The Potential of Clean Coal Technologies for Energy Price Stabilization and Reduction

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Clean coal technologies represent a suite of advancements aimed at enhancing the efficiency and reducing the environmental impact of coal utilization. This report examines the potential of these technologies to contribute to lower and more stable energy prices while addressing environmental concerns associated with traditional coal combustion. Key findings indicate that while the initial capital costs for implementing clean coal technologies, particularly those involving carbon capture and storage (CCS), can be substantial, the long-term operational benefits, coupled with strategic government policies, offer a pathway towards energy price stabilization. Utilizing domestic coal resources with these advanced technologies can provide a hedge against the volatility of global fuel markets, enhancing energy security. Furthermore, ongoing research and development in areas like carbon capture and efficiency improvements hold the promise of making clean coal a more economically competitive and environmentally sound option in a diversified energy portfolio. The report concludes with recommendations for policymakers to further incentivize the adoption and advancement of clean coal technologies to achieve affordable, secure, and sustainable energy.

2. Introduction: The Case for Clean Coal and Stable Energy Prices

Coal plays a significant role in the global energy landscape, providing a substantial portion of the world’s electricity.¹ In the United States, coal has historically been a dominant fuel source for power generation.² However, the combustion of coal through traditional methods is associated with significant environmental concerns, including the release of emissions that contribute to global warming, acid rain, and water pollution.³ These traditional methods also emit pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter, which pose risks to human health and the environment.⁴

To mitigate these environmental concerns while still leveraging coal’s role in energy production, advancements in clean coal technologies have emerged.⁵ These technologies encompass a range of methods applied at various stages of the coal utilization process, from the preparation of the coal before combustion to the treatment of emissions after combustion.⁷ This report aims to make the case for clean coal and its potential to contribute to lower and more stable energy prices. By analyzing the various clean coal technologies, their economic implications, relevant government policies, and the potential for energy security, this report seeks to provide a comprehensive overview for policymakers, industry stakeholders, and the public. The scope of this analysis includes an examination of different clean coal technologies, their associated costs, government incentives, the role of domestic coal in energy security, the economic feasibility of these technologies, their environmental impact compared to traditional coal, advancements in carbon capture and storage, their potential in a diversified energy portfolio, and recent policy actions related to the coal industry.

3. Understanding Clean Coal Technologies: Enhancing Efficiency and Reducing Emissions

Clean coal technologies represent a multifaceted approach to improving the environmental performance of coal-based power generation. These technologies can be broadly categorized into pre-combustion, combustion, post-combustion, and integrated gasification combined cycle (IGCC) methods.

3.1. Pre-Combustion Technologies

Pre-combustion technologies focus on cleaning the coal before it is burned to remove impurities and enhance its energy content.¹ Coal washing, also known as coal beneficiation, is a widely practiced physical cleaning method that uses gravimetric processes and froth flotation to remove minerals and other noncombustible components like ash and sulfur.¹ This process involves mixing crushed coal with a liquid, allowing the denser impurities to separate and settle.¹ By reducing the ash content, coal washing facilitates more efficient combustion and increases the energy content per tonne of coal.¹ While chemical cleaning methods using acids or bases can also remove deleterious components, they are generally more expensive and less commonly implemented beyond the demonstration phase.⁷ Biological cleaning, which utilizes bacteria or fungi to consume sulfur in coal, is another area of research aimed at more thorough impurity removal.¹⁰ The fundamental benefit of pre-combustion cleaning lies in improving the quality of the coal, which inherently leads to more efficient combustion and reduced emissions, even before the application of more advanced clean coal technologies. Higher quality coal burns more completely, requiring less fuel to produce the same amount of energy. This reduction in fuel consumption directly translates to lower overall emissions and can also lead to reduced transportation and handling costs due to the lower weight and volume of impurities.

3.2. Combustion Technologies

Combustion technologies aim to improve the process of burning coal itself to enhance efficiency and reduce the formation of pollutants.⁵ Fluidized-bed combustion (FBC) is one such technology where pulverized coal is suspended on jets of pressurized air, allowing for more complete combustion at lower temperatures, typically around 1400°F, compared to the approximately 3000°F in conventional boilers.⁸ The lower operating temperatures in FBC minimize the formation of nitrogen oxides (NOx), and the addition of limestone during the combustion process effectively mitigates the formation of sulfur dioxide.⁵ Moreover, FBC systems offer fuel flexibility, capable of burning not only coal but also biomass and waste.¹¹ Low Nitrogen Oxide (NOx) Burners are another widely used combustion technology that restricts oxygen and manipulates the combustion process to reduce the creation of NOx, a precursor to ground-level ozone.¹ These burners are now installed in a significant majority of existing coal power plants in the U.S..⁵ For achieving even greater thermal efficiency and lower carbon dioxide emissions, Supercritical (SC), Ultra-Supercritical (USC), and Advanced Ultra-Supercritical (AUSC) technologies operate at higher steam temperatures and pressures than conventional plants.¹¹ These technologies utilize steam at pressures and temperatures above the critical point of water, enabling more energy to be extracted from the same amount of fuel.¹¹ The higher efficiency directly translates to lower fuel consumption and proportionally lower emissions, including CO2.¹¹ AUSC plants represent the cutting edge, employing steam temperatures in the range of 1200-1400°F to further enhance efficiency.¹² These advancements in combustion technologies inherently reduce the amount of coal required to generate a unit of electricity, leading to lower overall emissions.

