Let’s Brighten the Many Faces of Global Energy Poverty Campaign powered by Peabody Energy Energy poverty. It’s the world’s number one human and environmental crisis. It holds people and societies down, cripples health and damages the environment. Access to energy is an essential gateway to modern living, longer lives and powerful economies. That’s why Peabody Energy is working to build awareness and support to end energy poverty, increase access to low-cost electricity and improve emissions using today’s advanced clean coal technologies. We call it Advanced Energy for Life. Because clean, modern energy is the solution for better, longer and healthier lives. Together we can brighten the faces of billions by improving energy access for all. Be part of the solution in your community and around the world. Visit AdvancedEnergyForLife.com. Energy Poverty: The World’s Number One Human and Environmental Crisis Energy is essential – like food and water. It’s the key to a better, longer life for half the world’s population, bringing improvements in education, health and longevity. Yet, electric heat, lights, refrigerated food and medicine – crucial for basic needs that some people take for granted – are still unavailable in many parts of the developing world. The U.N. Millennium goals called for a rapid halving of extreme global poverty by 2015. Today there are still some 3.5 billion people who live in energy poverty. Another 2 billion people will need energy access in the next two decades based on population growth.1 Across the globe in developed and developing nations, inadequate access to energy has devastating social, human health and economic consequences: lives shortened, opportunities lost and economies stalled. The Effects of Global Energy Poverty are Devastating • Half the world’s population lacks proper energy and as many as 1.2 billion are children.2 • In India nearly 300 million people have no power,3 and more than 700 million people lack access to modern energy services for lighting, cooking, water pumping and other productive purposes.4 Half the world’s population lacks proper energy and as many as 1.2 billion are children. A woman in India gathers dung used for heating her home. At least 300 million people in India have no power and upwards of 700 million lack access to modern energy services. Greater access to clean electricity from coal is a major part of the solution. Advanced Energy for Life | 01 • Africa has 15 percent of the world’s population, yet 50 percent of Africans live without adequate access to electricity.5 • Even in developed nations, low-income families struggle with the high cost of energy, forcing them to choose between putting food on the table and paying energy bills.6 • In the United States, 48 million people are living in poverty,7 and families are paying a disproportionate amount of their income attempting to adequately heat or cool their homes. Families earning less than $30,000 will pay an average of 26 percent of their after tax income for energy8 Energy is Essential for Health and Longevity • Globally, an estimated 1 billion people receive substandard care in health facilities because of a lack of electricity, which prevents refrigeration of medicines and vaccines, sterilization of medical tools, or the use of X-ray machines, ultrasound or incubators.9 • An estimated 50 percent of vaccine supplies sent to developing countries are ruined because of lack of or unreliable electricity connections in the delivery supply chain.10 • Electricity is also necessary for clean water: Globally, 2.5 billion people do not have access to improved water sanitation facilities.11 • There is a direct correlation between electricity access, improved education and longevity.12 All people around the world deserve a chance to live with the same quality of life enjoyed by the middle class in developed nations. Energy is a Human Right and a Rapidly Rising Need 3.5 BILLION people lack proper access to electricity 348M 140M 1M 65M 18M 988M 134M 496M 210M 436M 29M 589M Millions of people who lack adequate electricity Millions of people who have no electricity Source: International Energy Agency, World Energy Outlook 2012, The World Bank World Development Indicators 2012, CIA World Factbook 2012. The face of energy poverty is stark, with as much as half the world’s population lacking adequate energy. The world has the technologies and the resources to end this crisis. Coal has the scale to meet this need. 02 | Advanced Energy for Life Greater Electricity Use Extends Longevity Human Development Index (0-1) United Nations links affordable energy to quality of life 1 Germany Japan United States 0.9 Brazil 0.8 0.7 China India 0.6 0.5 Life expectancy, educational attainment and lower poverty levels are all statistically connected to higher levels of electricity use. Nigeria 0.4 0.3 0 2,000 Russia 4,000 6,000 8,000 10,000 12,000 14,000 Electricity Use per Capita per Year (kWh) Source: World Bank, 2012; United Nations, 2012. 