Diversity Of Utility Scrub-Switch Decisions

Recent EPRI research on utilities? likely strategies to reduce sulfur emissions differs sharply from policy analyses showing all- switching or all-scrubbing choices. Energy Ventures Analysis, with Stearns-Catalytic and A. T. Kearney, estimated sulfur-removal costs for scrubbing or switching at virtually all affected plants in the 31 Eastern States. Cost tradeoffs occur between $30 and $40-plus per ton FOB mine in Central Appalachia ($33-44-plus per tonne). 1/2 to 3/4 of total sulfur reductions comes from scrubbing, whose costs act as a cap on low-sulfur coal prices. In a severe environmental scenario, low- sulfur coal demand evaporates, replaced by very low-sulfur (0.7%) coal demand. Additional findings and implications of EPRI coal supply and market studies will be reviewed.