capture, Utilization and Storage Advance Carbon Capture, Use and Storage and Btu Conversion Applications Retrofitting Existing Coal-Based Generation with Carbon Capture/Storage Up to 90% Lower CO 2 CO 2 -Enhanced Oil Recovery, Producing 4 Million b/d 20 years 19

Call to End World’s No. 1 Human and Environmental Crisis: Energy Poverty Systemically Changing the Way People Think About Coal Raise awareness and support to: ● End crisis of global energy poverty, which leads to crippling impacts to human health, standards of living and the environment ● Increase access to low-cost electricity ● Improve emissions using today’s advanced clean coal technologies 20

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