3.3. Post-Combustion Technologies

Post-combustion technologies are applied after the coal is burned to capture and remove pollutants from the flue gases before they are released into the atmosphere.¹ Flue Gas Desulfurization (FGD), commonly known as “scrubbers,” is a key post-combustion technology that removes sulfur dioxide and particulate matter from emissions.³ Wet scrubbers, a common type of FGD, spray the flue gas with a mixture of limestone and water, which reacts with the sulfur dioxide to form synthetic gypsum, a component used in drywall manufacturing.¹ This process prevents the release of sulfur dioxide, a major contributor to acid rain.¹ Electrostatic Precipitators (ESPs) are used to remove particulate matter from emissions by charging particles in the flue gas with an electrical field and then capturing them on collection plates.¹ These particulates can aggravate respiratory ailments, making their removal crucial for air quality.¹ Fabric filters also serve a similar purpose in removing fly ash from the flue gases.¹ To address nitrogen oxide emissions after combustion, Selective Catalytic Reduction (SCR) technology is employed, achieving significant NOx reductions of 80-90% or more by using catalysts to convert NOx into nitrogen and water.⁵ SCR is deployed on a substantial portion of coal plants in the U.S..⁵ These post-combustion technologies act as essential filters for the exhaust gases, effectively preventing harmful substances from entering the atmosphere and directly addressing air quality concerns associated with coal-fired power plants.

3.4. Integrated Gasification Combined Cycle (IGCC)

Integrated Gasification Combined Cycle (IGCC) represents a more advanced and integrated approach to coal utilization, offering the potential for higher efficiencies and easier carbon capture.³ In an IGCC plant, coal is first converted into a synthesis gas, or syngas, which is a mixture primarily composed of carbon monoxide and hydrogen.³ This conversion occurs in a high-pressure reactor where coal reacts with controlled amounts of oxygen and steam.³ The resulting syngas is then cleaned to remove impurities such as particulates, sulfur, and mercury.³ The cleaned syngas is subsequently burned in a highly efficient gas turbine to generate electricity, and the waste heat from this process is used to produce steam, which in turn powers a steam turbine, creating a combined cycle.³ This combined cycle configuration allows IGCC plants to achieve high thermal efficiencies, potentially reaching up to 50%.⁵ One of the significant advantages of IGCC is the potential for easier and more efficient carbon dioxide capture through pre-combustion methods.¹⁸ CO2 can be separated from the syngas before it is combusted in the gas turbine, which is generally considered more efficient and less costly than capturing CO2 from the dilute flue gas stream after combustion.¹⁸ As a result, IGCC technology is often touted as being “capture ready” for carbon dioxide.²² By converting coal into a cleaner gaseous fuel and utilizing a highly efficient combined cycle, IGCC represents a significant advancement in cleaner coal utilization and offers a more amenable pathway for integrating carbon capture technologies.

4. The Economics of Clean Coal: Costs and Investments

The economic viability of clean coal technologies is a critical factor in their potential for widespread adoption. While these technologies offer significant environmental benefits, their implementation often involves substantial costs and investments that need to be carefully considered.

4.1. Capital Costs of Clean Coal Technologies

Implementing clean coal technologies generally requires a higher initial capital investment compared to traditional coal-fired power plants, particularly for advanced systems like IGCC and power plants equipped with carbon capture and storage (CCS).²² However, a 1988 study indicated that the capital costs for advanced technologies such as Pressurized Fluidized-Bed Combustion (PFBC) and IGCC were estimated to be within a similar range as conventional plants when equipped with add-on controls for sulfur dioxide and nitrogen oxides.⁴⁵ It’s important to note that this study also cautioned about the potential for underestimating costs during the early stages of technology development.⁴⁵ More recent data from 2012, however, showed that IGCC plants with CCS had a significantly higher overnight capital cost compared to pulverized coal plants with CCS and natural gas combined cycle plants with CCS.²² The capital costs can vary considerably depending on the specific type of technology deployed, the size of the power plant, and the extent to which carbon capture is integrated into the design.²² Notably, carbon capture and utilization storage (CCUS) costs can be influenced by economies of scale, where higher rates of total carbon capture often lead to lower costs per ton of CO2 captured.⁴⁹ Despite some earlier projections of cost competitiveness, a 2013 report by the U.S. Energy Information Administration revealed a 19% increase in the overnight cost of IGCC with CCS since 2010, which was attributed to recent information from IGCC projects that experienced budget overruns and higher-than-expected costs.²² The higher initial capital investment required for clean coal technologies, especially those incorporating carbon capture, presents a significant financial hurdle for widespread adoption. These costs, however, must be evaluated in the context of potential long-term operational savings and the possibility of generating revenue from byproducts or through carbon utilization.

