Aid & Upgrades for Coal's Low-Carbon Shift

The pursuit of carbon neutrality, often referred to as the "dual carbon" goal, has made it imperative for the coal-fired power sector in China to undergo significant low-carbon transformations. This imperative has been underscored recently by a notable project at the Tianjin Panshan Power Plant, operated by the State Energy Group. Their plan to renovate aging coal-fired units is a case study in innovation and sustainability. By upgrading two Russian-designed supercritical units to domestically produced ultra-supercritical models, the plant not only extends the operational life of its units by an impressive 30 years but also significantly reduces coal consumption and enhances heating capabilities. This approach to revitalizing older power plants is not only economically sound but represents a forward-thinking strategy for the greening of coal-fired power in China.

Coal-fired power remains a cornerstone of China's energy supply, a fact that is unlikely to change in the immediate future. Despite the rapid expansion of renewable energy sources, coal continues to play an irreplaceable role in electricity generation, especially during peak load periods and in heat generation. However, coal is also among the leading contributors to carbon emissions in the country. Achieving carbon neutrality while ensuring energy security will undoubtedly require substantial financial investment and technological innovation to tackle the challenges associated with transforming the coal sector.

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As of July this year, coal power companies are shifting from treating low-carbon transformation as an optional "elective course" to a mandatory "core curriculum" in fulfilling carbon emission contracts. The national action plan breaks down this transformation into three primary pathways. The first two pathways involve biomass co-firing and green ammonia co-firing, wherein coal units will diversify from relying solely on coal to incorporating a mix of renewable fuels. This restructuring is likened to optimizing nutrition by not just consuming one main ingredient but complementing it with some "variety" of renewable sources. The third pathway involves the adoption of carbon capture, utilization, and storage (CCUS) technologies, which aim to capture carbon dioxide emissions from coal combustion and either repurpose them or sequester them underground. Each of these strategies clearly demonstrates a dependency on external factors to facilitate transformation.

In the mid to long term, these three pathways could lead to greater decarbonization of coal-fired power in China; however, they are currently limited by technological constraints. As these methods develop, they primarily serve demonstrative purposes in trials rather than being implemented on a large scale.

The reality of implementing biomass co-firing, for instance, hinges on the availability of sufficient biomass resources, such as agricultural residues, which currently cannot meet the demands of large-scale co-firing in China. Even efforts to cultivate super energy plants to increase biomass fuel supplies would take time to establish, creating a supply-demand imbalance where the demand for biomass fuels in coal-fired power plants may vastly outstrip supply, particularly given the high cost of biomass compared to traditional coal.

On the other hand, green ammonia co-firing presents its own complications, such as high prices, safety in transportation, and limited availability. In many Chinese regions, green ammonia struggles to compete with biomass on price. In arid areas of Northwest China, characterized by deserts and rocky terrains, while renewable resources may be plentiful, the scarcity of biomass renders green ammonia a viable solution. However, the overall economic viability and operational risks of full-cycle deployment will still necessitate careful examination and assessment.

CCUS technology faces substantial hurdles as well, often requiring an increase in energy consumption by 20% or more, with storage costs potentially exceeding the price of coal itself. Furthermore, we must consider the vast volume of carbon dioxide generated annually from coal combustion. Effectively sequestering this CO2 underground poses an enormous challenge, and at the same time, the industrial and civil consumption of CO2 in China is considerably limited, rendering its recycling negligible when faced with the scale of emissions produced by coal-fired plants.

Given the limitations of these external low-carbon transformation strategies, the coal power industry must also explore internal optimizations to achieve low-carbon development. Evidence has shown that significant efficiency improvements and advanced peak-load adjustment in coal-fired units can drastically lower coal consumption rates and, consequently, reduce carbon emissions and fuel costs. Massachusetts' Panshan plant serves as a compelling case study. By adopting modernization efforts, it has succeeded in reducing on-site power generation coal consumption by 14%, while simultaneously boosting heating capacity over two-fold. The combination of economic, social, and environmental benefits is striking.

Similarly, the Huaren Xuzhou Power Plant has undertaken comprehensive upgrades that elevate subcritical units to achieve ultra-supercritical efficiency metrics, thereby enhancing their capacity for prolonged peak-load adjustment. As a result, the nation has seen a marked decline in average coal consumption rates, demonstrating the effectiveness of energy-saving measures.

The necessity for low-carbon transformations in coal power generation is critical for meeting China’s ambitious "dual carbon" targets. Technological innovation and iterative upgrades must prioritize substantial energy savings. Therefore, regulatory bodies should formulate supportive policies, provide financing options, and extend tax benefits to encourage coal power enterprises to continue their advancements in energy efficiency. Only by laying a solid foundation through internal improvements can the industry sensibly advance external supplementation strategies, ultimately steering coal power operations toward deep decarbonization.