New boilers mean more business for coal

To take advantage of the fuel substitution trend in utility boilers, coal operators must adopt new marketing approaches The electric utility industry consumed 590 million tons of US coal in 1982. The National Coal Association predicts 615 million tons of utility steam coal will be used in 1983. In addition, utilities plan to bring over 200 coal-fired plants on line between now and 1988. Clearly, the utility industry will continue to be the biggest user of coal. For the past decade, boiler designs and fuel types to be burned in boilers have undergone tremendous changes. The impact of Federal Clean Air Regulations, fluctuating oil supplies and prices, and increased transportation concerns have all contributed to design changes. These design changes have forced the utilities to expand their traditional supply markets. A long-standing rule for the utility industry has always been to match the boiler design of the plant to a single type of coal. This practice tended to eliminate some coal sources before, during, and after plant startup. In addition, this rule often forced new mine starts because of the need for a dedicated, long-term property with sufficient reserves to support the plant. Now, however, there are signs of change.more » A quiet revolution is occurring in utility boiler designs. The traditional concept of a single type fuel source is giving way to a new breed of boiler; one which contains a measure of fuel flexibility. This paper examines this trend in boiler designs, and the possible market effects of coal substitution for the coal industry.« less