PROCEEDINGS. Conference. Sixth Clean Coal Technology. Reno, Nevada April 28-May 1,1998. Volume I - Policy. faij Printed with soy ink on recycled paper

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1 CONF VOLI Sixth Clean Coal Technology Conference PROCEEDINGS Volume I - Policy Papers Reno, Nevada April 28-May 1,1998 UB/TIB Hannover faij Printed with soy ink on recycled paper

2 SEIVAL OPPORTUNITY TABLE OF CONTENTS International Business Forum Brunch ELECTRIC POWER IN LATIN AMERICA AND THE CARIBBEAN: PROSPECTS FOR CLEAN COAL TECHNOLOGIES 1 Vicente Solano Arrieta Latin American Energy Organization PRESENT AND FUTURE CLEAN COAL TECHNOLOGIES-POSITION OF THE EUROPEAN UNION 15 Pedro de Sampaio Nunes European Commission ADOPTION OF CLEAN COAL TECHNOLOGY IN APEC COUNTRIES 44 John Sligar Sligar and Associates BENEFITS AND OPPORTUNITIES FOR CLEAN COAL TECHNOLOGY DEVELOPMENT IN AFRICA 57 John M. Butler African Electrification Foundation FOSSIL FUEL POWER INDUSTRY IN RUSSIA 73 Gurgen G. Olkhovsky All-Russian Thermal Engineering Institute WAIGAOQIAO THERMAL POWER PROJECT IN SHANGHAI, PRC 74 Zhang Fu Lou Shanghai Municipal Electric Power Company AHMEDABAD ELECTRICITY COMPANY IGCC PROJECT IN INDIA 78 B. S. Reuben The Ahmedabad Electricity Company, Ltd. A. John Rezaiyan K&M Engineering and Consulting Corporation BRAZIL - PROJECT 91 Roberto Faria Copelmi Mineracao S.A. UKRAINE - FOR SALES OF CCT EQUIPMENT 101 Victor A. Gorokhov Science Applications International Corporation 1

3 Opening Plenary Session Clean Coal for the 21st Century: What Will It Take? Introduction and Welcoming Address REMARKS 107 Randy Harris Sierra Pacific Power Company Keynote Session WHAT WILL IT TAKE TO DEPLOY CLEAN COAL TECHNOLOGY 116 Patricia Fry Godley U.S. Department ofenergy IMPORTANCE OF COAL 123 Robin L. Jones Electric Power Research Institute George Preston Formerly Electric Power Research Institute FUTURE WORLDWIDE DEMAND FOR COAL 130 P. J. (Jim) Adam Black & VeatchLLP Plenary Session Panel - Identification of the Issues CCTs: PROVIDING FOR UNPRECEDENTED ENVIRONMENTAL CONCERNS 148 Geoffrey Morrison IEA Coal Research - The Clean Coal Centre DOMESTIC COMPETITIVE PRESSURES FOR CCTS 161 Sharon Belanger The AES Corporation FUEL FOR THOUGHT-FrNANCING CHALLENGES FOR CLEAN COAL 162 Karl Jechoutek The World Bank Luncheon Address NEW MARKETS FOR CCTS 183 Doug Todd General Electric Company ii

4 Panel Session 1 Issue 1: CCTs: Providing for Unprecedented Environmental Concerns CURRENT AND PENDING REGULATIONS FOR EMISSIONS FROM COAL FIRED SOURCES 201 Larry F. Kertcher U.S. Environmental Protection Agency POLICY PERSPECTIVES REGARDING CLIMATE CHANGE 203 Gail McDonald Global Climate Coalition A U.S. UTILITY PERSPECTIVE: MEETING THE CHALLENGE 209 J. Michael Geers Cinergy Corporation MEETING ENVIRONMENTAL CHALLENGES: THE GERMAN EXPERIENCE 210 Volker Rummenhohl andralfgilgen STEAGAG THE IMPLICATIONS OF EMISSIONS TRADING ON POLICY AND TECHNOLOGY CHOICES 235 David W. South Energy Resources International, Inc. Panel Session 2 Issue 2: Domestic Competitive Pressures for CCTs IMPLICATIONS OF STATE UTILITY RESTRUCTURING FOR CLEAN COAL TECHNOLOGY USE 236 Terri Moreland Washington Office-State ofillinois ENVIRONMENTAL ISSUES IN FEDERAL DEREGULATION LEGISLATION 240 Gilbert Waldman Trigen Energy Corporation THE EVOLUTION OF TRANSPORTATION: IS THERE A COAL PLAY? 254 John Wilson Southern Coalitionfor Advanced Transportation DOMESTIC COMPETITIVE PRESSURES FOR CLEAN COAL TECHNOLOGY 302 Bruce A. Craig Natural Gas Supply Association iii

5 Luncheon Address DOMESTIC MARKETING CHALLENGES 306 General Richard Lawson National Mining Association Panel Session 3 Issue 3: Financing Challenges for CCTs LEAST-COST STRATEGY FOR ENVIRONMENTAL COMPLIANCE IN THE ENERGY SECTOR 322 M. Takahashi, S. Tavoulareas, J. Gilling, and N. Berrah The WorldBank J. Zhou, L. Wang, and M. Hu Beijing Economic Research Institute of Water Resources and Electric Power CLIMATE CHANGE AND CLEAN COAL: AN EMERGING INTERNATIONAL BUSINESS OPPORTUNITY 367 Charles Feinstein The World Bank ALLOCATING RISK AMONG CCT PROJECT STAKEHOLDERS TO ENSURE SUCCESS 399 Christopher Kane Bastianelli, Brown and Kelley, Chartered Panel Session 4: Issue 4: New Markets for CCTs OPPORTUNITIES FOR CLEAN COAL TECHNOLOGIES IN DISTRIBUTED POWER APPLICATIONS 417 Joseph E. Ramsey Stone & Webster Management Consultants UPGRADING SYNGAS TO HIGHER VALUE PRODUCTS-IS SYNGAS TOO VALUABLE TO BURN 434 Frank Mittricker Exxon Chemical Company THE OPPORTUNITIES AND CHALLENGES FOR CLEAN COAL TECHNOLOGIES FOR INDEPENDENT POWER PRODUCERS 442 Michael J. Mudd AEP Resources, Inc. iv

6 Closing Plenary Session Clean Coal for the 21st Century: What Will It Take? Conclusions and Recommendations UNPRECEDENTED ENVIRONMENTAL CONCERNS 447 Doug Carter U.S. Department ofenergy DOMESTIC COMPETITIVE PRESSURES FOR CCTS 462 Thomas J. Grahame U.S. Department ofenergy FINANCING CHALLENGES FOR CCTS 469 Terry Ross The Centerfor Energy andeconomic Development NEW MARKETS FOR CCTS 472 George T. Preston Consultant Luncheon Address CLIMATE CHANGE 475 Fredrick D. Palmer Western Fuels Association, Inc. List of Attendees LIST OF ATTENDEES 476 V