Winberg: Development of CCS technologies needs co-ordination with CO2 emission reduction legislation

A CONSOL Energy research executive has told a senate hearing that it is essential that any climate legislation carefully co-ordinate the development of carbon capture and storage (CCS) technologies with the timing and size of carbon dioxide emission reductions. “Coal is our most abundant energy resource and we need sustained, predictable investment in CCS coupled with the time to develop, demonstrate and commercialise it effectively,” said Steven Winberg, Vice President – Research and Development for the mining company. This news comes in weeks before the United Nations Climate Change Conference 2009 in Copenhagen, where these technologies and legislation will be discussed.

“However, there is a key overarching issue. If the legislation forces significant reductions in US greenhouse gas emissions before these new technologies are commercially deployable, we will negatively impact a significant part of the existing fleet of coal-fired power plants,” Winberg noted.

He spoke at a field hearing of the US Senate Committee on Environment and Public Works held in Pittsburgh. He said that without allowing the time necessary to develop and fully deploy CCS at existing power plants before requiring significant reduction in emissions, the legislation would short-circuit promising technological developments. He said other impacts could include higher consumer electricity costs, power grid reliability problems, negative impacts to US global competitiveness, and a missed opportunity for US developed CCS technologies to be exported to other countries.

Winberg also warned the committee that unless cost containment provisions were included in the bill, job losses and significant economic dislocation could occur, particularly in states such as Pennsylvania. “We have seen estimates that net job losses could exceed 80,000 on a state-wide basis in Pennsylvania,” he noted. He said the climate change legislation passed by the House actually acknowledges that job loss will occur and contains an “adversely affected worker” provision to provide assistance to workers who lose their jobs as a result of the legislation. He pointed out that cost containment provisions would limit economic harm if congressional estimates of the cost of the legislation proved to be too low.

Winberg complimented Senator Arlen Specter and other members of the committee who are working to ensure that any climate change legislation moving through the Senate committee will contain appropriate provisions to help develop CCS technologies. Winberg added, however, that a failure to co-ordinate the technology development sections of the bill with the timing of emission reductions, or a failure to contain costs, would significantly harm Pennsylvania’s economy, particularly in sectors dependent on affordable electricity.

CONSOL Energy has 17 bituminous coal mining complexes in six states and reports Proven and Probable coal reserves of 4,081 Mt. It received the US Department of the Interior’s Office of Surface Mining National Award for Excellence in Surface Mining for the company’s innovative reclamation practices in 2002, 2003 and 2004.