4.2. Operational and Maintenance Costs

Beyond the initial capital investment, the operational and maintenance costs associated with clean coal technologies also play a crucial role in their economic feasibility.¹¹ Some clean coal technologies, particularly those that enhance efficiency like Ultra-Supercritical (USC) technology, have the potential to lower fuel costs. For instance, USC plants can reduce fuel costs to approximately 75% of those incurred by subcritical plants due to their higher efficiency.¹⁶ Advanced PFBC technology even offers the prospect of low-to-zero fuel costs by utilizing fine, wet waste coal.⁵³ However, the integration of carbon capture and storage (CCS) introduces additional operating costs, primarily due to the significant energy consumption required for the capture process.¹⁶ Carbon capture equipment can consume a substantial portion of a power plant’s energy output, ranging from 15% to 25%.¹⁶ Monoethanolamine (MEA)-based CCS, a common post-combustion capture method, can consume considerable amounts of steam and power for solvent regeneration and CO2 compression.⁴⁸ Furthermore, the costs associated with transporting the captured CO2 and storing it securely also contribute to the overall operational expenses.⁴⁸ For example, storing CO2 offshore has been shown to increase costs compared to onshore geological storage.⁵⁶ On a more positive note, some clean coal technologies offer the potential for revenue generation through the sale of byproducts. Flue Gas Desulfurization (FGD) systems produce synthetic gypsum, which is used in the manufacture of drywall and other building products.¹ Similarly, IGCC plants release ash in the form of glassy slag, which can be used in various applications.³⁰ While clean coal technologies can lead to improved fuel efficiency in some cases, the added operational costs associated with carbon capture and storage can significantly impact their overall economic viability. The potential for revenue generation from byproducts and the future implementation of carbon pricing mechanisms could play a crucial role in offsetting these additional costs.

4.3. Cost Competitiveness with Other Energy Sources

The economic competitiveness of clean coal technologies is often compared against other energy sources, particularly natural gas and renewable energy.²² The competitiveness of coal-based power generation can be quite sensitive to fluctuations in natural gas prices.⁵⁸ For instance, in the Indian context, coal technologies become economically competitive with combined cycle gas turbine technologies when natural gas prices reach relatively low levels of $3.5 per gigajoule (GJ) or higher.⁵⁸ In some earlier assessments, such as a 2007 model, IGCC with CCS was projected to be the lowest-cost system when compared to pulverized coal with CCS and natural gas combined cycle with CCS.²² However, more recent analyses suggest a different picture. The Levelized Cost of Electricity (LCOE) for advanced coal technologies, including IGCC and those with carbon capture, can be significantly higher than that of renewable energy sources like solar photovoltaic (PV) and onshore wind, even when accounting for the cost of battery storage to manage the intermittency of renewables.⁵⁹ In Japan, for example, the LCOE for advanced coal technologies ranged from $128 per megawatt-hour (MWh) to $296 per MWh in 2020, which was more than double the cost of solar PV projects.⁵⁹ Some analyses indicate that a substantial carbon price, potentially around $200 per tonne of CO2, might be necessary for currently proposed CCS-equipped coal power projects to achieve cost competitiveness with unabated coal-fired power plants.⁴⁸ Under certain assumptions, parity in the Levelized Cost of Electricity (LCOE) between coal-fired power with CCS and unabated coal is only reached at this relatively high carbon price.⁴⁸ The economic viability of clean coal, therefore, is highly contingent upon the prevailing prices of competing fuels and the implementation of effective carbon pricing mechanisms. The increasing cost-competitiveness of renewable energy sources presents a significant challenge to the widespread adoption of clean coal technologies, particularly in the absence of strong policy support or high carbon prices.

5. Government Support for Clean Coal: Incentives and Policies

The United States government has implemented various incentives and policies to support the development and deployment of clean coal technologies, particularly those focused on carbon capture and storage (CCS) and efficiency improvements.⁵

5.1. Federal Tax Credits and Funding Opportunities

A key incentive is the Section 45Q tax credit for carbon capture and sequestration, which provides a financial incentive for each metric ton of qualified carbon oxide that is captured and either stored or utilized.⁴⁹ The value of this tax credit varies depending on factors such as when the carbon capture equipment was placed in service, the type of facility (whether it’s an emitting facility or a direct air capture facility), and the ultimate disposition of the captured CO2, whether it’s geological storage or utilization in enhanced oil recovery (EOR) or manufacturing.⁶² The Inflation Reduction Act of 2022 significantly enhanced the value of the 45Q tax credit, making it a more substantial incentive for investment in carbon capture projects.⁴⁹

The Department of Energy (DOE) also plays a crucial role through its Clean Coal Research Program, which is administered by the National Energy Technology Laboratory (NETL).⁵ This program is designed to enhance the nation’s energy security and reduce environmental concerns associated with coal use by developing a portfolio of cutting-edge clean coal technologies.⁶⁴ The program focuses on maximizing the efficiency and environmental performance of coal-based power generation while minimizing the costs of new technologies, with a particular emphasis on CCS.⁶⁴

Furthermore, the DOE has established the Carbon Capture Demonstration Projects Program, which invests in integrated carbon capture, transport, and storage technologies and infrastructure that have the potential for widespread replication and deployment at both power plants and major industrial sources of carbon emissions.⁶⁶ This program aims to demonstrate significant improvements in the efficiency, effectiveness, cost, and environmental performance of CCS technologies in both the power and industrial sectors.⁶⁶

To support investments in energy infrastructure, including coal-related projects, the DOE’s Loan Program Office offers the Energy Infrastructure Reinvestment (EIR) Program, which provides $200 billion in low-cost, long-term financing.⁶⁷ This program can support a wide range of projects, including upgrading existing coal-fired power plants to operate more efficiently or with higher output, replacing retired infrastructure with new facilities that utilize advanced technologies, and building new clean coal facilities.⁶⁷

Additionally, the Qualifying Advanced Energy Project Credit (48C) provides a tax credit of up to 30% for qualified investments in certified projects that re-equip, expand, or establish manufacturing facilities for clean energy technologies.⁶⁸ Notably, a portion of the funding under this credit is set aside for projects located in coal communities, providing targeted support for these regions.⁶⁸ These various federal tax credits and funding opportunities demonstrate the U.S. government’s commitment to supporting the development and deployment of clean coal technologies, particularly those that incorporate carbon capture, with the goal of making these projects more economically viable for industry.

