OCDO

The Ohio Coal Story

INTRODUCTION

Ohio has a long history in coal production and a current reputation as a pioneer in clean-coal technology – a reputation that is recognized nationally and internationally. 

Ohio coal has made a major contribution to the state’s economy, especially since the days of the Industrial Revolution of the 19th and 20th centuries. Its importance has only increased with the rise in its use as the primary fuel source to generate electricity, with ongoing advances in clean-coal research and development.  These advancements have resulted in reduced emissions of pollutants, improved mining techniques, and successful conversion of coal-combustion byproducts into useful commercial products.

Partnering with Ohio universities, major utilities, research organizations, and diverse government agencies, Ohio is leading the way in providing clean, affordable energy to its residents and businesses through the increasingly effective, efficient use of one of the state’s most valuable natural resources – coal. 

COAL 101

In order to fully appreciate the importance of coal in our daily lives as Ohioans, it is helpful, first, to understand a few basic facts about coal.

What is Coal?

Coal is a combustible, organic, sedimentary rock composed primarily of carbon, hydrogen, and oxygen.  Its formation began in prehistoric times – some 290 million to 360 million years ago – as vegetation accumulated in peat bogs and swamps.  Gradually, the vegetation was buried by various sediments, often to great depths, in conjunction with movements in the earth’s crust.  Subjected to high temperatures and pressures underground, the vegetation experienced physical and chemical changes that ultimately transformed it into peat and then into coal. 

There are four main types of coal: lignite, subbituminous, bituminous, and anthracite. 

• Lignite is the lowest rank of coal with  a heating value from 3000 to 7000 Btu per pound, the lowest energy content of all types of coal.  Roughly eight percent of coal produced in the United States is lignite.
• Subbituminous coal has better energy value, approximately 9000 Btu per pound. It represents about 40 percent of coal production in the U.S.
• Bituminous coal has a heating value ranging from 10,000 to 13,000 Btu per pound and provides two to three times the heating value of lignite.  It represents about half of U.S. coal production.  Ohio coal is bituminous.
• Anthracite contains the highest carbon values, between 86 and 97 percent, with a slightly higher heating value than bituminous coal.  It is the rarest form of coal in the U.S.

Where is Coal Located?

Coal can be found on every continent and in more than 70 countries.  The United States has, by far, the largest reserves of coal worldwide, followed by Russia, China, India, and Australia.  Coal is mined commercially in more than 50 nations.  The world’s top five coal-producing countries, in order, are China, the United States, India, Australia, and South Africa.

Why is Coal Important?

Because of its very high energy content, coal has been an important fuel source for humankind.  It is used primarily in power generation, the production of iron and steel, the manufacturing of cement, and the production of liquid fuel.  The great majority of coal production is consumed in the country where it is mined.

Nearly 40 percent of the world’s electricity production is fueled by coal – more than double the next largest source.  In the United States, the number rises to approximately 50 percent.  Coal’s use in electricity generation has tripled in the U.S. since 1970.  During this same period, emissions from coal-based plants were reduced by one-third.  Ninety percent of coal production in America is used for generating electricity, and that works out to 3.8 tons of coal for each American every year.

The nation’s demand for electricity is expected to grow significantly over the next several decades. Coal will remain the world’s, the nation’s and Ohio’s energy work horse producing bulk, reliable, secure electric power at a reasonable cost. Such an energy source is essential to sustain a complex economy such as Ohio’s.

OHIO AND COAL

Since it was first mined in Jefferson County two centuries ago, Ohio’s bituminous coal has played an increasingly important role in the growth of Ohio and our state’s economy.  In fact, it is not an overstatement to say that coal is an absolutely vital component in the quality of life we enjoy today as Ohioans.  It’s also vital to Ohio’s future.  That’s because nearly 90 percent of our electricity in Ohio is generated in coal-fired power plants (compared to approximately 50 percent nationally). More than most other states, Ohio relies on coal to provide reliable electricity to our homes, workplaces, schools, health care facilities – in short, just about everywhere.

Ohio Coal Mining and Production

An estimated three billion tons of coal have been mined in Ohio since the early 1800s.  Ohio became one of America’s largest coal-producing and -consuming states during the Industrial Revolution. 

In the first two decades of the 20th century, the number of coal miners in Ohio had grown to its record peak of more than 50,000.  By 1972, the number had fallen to approximately 10,300 miners who extracted nearly 51 million tons of coal that year.  In 2004, Ohio’s 2,300 miners extracted 23.5 million tons of coal.  The decline in Ohio coal production is a reflection of several factors, including environmental regulations, electric utility environmental compliance strategies, and competition from low-sulfur western coal, natural gas and petroleum.

Coal is currently mined in 16 eastern and southeastern Ohio counties, with Belmont County being the all-time leader in coal production.  In 2004, Belmont, Harrison, Athens, Tuscarawas, and Vinton Counties were the five leading coal producers.  The other counties include Carroll, Columbiana, Coshocton Jackson, Jefferson, Mahoning, Muskingum, Noble, Perry, Stark and Washington.  In that same year, coal was produced by 31 companies at 94 mines in those counties.  Nearly 61 percent of coal production occurred at seven underground mines, with the remaining 39 percent being produced by 94 surface mines.

It is estimated that Ohio has approximately 250 years’ worth of coal reserves remaining underground at present rates of demand.

