Energy,Climate Change and Clean Coal Technology 能源、气候变化和清洁煤炭技术

Energy,ClimateChangeandCleanCoalTechnology–DenisMurphyMP

Goodafternoonladiesandgentlemen.Itisagreatpleasureformetointroducethisplenarypanelthisafternoon.

Ihavealongassociationwiththeminingindustry.Iworkedundergroundfor30yearsandhavecontinuedmyinterestinParliamentoverthelast10years.IfirstraisedtheissueofcleancoaltechnologyataNUMconferencein1986.MyfirstdebateintheHouseofCommonswasonthefutureoftheminingindustrywhere,again,IarguedforGovernmentinvestmentincleancoaltechnologyasameansofsecuringthefuturefortheUKminingindustry.

Themoreobservantamongstyouwillprobablybynowhavenoticedthatmyargumentscouldnothavebeenverypowerful,astheminingindustryisnowashadowofitsformerselfandthereisnotonemajorcleancoalfiredpowerstationintheUK.However,Iamsurethatisabouttochange.

Wehaveheardverymanypowerfulcontributionstodayfromthetradeunionmovementandfromindustry,allcallingforurgentinvestmentinawiderangeoftechnologiestoenabletheUKtocontinuetohaveasecuresupplyofelectricity.Andatthesametimeprotecttheenvironment,forthereisnodoubtthebiggestsinglethreattotheworldeconomyandglobalstabilityisclimatechange.Wewillcontinuetousesubstantialamountsoffossilfuelsfortheforeseeablefuture,andcoalisthemostabundant.

Governmentandindustrythereforehavearesponsibilitytodelivercleanefficientsystemstogenerateelectricityfromthesefuels.Thisgovernmenthasbeen,andwillcontinuetobe,agreatsupporteroftheUKminingindustry.

FromtheintroductioninNovember2000oftheUKCoalOperatingAidschemetheGovernmenthasinvestedhundredsofmillionsofpoundsintheminingindustry.TheOperatingAidschemewasintroducedtoallowelementsofthecoalindustrywithaviablefuturetoovercomeshort-termmarketproblems,inparticularlowworldcoalpricesandtheliftingofstrictergasconsents.Itwasalsointroducedtopreventasuddenandsharpdeclineinthesizeofthecoalindustry.TheschemewasdesignedtoensurethatanysubsidiespaidsatisfiedtherequirementsoftheCoalStateAidCodeandtheEuropeanCoalandSteelCommunitiesTreaty,underwhichtheUKschemeoperated.

ThatschemeendedinDecember2002andtheCoalInvestmentAidwasapprovedbytheEuropeanCommissionin2003.TheGovernment’sintentiontoofferCoalInvestmentAid(CIA)wasannouncedon3March2003.CIAwaslaunchedon16June2003withabudgetofupto£60milliontobeallocatedinthreeapplicationperiodsandspentby31December2008.TheaimoftheschemeistocreateorsafeguardjobsintheUKcoalindustrywithinsociallyandeconomicallydisadvantagedareasbyencouragingcoalproducerstoenterintocommerciallyrealisticinvestmentprojectsthatmaintainaccesstoreserves,ensuringthemediumtermeconomicviabilityoftherelevantmines.

Approvedprojectswillreceiveupto30%funding,withthemineoperatorsfinancingthebalancethemselves.Allawardsweremine-andproject-specificandallclaimsmustbemadebeforeMarch2008.Theoriginalintentionwastoinviteapplicationsforaidinthreeperiods:2003/4/5,but£58.5millionoftheplannedtotalwasawardedinthefirsttwoperiodssonothirdperiodwasopened.Awardsweremadetoprojectsin12minesandtodateover£48millionfromthatschemehasalreadybeendrawndown.

WhilstthissupporthasbeenofgreathelpithasnothaltedthecontinuingdeclineintheUKcoalindustry.Therearenowlessthan6,000peopleemployedintheUKcoalindustry.In2005totalUKproductionwas20milliontonnes,withonly9.6millionfromdeepminedand10.4millionfromopencast.Deepminedoutputwas24%lowerthanin2004and39%downonthe2003figure,duemainlytotheclosureoftheSelbycomplexandEllington.Opencastcontinuestodeclinefromitspeakof16.7milliontonnesin1997.

However,coalconsumptionwasupin2005by2.3%at61.8milliontonnes.Some34%ofalltheelectricitygeneratedintheUKin2005wasfromcoal.Demandforcoalinelectricitygenerationcontinuestorise,mainlybecauseitiscompetitivelypricedcomparedtogas.Weimportedarecord44milliontonnesin2005,mainlyfromRussia,Australia,Columbia,SouthAfricaandIndonesia.Coalwillcontinuetoplayanimportantroleformanyyearstocome.Itisessential,therefore,weburnitcleanlyandmoreefficiently.

