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Although
low Calorific Value (CV) coals often lie outside of the operational
specifications of current power stations, they can
frequently be blended with higher CV coals in order to create a feed
mixture usable by existing boilers. Coal purchasers primarily
resort to blending in order to cut costs by taking advantage of low CV
price discounts; additionally, there is an increasing trade in
low CV/low sulphur coals to help meet SOx emissions standards without
use of expensive stack-scrubbing technologies.
While
lower quality coals have traditionally been seen as viable only for
local power station use, the seaborne trade has risen over the past few
years in tandem with intensifying competition for sourcing in the
Pacific region.
One area of interest is Indonesia, where export volumes have
increased greatly in the last ten to fifteen years. In India,
several coastal "ultra mega power stations" have been designed
specifically to burn the kinds of low CV imported coal which have been
marketed by several Indonesian firms. At the same time, the
infrastructure bottlenecking problems faced by export majors
Australia and South Africa have likely helped to strenghten
Indonesia's low CV export position.
As
the highest calorific value coals become scarcer, suppliers and users
will turn to technological innovation and resource substitution
to keep the boilers running; increasingly, coals of what had
previously been considered marginal quality will be part of the
the trade and of the fuel mix.
Energy
Edge can help you understand the evolution of the fast-developing
lower-CV coal trade. the uncertainties ahead. If you have
questions, contact Energy Edge partner Martin Bloemendal today!
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