16,000 There is a strong correlation between electrification and improvement in the U.N. Human Development Index, which is a tool for measuring development based on life expectancy, educational attainment and income. Greater access to electricity leads to enormous improvements in all of these standards toward longer, healthier lives. Energy Poverty is the Fourth Leading Cause of Death Globally • Almost 3 billion people use primitive stoves to burn wood or other biomass to cook and heat their homes, creating indoor air pollution that cuts lives short.13 • Every hour of rudimentary cook stove smoke exposure is equivalent to inhaling 400 cigarettes.14 • Indoor air pollution has been cited as the fourth leading cause of death globally, with pollution from biomass use directly responsible for more deaths than malaria, almost as many as tuberculosis and nearly half as many as HIV/AIDS.15 • The gathering of biomass for fuel disproportionately affects women and children, keeping them out of school, away from childcare, and away from more productive work.16 • The uses of wood and charcoal for cooking in Africa are also contributing to deforestation, with annual losses of forest equal to the size of Switzerland.17 Advanced Energy for Life | 03 Energy Access Correlates With Education and Economic Advancement • In the developing world, half of all children – 291 million students – attend primary schools with no electricity; in Sub-Saharan Africa this percentage rises to 90 percent.18 • Lack of electricity stunts the development and growth of businesses and services; in a survey of Sub-Saharan African countries, one-third of respondents cited electricity as the top constraint on enterprise growth.19 • In Pakistan, forced power outages of 12 to 18 hours per day caused by electricity shortages have cost the country $12.5 billion, or 6 percent of annual gross domestic product, and caused the loss of approximately 500,000 jobs in recent years.20 Coal is Key to Solutions for Energy Access In the global action plan to end energy poverty and increase access to low-cost electricity, all energy forms are needed. Coal, the world’s most abundant energy source, is expected to surpass oil as the largest energy source in coming years according to energy industry analysts.21 Coal plays a major role in the campaign to end global energy poverty and increase access to low-cost electricity while using today’s advanced technologies to improve emissions. Greater use of coal is key to human health and welfare along with a clean environment. Millions of women and children around the world spend their days collecting firewood, dung or other materials for cooking and heating. 04 | Advanced Energy for Life Clean Coal: The Power Fueling Advanced Energy for Life Every day more than 365,000 babies are born and some 340,000 people gain access to modern electricity for the first time. Every day, more than 85,000 people move to cities in China and India, 950,000 Twitter accounts are opened and more than 1 million people create an internet account. Every day 21 million tons of coal are used to help power these needs.1 The world needs more energy to sustain growth for a new global middle class as populations migrate to urban centers and citizens embrace modern living. That means much greater use of appliances, electronics, automobiles and other conveniences, which create enormous demand for energy and steel. Coal is the sustainable fuel that can satisfy these needs at scale. Coal Plays an Essential Role in Meeting the World’s Energy Needs • Coal comprises 55 percent of the world’s energy resources,4 has been the world’s fastest-growing major fuel the past decade and is projected to overtake oil as the world’s largest energy source in coming years.5 14,000 12,000 10,000 $90 $80 Global electricity from coal $70 World GDP $60 $50 8,000 $40 6,000 $30 4,000 $20 2,000 1970 $100 $10 1980 1990 2000 2010 World GDP (Trillions of 2005 $) • Around the world, coal use has soared 335 percent since 1970, demonstrating a near perfect correlation between coal use and global growth in Gross Domestic Product (GDP).3 335% 16,000 Electricity from Coal (TWh) • Coal fuels nearly 30 percent of global energy consumption – its highest share since 1969 – and more electricity than any other energy source.2 The World’s Use of Coal-Fueled Electricity Mirrors the Global Since 1970, coal use has increased Rise in GDP approximately 2020 Source: Developed from International Energy Agency World Energy Outlook 1995-2011; U.S. Department of Agriculture, 2011. There is a near perfect correlation between expanding coal use and growing economies. A rapid rise in the world’s use of coal-fueled