5.2. Policy Actions Promoting Coal and Clean Coal

Beyond financial incentives, the U.S. government, particularly during the Trump administration, implemented several policy actions aimed at promoting the coal industry and potentially encouraging the adoption of clean coal technologies.⁶⁷ Executive orders were issued with the stated goal of “Reinvigorating America’s Beautiful Clean Coal Industry,” directing federal agencies to identify and eliminate policies that discourage investment in coal production and coal-fired electricity generation.⁷² These orders also prioritized coal leasing and related activities on federal lands, seeking to increase access to domestic coal resources.⁶⁷ Furthermore, the administration aimed to promote the export of coal and coal technologies, recognizing the potential for U.S. leadership in this sector.⁷² Efforts were also made to accelerate the development, deployment, and commercialization of advanced coal technologies, with the goal of ensuring that coal could continue to play a significant role in meeting the nation’s rising electricity demand.⁷² As part of this broader strategy, the National Coal Council, a federal advisory committee that provides expert guidance on the future of coal technologies and markets, was reinstated.⁶⁷ Additionally, the DOE’s Coal FIRST initiative was launched to foster the development of near-zero emissions, flexible, and efficient small-scale modular coal power plants, with the long-term vision of achieving emissions-free coal-based power generation.⁷⁰ These policy actions reflect a strong emphasis on supporting the domestic coal industry and promoting the development of cleaner ways to utilize coal resources.

5.3. Impact of Incentives on Energy Prices

Government incentives and policies aimed at promoting clean energy technologies, including clean coal with carbon capture, have the potential to influence energy prices in the long term.³⁷ Technology-neutral clean electricity credits, such as those included in recent legislation, are projected to help save American families a significant amount on their electricity bills by 2030 by encouraging innovation in zero-emissions technologies.⁸⁰ Studies, such as one conducted by NERA Economic Consulting, have indicated that the availability of technology-neutral tax incentives can reduce delivered electricity prices to ratepayers across various states and ratepayer classes.⁸¹ Government subsidies and policies can also directly impact the economic viability of clean coal projects and, consequently, the price of electricity generated from these sources.³⁷ For example, government policies towards IGCC power plants, such as setting favorable prices for clean electricity and providing investment subsidies, can help ensure the operation of these projects despite their high initial investment costs.³⁷ By making clean energy projects more financially attractive through a combination of tax credits, funding programs, and supportive policies, the government aims to stimulate investment and deployment. As these technologies mature, become more widely adopted, and benefit from economies of scale, their costs are expected to decrease, which could ultimately lead to more stable and potentially lower electricity prices for both consumers and businesses.

6. Clean Coal and Energy Security: Leveraging Domestic Resources

Utilizing domestic coal resources with clean coal technologies presents a compelling case for enhancing energy security and potentially stabilizing energy prices in the United States.¹

6.1. Price Stability of Domestic Coal vs. Global Fuel Markets

Coal stands as a distinctly “home grown” energy source in the U.S., with domestic mines fulfilling almost all of the coal consumed within the country.⁸⁴ This contrasts with other essential energy sources, such as nuclear and renewable energy, which often rely on imported minerals for their operation and construction.⁸⁴ Furthermore, coal reserves are geographically dispersed across the nation, providing a robust level of energy security and diminishing the reliance on potentially unstable foreign sources.⁸⁵ In fact, global coal deposits are more widely distributed than those of natural gas or oil.⁸⁵ In contrast, the prices of natural gas, particularly liquefied natural gas (LNG), can be subject to significant volatility due to global market dynamics and geopolitical events.⁸⁶ The surge in LNG prices in 2022, driven by increased European demand, serves as a stark example of this volatility and its impact on developing nations.⁸⁶ Historical data also indicates that price volatility has been more pronounced for natural gas compared to coal.⁸⁸ Notably, when natural gas prices have experienced sharp increases, there has been a discernible shift towards using coal for electricity generation in key markets, including the United States, Europe, and Asia, highlighting coal’s role as a potential stabilizer in energy prices.⁸⁷ By capitalizing on the nation’s abundant domestic coal reserves and employing clean coal technologies, the U.S. can establish a more stable and predictable energy supply, thereby mitigating the impact of price volatility associated with global markets for fuels like natural gas and oil.

6.2. Clean Coal in a Diversified Energy Portfolio

Coal is recognized as a critical component of a secure, stable, and diversified American energy portfolio.⁷⁹ The Department of the Interior has emphasized the importance of coal in ensuring energy security and affordability within a diverse energy mix.⁷⁹ Clean coal technologies play a vital role in maintaining coal’s contribution to this energy mix while addressing the growing environmental concerns associated with its use.¹ These technologies are specifically designed to reduce emissions while striving to keep the cost of coal-based power generation low.¹ An important attribute of coal power is its dispatchability, meaning it can be readily available when needed, which complements the intermittent nature of renewable energy sources such as wind and solar power.⁹¹ Power plants equipped with carbon capture, utilization, and storage (CCUS) technologies can provide the flexibility needed to ensure the stable operation of power systems that incorporate increasing shares of variable renewable energy.⁹¹ Therefore, the integration of clean coal into a diversified energy portfolio not only enhances the reliability and security of the energy supply but also helps to balance the overall energy system, ensuring that power is available when and where it is needed.

