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Potential for utility coal conversions

David G. Streets, P.J. Grogan, D.A. Hanson

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Abstract

In 1979, over 500 million barrels of oil and over three trillion cubic feet of natural gas were burned to generate electricity in the nation's utility power plants. Any attempts to reduce this reliance on premium fuels would improve economic conditions in the US and reduce vulnerability to supply interruptions. The electric utility sector is a prime candidate for coal combustion, because of its emphasis on central-station generation and high utilization of capacity. Attempts have been made to provide long-term solutions to the problem through the Fuel Use Act, by which new facilities would be forced to burn coal and the stock of utility plants would gradually turn over from premium fuels to coal. A more immediate solution would be to convert existing boilers from oil and natural gas to coal. The potential for converting existing utility boilers to coal, by examining the economics of the conversion decision, is addressed.

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What this paper is about

In 1979, over 500 million barrels of oil and over three trillion cubic feet of natural gas were burned to generate electricity in the nation's utility power plants. Any attempts to reduce this reliance on premium fuels would improve economic conditions in the US and reduce vulnerability to supply interruptions. The electric utility sector is a prime candidate for coal combustion, because of its emphasis on central-station generation and high utilization of capacity. Attempts have been made to provide long-term solutions to the problem through the Fuel Use Act, by which new facilities would be forced to burn coal and the stock of utility plants would gradually turn over from premium fuels to coal. A more immediate solution would be to convert existing boilers from oil and natural gas to coal. The potential for converting existing utility boilers to coal, by examining the economics of the conversion decision, is addressed.

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Available abstract

In 1979, over 500 million barrels of oil and over three trillion cubic feet of natural gas were burned to generate electricity in the nation's utility power plants. Any attempts to reduce this reliance on premium fuels would improve economic conditions in the US and reduce vulnerability to supply interruptions. The electric utility sector is a prime candidate for coal combustion, because of its emphasis on central-station generation and high utilization of capacity. Attempts have been made to provide long-term solutions to the problem through the Fuel Use Act, by which new facilities would be forced to burn coal and the stock of utility plants would gradually turn over from premium fuels to coal. A more immediate solution would be to convert existing boilers from oil and natural gas to coal. The potential for converting existing utility boilers to coal, by examining the economics of the conversion decision, is addressed.

Key concepts: Coal, Natural gas, Waste management, Electric utility, Natural resource economics, Electricity, Electricity generation, Stock (firearms)

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