electricity mirrors the global rise in GDP. Advanced Energy for Life | 05 Coal is the power energizing the world Our energy needs in perspective: In just one day... Global population will increase by 210,000 225,000 New cars will be sold 85,000+ People will move to cities in China and India 1,100,000 21 People open an internet account million metric tons 950,000 of coal will be used Twitter accounts will be opened Source: Oxfam, U.N. Development Programme, Internet World Stats 2013, Wards Auto, International Energy Agency, The Next Web. The world has an appetite for modern conveniences that require more and more energy. Digital lifestyles drive enormous use of electronics, the Internet, Twitter and other social media, and are a major contributor to increasing energy demand. • Today as many as 3.5 billion people lack adequate access to electricity, and about 1.2 billion are children. In as little as 20 years, another 2 billion people will need energy based on population growth forecasts.6 • In the United States, coal generates low-cost electricity: The states that don’t use coal pay electricity rates that are more than 50 percent higher than the states that use substantial coal for electricity.7 • Coal’s environmental profile in the United States also continues to improve thanks to today’s advanced technologies. Coal used for electricity increased 173 percent since 1970, while key power plant emissions have been reduced nearly 90 percent.8 3.5 billion people lack adequate access to electricity. 06 | Advanced Energy for Life Electrification and Urbanization are Driving Greater Coal Use • Electrification and urbanization are driving greater coal use. China and India will account for more than 80 percent of coal’s growth in coming years as hundreds of millions of people benefit from greater energy access and move to cities.9 • World coal demand is projected to increase by more than 700 million tonnes in the next three years. About As world energy needs continue to grow, coal is a major 250 gigawatts of new coal generation part of the solution. Coal is the world’s fastest-growing fuel are expected to come online during and projected to become the world’s largest energy source that time. Every gigawatt represents in coming years. 3 million tonnes of additional coal use over time. Much of this demand is being satisfied by state-of-the-art generation.10 • China and India house more than 60 percent of the world’s advanced supercritical coal fleet, which is highly efficient and can drive carbon dioxide (CO2) emissions that are up to 25 percent lower than the oldest plants.11 Coal is Abundant, Reliable, and Importantly… Low Cost • The world’s 3,000 coal plants are the tireless workhorses of the world’s generating fleet, producing the most reliable, most competitive baseload power around the clock. • Coal reserves are large and geographically diverse, from a variety of nations both large and small, developed and emerging, on every major continent.12 • America has 27 percent of the world’s coal reserves, the largest single national energy source in the world. The world has a more than 100-year supply of coal.13 Coal Will Continue to Fuel our Energy Future All over the world, today’s advanced coal fuels electricity that is affordable and clean, creating energy access for hundreds of millions of people and continuing to provide improved emissions. Coal is the only energy source that is low in cost and available at the scale to meet the world’s 21st Century energy needs. Advanced Energy for Life | 07 Advanced Coal Technologies: Today’s High-Efficiency Controls Drive Major Environmental Improvements Securing affordable energy access in the face of unprecedented global demand is vital for developing and developed nations around the world. As the demand for energy continues to grow, the deployment of advanced coal technologies will be key to achieving important global energy, economic and environmental goals. The path occurs in two primary forms: 1) Using today’s advanced technologies to reduce key power plant emissions. There are a suite of technologies that are the best available today and result in improved efficiency and lower emissions. 2) Investing in research and development in next-generation technologies in carbon capture, use and storage applications. Carbon capture technologies are not yet commercially feasible for power plants, but research is promising for long-term use.1 U.S. Coal Use Dramatically Increases, Key Emissions Decline 89% 200% Coal used for electricity generation +173% GDP per capita % Change since 1970 150% Emissions/kWh from coal plants +116% 100% 50% 0% -50% -100% 1970 -89% 1975 1980 1985 1990 1995 2000 2005 2010 2013 Source: U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, “Clean Air Markets,” 2013. 