6.3. Ensuring Energy Affordability and Reliability

Historically, electricity generated from coal-fired power plants has been an affordable option.⁷⁷ Coal is generally less expensive than other fossil fuels and is widely available domestically.⁸⁵ Clean coal initiatives are specifically aimed at preserving this affordability while simultaneously reducing emissions from coal-based power generation.¹ The Trump administration also underscored the reliability and durability of coal as a crucial form of energy, highlighting its security and power-generating capabilities.⁷⁴ The fundamental goal of clean coal technologies is to ensure that coal continues to be an affordable and reliable energy source for American consumers and industries, all while meeting the increasingly stringent environmental standards that are in place.¹ By focusing on both the economic and environmental aspects, clean coal initiatives seek to provide a pathway for the continued utilization of coal in a manner that supports both energy affordability and reliability for the nation.

7. Economic Feasibility and Electricity Price Impacts: Analyzing the Evidence

Numerous studies have examined the economic feasibility of integrated gasification combined cycle (IGCC) power plants, with findings indicating that while the technology has proven to be economical in some applications ³¹, the high capital costs associated with IGCC implementation remain a significant challenge.²² Cost analyses of carbon capture and storage (CCS) for coal power plants reveal a wide range of costs, influenced by factors such as the specific capture technology used, the distance for CO2 transport, and the location of storage.⁴⁸ A comprehensive assessment of CCS costs must take into account the initial investment, financing, energy consumption for operation, ongoing operating costs, as well as the expenses related to CO2 distribution and injection.⁴⁸ Economic feasibility studies of advanced pulverized coal power plants equipped with carbon capture have shown that while applying carbon capture increases both the capital and operating costs ¹⁰², advanced designs like Ultra-Supercritical (USC) technology can offer a cost-effective means of reducing CO2 emissions in certain scenarios, potentially more so than CCS in some cases.⁵² The impact of clean coal technologies on electricity prices is a complex issue that has been analyzed in various reports. Some studies suggest that the integration of CCS into fossil-fueled power plants could lead to unsustainable increases in electricity prices if these costs are passed directly onto consumers.⁵⁰ However, projections from NERA Economic Consulting indicate that technology-neutral tax incentives could actually result in a reduction in delivered electricity prices to ratepayers.⁸¹ The effectiveness of clean coal technology investments in influencing electricity prices can also be affected by mechanisms like cap-and-trade systems, which may, under certain conditions, inhibit such investments.¹⁰⁴ When comparing the Levelized Cost of Electricity (LCOE) across different power generation sources, including coal with and without CCS, some analyses show that IGCC with CCS can have a higher busbar cost than conventional coal and other alternative energy sources.⁴⁷ Overall, the economic viability of clean coal and its ultimate impact on electricity prices are subjects of ongoing analysis and depend on a complex interplay of technological costs, fuel prices, government policies, and market mechanisms.

8. Environmental Stewardship: Clean Coal vs. Traditional Coal

Clean coal technologies represent a significant step forward in mitigating the environmental impact of coal-based power generation compared to traditional methods.³

8.1. Reduced Emissions of Air Pollutants

One of the primary benefits of clean coal technologies is their ability to substantially reduce the emissions of harmful air pollutants such as sulfur dioxide (SO2), nitrogen oxides (NOx), particulate matter, and mercury, which are commonly associated with older, traditional coal-fired power plants.³ In fact, power plants being constructed today, utilizing advanced clean coal technologies, emit approximately 90% less of these pollutants compared to plants that were built in the 1970s.⁵ Over time, the implementation of these technologies has led to a significant decrease in regulated emissions from coal-based electricity generation, with an overall reduction of over 40% since the 1970s, even as coal use has tripled during the same period.⁵ Various specific technologies contribute to this reduction. For example, Fluidized-Bed Combustion (FBC) uses limestone to capture sulfur dioxide during the burning process.⁵ Low NOx burners control the combustion process to limit the formation of nitrogen oxides.⁵ Flue Gas Desulfurization (FGD) systems, or scrubbers, remove large quantities of sulfur and other impurities from emissions.⁵ Electrostatic Precipitators (ESPs) are highly effective in removing particulate matter from the flue gas.⁵ Finally, Selective Catalytic Reduction (SCR) achieves substantial reductions in NOx emissions through the use of catalysts.⁵ The widespread deployment and continuous improvement of these clean coal technologies have already resulted in tangible benefits for air quality and public health by significantly lowering the emission of traditional air pollutants from coal-fired power plants.

