Galt Global Review

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February 21, 2007

Black Coal: An Industry in Debate
by Faye Mallett
 

The New South Wales Minerals Council launched a major campaign yesterday in Newcastle – to “hit back” at recent calls for the coal industry to be phased out. The campaign places emphasis on the links between mining and its place in Australia’s economy. Dr. Nikki Williams, chief executive to the council, explains that the debate about coal mining and its contribution to greenhouse emissions has been very one-sided.

The topic has become a hot debate the past few weeks in Australia, ever since Australian of the Year, Dr. Tim Flannery, and Greens’ Senator, Bob Brown, stepped forth to publicly criticize the coal industry and its consequent effect on climate change.

Dr. Flannery, who agrees with the sentiments of British scientist Dr. David King, that climate change is a bigger global threat than terrorism, has called on the Australian government to act immediately.

Says Flannery, “I’ve said in the past that Australia has been the worst of the worst in terms of addressing climate change … but I’m hopeful that we’ll see over this year some movement.”

Dr. Tim Flannery, who has been named Australian of the Year for 2007, is a well-known scientist and environmentalist, as well as being author of The Weather Makers, a treatise on climate change. Flannery has been warning Australians about the risk of climate change and informing them about sustainability for decades, yet it is only now that public opinion is finally catching up. Often accused by the media of wanting to shut down the nation’s coal industry, Flannery dismisses the claims as being untrue. It is the viability of clean coal technology, the industry’s answer to climate change, that he is questioning, he asserts. “Hard steps are now required where a decade ago we may have been able to take smaller and easier ones,” he says.

Clean Coal Technology: The Solution?

In a recent public address to the Australian Workers Union (AWU), Dr. Flannery claimed that clean coal technology may become redundant by cheaper and greener energy resources. The coal industry, Flannery argues, needs to switch to low emission energy sources as Australia does not possess the right geological conditions to support the “clean coal process” that the coal industry is currently pursuing.

The process, called Carbon Capture and Storage (CCS), works by injecting carbon dioxide emissions into the ground rather than releasing them into the atmosphere.

It is the method that the Australian Government and the coal industry are pursuing as a feasible means to “clean up” the industry, and they have collectively pledged $1 billion to fund CCS technology. In Queensland, three projects are already underway; scientists busy experimenting with different options to execute the technology.
One of these projects, CS Energy’s Oxfuel scheme, is costing nearly $160 million to operate, and is set to be on target for commercial use as early as 2015. As company representative, Chris Spero, told The Courier Mail, Oxyfuel technology will “cut up to 90% of CO2 from power stations.” It will do so by burning coal in oxygen rather than in air, which “concentrates the carbon dioxide gases and allows them to be captured and stored more efficiently.”

Similar research is being done at the Pullenvale Centre for Low Emission Technology, with researchers are trying to convert goal to gas, pull out the CO2 and pump it underground.

Although a range of approaches for CCS have been developed, they have yet to be made available on a large-scale commercial basis because of the costs involved, claims the BBC. In the latest published report on climate change by the IPCC (Inter Governmental Panel on Climate Change), it was estimated that CCS technology will only begin to take place in the second half of this century (CCS promoters claim that it will be ready within 10 years). The report also estimates that by 2020 CCS may only be capturing 9-12% of global C02 emissions, and 21% by 2050. According to these predictions, this sounds like too little too late.

What Australia does have, Dr. Tim Flannery asserts, is the ability to create geothermal technology – using underground energy to produce electricity – the cost of which would be similar to running coal-powered stations. Another advocate, Green party leader Bob Brown, believes that Australia’s answer to climate change is to create new jobs in the renewable energy sector and phase out its coal exports.

Geoff Evans, Newcastle-based director of the Mineral Policy Institute, agrees. According to Evans, “CCS is not a realistic solution to climate change.”

Evans writes: “The coal industry is using CCS to head off real action on climate change. It is trying to lull the community into a false sense of security. Instead of propping up coal we need a really bold alternative vision, and a plan for making a transition to a sustainable Australia beyond coal.”

Unions and the mining industry disagree. Coal is the nation's biggest commodity export. Last year it was worth more than $23 billion - 30% of the international coal trade.

Stopping coal exports would push Australia's economy backwards, federal Resources Minister Ian Macfarlane has stated. He asserts that the coal industry is working hard to “clean up its act,” and noted that Australia relies on 80% of its electricity from coal.

Michael Roche, chief executive of the Queensland Resources Council, says such a move would take more than “$20 billion out of the state's economy.” In an editorial for The Courier Mail, he states that phasing out coal exports would “drive Queensland into the dark ages while having no impact on global greenhouse gas emissions.”

As means to protect the thousands of jobs in the industry and Australia’s national economy, Prime Minister John Howard has ruled out the critics’ calls to ban coal exports. In support of this motion, the Resources Council and the Construction, Forestry, Mining, and Energy Union (CFMEU) say Australia's coal customers would simply buy “dirtier coal” from elsewhere, anyways.

As the debate shows, the call to put an end to the coal industry has touched a nerve with Australians. On one hand, certain regions are much more vulnerable to the issue; being that they face the very real and potential consequence of employment and economic loss. On the other hand, climate change is real and happening faster than citizens, governments, and industries are able to cope with it.

As Dr. Flannery stated in a recent interview on ABC radio, “You just look at public sentiment on climate change, you can see that it is a threat to the social license to operate for coal….I say the process is going to become increasingly strained and difficult.”

 

 

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