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25 August 2014
Coal: Advanced Energy For Life
G20 Energy Access Workshop
Charles Meintjes President, Australia
Peabody Energy
The Crisis of Energy Poverty
Rajasthan, India youth carry fuel wood
“Delivering universal access to
electricity and safe household
fuels is a fundamental condition
to end poverty.”
– World Bank President Jim Yong Kim
3
Energy Poverty: The World’s Number One Human and Environmental Crisis
Half the world’s population lacks proper
energy access; Energy poverty is fourth
leading cause of death globally killing
>4 million per year
Global Energy Poverty Effects are Devastating
Energy Essential for Health and
Longevity
Energy Access Linked to
Economic Growth
Coal Key to Solutions for
Energy Access
One billion people receive substandard care
in health facilities from lack of electricity;
2.5 billion people lack improved water
sanitation facilities
In developing world, half of children attend
primary schools with no electricity; Lack of
electricity stunts economic advancement
4
Coal is abundant, reliable and low cost;
Fuels over 30% of global energy use and is
world’s fastest growing major fuel
Energy is a Human Right and a Rapidly Rising Need
Source: International Energy Agency, World Energy Outlook 2012, The World Bank World Development Indicators 2012, CIA World Factbook 2012.
Millions of people who lack adequate electricity
Millions of people who have no electricity
3.5 Billion People Lack Proper Access to Electricity
436M
29M
140M
1M
210M
18M
65M
589M
496M
988M
134M
348M
The Effects of Global Energy Poverty are Devastating
Sources: World Health Organization Fact Sheet #297, 2011. Barbara Fraser, “Killer Cookstoves: Indoor Smoke Deadly in Poor Countries; Cleaner
Stoves Elusive,” Environmental Health News, 2012. National Geographic, Five Surprising Facts About Energy Poverty, May 2013. 6
● Nearly 3 billion people
use primitive stoves to
burn wood or biomass
to cook and heat homes
● Rudimentary cook stove
smoke exposure is
equivalent to inhaling
400 cigarettes per hour
● Some 4 million people
die each year from
household air pollution
World Turns to Coal to Improve Quality of Life for Millions of People
20
30
40
50
60
70
0
2
4
6
8
1000 1250 1500 1750 1900 2012
Life Expectancy
Coal Consumption
Ye
ars
To
ns
in
Bil
lio
ns
Source: UN; Yale Environment 360 Blog. 7
Coal-Fueled Electricity Increases Correspond to Rise in Economic Growth
Source: International Energy Agency World Energy Outlook 1995-2013; U.S. Department of Agriculture, 2011.
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
0
2,000
4,000
6,000
8,000
10,000
12,000
1970 1980 1990 2000 2010 2020 2030
Wo
rld G
DP
(Trillio
ns
of 2
005 $
US
) E
lectr
icit
y f
rom
Co
al (T
Wh
)
Global electricity from coal
World GDP
Near-Perfect Correlation Between Coal Use and Global GDP
Since 1970, coal use
has increased
approximately
335%
8
Escalating Energy Prices Create New Urban Poor in Europe
OECD Europe
Japan
U.S.
90
100
110
120
130
140
2005 2007 2009 2011
Industrial Electricity Price Index
Rebased (2005=100)
Source: European Commission, 2013
“We embarked on a big
transition to a low-carbon
economy without taking into
account the cost and without
factoring in the competitive
impact…”
– Fabien Roques, Head of European
Power and Carbon Division,
HIS, Paris
EU Energy Price Growth ~37% Greater Than U.S., ~20% Than Japan
9
0
5
10
15
20
25
30
12
14
16
18
20
22
11.4
20
The Lesson of Spain: Still Waiting for “Green” Jobs
“Spain has already
attempted to lead the
world in a clean energy
transformation. But our
research shows that
Spain's policies were
economically
destructive… and a
source of social harm
and net job destruction.”
–Professor Gabriel Calzada
King Juan Carlos University
“Study of the effects on
employment of public aid to
renewable energy sources”
Spain’s Rising Unemployment Rate
Study: For Every Green Job, 2.2 Jobs Were Lost Elsewhere
Source: Ycharts, Eurostat
% U
nem
plo
ym
en
t
18
21.7
25
27
2008 2010 2011 2012 2013 2009
Ho
useh
old
Ele
ctric
ity C
ost (E
uro
cen
ts/k
Wh
)
Household Electricity Cost (Eurocents/kWh)
10
Institutions Rethink Energy Policy
“We have made a clear commitment to
battle climate change. But we are also
serious about African access to energy.
