Kevin Rowan column

Jun 19 2006 By Kevin Rowan, The Journal

The demise of coalfield communities is well understood in this region. The current energy crisis and the government's energy review has led to a reassessment of all of our energy supply options.

The aims of the review have been simple - to establish a secure, affordable energy supply and tackle the challenge of carbon emissions.

In our region, where we have a relatively high proportion of high-energy demand companies, we are seeing the consequences of getting our energy policy wrong.

Jobs have already been lost directly due to high energy costs, and we see business identify the issue as their number one concern.

There has been much media attention around the Prime Minister's apparent inclination toward the nuclear option.

There are some difficult issues here regarding waste and costs, but it is clear that nuclear will be an option the government will pursue.

There is also a strong, if not stronger, case for coal measured against the energy review ambitions.

World coal reserves equate to three times those of oil and two and a half times those of gas, and further reserves not yet proven to be economically viable are ten-fold greater than those of oil and gas combined - coal is very long-term.

These reserves would also suggest that some of the volatility associated with gas and oil prices, and the differential between these and the price of coal also mean that coal is affordable.

Thirdly, coal is supplied via a dispersed supply and distribution chain. Two fifths of world coal reserves are in OECD countries, compared to 10% of oil and gas - so coal is secure too.

Finally, clean coal technology, developed in the UK, if deployed on coal-fired power stations means this fuel is also clean, as well as secure and affordable for the long-term.

The UK possesses substantial economically extractable coal reserves of around 1bn tonnes, free of any volatility in international coal prices, exchange rates or any other external factor on energy prices.

Imported supply is insecure - in 2005 over 30% of UK coal supply came from Russia. This supply is much more likely to go to China as their economy expands rapidly in the short and medium term.

There is a role for coal, but support from government is needed to make this a reality. Carbon capture and storage technology must be applied to all coal-fired power stations, and this investment can be made easier and more feasible with the right adjustments to the Emissions Trading Scheme.

Government should also take a lead, in the way they have with nuclear power, by stating that coal must play a major part in our energy future, to give confidence to investors and credibility to an industry many thought had died.

Kevin Rowan is Regional Secretary Northern TUC