8.2. Greenhouse Gas Emissions and Carbon Capture

While traditional coal power plants are significant sources of greenhouse gas emissions, particularly carbon dioxide (CO2), clean coal technologies, especially when coupled with carbon capture and storage (CCS), offer a promising pathway to substantially reduce or even eliminate these emissions.⁵ CCS technologies have the capability to capture more than 90% of the CO2 emissions produced by power plants.¹¹ When implemented effectively, CCS can lead to the potential for near-zero emissions from coal-based power generation.¹¹ For instance, Integrated Gasification Combined Cycle (IGCC) plants, when combined with CCS, have the potential to achieve virtually zero-emission power generation.²⁰ Furthermore, improvements in the efficiency of clean coal technologies also contribute to a reduction in CO2 emissions per unit of energy produced.⁵ Technologies like Ultra-Supercritical Pulverized Coal (USPC) combustion are more efficient than conventional subcritical plants and thus result in lower CO2 emissions for the same energy output.¹² By focusing on both enhancing efficiency and implementing carbon capture, clean coal technologies aim to address the significant greenhouse gas emissions associated with traditional coal power generation.

8.3. Life Cycle Environmental Impacts

While clean coal technologies offer substantial improvements in reducing emissions from power plants, it is crucial to acknowledge that the label “clean coal” does not fully address the environmental impacts that occur throughout the entire life cycle of coal, from its extraction to the disposal of combustion byproducts.¹¹⁵ Coal mining activities, particularly surface mining techniques like mountaintop removal, can lead to significant habitat destruction and have detrimental effects on surrounding ecosystems.³ Furthermore, coal mining can contribute to water pollution through acid mine drainage and the contamination of water sources.⁴ Even with advanced post-combustion technologies that capture pollutants like sulfur dioxide and nitrogen oxides, the disposal of the captured CO2 and the residues from coal combustion, such as fly ash, requires careful management to prevent potential environmental risks.⁷ Coal ash, often stored in slurry ponds or sent to landfills, can leach contaminants into groundwater and surface water sources.⁷ Therefore, while clean coal technologies represent a significant advancement in reducing emissions from the power generation phase, a comprehensive approach to environmental stewardship in the coal industry necessitates addressing the impacts at every stage of the coal’s life cycle, from extraction and processing to combustion and waste disposal. Sustainable mining practices, responsible waste management, and the ongoing development of technologies to minimize the environmental footprint across the entire coal value chain are essential for truly minimizing the environmental consequences associated with coal use.

9. The Promise of Carbon Capture and Storage (CCS): Advancements and Economic Implications

Carbon capture and storage (CCS) technologies are central to the concept of clean coal, offering a means to significantly reduce carbon dioxide emissions from coal-fired power plants.⁷

9.1. CCS Technologies for Coal Power Plants

Several distinct CCS technologies are applicable to coal power plants, each targeting different stages of the power generation process. Pre-combustion capture is primarily associated with Integrated Gasification Combined Cycle (IGCC) plants.⁷ This method involves first gasifying the coal to produce syngas, from which carbon dioxide can be more efficiently separated before the hydrogen-rich gas is combusted.⁷ Post-combustion capture, on the other hand, is designed to be applied to the flue gas produced after the coal has been burned.⁷ A common approach for post-combustion capture involves using chemical solvents, such as amines, to absorb the CO2 from the exhaust gases.⁷ Other methods like using solid sorbents or membranes are also under development.⁷ Oxyfuel combustion represents a third major approach, where coal is burned in a mixture of pure oxygen and recycled flue gas, resulting in a flue gas stream that is primarily composed of carbon dioxide and water, making CO2 capture significantly easier.⁷ Each of these CCS technologies presents its own set of advantages and disadvantages in terms of capture efficiency, integration with existing power plant designs, and overall cost.

9.2. Cost of Carbon Capture, Utilization, and Storage

The implementation of carbon capture, utilization, and storage (CCUS) technologies is associated with a significant energy penalty, which can reduce the net power output of a coal-fired power plant by as much as 15% to 30%.16 For new power plants using post-combustion capture, this energy penalty can be in the range of 20% to 25% of the plant’s output.16 Beyond the energy penalty, the capital and operating costs of CCS technologies are generally high.16 A comprehensive understanding of these costs requires considering the initial investment in capture equipment, the financing of the project, the energy used to operate the capture process, ongoing operating and maintenance expenses, and the costs associated with the distribution and injection of the captured CO2.48 The actual costs can vary considerably depending on the specific capture method employed, the distance over which the CO2 needs to be transported, and the geological location where it will be stored.50 For instance, estimates for the cost of capturing CO2 from coal-fired power plants have ranged from $20 to $132 per ton.49 Despite the current challenges, there is potential for significant cost reductions in CCS technologies through ongoing research and development, as well as through the benefits of economies of scale as more projects are deployed.48 For example, the cost of CO2 capture in the power sector has already shown a downward trend between the first and second large-scale CCS facilities that have been implemented.93

### 9.3. Long-Term Potential for Lower Energy Prices with CCS

Despite the current costs associated with carbon capture and storage, the International Energy Agency (IEA) suggests that CCS is a crucial technology for meeting long-term climate goals in a cost-effective manner.16 CCS is considered vital for achieving global climate ambitions by enabling significant reductions in CO2 emissions from key sectors, including power generation.121 Retrofitting existing fossil fuel power plants with CCS technologies can help avoid the premature retirement of these assets, potentially reducing the overall cost of transforming the power system.91 Furthermore, when CCS is combined with bioenergy, it offers the potential for negative emissions, which could be crucial for counterbalancing residual emissions from sectors that are harder to decarbonize.8 Government policies that provide support and financial incentives for CCS technologies can play a significant role in driving innovation and deployment, which is expected to lead to lower costs in the long term.63 While CCS currently adds to the cost of power generation, its long-term potential to enable the continued use of abundant fossil fuel resources in a carbon-constrained world, coupled with anticipated cost reductions and policy support, could contribute to more stable and potentially lower energy prices compared to scenarios relying solely on more expensive alternatives or facing high carbon taxes.