08 | Advanced Energy for Life Today’s clean coal technologies drive enormous environmental improvement. Since 1970, coal used for electricity has nearly tripled alongside a doubling of GDP as key emissions have decreased 89 percent. Modern Emission Controls at Coal-Fueled Plants are Highly Efficient and Successful The United States has shown that more coal can be used to produce more electricity, more efficiently, while reducing emissions. State-of-the-art technologies reduce key emissions by using lime or limestone-based solutions to scrub sulfur dioxide (SO2), advanced coal burners and catalysts to reduce nitrogen oxides (NOx) and electrically charged plates or fabric filters to remove particulates. A combination of all of these technologies, in addition to use of sorbent injection systems, enables highly efficient mercury removal. This collection of technologies is used at the Prairie State Energy Campus in Southern Illinois, a supercritical power plant equipped with $1 billion in emission controls. Best-in-class technology coupled with the plant’s efficiencies result in key emissions that are two-thirds lower than the existing fleet. Advanced Energy for Life | 09 Coal used for electricity has increased more than 170 percent since 1970, as GDP more than doubled and key emissions per kilowatt hour decreased 89 percent.2 This decline in emissions has been achieved through the deployment of modern technologies that allow coal-fueled electricity generating plants to produce more power with fewer emissions. Utilities have invested more than $100 billion in these technologies in recent decades.3 At the same time, nations such as China are taking major steps to reduce direct coal use while increasing coal use for electricity generation, using best-in-class technologies and increasing the deployment of emission control technologies on existing plants. Greater deployment of today’s high-efficiency supercritical technology and emission control technologies is essential to continue driving enormous environmental progress. Coal used for electricity has increased more than 170 percent since 1970, as GDP more than doubled and key emissions per kilowatt hour decreased 89 percent. New pulverised coal combustion (PCC) systems – utilizing supercritical and ultra-supercritical technology – operate at higher temperatures and pressures and therefore achieve greater efficiencies than conventional units, driving significant carbon dioxide (CO2) and other emission reductions.4 These plants, when equipped with advanced controls, can have a key emission rate that is two-thirds lower than the existing U.S. fleet.5 The efficiencies delivered by these plants also reduce the CO2 emissions rate by as much as 25 percent below the oldest plants operating. Ultra-supercritical units operate at even higher efficiencies, potentially up to 48 percent. The introduction of ultra-supercritical technology has been advanced over recent years in countries such as China, Denmark, Germany and Japan to achieve improved plant efficiencies and reduce fuel costs. The Prairie State Energy Campus in Southern Illinois demonstrates the terrific environmental results achieved with today’s technologies. Prairie State is among the cleanest coal-fueled power plants in the United States. 10 | Advanced Energy for Life Next-Generation Technologies: The Continuous Improvement Path Toward Near-Zero Emissions Research and development is underway to advance next-generation technologies toward the ultimate goal of coal-fueled power that is virtually free of emissions. This approach would include commercializing carbon capture technologies for various uses. Projects and partnerships are progressing around the world. For example, the GreenGen power plant and carbon research center in Tianjin, China, commissioned its first 250 megawatt gasification unit in 2012. In later phases of development, GreenGen will increase generation to 650 megawatts and intends to capture CO2 for enhanced oil recovery in the nearby Dagang oil field. GreenGen could eventually be among the world’s largest near-zero emissions power plants.1 Other next-generation technology partnerships include the U.S. China Energy Cooperation program in Beijing; the FutureGen Alliance in Washington D.C.; the Consortium for Clean Coal Utilization in St. Louis; and the National Carbon Capture Center in Alabama. In Australia, key partnerships include the COAL21 Fund and the Global Carbon Capture and Storage Institute. China’s GreenGen power plant and carbon research center began operating its first 250 megawatt unit in 2012 and will capture carbon for enhanced oil recovery in later stages of development. Today’s advanced clean coal technologies are a major environmental success story. Investment in research and development toward next-generation solutions will continue this progress. In any action plan to end energy poverty and increase access to low-cost electricity, all forms of energy are needed, and coal plays an important role. The world has the technologies and the global resources to end this crisis. All of us must work together toward realistic solutions. Be part of our campaign. Visit AdvancedEnergyForLife.com. Advanced Energy for Life | 11 References Energy Poverty: The World’s Number One Human and Environmental Crisis International Energy Agency, World Energy Outlook 2012, The World Bank World Development Indicators 2012, CIA World Factbook 2012. 