Currently, coal generates 50 percent of American electricity. The average U.S. household uses 55 pounds per day, and as a country we consume more than one billion tons annually. Advocates of coal power say the fuel is an indispensable part of the U.S. energy economy because of its price and availability. But a growing number of critics are wondering what the broader cost of coal is and whether we shouldn’t reduce our coal consumption drastically in the near term. Here are the facts.
Reserves: An Abundant, Domestic Fuel Supply
According to the Energy Information Agency, coal is the most abundant and widely distributed fossil fuel across all continents with “recoverable reserves” of 998 billion short tons. At current production and consumption levels, these global reserves could last for more than 150 years. The U.S. has access to about 27 percent of this amount, roughly 260 billion short tons, more than any other country in the world. As a result, Americans have great influence over the international price of coal and its supply.
Price: The Lowest-Cost Fossil Fuel
Currently, coal fuel can provide usable heat energy at a delivered cost of around $2 per Million British Thermal Unit (MMBtu) compared to $4 to $13 for natural gas and $8 to $20 for crude oil — based on prices over the past twelve months. Plus coal prices have been stable traditionally. As a result, utilities have favored coal plants and pushed to develop more. In addition to the 600 plants currently in operation, 43 are under construction or in the permitting process at the moment. However, this trend is changing. In anticipation of federal cap-and-trade legislation (see Economics) coal-fired power plants have become less popular with energy companies, which now increasingly choose to invest in fuels and technologies that are less carbon intensive. An ERCOT report that shows the number of requests to connect to the Texas grid by fuel type illustrates this development.
Environmental Impact: Serious Consequences for Air and Water
Coal is responsible for 80 percent of the CO2 emissions from electricity generation in the U.S., which is regarded as the number one anthropogenic driver of climate change. It is also the number one source of mercury. In addition, coal plants emit Sulfur Dioxide, Nitrogen Dioxide, and Particulate Matter while needing millions of gallons of water every hour for cooling and other processes. Billions of gallons of physical coal-waste contaminated with toxic metals are dumped into landfills or stored in wet ponds. Increased levels of water pollution as well as the destruction of natural habitat are found in coal mining areas.
Economic Costs: Considerations for Health, Environment Diminish Advantages
Coal will remain a cheap power source as long as there is no significant price put on the pollution created while producing and burning it. Yet the federal government seems poised to pass legislation that would put a price on carbon pollution: The U.S. Senate will discuss the “Waxman-Markey” bill in the fall. If the American Clean Energy and Security Act became law, it would increase the price of electricity from coal and make other sources of power relatively cheaper. For example, a recent ERCOT report predicted that at a price greater than $20 per ton of CO2, power from natural gas burned in new combined cycle plants would become less expensive than coal power. In addition, coal-critics point to the negative impact of emissions of coal power on public health and the resulting financial burden on the American health care system.