## 10. Policy Perspectives: Donald Trump’s Administration and the Future of Coal

The administration of President Donald Trump consistently expressed strong support for the coal industry and implemented several policy actions aimed at its revival.67

### 10.1. Statements and Policy Actions Supporting the Coal Industry

President Trump issued executive orders with the stated purpose of “Reinvigorating America’s Beautiful Clean Coal Industry,” signaling a clear intention to support and bolster the coal sector.72 These orders directed federal agencies to identify and eliminate policies perceived as discouraging investment in coal production and the operation of coal-fired power plants.75 A key focus was on prioritizing coal leasing and related activities on federal lands, aiming to increase access to the nation’s coal reserves.67 The administration also sought to promote the export of both coal and U.S. coal technologies to international markets, recognizing the potential for economic growth and global influence.72 Furthermore, there was an emphasis on accelerating the development, deployment, and commercialization of advanced coal technologies, with the aim of ensuring that coal could continue to play a vital role in meeting the increasing electricity demands of the country.72 In line with this support, the National Coal Council, which serves as a federal advisory committee providing expertise on the future of coal technologies and markets, was reinstated.67 These actions collectively indicate a strong commitment from the Trump administration to support the coal industry and promote its continued use in the U.S. energy mix.

### 10.2. Implications for Clean Coal Initiatives and Energy Prices

The Trump administration’s strong support for the coal industry could potentially create opportunities for clean coal initiatives to gain momentum and secure funding, particularly if they are presented as a means to utilize abundant domestic coal resources in an environmentally responsible manner.67 The executive orders issued by the administration aimed to accelerate the development of coal technologies, which could include advancements in clean coal technologies.72 Given the administration’s focus on coal as an affordable and reliable energy source, clean coal initiatives that strive to maintain low energy prices while reducing emissions could be prioritized.67 The stated goal of lowering the cost of living by increasing domestic energy production, including coal, aligns with the potential of clean coal technologies to offer a more sustainable and potentially cost-effective way to utilize this resource.72 However, there could be a potential conflict between the administration’s strong support for coal and broader climate change mitigation goals if clean coal technologies, especially carbon capture and storage (CCS), are not widely adopted and proven effective.75 Environmental groups have expressed concerns that a renewed emphasis on coal could lead to higher electricity prices for consumers and increased levels of air pollution.75 Ultimately, the extent to which the Trump administration’s policies prioritize and incentivize technologies like carbon capture will be crucial in determining the environmental impact of its support for coal and the long-term effects on energy prices.

## 11. Conclusion: Realizing the Potential of Clean Coal for Affordable and Secure Energy

Clean coal technologies offer a multifaceted approach to addressing the environmental concerns associated with coal-based power generation while preserving its role as a significant energy source. These technologies, ranging from pre-combustion cleaning to advanced combustion methods and post-combustion emission controls, have already demonstrated their ability to enhance efficiency and substantially reduce the release of harmful air pollutants. Furthermore, the development and implementation of carbon capture and storage (CCS) technologies hold the promise of significantly mitigating or even eliminating carbon dioxide emissions from coal-fired power plants.

While the initial capital investments and ongoing operational costs associated with clean coal technologies, particularly those incorporating CCS, can be substantial, the long-term benefits for energy security and price stability are noteworthy. The abundance of domestic coal resources in the United States, coupled with advancements in clean coal technologies, provides a hedge against the price volatility inherent in global fuel markets. Moreover, the dispatchable nature of coal-fired power, especially when cleaner technologies are employed, can complement the increasing reliance on intermittent renewable energy sources, ensuring a reliable and diversified energy portfolio.

Government policies and incentives play a crucial role in shaping the economic landscape for clean coal. Tax credits, funding programs, and supportive regulations can help to offset the higher upfront costs and encourage the widespread adoption of these technologies. The long-term impact on energy prices remains a subject of ongoing analysis, but the potential for clean coal to contribute to a more stable and affordable energy future is evident, especially when considering the continued advancements in technology and the potential for cost reductions through learning and economies of scale.

Ultimately, realizing the full potential of clean coal requires a balanced approach that acknowledges the environmental imperatives while leveraging the nation’s abundant coal resources to ensure energy security and affordability. Continued investment in research, development, and deployment of clean coal technologies, coupled with strategic policy support, will be essential in navigating the transition towards a more sustainable energy future.

## 12. Recommendations

To further the adoption and advancement of clean coal technologies for affordable and secure energy, the following recommendations are proposed:

* **Enhance and Extend Federal Incentives for CCS:** Policymakers should strengthen and extend federal tax credits, such as Section 45Q, to provide greater financial certainty and incentivize investment in carbon capture and storage projects at coal-fired power plants and industrial facilities. The “direct pay” option should be maintained and potentially expanded to further improve accessibility for project developers.

* **Increase Funding for Research and Development:** The Department of Energy should increase funding for research, development, and demonstration (RD&D) programs focused on reducing the costs and improving the efficiency of clean coal technologies, particularly next-generation CCS technologies, including advanced solvents, sorbents, and membrane-based capture methods.

