The National Commission on Energy Policy (NCEP) and Virginia Tech Release Study on Upstream Challenges for Coal in the U.S.
The National Commission on Energy Policy (NCEP) commissioned this study to review and identify critical "upstream" fuel cycle issues that need to be addressed to ensure that the domestic coal industry can continue meeting the nation’s energy demands while delivering the social benefits and environmental performance demanded by the public. The central focus of the study was to address matters important to ensuring a coal production system consistent with the nation’s long-term energy and environmental goals and objectives through 2030.
The Virginia Center of Coal and Energy Research (VCCER) of Virginia Tech was contracted to conduct this study by establishing a committee of experts (the Report Committee) to research the topic and complete this comprehensive report. The Report Committee met over the course of 18 months, receiving input from various interested parties and stakeholders.
The final report reviews upstream issues, identifies problems, discusses progress and strengths, and recommends areas of improvement. The volume comprises eight chapters, written by experts in the particular chapter area. By focusing on what have come to be known as “upstream” issues of coal production, rather than "downstream" issues of coal utilization, it fills a void in the body of existing literature. An additional objective distinguishes this report from other recent reports. Each chapter was written to be not only a reference guide to basic information on the area in question, but also a comprehensive account of the state of knowledge in the area. As such, the report should be valuable to policymakers, interested and concerned citizens, and academics for use as a reference guide to the basic issues and as a textbook in the classroom.
The report, formally released on May 11, 2009, examines the domestic coal production system, which includes: coal reserves determination; mining technology and resource optimization; coal processing technologies; health and safety issues; environmental protection; standards and practices; and human resources issues.
After significant input from a diverse group of stakeholders and more than a year of research, VCCER produced a comprehensive report reviewing all coal-related upstream issues, identifying problems and strengths, and recommending areas of improvement. In particular, the study found several key challenges that face the industry, including:
There is a fundamental need to develop, test, and adopt new, environmentally responsible technologies for mining and processing coal.
Workforce shortages at all levels and in all segments of the coal sector are a major challenge for the industry.
Coal mining continues to lack broad social acceptance at local, regional, and national levels.
The study also identified two other areas where progress is needed.
Readily and publicly available data on the major upstream factors covered in this report are inadequate for timely decision-making.
Cultivating a "beyond compliance" culture within the coal industry and relevant government agencies would foster greater cooperation in addressing upstream issues and promote public trust.
"Because coal will be an important energy source for the foreseeable future, our expert Committee examined the entire coal production cycle and identified the key challenges facing the upstream components of the system," said Michael Karmis, the Report Committee Chair and Stonie Barker Professor and Director, Virginia Center for Coal & Energy Research. "One of the most important themes to emerge is the need for better information, improved technology and increased cooperation among public and private stakeholders to ensure a successful and socially acceptable coal industry going forward."
"As we transition towards a new, clean energy economy, we should think about all aspects of the energy system. In the case of coal, we must consider not only the CO2 emissions that need to be captured and permanently sequestered but the entire supply chain," said Nate Gorence, a Policy Analyst at the National Commission on Energy Policy. "For coal, significant work is being done on how to mitigate CO2 emissions from smokestacks by way carbon capture and storage (CCS) but little attention has been directed toward mining and other upstream issues. This study is important because it provides valuable information about the overarching challenges facing the coal production system. Only by addressing the entire coal industry—from production to consumption—can we truly lay the groundwork for an advanced energy system that includes a role for coal. We believe this study is a big step forward in providing a framework for evaluating the upstream components of the coal industry."
Study concludes that coal will continue to play an important role in the U.S energy portfolio, at least until 2030, which is the time frame of this report. It is therefore critical to address the challenges and the need for improvement in the upstream aspects of the coal fuel cycle. An overarching theme of this study is the need for greater cooperative efforts by coal producers, coal suppliers and equipment manufacturers, government agencies, academic institutions, and other nongovernmental organizations to examine system-wide needs and impacts, as well as economic contributions and benefits. A comprehensive life-cycle analysis should include factors associated with coal extraction, processing, transportation, and utilization. Worker health and safety issues, positive and negative environmental impacts, and contributions to the public wellbeing should also be fully assessed so that policy-makers can make informed decisions regarding the role of coal in meeting the nation’s future energy needs.
Further Information
For Assistance, contact John Craynon, jcraynon@vt.edu
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