Delivered costs of Western coal shipped on the Great Lakes versus Eastern coal for Eastern Great Lakes hinterland utility plants. With appendices on relative cost impacts of coal scrubbing and on other Western coal transport systems

Technical Report · Thu Feb 01 00:00:00 EST 1979

DOI:https://doi.org/10.2172/6231768· OSTI ID:6231768

Bertram, K. M.

This report analyzes the present and projected delivered cost competitiveness of Great Lakes shipped, low sulfur Western coal with low and high sulfur Eastern coal at Eastern Great Lakes hinterland utility plants. Its findings are based upon detailed data acquired from appropriate transportation firms and four eastern utility companies which use or have studied using the appropriate coal types. Two appendices provide: (1) a tentative, preliminary analysis of this competition with additional costs required by likely EPA scrubbing (sulfur removal) requirements, and (2) background information on other Western coal transport systems. Briefly, the findings of this report are that if Western coal is shipped via the Great Lakes to utility plants in the eastern Great Lakes hinterlands (i.e., inland from ports up to 200 miles): currently, based upon delivered costs only, it cannot compete with any type of Eastern coal; by 1989, with favorable interim Western versus Eastern cost escalation rate advantages on minemouth coal and transportation costs, Western coal delivered costs can begin competing with those of Eastern low sulfur, but not high sulfur coal; by 1999, with favorable relative cost escalation rate advantages, Western coal's delivered costs can become substantially less expensive than Eastern low sulfur coal's, and just begin to be competitive with Eastern high sulfur coal's; extremely high Eastern rail costs due to port area system characteristics are the main cost factor driving Western coal delivered costs to uneconomic levels.

• Research Organization: Argonne National Lab. (ANL), Argonne, IL (United States)
• DOE Contract Number: W-31-109-ENG-38
• OSTI ID: 6231768
• Report Number(s): ANL/EES-TM-39
• Country of Publication: United States
• Language: English

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