Thursday, November 15, 2007

China and India Plan to Stick to Coal

China and India Expected to Stick With Coal Despite Calls to Reduce Carbon Emissions.

China and India are under pressure to reduce their carbon emissions, but energy executives and government representatives agreed Wednesday that the two booming economies will be sticking with coal -- whether the rest of the world likes it or not.

The international community must help the two countries develop cleaner coal operations and offer them incentives to move away from the cheap and abundant fuel, or risk a serious blow to efforts to fight climate change, said officials at an energy conference in Rome.

"In terms of power generation, for those two countries it will be primarily coal, because that's what they have, it's lower cost and it's reliable," John Krenicki, president and chief executive of GE Energy said. "These countries are going to get richer and will face issues that are similar to Western Europe and the United States on environmental challenges. They're going to have to invest in alternative technologies," such as nuclear and wind, Krenicki said.

Nuclear energy has returned to vogue as an alternative to coal-fired power plants amid concerns about greenhouse gas emissions. New nuclear reactors are being built or planned in the U.S. and abroad -- growth on which GE Energy, which also designs nuclear reactors, hopes to capitalize.

Coal has become the fuel of choice in much of the world, driven by economic growth in China and India and a return to coal for electric power generally, including in the United States. But the growth of coal-burning is also contributing to global warming, and is linked to environmental and health issues ranging from acid rain to asthma.

Indian officials at the World Energy Congress acknowledged that coal remains the most affordable source for their country.

"India and China need cleaner coal technology ... that is the technology they are going to use for generating power, whether the rest of the world likes it or not. That's the only fuel that they can afford at the moment," said Anil Razdan, secretary of the Indian Ministry of Power. While India is increasing investments in nuclear and wind power, coal developments are essential as the country works to bring electricity to some 500 million people that have no access, he said.

Worldwide demand for coal is projected to rise by about 60 percent through 2030 to 6.9 billion tons a year, most of it going to electrical power plants. China is due to overtake the United States as the world's biggest emitter of carbon dioxide this year, while India will become the third-biggest emitter around 2015, according to estimates by the International Energy Agency.

"We have no right to blame India" or China, said Fatih Birol, the IEA's chief economist. "Coal is currently the cheapest energy source to produce electricity and least vulnerable in terms of energy security."

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