Alaska Sees Increase In Coal Exports

Alaska’s coal exports to the Pacific have jumped following a two-year slump, according to the state’s sole producer.

The company, Usibelli Coal Mine, is optimistic exports could stay strong despite international efforts to regulate fossil fuel use.

Usibelli’s coal exports, which normally account for about one-third of its production, almost tripled from 2007 to 2009, according to Steve Denton, a company vice president. Shipments to Asia and Chile should be near 817,000 tons this year, more than the previous two years combined, Denton estimated Wednesday night during a panel discussion on Alaska’s coal industry.

The presentation drew roughly 50 people to the Noel Wien Library. Some questioned Alaska coal’s prospects given domestic and international efforts to reduce carbon emissions and state and federal subsidies for alternative energy. Coal still stands as one of the cheapest sources of power around, and Denton indicated the company expects international coal markets to hold strong in the long run.

The United States relies heavily on coal power, less so even than China and developing countries, and Alaska sits as a major potential supplier. The state’s estimated 5 trillion tons of undeveloped coal reserves could account for more than 10 percent of the world’s supply.

“It’s pretty hard to see the end of coal as a resource,” Denton said.

The discussion’s question-and-answer segment resembled broader debate about power production’s environmental and economic impacts. Usibelli’s export figures come as nations seek cuts to greenhouse gas emissions, pollution blamed in part on coal-fed power in developing countries. Interior Alaska still relies partly on coal power, and Fairbanks’ electric utility plans soon to restart a 50-megawatt experimental coal plant near Usibelli’s Healy mine.

But the state also is seeking more renewable power, and Gov. Sean Parnell on Monday proposed depositing $25 million in a fund for renewable energy grants. State lawmakers are separately weighing a proposed “emerging energy technology fund.”

Denton said various factors could make Alaska coal attractive to international buyers. Shipping costs across the Pacific Ocean fell last year, he said, making it cheaper to sell coal overseas and increasing profit at home.

“When price goes down on shipping, it’s generally good for us,” Denton said.

Rajive Ganguli, a mining engineer at the University of Alaska Fairbanks, said much of Alaska’s coal reserves hold relatively low sulfur and mercury levels, making it environmentally cleaner than coal from many regions.

Usibelli produces roughly 1.5 million tons of coal per year. The bulk goes either to cogeneration power plants, which produce both electricity and feed underground district heating networks, or is exported.

Wednesday’s discussion was part of a monthly lecture series sponsored by the Alaska Center for Energy and Power.

Source: Fairbanks Daily News