TheGovernmentstarteditscleancoaltechnologyprogrammein1999.CarbonCaptureandStoragefirstcametoprominenceintheEnergyReview2002whichprecededtheEnergyWhitePaper2003.Sincethenthetwohavebecomeinextricablylinked.TheGovernment,throughtheDTI,hasallocated£35millionforthedemonstrationofcarbonabatementtechnologieswhichincludebothcleanercoalandCarbonCaptureandStorage.Thefirsttrancheisworth£10m.Theremaining£25millionwillbesplitintotwofurthertranches.Inaddition,some£20millionannuallyisallocatedintheDepartment’stechnologyprogrammeforresearchanddevelopmentintoarangeofcleanenergytechnologiesincludingcarbonabatementtechnologies.

TheEUEmissionsTrainingschemeisintendedtoprovideastrongcommercialincentiveforthetakeupbynewandexistingcoalfiredpowerstationsandothercarbonemittinginstallationsofthesetechnologies,ifandwhentheybecomeacostefficientwayofreducingoravoidingcompletelycarbonemissions.

Thepre-budgetreportin2006announcedtheappointmentofconsultingengineerstolookatthecostsofbuildingaCarbonCaptureandStorageplantbasedintheUK.TheresultsofthisworkassistedtheGovernmentinreachingadecisiontocommittoademonstrationplant,whichwasannouncedintheMarch2007budget.Andthebudgetreportsetsouttheposition:‘CarbonCaptureandStorage(CCS)couldreducethecarbondioxideemissionsfromthefossilfuelpowerstationsbyasmuchas90%.’

TheGovernmentannouncestodaythatitwilllaunchacompetitiontodeveloptheUK’sfirstfullscaleCarbonCaptureandStoragedemonstration,theresulttobeannouncednextyear.Whenoperationalearlyinthenextdecade,thiswillmaketheUKaworldleaderinthisgloballyimportantnewtechnology.FurtherdetailsofthecompetitionwillbeannouncedintheforthcomingEnergyWhitePaper.

AttheSpringCouncilinMarch2007,theUKsuccessfullypushedforagreaterEUcommitmenttodevelopingCarbonCaptureandStorage.EUleaderscalledfortheCommissiontodevelopamechanismtostimulatetheconstructionandoperationby2015ofupto12demonstrationplants,andformemberstatesandtheCommissiontoworktowardsthenecessarytechnical,economicandregulatoryframeworktobringenvironmentallysafeCCStodeploymentinnewfossilfuelpowerplants,ifpossibleby2020.

TheUKiscontinuingtoworkwiththeNorwegiangovernmentthroughtheNorthSeaTaskforceontransportingandstoringcarbondioxidebeneaththeNorthSea,withtheoutcometobepublishedbyJuly2007.

TheGovernmenthasalsoestablishedacross-governmenttaskforcetolookatarangeofissuesrelatedtotheregulationofCCSintheUKincludinglicensingofoffshoreCO2storageandresponsibilityforthelongtermliability.Aconsultationonthiswillbelaunchedlaterthisyear.

InNovember2006theLondonConventionwasamendedtoallowcarbondioxidetobestoredingeologicalformationsbelowthesea,amajorsteptowardsenablingtheimplementationofCCS.TheUKisnowworkingtowardsasimilaramendmentinJune2007fortheOSPAR(Oslo-Paris)Conventionwhichgovernsnorth-eastAtlanticwatersandrestrictsCCSinasimilarway.

Inaddition,theSternReviewhighlightedtheparticularlyimportantrolethatCCStechnologycouldplayinloweringcarbonemissionsinfast-growingeconomieswithgrowingfossilfuelconsumptionsuchasChinaandIndia.TheUKisleadingthejointEU-Chinaprojecttobuildacommerciallyviablenear-zeroemissioncoal(NZEC)powerplantinChina.

InconclusionMrChairman,coalwillplayanimportantroleinthegenerationofelectricityformanyyearstocome,butwecannotcontinuetoburnitaswedonow.Wemustactnowinordertoavoidpotentiallycatastrophiceffectsofclimatechangewhich,onceagain,willimpactuponthepoorestpeopleintheworld.IthinkthechallengefacingusisbestsummedupbytheconcludingparagraphsofarecentDTIstudy:

‘Thereisabroadconsensusthatclimatechangeisoccurring,andthatitislinkedtoabuildupofgreenhousegases(GHGs)intheatmosphereenhancingthenatural‘greenhouseeffect’.’

Carbondioxide(CO2)isthemostsignificantoftheseGHGsanditsmainsourceisthecombustionoffossilfuels.TheUNFrameworkConventiononClimateChange(UN-FCCC)aimsultimatelytoachieve‘….stabilisationofgreenhousegasconcentrationsintheatmosphereatalevelthatwouldpreventdangerousanthropogenicinterferencewiththeclimatesystem.’

StudiesbytheIntergovernmentalPanelonClimateChange(IPCC)indicatethatthelikelihoodofsignificantenvironmentalandsocialdamageincreasessignificantlyifCO2concentrationintheatmosphereexceedsabout550ppm(roughlytwicethepresentlevel).Tostabiliseconcentrationsatorbelowthisleveloverthenext100yearswouldrequireaglobalemissionsreductionrelativetothe‘businessasusual’trendof5%to60%by2050and70%to90%by2100.THERoy