Effect of coal cleaning and SO2 allowance on cost of compliance coal

The 1990 Clean Air Act Amendment (CAAA) has negatively impacted the utilization of medium-to-high sulfur coals in the U.S.A. Phase II of the amendment requires that all utility units greater than 25 MW emit at a rate less than 1.2 Ib SO2/mmBtu. In this paper, a method that can render the medium-to-high sulfur coals compliant with Phase II, and yet cost competitive, is introduced. This method utilizes strategic mining, optimized preparation plant operation and advanced fine coal cleaning (AFCC) along with SO2 allowance to produce compliance coal. The method is illustrated using four types of coals from southern Illinois, which contain varying amounts of pyritic and organic sulfur. Of the four coals three could be rendered cost competitive at the current price of SO2 allowance.