BUSINESS

China, US seek 'clean coal' agreement as industry struggles

Staff Writer
Columbus CEO

BILLINGS, Mont. (AP) — U.S. and China officials worked toward an agreement Tuesday to advance "clean coal" technologies that purport to reduce the fuel's contribution to climate change — and could offer a potential lifeline for an industry that's seen its fortunes fade.

The agreement between the U.S. Department of Energy and China's National Energy Administration would emphasize collaboration on measures to capture the greenhouse gases produced from burning coal, said Christopher Smith, the Energy Department's assistant secretary for fossil energy.

The deal was expected to be finalized late Tuesday. Officials declined to make further details available until it was completed.

Smith and other senior officials from President Barack Obama's administration met with representatives of China's National Energy Administration to finalize the agreement during an industry forum in Billings. The discussions took place near one of the largest coal reserves in the world — the Powder River Basin of Montana and Wyoming.

But clean-coal technologies are expensive, and efforts to develop them for commercial use have struggled to gain traction in the U.S. Some critics describe clean coal as an impossibility and say money being spent on it should instead go toward renewable energy.

China leads the world in coal use. It produces and consumes roughly 4 billion tons annually, roughly four times the rate in the U.S.

Shi Yubo, vice administrator of China's energy administration, told delegates to the forum that coal will continue to play a role in China's developing economy. "But we need to pay special attention to developing clean coal technology," he added.

Shi said China was seeking to develop more demonstration projects that capture carbon to prevent it from escaping into the atmosphere. He acknowledged that efforts to put the greenhouse gas to beneficial use "are still far behind."

Meanwhile, the U.S. coal industry has suffered a beating in recent months, with major mining companies going bankrupt.

The Interior Department is proposing hikes on coal royalties and possibly lease payments for publicly owned reserves of the fuel in areas such as the Powder River Basin. Also, cheap natural gas is squeezing out demand for coal, and Obama has made reductions in carbon dioxide emissions from coal-fired power plants a key component of his climate policy.

"Those emissions are driving climate change," Smith said. "As the world's leading economies, it's critical for the U.S. and China to collaborate."

Almost one-third of energy-related carbon dioxide emissions in the U.S. come from burning coal, equivalent to 1.6 billion tons of the gas in 2014. By comparison, two clean coal projects that Smith described as closest to completion — the Petro Nova project in Texas and the Kemper project in Mississippi — would capture less than 5 million tons of carbon dioxide annually.

He said the interactions between his agency and its Chinese counterpart created opportunities for companies from both countries to come together on ways to meet ambitious plans to cut emissions.