Ohio Coal Today – A Brighter Outlook

In 1984, the Ohio General Assembly affirmed the importance of coal in Ohio by creating the Ohio Coal Development Office (OCDO).  More importantly, the following year, the people of Ohio overwhelmingly passed a bond issue to provide funds to support clean coal-technology research and development.  OCDO was part of the Ohio Department of Development until its transfer to the Ohio Air Quality Development Authority (OAQDA) in July 2003.

OCDO’s over-arching mission is to help fund the research, development, and deployment of new clean-coal technologies that can use Ohio’s vast reserves of high-sulfur coal in an economical, environmentally sound manner.  Its statutory priority is toward assisting larger pilot and demonstration projects of new and emerging technologies.  The General Assembly appropriately recognized that Ohio had few programs dedicated to getting coal-focused research and development projects out of the labs and into the real world.

Other OCDO priorities include:

• Helping secure a domestic energy resource found in abundance in Ohio
• Supporting the jobs associated with coal production and use
• Improving the environmental performance associated with its use
• Developing coal’s potential, not just as a fuel, but as a chemical feedstock (producing hydrogen for fuel cells or as a source for carbon nanofibers, for example)
• Providing means for Ohio’s coal-based electric power generation plants to continue producing clean, bulk, reliable, lower-cost power for the benefit of Ohio residents, industries, and commercial enterprises

OCDO’s creation occurred at a time when Ohio coal production and employment were already on the wane, following some peak years in the 1970s.  However, many industry and energy experts today are predicting a brighter future for coal nationwide, driven in part by the soaring price of alternative fuels such as natural gas.  Thus, the work OCDO has done since its creation has helped position Ohio coal to be part of this forecasted resurgence.

OCDO works in partnership with Ohio universities, electric utilities and other coal-based electricity generators and energy producers, coal companies, public and private research institutions, environmental groups, and other energy-related organizations to identify and prioritize projects worthy of financial assistance.  Since its inception, OCDO has invested more than $175 million in projects statewide, reflecting a very wide range and diversity in subject matter.  This OCDO investment was used to leverage an additional $550 million for these projects from other sources.  They include projects aimed at:

• Minimizing or eliminating pollutants produced in the coal combustion process
• Supporting multi-pollutant control technologies
• Fostering improved carbon dioxide (CO2) control and management, including deep sequestration underground, in anticipation of stricter regulations
• Promoting advanced mining techniques
• Improving boiler design and materials, and eliminating boiler operating issues, to foster the more efficient use of coal in electricity generation
• Identifying methods for converting coal byproducts into commercially valuable substances, such as fertilizer and highway pavement

OCDO’s partnership with Ohio universities is of special note.  In support of fundamental and applied clean-coal research, OCDO currently funds the Ohio Coal Research Consortium (OCRC), comprised of Case Western Reserve University, Ohio University, The Ohio State University, the University of Akron, the University of Cincinnati, and the University of Dayton.

Using a review process that includes participants from electric utilities, private research institutions, technology companies, federal and state agencies, OCDO funds projects that:

• Address technical problems being experienced by end-users of Ohio coal, and improve technologies that enhance its continued and expanded use
• Minimize the environmental impact of coal-based technologies
• Generate innovative research in the field of coal use
• Train Ohio-based scientists and technology experts in clean-coal emissions control technologies

Ohio’s citizens and political leaders had the foresight in the 1980s to address the various challenges facing the coal industry through the creation of a program dedicated solely to enhancing coal’s viability as an environmentally sound energy producer.  Through the efforts of OCDO and its various partners, Ohio is today recognized as a national leader in the development and deployment of clean-coal technology.  That foundation, combined with the financing assistance available through the programs of the Ohio Air Quality Development Authority, represent a strong economic development tool for Ohio. As the predicted resurgence in coal production and use occurs, Ohio is well positioned to respond and benefit.

For additional information, contact the OhioAir Quality Development Authority, 614-224-3383 or visit www.ohioairquality.org

OHIO COAL FACTS

• Ohio ranks 4th nationally in coal consumption, trailing only Texas, Indiana, and Illinois
• Ohio ranks 4th nationally in industrial energy consumption
• Ohio ranks 7th nationally in coal reserves
• Ohio ranks 13th nationally in coal production
• Approximately 90 percent of Ohio’s electricity is generated by coal, compared to 50 percent nationwide and 40 percent worldwide
• Ohio is home to 26 major coal-based electricity generating plants
• Today, approximately 2,300 Ohioans work as coal miners, with each creating an estimated 11 spin-off jobs
• In 1980, the average miner produced 1.93 tons per hour – today, the number has risen to 7.10 tons per hour, largely through technological advancements
• The average annual income of underground mine production workers in 2003 was more than $52,000, with surface miners earning an average of more than $41,000
• Coal is currently mined in 16 Ohio counties and has been mined in 32 total counties since mining began in the early 19th century
• 61 percent of coal mined in Ohio comes from seven underground mines, with the remaining 39 percent coming from 94 surface mines
• 57 percent of mined Ohio coal is transported by trains, with the balance being trucked and barged

Sources:

- U.S. Energy Information Agency
- Ohio Air Quality Development Authority
- Ohio Coal Development Office
- “Report on Ohio Mineral Industries,” Division of Geological Survey, Ohio Department of Natural Resources
- Ohio Coal Association
- World Coal Institute
- Peabody Energy