20 coal projects canceled as global warming fears mount
20 coal projects canceled as global warming fears mount
mongabay.com
July 25, 2007
Coal-fired power plants are fast being shelved as environmental concerns mount, reports the Wall Street Journal.
“As recently as May, U.S. power companies had announced intentions to build as many as 150 new generating plants fueled by coal, which currently supplies about half the nation’s electricity,” writes Rebecca Smith. “One reason for the surge of interest in coal was concern over the higher price of natural gas, which has driven up electricity prices in many places. Coal appeared capable of softening the impact since the U.S. has deep coal reserves and prices are low.”
“But as plans for this fleet of new coal-powered plants move forward, an increasing number are being canceled or development slowed. Coal plants have come under fire because coal is a big source of carbon dioxide, the main gas blamed for global warming, in a time when climate change has become a hot-button political issue… The rapid shift away from coal shows how quickly and powerfully environmental concerns, and the costs associated with eradicating them, have changed matters for the power industry.”
Smith cites the cancellation of eight coal plants in Texas under the private-equity deal to buy TXU Corp earlier year as “an early sign of the changing momentum” for the industry. Nearly two dozen coal projects have been canceled since early 2006. Florida, North Carolina, and Oregon have all seen projects dumped.
 Current coal reserves. Source: US Department of Energy/Energy Information Administration |
The cancellations spur concerns that U.S. power production will not keep pace with demand, which is projected to rise by 1.8 percent this year, resulting in higher prices or shortages.
Smith says some groups believe that improved energy efficiency could eliminate the need for new generation facilities, noting that the nonprofit American Council for an Energy Efficient Economy found Florida could cut its need for electricity from conventional sources by 29% within 15 years though energy efficiency measures alone.
CITATION: Rebecca Smith (2007). Coal’s Doubters Block New WaveOf Power Plants. Wall Street Journal July 25, 2007; Page A1
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