A flexible alternative

Coal gasification offers the efficiency and flexibility independent producers will need in an increasingly competitive power environment. It is difficult to make an economic case for coal-based power of any kind in the current market in most areas because of the low price and availability of natural gas. Furthermore, there is a large excess of baseload coal and nuclear capacity in the United States and Europe. New capacity requirements, for the time being, are necessary mainly for cycling and peaking service where coal is not economical compared with the much lower capital cost of gas- or oil-based combustion turbine systems. However, as erosion of the supply and demand balance drives natural gas prices up and new baseload capacity is required, coal-based power will again be widely economical. Based on recent technical and commercial successes coupled with current commercial demonstration programs, coal gasification will dramatically challenge direct-coal-fired power for this market. The advantages coal gasification has over direct coal-firing for power generation include environmental performance, efficiency and flexibility.