According to the assessment of German Federal Institute for Geosciences and Natural Resources (BGR) values regarding global proven coal reserves are listed in Table 1. In this assessment all coals with heating value over 3.940 kcal/kg are considered as hard coals and sub-bituminous coal and anthracite are included. Coals with heating value lower than 3.940 kcal/kg are classified as lignite (brown coal). According to this table global hard coal reserve is totally 688 billion 456 million tons. Almost half of it pertains to USA and China. When India, Russian Federation and Australia following them on the table are added to it, 81% of global reserves are seen to be obtained. The said five countries are understood to have 81% of global anthracite reserves. Reserve figure of Turkey is seen to be 506 million tons on the table. Considering Turkey’s over all anthracite reserve is thought to be 1 billion 309 million tons, lowness in the said value is understood to be caused by reserve classification and 800 million tons are understood to be taken as an probable reserve (Table 1). Considering global lignite reserve, it şs seen to be 279 billion 762 million tons. Russian Federation has 32% of the said reserve by itself. Australia and Germany follow this country. Total reserve of these three countries constitute 63% of global reserve with 175 billion tons. Turkey is at the lowest position with 2 billion tons. According to the data of Turkey total lignite reserve is 14 billion 490 million tons. Reserve description comes into play at this point and 12,5 billion tons is considered as an estimated reserve. Turkey’s coal reserves are in contrast to global reserves. Its lignite reserves are more than anthracite reserves. Turkey’s anthracite reserves are located at the Zonguldak basin in the Black Sea Region of Turkey (Zonguldak District). All of the reserves are held by the General Directorate of the Turkish Hard Coal Enterprises (TTK). According to the data for 2015 as seen in the table, total hard coal reserve is 1 billion 309 million tons. 406,2 million tons are non coking, 32,4 millions tons are semi-coking and 870 million tons are coking type hard coals.
66%, 32% and 3% of the reserves are respectively coking, non-coking and semi-coking. Heating values of hard coal reserves in the basin range between 5.400 and 7.200 kcal/kg. 506 million tons of the reserve (39%) is proven (Table 2.1). TTK put 4% of the sites out to tender for coal production. Turkey’s lignite reserves spread throughout the whole country. Since lignites are young, they have high moisture and low heating value. The said values are quite lower than the upper heating value described in the relevant standards. Heating value range between 1.000 kcal/ kg and 4.200 kcal/kg. Heating value of almost half of them is below 1.500 kcal/ kg. Coals with heating value under 2.500 kcal/kg reach 80% of total value. Lignite reserve of our country is 15 billion 365 million tons of which 329,5 million tons are proved, 21 million tons are probable and 15 billion 14 million tons are possible (2015, MTA). 81,1% of these reserves (12.433.988.000 tons) are held by three public corporations. These are General Directorate of Turkish Coal Enterprises (TKİ), Electricity Generation Company (Turkish: Elektrik Üretim A.Ş.; EÜAŞ) and General Directorate of Mineral Research and Exploration (MTA). MTA carries out research and exploration and doesn’t perform exploitation and transfers its licenses to producer companies. Part of reserves which belong to private sector is 2 billion 931 million tons and constitute 19% of total amount. One third of them (581,45 million tones) are the sites assigned to private sector by privatization. Public data for the studies carried on the sites of private sector other than MTA are not sufficient. They are estimated to be over the said value (Table 2.2). Half of the lignite reserves of our country (7 billion 280 million tons) was determined during the exploration efforts between 1976 and 1990. Coal discoveries are achieved through the studies made across the whole country between the years 2005 and 2014 due to the increase in foreign dependency in energy, risks in supply security and increase in current deficit and a total of 7 billion 210 million tons were added to the reserves. 5 billion 705 million tons of it are carried out in MTA’s sites and 1,5 billion tons of it are carried out in grounds held by other public organizations.
