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Caribbean Petroleum Update : March 2014 | Call: 1-876-927-1779 page
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or relevant to the Caribbean,
international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.
CARIBBEAN ENERGY INFORMATION SYSTEM (CEIS)
MARCH 2014 ISSUE
To access CEIS website
continued on page 2/
CONTACT US
Caribbean Energy Information System, Scientific Research Council,
Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone)
1-876-977-1840 (Fax) ceis@src-jamaica.org www.ceis-caribenergy.org
Coal is considered to be the dirtiest of all fossil fuels, yet it
generates nearly 40% of the world’s electricity. When com-
pared to the other fossil fuels it is the cheapest form, but its
contribution to carbon emissions is nothing far from costly.
The largest source of carbon emissions is coal fired plants.
This puts coal among the greatest threats facing climate
change. To curb global pollution to the levels needed to
minimize the risk of catastrophic global warming, we must end
our dependence on coal fired plants especially in major
contributing countries like the United States and China (the
largest consumer of coal in the world).
On the Caribbean scene, the Dominican Republic has plans in
the pipeline for the construction of two coal fired plants of
384.9MW each that will burn ‘clean’ pulverized coal.
Similarly, recent reports have surfaced highlighting the Jamai-
can government’s endorsement of using coal generated elec-
tricity to power it logistics hub that is to be constructed on
parts of the Goat Islands. Emphasis was placed on the utiliza-
tion of “clean coal” but is there such a product? Apart from the
obvious danger to climate change, coal poses a lot of health
problems. The by-products of coal include carcinogens that
can cause cancer, mercury, radioactive materials and obvious
externalities such as black smoke.
However, given the high cost of electricity, having a coal-
fired generating plant will provide lower electricity costs to the
logistics hub, but at what expense? Can the use of clean coal
be economical and environmentally practical?
Image Source: www.telegraph.co.uk
page 2 Call: 1-876-927-1779 | Caribbean Petroleum Update : March 2014
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
Reducing Harmful Emissions by Using Clean
Coal Technologies……….continued from page 1
In this issue of the Petroleum Update
we seek to explore clean coal
technologies and methods and associ-
ated costs that may arise as a conse-
quence.
Firstly, it is quite interesting to know
that there is “clean coal”. Coal is
usually associated with black smoke
and pollution. When the term clean
coal is used it is not the coal itself that
is clean, but it is the technology.
Clean coal technology includes a
variety of technologies to help reduce
harmful emissions and improve
efficiency of coal burning power plants.
Clean coal technology seeks to reduce
emissions of sulphur dioxide and
nitrogen oxide into the atmosphere.
Coal is mostly used in power genera-
tion and composed primarily of carbons
and hydrocarbons. Utility companies
and businesses with coal power plants
burn coal to make the steam that turns
turbines and generates electricity.
When coal is burnt carbon dioxide is
released into the atmosphere. Some
clean coal technologies purify the coal
before it burns; one such method is
called coal washing. This method
removes unwanted minerals by mixing
crushed coal with a liquid and allowing
the impurities to separate and settle.
Another method seeks to minimize
emissions of sulphur dioxide and par-
ticulates. Gas Desulfurization systems
remove sulfur dioxide, a major cause of
acid rain, by spraying flue gas with
limestone and water.
In addition to emitting sulphur dioxide,
coal fired plants also emit nitrogen
oxide. According to the United States
Environmental Protection Agency,
scientific evidence links short-term
Nitrogen Dioxide (NO2 ) exposures
with adverse respiratory effects includ-
ing airway inflammation in healthy
people and increased respiratory
symptoms in people with asthma. In an
attempt to reduce emissions of
nitrogen oxide, power plants use what
is called Low Nitrogen Oxide (NOx)
burners to reduce the creation of
nitrogen oxides by restricting oxygen
and manipulating the combustion proc-
ess. Electrostatic precipitators remove
particulates by charging particles with
an electrical field and then capturing
them on collection plates.
An additional method used to mitigate
against the harmful emissions by coal
fired power plants is known as
Gasification. This method avoids burn-
ing coal altogether. The coal is com-
bined with steam and oxygen that
forces carbon molecules to separate.
With this combined method, the result
is what is called syngas which is a
mixture of carbon monoxide and hydro-
gen. This mixture is then cleaned and
burned in a gas turbine to make
electricity. The heat energy from the
gas turbine can also power a steam
turbine.
Clean coal technology seeks to reduce
harsh environmental effects by using
multiple technologies to clean coal and
contain its emissions, however one
cannot ignore the hard ‘coal’ facts that
coal fired plants are not suitable for a
renewable energy future despite these
clean coal technologies. Coal not only
contributes to the dangerous conse-
quence of climate change but people
Figure 1: An Overview of a Integrated Gasification Combined Cycle Process
(A Clean Coal Method)
Image Source:climatetechwiki.org
Caribbean Petroleum Update : March 2014 | Call: 1-876-927-1779 page 3
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
are becoming more knowledgeable about the health risks
that burning coal presents. In the short term coal does prove
economical; it is cheap and plentiful, however from an en-
vironmental standpoint it is detrimental. Additionally, in the
long term the economical health of a country may be com-
promised as a result of environmental deterioration caused
from burning coal.
