Carbon emissions coal-fueled power generation

The share of emissions covered by the Directive varies across Member States, with a range of 20% to 60%. The major determinant for the share is the fuel mix in the power-generation sector such that Member States with a large share of carbon-free power (nuclear and/or hydro) have a low share covered, while those with a large share of coal in the fuel mix are closer to the high end of the range. 

Coal is a globally abundant and a relatively cheap fuel and will continue to play a significant role in power generation and steel production. But coal use contributes significantly to carbon dioxide emissions. In the future, technologies that enable carbon dioxide management will become increasingly important. 

Coal is an affordable source of energy insofar as coal prices have historically been lower and more stable than oil and gas prices, and despite the growth of index and derivative-based sales in recent years, this has typically remained the case. Placing a cost on carbon emissions more directly will, in certain circumstances, put pressure on this interfuel cost relationship. However, coal is likely to remain the most affordable fuel for power generation in many developing and industrialized countries for several decades. 

Table 4-7 shows CO2 emissions for various coal- and natural gas-based electric power generation options. CO2 emissions from natural gas are lower than those from coal because natural gas has much lower carbon content per million Btu of fuel. However, more efficient designs and the avoidance of limestone-based sulfur recovery can significantly reduce CO2 emissions from coal. Coal gasification has clear advantages over direct coal combustion in both areas. 

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