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Coal industry in the UK faces the challenge: how to survive?

Industry in the UK faces the challenge: how

The UK energy system is mostly fired by coal at present. The share of coal in general energy production equates approximately 30 per cent. However, a new energy policy of the United Kingdom aims to replace coal with renewable energy sources. In this case, some measures have already been undertaken, and national coal industry is falling into decay gradually.

The UK government decides to reduce the use of coal

Environmentalists are raising the alarm, as coal-fired energy generation contributes significantly to the emission of carbon dioxide, which leads to the greenhouse effect and destroys environment. In these circumstances, the UK government, led by David Cameron, has taken decision to restrict the use of coal-fired power plants by 2023 and to shut them by 2025.

Energy Secretary Amber Rudd clams that the UK energy system, which is mostly driven by coal, has become outmoded and requires revision. It is not able to provide consumers with sufficient amount of affordable and clean energy.

She also considers that coal-fired energy system is not an appropriate solution for advanced economy, such as the United Kingdom is. In this case, the construction of new energy infrastructure is required.

Amber Rudd suggests to replace coal with another energy sources, such as natural gas and nuclear. It is also curious, that she does not believe that renewable energy sources are able to address this issue. The same opinion is currently raging in the government. In this case, subsidies for wind and solar power are being slashed.

Coal mines are to be closed in the UK

What is more, such governmental decision, touching coal-fired power plants, means that deep coal mines are also to be shut. According to John Campbell, vice chairman of coal producers body Coalpro, the last one is to be closed in December 2015.

The closure of mines has led to the reduction of coal consumption in the United Kingdom. The amount of coal consumed in 2014 was the lowest during 150 years. This figure equated 50 million tonnes with 44 of them imported.

In this case, Campbell expresses grave reservations concerning national coal industry and believes that governmental policy is destroying it. This is about a levy on electricity generators for the amount of carbon dioxide they emit and the lack of support and incentives.

CCS is one of the ways to save coal industry in the UK

What is more, Ian Lavery, who previously worked in one of deep mines and is now the MP for the constituency of Wansbeck in south east Northumberland, is convinced that the closure of mines and coal-fired power station does not make economic sense. He considers that such governmental decision is a matter of political ideology.

Lavery claims that there is one efficient way to save national coal industry and address the issue of carbon dioxide emission. This is about Carbon Capture and Storage (CCS). CCS is a technology, which allows capturing up to 90 per cent of carbon dioxide emission, caused by the use of fossil fuels. Beyond that, this technology makes it possible to take carbon dioxide out of the atmosphere.

That is to say that there is no need to destroy a whole industry by closing deep mines and coal-fired power plants, since CCS technology is available. On condition that it is applied, coal-fired power plants will be able to produce much cleaner energy than they do now. It would give an opportunity to generate sufficient amount of electricity and to reduce the emission of greenhouse gases at the same time. Nevertheless, such alternative is not taken into account by the UK government.

Coal industry in different countries

It is generally accepted that the growth of coal industry was the main leverage in terms of economic development in a wide range of countries, including the United Kingdom. It is also contributing significantly to the economic growth of India and China at present.

In this case, China has announced intention to extend the use of coal in its energy production. However, as the issue of climate change remains on the agenda, this country is going to involve the CCS technology in order to make the production of energy not that harmful.

What is more, there is one European country, which is going to increase the use of coal and is building new coal-fired power plants. This is about Germany. Though this country pays considerable attention to environmental issues, it has decided to soften its 2020 CO2 reduction targets in order to avoid the decline of whole industry.

In summary, British coal-based energy system is considered to be inefficient and outdated. In this case, the UK government has decided to close all coal-fired power plants by 2025 and to replace coal with gas, nuclear and some kinds of renewables. However, the leaders of coal industry believe, that such decision makes no economic sense. There is another way to address the issue of energy infrastructure transformation and save this industry. Nevertheless, it is not taken into account by the government.

Coal industry in the UK faces the challenge: how to survive?

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Views: 1387 Added: 19-11-2015