* **Support Infrastructure Development for CO2 Transport and Storage:** Recognizing that the widespread deployment of CCS will require a robust infrastructure for transporting and storing captured carbon dioxide, the government should support the development of CO2 pipeline networks and secure geological storage sites through funding, streamlined permitting processes, and public-private partnerships.

* **Promote Coal FIRST Initiative and Similar Programs:** Continue and expand support for initiatives like the DOE’s Coal FIRST program that focus on developing flexible, efficient, and near-zero emissions small-scale modular coal plants. These innovative approaches can help modernize the coal fleet and ensure its long-term viability in a carbon-constrained world.

* **Address Life Cycle Environmental Impacts:** Beyond focusing solely on power plant emissions, policies should be developed to address the environmental impacts associated with coal extraction, processing, and waste disposal. This could include promoting sustainable mining practices, encouraging the beneficial reuse of coal ash, and investing in technologies to minimize water consumption and habitat disruption.

* **Foster International Collaboration:** The U.S. should actively participate in international collaborations and knowledge-sharing initiatives related to clean coal technologies and carbon capture, learning from global best practices and contributing to the worldwide effort to reduce emissions from coal utilization.

* **Implement Carbon Pricing Mechanisms:** Consider the implementation of market-based mechanisms, such as carbon taxes or cap-and-trade systems, that create a financial incentive for reducing carbon emissions. A sufficiently high carbon price could make CCS technologies more economically competitive with traditional coal power generation and other higher-emitting sources.

**Table 1: Comparison of Traditional Coal Power Plant Emissions vs. Clean Coal Technologies**

| Pollutant | Traditional Coal Plant (Approximate) | Clean Coal Technologies (Example Reduction) | Technology Example(s) |

| :————- | :———————————– | :—————————————– | :—————————————– |

| Sulfur Dioxide (SO2) | High | 98% reduction | Flue Gas Desulfurization (FGD) |

| Nitrogen Oxides (NOx) | High | 80-90% reduction | Low NOx Burners, Selective Catalytic Reduction (SCR) |

| Particulates | High | 99.8% reduction | Electrostatic Precipitators (ESPs), Fabric Filters |

| Mercury (Hg) | High | 90% reduction | Advanced Combustion Technologies, Activated Carbon Injection |

| Carbon Dioxide (CO2) | High | 90%+ capture | Carbon Capture and Storage (CCS) |

**Table 2: Levelized Cost of Electricity (LCOE) for Different Power Generation Technologies (Illustrative Data)**

| Technology Type | Capital Cost ($/kW) | Operating Costs (/MWh)∣FuelCosts(/MWh) | Total LCOE ($/MWh) | Source |

| :—————————- | :—————— | :———————- | :—————– | :——————- | :——————————————————————— |

| Conventional Coal | 2010 | – | – | 59 | NRC, 2012 46 |

| USC Coal | 3711 | – | – | 70.2 | NETL, 2020 15 |

| IGCC | 4055 | – | – | 77 | NRC, 2012 46 |

| IGCC with CCS | 6599 | – | – | 112 | NRC, 2012 46 |

| Natural Gas Combined Cycle | 718 | – | – | 59 | NRC, 2012 46 |

| Solar PV | – | – | – | ~40-50 | Lazard’s Levelized Cost of Energy Analysis – Version 15.0 (Illustrative) |

| Onshore Wind | – | – | – | ~30-60 | Lazard’s Levelized Cost of Energy Analysis – Version 15.0 (Illustrative) |

Note: This table provides illustrative data from various sources and may not reflect the most current or comprehensive cost comparisons. Costs can vary significantly based on project-specific factors.

Table 3: U.S. Government Incentives and Policies for Clean Coal and Carbon Capture

Incentive/Policy Name	Description	Implementing Agency	Status	Relevant Snippet IDs
Section 45Q Tax Credit	Provides a tax credit for each metric ton of qualified carbon oxide captured and stored or utilized, with increasing credit values under the Inflation Reduction Act.	IRS	Active	49
DOE Clean Coal Research Program	Supports research, development, and demonstration of cutting-edge clean coal technologies with a focus on CCS and efficiency improvements.	DOE/NETL	Active	5
DOE Carbon Capture Demonstration Projects Program	Invests in commercial-scale demonstration of integrated carbon capture, transport, and storage technologies at power plants and industrial sources.	DOE/OCED	Active	66
Energy Infrastructure Reinvestment (EIR) Program	Offers low-cost, long-term financing for energy infrastructure projects, including upgrades and new facilities for coal.	DOE/LPO	Active	67
Qualifying Advanced Energy Project Credit (48C)	Provides tax credits for investments in projects that re-equip, expand, or establish manufacturing facilities for clean energy technologies, with set-asides for coal communities.	IRS/DOE	Active	68
President Trump’s Executive Order on Clean Coal	Aimed at reinvigorating the coal industry by easing regulations, prioritizing coal leasing, promoting coal technology exports, and accelerating the development of coal technologies.	Executive Branch	Active	72
Reinstatement of the National Coal Council	Re-established a federal advisory committee to provide expert guidance on the future of coal technologies and markets.	DOE	Active	67
DOE’s Coal FIRST Initiative	Focuses on developing flexible, innovative, resilient, small, and transformative (FIRST) coal plants with a goal of near-zero emissions.	DOE/NETL	Active	70

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