In certain places where the only option
is coal, we have to look at that.” – Jim Yong Kim
President of the World Bank
11
Title is Arial 40, Bold Coal’s Global Role in Energy
12
Expanding Global Energy Needs Lead to Rising Coal Demand
Global Coal Demand (MTOE)
Global Energy Demand (MTOE)
Global Electricity Use (TWh)
0
3,000
6,000
9,000
12,000
15,000
18,000
2010 2020P 2030P0
6,000
12,000
18,000
24,000
30,000
36,000
2010 2020P 2030P
0
1,000
2,000
3,000
4,000
5,000
2010 2020P 2030PSource: Peabody Energy Analytics; International Energy Agency (IEA), 2013 World Energy Outlook. Energy and coal demand in Million Tonnes of
Oil Equivalent (MTOE). Electricity use in terawatt-hours (TWh).
+38% +69% +48%
13
Increasing Urbanisation in Asia Continues to Drive Record Global Coal Demand
● Urbanization trends
lead to greater coal use
to fuel growing electricity
and steel demand
● More than 70 million
people expected to be
added to cities each year
through 2020
● Coal is the only affordable
fuel, at scale, to meet
rising energy needs
Source: United Nations, Department of Economic and Social Affairs, Population Division “World Urbanization Prospects: The 2011 Revision”.
Global Urban Population
(Millions)
14
200,000 People Added to Cities Each Day
0
1,000
2,000
3,000
4,000
2010 2015P 2020P
Coal: Least Expensive and Most Reliable Form of Electricity Generation
Source: Peabody Energy Analytics.
Coal:
● Only a fraction
of other fuels’
costs
● Provides
baseload power;
easily
transported
● Energy dense,
abundant and
increasingly
uses advanced
technologies
15
Coal and Advanced Technology
GreenGen Power Plant and
Carbon Research Center; Tianjin, China
16
Source: U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of
Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, “Clean Air Markets,” 2013.
Advanced Coal Technologies: U.S. Environmental Success Story
U.S. Emissions Rate Declines 90% Since 1970; Coal Use Rises 170%
Pit
tsb
urg
h 1
950s
To
day
-100%
-50%
0%
50%
100%
150%
200%
GDP per Capita
Regulated Emissions/MWh
from Coal
Coal used for
Power Generation
- 90%
+ 116%
+ 170%
1970 2013 2000 1990 1980
17
Supercritical and ultrasupercritical operating plants and plants under construction.
Source: Platts World Electric Power Plant Database. December 2013. Huffington Post, “How to Fix the 21st Century’s Dirty Engine of Growth,”
Dec. 2012.
“A single, large coal plant, if
built with the best-available
technology, can reduce
emissions by the annual
equivalent of taking a million
cars off the road…”
Maria van der Hoeven
Executive Director
International Energy Agency
December 2012
Every Advanced Coal Plant Equal to Taking ‘A Million Cars Off the Road’
China
175 GW India
37 GW
ROW
45 GW
Advanced Coal Generation
569 GW On Line and Under
Construction
India
25 GW
Japan
31 GW
U.S.
92 GW
China
325 GW
ROW
45 GW
Germany
16 GW
S. Korea
20 GW
Russia
15 GW
18
20 years
The Goal:
Near-Zero
Emissions
Efficiency Improvements at
Existing Plants
Building New Supercritical and Ultra-
Supercritical Plants
Demonstrating and Deploying IGCC and Carbon
Capture, Utilization and Storage
Advance Carbon Capture, Use and Storage and Btu
Conversion Applications
Retrofitting Existing Coal-Based Generation with Carbon
Capture/Storage Up to 90% Lower CO2
CO2-Enhanced Oil Recovery, Producing 4 Million b/d
Next Generation Technologies Offer Continuous Path Forward
19
Call to End World’s No. 1 Human and Environmental Crisis: Energy Poverty
Raise awareness and support to:
● End crisis of global energy poverty, which leads to
crippling impacts to human health, standards of living
and the environment
● Increase access to low-cost electricity
● Improve emissions using today’s advanced clean
coal technologies
Systemically Changing the Way People Think About Coal
20
PeabodyEnergy.com AdvancedEnergyForLife.com
