turkish coal industry

Selahaddin ANAÇ Ph.D.General Director and Chairman of the Board

“Present Situation of Coal in Energy Policy of Turkey and Turkish Coal Industry”

The 26th Annual International Pittsburgh Coal Conference

Pittsburgh , USA2009

TURKISH COAL ENTERPRISES

INTRODUCTION

TURKEY

One of the oldest continually inhabited regions in the world, As a cultural and an economical bridge between East and West, an EU candidate country, a regional power with a young, large population of approximately

71 million, 15th largest economy in the world with an estimated 941.6 billion

international dollars of gross domestic product(GDP),Primary Energy Consumption 112,5 Million tonnes petroleum

equivalent (TPE) in the year 2008,The Primary Energy Consumption average increasing rate of 2,8

percent per annum Total elecricity installed capacity 44.034 MW ,Total electricity consumption is expected 207Twh,(at the end of

the 2009)Installed capacity of based on coal 10.854 MW (24,6%),Total greenhouse gas emissions 372,64 Million tonnes CO2

equivalent,(2007)Per capita emissions 5,21 tonnes CO2 equivalent,Per capita CO2 emissions 4,25 tonnes


ENERGY POLICY of TURKEY


ENERGY POLICY of TURKEY

0%

20%

40%

60%

80%

100%

120%

natural gas oil lignite hardcoal

Production and import(percentage)

Production

import

2007


COAL in ENERGY POLICY of TURKEY

0

20

40

60

80

100

120

1995 2000 2001 2002 2007

Variation of Primary Energy(MTPE)

Demand

Production



31%

31%

29%

4%

5%

Primary energy consumption 2007natural gas oil coal renewable resources bio waste

3% 8%

54%

17%

18%

Primary energy production 2007natural gas oil coal renewable resources bio waste



0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

Coal production(M tonnes)



0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009*

Electricity generation and consumption(TWh)

production consumption

PRESENT SITUATION of COAL

48%

23%

17%

6%

1%5%

Electricity generation by source

natural gas domestic coal hydro imported coal wind liquid fuel

2008

COAL RESERVES and CALORIFIC VALUES

0

500

1,000

1,500

2,000

2,500

Afşin-Elbistan Konya-Karapınar Trakya Soma-Eynez Eskişehir-Alpu

New coal fields(Mtons)


COAL RESERVES and CALORIFIC VALUES

3%

66%

26%

5%

1%

Calorific value(lignite)<1000 kcal/kg 1000-2000 kcal/kg 2001-3000 kcal/kg

3001-4000 kcal/kg >4000 kcal/kg

The calorific value of the hardcoal varybetween 5.450-7050 kcal/kg(LHV).

Hard coal reserves 1,32 Billiontonnes


TURKISH COAL INDUSTRY

2.5

4,6

2.1

4,1

1.32

TKI EUAS P. Sector New Coal Fields TTK(hardcoal)

Coal reserves(Billion tonnes)



44%

44%

12%

Lignite production

TKI EUAS P.SECTOR

76%

10%

14%

Lignite consumptionPower plant Industry Heating

2008



8.348

1.651

720135

lignite imported coal hard coal asfaltit

Installed capacity based on coal(MW)

end of the 2008



SOME OF THE THERMAL POWERS AT THE STAGE OF INSTALLATION

PROJECT NAMEREZERVE (MILLION TONNES)

CAPACITY TO BE INSTALLED

(MW)

OPERATION METHOD BID YEAR EXPLANATION

SİLOPİ(Harbul) 30 405 RENT 20031X135 MW FIRST QUARTER OF 2009 WİLL BE İN USE, ADDITIONAL 2X135 MW LICENSES WERE TAKEN. CONTRACT WAS SIGNED.

Çankırı‐Orta 51 170 SALE 2005 IN PROGRES

Bolu‐Göynük 39 270 RENT 2006 LICENCES ISSUED AND EIA IN PROGRESS

Tekirdağ‐Saray 129 300 RENT 2006 2X150 MW LICENCE AND EIA IN PROGRESS

Mihalıçcık‐KİAŞ 41 270 RENT 2007 2X135 MW LICENCE ISSUED AND EIA OK.

ŞIRNAK 28 270 RENT 2008 2X135 MW LICENCE APPLICATION MADE



0

5,000

10,000

15,000

20,000

25,000

30,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Hardcoal(1000 tons)

Production

Import

Total



5,912

293

4,443

184

1,666

11,000

Power plant Iron-steel Coke Domestic consumption

Cement Other industry

Hard coal consumption(Million tonnes )

2008


CONCLUSION

As already known, the rapid increase in the recent years of the utilization of clean coaltechnologies in the World, has along with triggered also the use of coal. This is becausewhen that the life spans of the other fossil fuels (natural gas and petroleum) are 50-60years is considered, it becomes obvious that the most reliable energy resource is coal.

As the ratio of foreign dependency, just as in the world displayed a gradually increasingtrend also in Turkey and reached up to 70%’s, brought the issue of prioritization of thedomestic resources in the energy policies to the agenda of the energy sector again.

On the account of the reasons stated above, The Ministry of Energy and NaturalResources of the Republic of Turkey has explained how much importance that coal is inour country’s energy policy, just as it has in many other countries of the World, as statedbelow.

Coal strategy of Ministry of Energy and Natural Resources:

• Ensuring the diversification of primary energy sources, reducing the importdependency and increasing the share of indigenous sources for supplysecurity,


CONCLUSION

• Utilization of known lignite and hard coal reserves till 2023 for electricity generation,

• Increasing the ratio of power plants running with domestic coal in the portfolio,

• Power plants running with high quality imported coal will also be preferred consideringsupply security,

• Exploration of new coal fields and increasing coal production

• Utilization of clean coal technologies to minimize the adverse effects of coal on theenvironment

Thus, rapid reduction of foreign dependency on energy consumption, in other words,increasing of domestic resources for energy supply carries significant importance for ourcountry and at this point, the importance of coal and especially lignite increases evenmore.


Thank you for your attention…

See you in ISTANBUL,2010

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turkish coal industry