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

25 August 2014

Coal: Advanced Energy For Life G20 Energy Access Workshop

Charles Meintjes President, Australia Peabody Energy

3.5 Billion Live Without Adequate Energy

• Energy Poverty.mp4

2

The Crisis of Energy Poverty

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

3

Energy Poverty: The World’s Number One Human and Environmental Crisis

Half the world’s population lacks proper energy access; Energy poverty is fourth leading cause of death globally killing >4 million per year Global Energy Poverty Effects are Devastating Energy Essential for Health and Longevity Energy Access Linked to Economic Growth Coal Key to Solutions for Energy Access One billion people receive substandard care in health facilities from lack of electricity; 2.5 billion people lack improved water sanitation facilities In developing world, half of children attend primary schools with no electricity; Lack of electricity stunts economic advancement

4

Coal is abundant, reliable and low cost; Fuels over 30% of global energy use and is world’s fastest growing major fuel

Energy is a Human Right and a Rapidly Rising Need

Source: International Energy Agency, World Energy Outlook 2012, The World Bank World Development Indicators 2012, CIA World Factbook 2012.

Millions of people who lack adequate electricity Millions of people who have no electricity

3.5 Billion People Lack Proper Access to Electricity

436M 29M 140M 1M 210M 18M 65M 589M 496M 988M 134M 348M

The Effects of Global Energy Poverty are Devastating

Sources: World Health Organization Fact Sheet #297, 2011. Barbara Fraser, “Killer Cookstoves: Indoor Smoke Deadly in Poor Countries; Cleaner Stoves Elusive,” Environmental Health News, 2012. National Geographic, Five Surprising Facts About Energy Poverty, May 2013.

6

• 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

World Turns to Coal to Improve Quality

• f Life for Millions of People

20 30 40 50 60 70 2 4 6 8 1000 1250 1500 1750 1900 2012

Life Expectancy Coal Consumption Years Tons in Billions

Source: UN; Yale Environment 360 Blog.

7

Coal-Fueled Electricity Increases Correspond to Rise in Economic Growth

Source: International Energy Agency World Energy Outlook 1995-2013; U.S. Department of Agriculture, 2011.

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100

2,000 4,000 6,000 8,000 10,000 12,000 1970 1980 1990 2000 2010 2020 2030 World GDP (Trillions of 2005 $US) Electricity from Coal (TWh)

Global electricity from coal World GDP

Near-Perfect Correlation Between Coal Use and Global GDP Since 1970, coal use has increased approximately

335%

8

Escalating Energy Prices Create New Urban Poor in Europe

OECD Europe Japan U.S.

90 100 110 120 130 140 2005 2007 2009 2011

Industrial Electricity Price Index Rebased (2005=100)

Source: European Commission, 2013

“We embarked on a big transition to a low-carbon economy without taking into account the cost and without factoring in the competitive impact…” – Fabien Roques, Head of European

Power and Carbon Division, HIS, Paris

EU Energy Price Growth ~37% Greater Than U.S., ~20% Than Japan

9

5 10 15 20 25 30 12 14 16 18 20 22

11.4 20

The Lesson of Spain: Still Waiting for “Green” Jobs

“Spain has already attempted to lead the world in a clean energy

• transformation. But our

research shows that Spain's policies were economically destructive… and a source of social harm and net job destruction.”

–Professor Gabriel Calzada King Juan Carlos University “Study of the effects on employment of public aid to renewable energy sources”

Spain’s Rising Unemployment Rate

Study: For Every Green Job, 2.2 Jobs Were Lost Elsewhere

Source: Ycharts, Eurostat

% Unemployment

18 21.7 25 27

2008 2010 2011 2012 2013 2009 Household Electricity Cost (Eurocents/kWh) Household Electricity Cost (Eurocents/kWh)

10

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

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

12

Expanding Global Energy Needs Lead to Rising Coal Demand

Global Coal Demand

(MTOE)

Global Energy Demand

(MTOE)

Global Electricity Use

(TWh)

3,000 6,000 9,000 12,000 15,000 18,000 2010 2020P 2030P 6,000 12,000 18,000 24,000 30,000 36,000 2010 2020P 2030P 1,000 2,000 3,000 4,000 5,000 2010 2020P 2030P

Source: Peabody Energy Analytics; International Energy Agency (IEA), 2013 World Energy Outlook. Energy and coal demand in Million Tonnes of Oil Equivalent (MTOE). Electricity use in terawatt-hours (TWh).

+38% +69% +48%

13

Increasing Urbanisation in Asia Continues to Drive Record Global Coal Demand

• Urbanization trends

lead to greater coal use to fuel growing electricity and steel demand

• More than 70 million

people expected to be added to cities each year through 2020

• Coal is the only affordable

fuel, at scale, to meet rising energy needs

Source: United Nations, Department of Economic and Social Affairs, Population Division “World Urbanization Prospects: The 2011 Revision”.

Global Urban Population (Millions)

14

200,000 People Added to Cities Each Day

1,000 2,000 3,000 4,000 2010 2015P 2020P

Coal: Least Expensive and Most Reliable Form of Electricity Generation

Source: Peabody Energy Analytics.

Coal:

• Only a fraction
• f other fuels’

costs

• Provides

baseload power; easily transported

• Energy dense,

abundant and increasingly uses advanced technologies

15

Coal and Advanced Technology

GreenGen Power Plant and Carbon Research Center; Tianjin, China

16

Source: U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, “Clean Air Markets,” 2013.

Advanced Coal Technologies: U.S. Environmental Success Story

U.S. Emissions Rate Declines 90% Since 1970; Coal Use Rises 170%

Pittsburgh 1950s

Today

• 100%
• 50%

0% 50% 100% 150% 200%

GDP per Capita

Regulated Emissions/MWh from Coal

Coal used for Power Generation

• 90%

+ 116% + 170%

1970 2013 2000 1990 1980

17

Supercritical and ultrasupercritical operating plants and plants under construction. Source: Platts World Electric Power Plant Database. December 2013. Huffington Post, “How to Fix the 21st Century’s Dirty Engine of Growth,”

• Dec. 2012.

“A single, large coal plant, if built with the best-available technology, can reduce emissions by the annual equivalent of taking a million cars off the road…”

Maria van der Hoeven Executive Director International Energy Agency December 2012

Every Advanced Coal Plant Equal to Taking ‘A Million Cars Off the Road’

China 175 GW

India 37 GW

ROW 45 GW

Advanced Coal Generation 569 GW On Line and Under Construction

India 25 GW Japan 31 GW

U.S. 92 GW China 325 GW

ROW 45 GW Germany 16 GW

• S. Korea

20 GW Russia 15 GW

18

20 years

The Goal: Near-Zero Emissions

Efficiency Improvements at Existing Plants Building New Supercritical and Ultra- Supercritical Plants Demonstrating and Deploying IGCC and Carbon 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 CO2 CO2-Enhanced Oil Recovery, Producing 4 Million b/d

Next Generation Technologies Offer Continuous Path Forward

19

Call to End World’s No. 1 Human and Environmental Crisis: Energy Poverty

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

Systemically Changing the Way People Think About Coal

20

PeabodyEnergy.com AdvancedEnergyForLife.com