NEW PERSPECTIVES ON KENTUCKY'S COAL RESOURCES

Coal in Kentucky has historically been an important fuel for the electric power industry. During the past decade, however, environmental regulations have placed a premium on the extraction and utilization of low sulfur coal. In fact, switching from high sulfur coal to low sulfur coal has been the most popular option used by utilities to comply with the Clean Air Act Amendments of 1990. This change has resulted in a major geographical shift in coal production. Between 1990 and 1995, production of low sulfur coal from the Powder River basin (Wyoming and Montana), central Appalachian basin (Virginia, eastern Kentucky, and southern West Virginia), and Rocky Mountain region (Colorado and Utah), increased by over 100 million tons. In contrast, production of higher sulfur coal from the northern Appalachian region (Maryland, Pennsylvania, Ohio, and northern West Virginia), and the Illinois basin (Illinois, Indiana, and western Kentucky) decreased by nearly 70 million tons during the same time period. This trend toward the increased use of low sulfur coal has greatly impacted coal production in Kentucky, and has raised concern as to the amount of low sulfur coal that will be available for future use. Other issues have also surfaced. The construction of new power generation facilities, which will employ advanced combustion and gasification technologies, have been proposed. Four facilities will utilize fluidized bed combustion technology, and will consume low grade coal (high ash and sulfur, low BTU), as well as coal preparation plant waste material. Another proposed plant will employ integrated gasification combined cycle technology that uses coal to produce synthetic gas, rather than burning it in a conventional sense. These new technologies will consume coal, and coal byproducts, that previously were not even considered a resource (e.g., preparation plant waste). They also will use them in an unconventional manner (e.g., gasify rather then burn). In light of this, there is a real need to reevaluate Kentucky's coal resources to incorporate the fuel requirements of these new technologies.