With a renewed focus on a clean energy future and active
energy plans to achieve this, it maybe a step back into the
past if coal fired power plants were to be used to power the
logistics hub. The nature of the logistic hub would require
24 hour power in order to facilitate transport of goods and
services to and from ports in other countries. A more renew-
able approach should be sought for power generation for the
logistics hub. Although it may be impossible to power the
logistics hub totally by renewable sources of energy, priority
should be given to the maximum use of combined renewable
energy sources before considering coal as a primary option.
The amount of fuel used to generate electricity depends on
the efficiency or heat rate of generators used in power
plants and the heat content of the fuel. Using data from the
EIA, and accounting for power plant heat rate and heat con-
tent for coal and petroleum, assuming that the Logistics Hub
would need 100 MWh (for the purpose of simplification) of
electricity per year, therefore the hub would need 54.288
tonnes of coal each year. Using the average price of coal for
March 2014 of US$44.68, to import this amount of coal
would cost US$2425.62.
Similarly, to generate 100 MWh of energy using petroleum,
the hub would require 187.62 barrels of oil. At a rate of
US$100.76, this would cost US$18,904.59 to run the hub for
a year using oil.
Using this example shows that coal is the cheaper of the two
fuel sources highlighted. However, whilst coal might be
cheap and plentiful when compared to other fuels, if the
logistics hub is to be powered by ‘clean coal’ the product
would become expensive when compared to other fuels.
Using clean coal technologies involve scrubbing mechanism
that will have to be factored into the price of coal and the
increased amount of coal that would be needed as a result of
the application of clean technology. Additionally, the main-
tenance of the plant, cost of raw materials and associated
environmental and social costs would have to be taken into
consideration.
Conclusion
Based on the negative environmental impacts and the
numerous health risks the burning of coal poses, using coal
fired would not be an ideal alternative energy source for the
logistics hub. However, in the short term because coal is
plentiful and cheap it could be considered as a viable
alternative, but one should bear in mind that due to the
various processes that coal undergoes to minimize the level
of harmful emissions from burning, this could increase the
price of coal relative to other fuels such as natural gas and
so clean coal may not even become an option.
Table 1: Cost per unit of Coal and Petroleum Energy Sources as at March 2014
Image Source: www.ezwebsite.org
page 4 Call: 1-876-927-1779 | Caribbean Petroleum Update : March 2014
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
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Caribbean Petroleum Update : March 2014 | Call: 1-876-927-1779 page 5
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP
MARCH 2014 MARCH 2014
NOTE: *US Gallon = 3.785 L *Imperial Gallon = 4.546 L *As at November 1, 2009 MTBE was phased out from all gasoline blends in Jamaica and replaced with 10% Ethanol.
Retail prices for Regular Unleaded Gasoline in the fourteen Caribbean countries reviewed at the end of March 2014
showed increases in prices for six countries namely; Bahamas, Barbados, Dominica, Grenada, Jamaica and St. Vincent
and the Grenadines. Prices in the remaining eight countries remained stable. Price increases ranged between 0.4% and
3%, with Grenada experiencing the highest increase of 2.6%.
See prices for all products See prices for all products See prices for all products
at at at www.cippet.orgwww.cippet.orgwww.cippet.org
Regular Unleaded Gasoline: Average Retail Price (US$/Litre) 2014
COUNTRIES JAN FEB MAR 3 Mths
AVG
ANTIGUA/ BARBUDA 1.23 1.23 1.23 1.23
BAHAMAS [91 OCT] 1.36 1.37 1.38 1.37
BARBADOS 1.54 1.57 1.59 1.57
BELIZE [87 OCT] 1.42 1.42 1.42 1.42
B.V.I [87 OCT] 1.21 1.21 1.21 1.21
DOMINICA 1.15 1.16 1.18 1.16
GRENADA (95 OCT) 1.26 1.25 1.28 1.27
JAMAICA 87 Octane[E10] 1.23 1.24 1.26 1.25
MONTSERRAT 1.25 1.25 1.25 1.25
ST. LUCIA 1.32 1.31 1.31 1.31
ST. VINCENT/ GRENADINES 1.08 1.07 1.09 1.08
SURINAME [95 OCT] 1.39 1.37 1.37 1.37
TRINIDAD/ TOBAGO [92 OCT] 0.42 0.42 0.42 0.42
TURKS/ CAICOS 1.52 1.52 1.52 1.52
page 6 Call: 1-876-927-1779 | Caribbean Petroleum Update : March 2014
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
Caribbean Energy Information System (CEIS)
primary report of historical annual petroleum energy
statistics provided for 18 Caribbean Countries.
Included are data on total energy production,
consumption, and trade; overviews of petroleum,
natural gas, electricity, as well as financial and
environmental indicators for over twenty years.
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International Crude Oil Prices ended the three
month period January to March 2014 with an
average price per bbl of US$100.76. Prices in
March 2014 was 6.6% above January 2014
average and 0.2% lower than the average
price in February 2014. The highest weekly
price seen in March for the commodity was
US$103.07/bbl-reflected in week one while
the lowest price for the three month period
was in January (US$92.42/bbl). New pipeline
capacity from the Midwest to the Gulf Coast
helped to reduce inventories in the United
States.