Why Should You Get on the Coal to Natural Gas Conversion Bandwagon?

It’s all over the news. A great many coal operated power plants are making the conversion to coal to natural gas conversionnatural gas. Why you ask? Well, there have been mounting concerns over power plant emissions and regulations targeting the reduction of air pollution have been on the rise. Namely, the Environmental Protection Agency (EPA) has been pushing to reduce mercury and air toxin pollution created by the burning of coal. This has led to either the conversion of coal-powered plants to natural gas or the shutdown of coal-powered plants.

However, it’s not just regulations, utility companies and (of course) environmentalists have been pushing for the conversion of coal to natural gas.

Why should you convert your coal burning boilers to natural gas ones?

IT’S GREEN AND NATURAL

Natural gas doesn’t contain significant amounts of sulfur, particulate, ash and a host of other baddies. It allows greater controllability of harmful emissions. Just because natural gas is supposed to be cleaner, less polluting and environmentally sound, isn’t the only reason for converting.

SAVE SOME GREEN

The costs associated with coal operations are extremely high, and the costs of natural gas are decreasing, leading to the popularity of natural gas as a source of power. Conversion will bring a reduction in operational, maintenance and environmental costs. Coal ash storage won’t be a factor and the lack of ash buildup will reduce heat transfer.

THERE’S PLENTY OF IT

It doesn’t hurt that there’s a domestic supply of natural gas. According to the U.S. Energy Information Administration (EIA), U.S. dry production increased from 2006 to 2013. The increase was a result of cost-effective, efficient drilling and completion techniques, especially from shale formations.

All this means that coal firing boilers are being converted or replaced by gas firing ones. Coal boiler owners who are contemplating conversions should understand the various design alternatives and their implication on the initial capital cost, operations cost, safety and reliability of the facility. It’s also important to know the emission limitations at the onset, so that the correct burner design can be selected.

Natural gas boilers are more effective, less polluting, more efficient and a reliable source of steam. You can convert your coal boiler to natural gas boiler; this will require lower capital investment and will make use of your existing assets. Plus, converting an existing boiler is much cheaper than installing a new boiler.

Despite all the benefits of natural gas being touted, and the conversion of many coal burning power plants to natural gas, some critics aren’t convinced that natural gas is as economically or environmental sound an alternative.

For more on the various legal, economic, political and environmental facets concerned with the coal to natural gas conversion process and the key obstacles and oppositions related to successful conversions, check out this webinar from Jack Luellen at http://bit.ly/1FqQLQi

Jack R. Luellen is a partner with Fox Rothschild LLP, where his practice is primarily dedicated to oil and gas law with a particular emphasis on litigation.

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