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Clean and Efficient Use of Coal
 
Principal Investigators
MIT: K.Oye, J.Beer, Z.Cui, A.Sarofim
ETH: H. Siegmann
UT: M.Sadakata, H.Shiroyama
Tsinghua Univ. (China): X.Xu, G.Yue

The cleaner and more efficient utilization of coal by China may help sustain Chinese economic development while simultaneously mitigating local and regional pollution problem and reducing risks of global, regional and local interests creates opportunities for international environmental cooperation.

Improved energy efficiency may ease one constraint on Chinese economic development. Over the past decade, the economy has grown, while energy intensity has dropped. By reducing demand for energy per unit of output, improvements in energy efficiency may ease short term energy bottlenecks and long term energy dependency.

Goals/Objectives
  • To research environmental aid and coal combustion in China to examine how the fit between local technical and economic conditions and international aid programs affects the assimilation of coal combustion technologies
  • To examine domestic Chinese programs, bilateral Japanese programs, Global Environment Facility (GEF), activities implemented jointly, and other environmental initiatives that promote clean and efficient combustion of coal in China.

Results/Findings
  • Compiled and analyzed a data set of 250 industrial boilers to determine efficiency levels and determine the causes of low performance. Boiler efficiency at 65% compared to 80% in industrialized countries.
  • Evaluated various technology options for reducing sulfur emissions from coal combustion including processes and “end-of-pipe” technologies.
  • Appraised the fit between existing international clean coal activities and local conditions in China.
  • World Bank assumption that removing subsidies and price controls would increase coal prices and incentivize greater efficiency was wrong – coal prices dropped.
  • The team identified programs to improve energy efficiency with environmental side benefits in the existing boiler stock.
  • Low cost modification to existing boiler stock has been spurred through either regulatory inducements or access to preferential financing.
  • The Chinese government program of encouraging consolidation of many small inefficient boilers into larger and more efficient power generating boilers will yield substantial improvements.
  • The team’s examination of aid activities found that the aid activities must be carefully designed to serve environmental and economic interests of donors and recipients alike. The prospects of development of aid as vehicles for addressing international environmental externalities will also rest in part of the explicit recognition of elements of self interest in the design of these programs.
  • Shared these with Chinese government officials, World Bank and ABB.