2 International Energy Agency World Energy Outlook, 2012; World Bank, 2012; CIA World Fact Book, 2012. 3 Policy Department Report PE 457.058, “Access to Energy in Developing Countries,“ European Parliament, Directorate General for External Policies of the Union, 2011. 4 B. Sudhakara Reddy and Hippu Salk Kristle Nathan, “Energy in the Development Strategy of Indian Households – The Missing Half,” Indira Gandhi Institute of Development Research, 2012. 5 Guatam N. Yadama, “Fires, Fuel and the Fate of 3 Billion: The State of the Energy Impoverished,” 2013. 6 “Climbing Costs of Heating Homes: Why LIHEAP is Essential,” Subcommittee on Children and Families, Senate Health, Education, Labor and Pensions Committee, United States, 2008. 7 U.S. Census Bureau “U.S. and World Population Clock.“ 8 Eugene M. Trisko, “Energy Cost Impacts on American Families 2001-2014,” American Coalition for Clean Coal Electricity, 2014. 9 Practical Action Poor People’s Energy Outlook 2013: Energy for Community Services, Rugby, UK: Practical Action Publishing. 10 Ibid. 11 Ibid. 12 World Bank, 2012; and United Nations, 2012. 13 World Health Organization Fact Sheet #297, 2011. 14 Barbara Fraser, “Killer Cookstoves: Indoor Smoke Deadly in Poor Countries; Cleaner Stoves Elusive,” Environmental Health News, 2012. 15 International Energy Agency, World Energy Outlook 2006, “Focus on Key Topics: Energy for Cooking in . Developing Countries,” 2006. 16 Ibid. 17 “Bamboo Energy Can Save African Forests,” African Business Magazine, May 2, 2013. 18 Practical Action 2013 Poor People’s Energy Outlook 2013: Energy for Community Services, Rugby, UK: Practical Action Publishing. 19 Vivien Foster, “Building Bridges, China’s Growing Role as Infrastructure Financier for Sub-Saharan Africa,” The World Bank, 2009. 20 Saeed Shah, “Power Outages Hobble Pakistan’s Biggest Exporters,” Wall Street Journal, Nov. 29, 2013. 21 BP Statistical Review of World Energy, 2013. 1 Clean Coal: The Power Fueling Advanced Energy for Life U.N. Development Programme, 2013; India Minister of Urban Development, 2012; The Next Web, 2012; Internet World Stats, 2013; Mining Weekly, 2013; Oxfam 2013; International Energy Agency, 2013; and Wards Auto, 2013; U.N. China National Human Development Report, 2013. 2 International Energy Agency, World Energy Outlook 2012. 3 International Energy Agency World Energy Outlook 1995-2011; U.S. Department of Agriculture, 2011. 4 International Energy Agency, World Energy Outlook, 2013. 5 BP Statistical Review of World Energy, 2013; and Wood MacKenzie. 6 International Energy Agency World Energy Outlook 2012; World Bank, 2012; CIA World Fact Book, 2012. 7 U.S. Energy Information Administration, 2012 data and February 2013 average retail electricity prices per kWh. 8 U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, “Clean Air Markets,” 2013. 9 China Customs, India Market Watch, other proprietary analysis. 10 Platts World Electric Power Plant Database, 2013. 11 Ibid. 12 BP Statistical Review of World Energy, 2013. 13 Ibid. 1 12 | Advanced Energy for Life Advanced Coal Technologies: Today’s High-Efficiency Controls Drive Major Environmental Improvements 1 2 3 4 5 U.S. Congress, Congressional Budget Office report, “Federal Efforts to Reduce the Cost of Capturing and Storing Carbon Dioxide,” June 2012. U.S. Energy Information Administration (EIA) 2014 Annual Energy Outlook, 2013; EIA Annual Energy Review, 2012; U.S. Department of Agriculture, 2013; U.S. National Energy Technology Laboratory, 2012; U.S. Environmental Protection Agency, “Clean Air Markets,” 2013. American Coalition for Clean Coal Electricity comments to EPA on PM2.5 Proposal, Aug. 31, 2012. International Energy Agency publication “Technology Roadmap: High-Efficiency, Low-Emissions Coal-Fired Power Generation,” Dec. 4, 2012. U.S. Environmental Protection Agency Clean Air Markets Database, 2013. Next-Generation Technologies: The Continuous Improvement Path Toward Near-Zero Emissions 1 China Huaneng Group news release, Dec. 12, 2012. Advanced Energy for Life | 13 Advanced Energy for Life is aimed at building awareness and support to end energy poverty, increase access to low-cost electricity and improve emissions using today’s advanced technologies. 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