What is the True Cost of Using Coal as a Fuel in Today’s Market ?
• The price per ton of delivered coal has fluctuated between $70 and $120 per ton in recent months. Let’s assume that you can get a long-term (5 year) contract to purchase 11,000 BTUs per pound coal at a delivered price of $100 per ton. • Some projections are that once the economy gets out of the current downturn, coal may go up to $150 per ton. • What are the extra costs associated with burning a ton of coal? – You may have to purchase NOX credits. – You may have to purchase SOX credits. – You will have some type of cost associated with ash disposal. – You may have to purchase carbon credits or RECs. • So, the true cost of burning a ton of coal in a power plant may be closer to the $150 per ton cost rather than a $70-$80 per ton cost. What is the Cost of Using EcoFuel (torrefied biomass) as a Fuel in Today’s Market? • Let’s assume we start with $100 per ton with the EcoFuel having the same BTU per pound value (11,000) as coal. • By using biomass as a fuel, the user may earn tax credit
