TORONTO (miningweekly.com) – The US Environmental Protection Agency (EPA) on Friday released a set of proposed Clean Air Act standards to cut carbon pollution from new power plants in an attempt to combat climate change and improve public health, which immediately drew mixed reaction from industry participants.

Under the proposed New Source Performance Standards (NSPS), large natural gas-fired turbines would need to emit less than 1 000 lb of carbon dioxide (CO₂) per MWh, while new small natural gas-fired turbines would need to emit less than 1 100 lb of CO₂ per MWh.

New coal-fired units would need to emit less than 1 100 lb of CO₂ per MWh or - to provide plants the flexibility and time to optimise technologies - between 1 000 lb and 1 050 lb of CO₂ per MWh on average over 84 months of operation.

The American Public Power Association (APPA) said that it supported several aspects of President Barack Obama’s proposal to address climate change, including his plan to increase energy efficiency efforts, streamline hydropower and other renewable resource development, and increase the country’s use of nuclear power, as well as the President’s call for an “all of the above” strategy, including coal, when it comes to the fuels the US uses to produce electricity.

TECHNOLOGY ARRESTED

The NSPS, however, said that implementing the new standards for new coal-fired power plants would require the implementation of carbon capture and storage (CCS) technology that was “unrealistic” and did not, in its view, comport with the requirements of NSPS under the Clean Air Act. It also ran counter to Obama’s pledge to pursue an "all of the above" energy strategy.

"The administration continues to base its belief in the viability of CCS by citing two demonstration projects, the Plant Ratcliffe in Kemper county, Mississippi, and the SaskPower plant, in Canada, that are in the process of attempting to implement CCS. Though both projects are admirable for attempting to advance the technology, neither of them has demonstrated that the technology is commercially viable," APPA said in a statement.

APPA added that the administration had failed to mention that both the Kemper and SaskPower plants sat on, or near, oil fields - the only areas where CCS had been demonstrated to work. The association also contended that without government funding, such CCS projects could never have been built.

US Energy Secretary Ernest Moniz said that owing to the energy sector currently contributing about 40% of US greenhouse-gas emissions (GHG), the sector was a critical part of the solution to addressing climate change.

He said the Department of Energy (DoE) would work with its partners to further increase power plant efficiency across the range of generation types, promote advanced fossil energy technologies such as carbon capture, utilisation, and storage, and deploy more clean energy.

“[The] DoE is also working to encourage the growth of advanced fossil energy technologies through a new process for $8-billion in loan guarantees for projects that avoid, reduce, or sequester air pollutants or greenhouse-gas emissions,” he said.

Meanwhile, US coal producer Arch Coal said it believed the technology required to capture carbon was not yet available.

"The administration's proposal goes way too far, way too fast – and threatens to arrest rather than spur technology advances. With the world's fastest-growing economies continuing to build their economies on coal, it makes no sense for the US – which possesses the world's largest coal reserves – to erect barrier after barrier to coal use.

“In doing so, we are ensuring America higher power prices, lower economic growth and reduced international competitiveness – and effectively foreclosing on our ability to use this affordable, secure and reliable fuel in the future,” Arch said in a statement.

The American Coalition for Clean Coal Electricity (ACCCE) said it intended to “make every argument it can” against the EPA’s proposed regulations.

ACCCE president Robert Duncan said that “taking away” the option to build efficient new coal-fuelled power plants was “bad policy”.

“EPA regulations have already contributed to shutting down coal plants in 33 states. Unfortunately, it looks like the administration also wants to make sure no new coal plants are ever built again in the US, so it’s almost certain the courts will have to settle this issue,” he said.

The ACCCE said the EPA was talking out of both sides of its mouth when it came to meaningful, long-term energy policy.

"Despite their talk about an ‘all of the above’ approach to energy, the EPA is banning the construction of modern coal plants resulting in fewer fuel choices in the market. Fewer energy choices could cause American consumers to pay the ultimate price of higher energy bills.

"By stopping the development of new coal plants, the EPA is halting the development of CCS technologies. This misguided policy only adds insult to injury to an industry, which has successfully used clean coal technologies to reduce many emissions by more than 90%,” the coalition said in a statement.

The Edison Electric Institute (EEI) added that the proposed NSPS rule for new sources and its pending proposal for existing sources would likely affect the price of electricity for all US citizens, as well as the industry’s ability to enhance the electric generation fleet and grid, underscoring the critical need to “get both rules right”.

“The rule issued today includes several important changes from the original proposal on the natural gas standard, consistent with recommendations EEI made in comments last year. Given the growing reliance on natural gas to meet a larger share of electricity demand, it is critical for [the] EPA to set standards for natural gas-based units that are achievable over a range of operating conditions, and we appreciate the changes.”

CLEAN AIR

However, there was also wholehearted support for the proposed rules.

The National Resources Defence Council (NRDC) said the proposed rules were a "climate breakthrough”.

“The Obama administration struck a forceful blow against climate change today. No longer will new electric plants be allowed to endanger our health with unchecked carbon pollution and the climate change it causes. Instead, our nation can start creating a twenty-first century power fleet—one that uses the latest clean technologies and reduces the threat of climate change,” NRDC president Frances Beinecke said in her blog.

Independent US power producer Calpine Corp expressed its support for the proposed rules. The company, which has a fleet of 93 power plants in operation or under construction (including gas-fired), representing more than 28 000 MW of generation capacity, said the newly proposed GHG NSPS for new electric generating plants was an “important first step” in the EPA’s plans to address climate change.

“Calpine, as an early mover in the transition to cleaner, reliable generation resources, looks forward to working with the EPA and other stakeholders to ensure that the regulations achieve cost-effective reductions while assuring reliability,” the company said.