Refined coal production increases in United States

U.S. production of refined coal reached record highs in 2017 and production numbers are projected to increase even further in 2018, according to the Energy Information Administration.

Through the first three quarters of 2018, refined coal production totaled 121 million short tons (MMst), which is 21 percent of the total U.S. coal production of 563 million short tons. Refined coal – which has been processed to reduce emissions when burned – has seen its share of total coal tonnage consumed increase from 15 percent in 2016 to 18 percent through October 2018.

Refined has increased at a time when there has been an overall decline in total U.S. coal consumption. U.S. coal consumption has declined since 2008. It generated more than 235 million megawatt hours (MWh) of U.S. electricity in 2017 or 20 percent of net coal generation. This represents an increase of 2 percent from 2016. And through October 2018, refined coal is expected to represent more than 22 percent of total coal generation. Producers continue to add refined-coal burning plants even as older conventional coal plants retire. Specifically, 36 new refined coal plants are coming online from 2016 through October 2018.

Refined coal is made by mixing additives to feedstock coal that increase the production of mercury oxides. Mercury oxides can then be captured by using mercury emission reduction technologies.

Additionally, refined coal production qualifies for a tax credit under the American Jobs Creation Act of 2004. To qualify, producers must prove that burning refined coal results in a 20 percent emissions reduction of nitrogen oxide and a 40 percent emissions reduction in sulfur dioxide or mercury.