Global Coal Production
Production values are calculated over not raw coal but marketable quantities. Data of Turkey are assessed in accordance with same criteria. As seen in Table 3, global hard coal production became 6 billion 276 million tons in 2013 and Brown coal production became 1,5 billion tons in the same year. Whereas total coal production was 3 billion tons in 1971, it was seen to reach 7 billion 823 million tons in 2013. Considering China produced 3,5 million tons by itself in 2013, level of the increase in coal production may be figured out. In 2013 China carried out 45% of global production and 57% of global hard coal by itself (3,5 billion tons) (Table 3). There is a difference of 3 billion tons between China and India following it (9%) in global hard coal production. Production of USA, third in hard coal production is equivalent to only 12% of China’s production (6% of global production). Australia becomes fourth with 373 million tons (5,9%). Turkey’s hard coal production ranked last with 2,8 billion tons. When compared with Turkey’s reserve of 14,5 billion tons, It is possible to say that China is capable of producing a quantity as much as Turkey’s total reserve in about 4 years. China doesn’t take any place in the table of brown coal production (lignites are given within hard coal). USA producing 472 million tons of total production which is equivalent to 1 billion 547 million tons takes its place. USA carried our 31% of global brown coal production in 2013. Indonesia (14%) and Germany (11,8%) follows USA respectively with 219 million tons and 183 million tons. Turkey becomes sixth (63,3 million tons) in world ranking for brown coal production by following Australia and Russian Federation.
Turkey’s Coal Production
Turkey’s coal production is carried out on total 469 sites of which 293 openpit (25 public) and 176 underground (6 public) facilities. Totally 31 of them are operated by public organizations. Turkey’s coal production is shared by private sector and predominantly public sector. Whereas total coal production was 54 million tons in 2002, it became 90,9 million tons in 2009, 66 million 911 thousand tons in 2013 and reached to 77 million tons in 2014. Turkey’s hard coal production is carried out by TTK in Zonguldak. Raw coal production was 2 million 789 thousand tons in 2013 and 2,68 million tons in 2014. This value was recorded as 4,57 million tons in 1974 and 2,62 million tons of saleable coal in 2011 (Table 4). TTK gave only a part of production to private sector through royalty. Brown coal (lignite+asphaltite) is produced by public organizations, TKİ (electricity generation and heating) and EÜAŞ (electricity generation) and by private companies. Turkey’s total lignite production (including public sector) was 78 million tons in 2012, 63,3 million tons in 2013 and 74,34 million tons in 2014. This figure was 84,3 million tons in 2008. Private sector’s production was 38 million 148 thousand tons in 2014. Coal production is given out by tender to private sector for the purpose of electricity generation. This is given as both production on its name and privatization. There are also power plants operated by EÜAŞ itself. This is discussed in details in the following sections of the report.
Global Coal Consumption
Global coal consumption was totally 7 billion 875 million tons in 2013; 6 billion 368 million tons and 1,5 billion tons of it were consumed respectively as hard coal and brown coal. As in production China carried out 61% of total hard coal consumption by itself. USA and India were the closest countries in ranking with respectively 843 million tons (10,7%) and 791 million tons (10%). The difference in consumption rate with other countries is very high. Turkey’s share in global consumption in 2013 was 1% with 84 million tons in total consumption, 0,4% in hard coal with 28 million tons and 3,7% in brown coal with 56 million tons.
Turkey’s Coal Consumption
Turkey’s hard coal consumption was 28,18 million tons in 2013. This value was 31,46 million in 2012. 11 million tons of hard coal was consumed in our country in 2001, reaching to 26 million tons in 2007. Total usage areas are as follows; 41.8% in generating electricity, 20,1% in, housing and services,,19,8% in coking plants 9,8% in cement production and 3,4% in iron and steels sectors (2013). Whereas 75,65 million tons of brown coal (lignite+ asphaltite) was consumed in 2009, it decreased to 56 million tons in 2013. The said value was 45,5 million tons in 2004. According to the data for 2013 it was used at most in electricity generation by 85,4%. Remaining was used mainly for heating purposes.
Global Coal Trade
Coal is produced in more than 50 countries and consumed in more than 70 countries. Because of this characteristic it has a significant place in global trade. Coals which are economic for marine transportation are dealt with at most in global trade. Since lignite is low-calorie and it is not economic for long-distance shipment, it is preferred to be used in the power plants located near the source. 20% and 60% of the coals in global trade are respectively coking coal and bituminous coal (classified as hard coal, excluding anthracite and coking coal) In steam coal (anthracite, other bituminous coal and sub-bituminous coal) there are two main markets; Atlantic Market (Western Europe) and Pacific Market (Japan, Korea and Taiwan etc.). Because of their positions Russia and South Africa shuttle between two markets. 90% of global coal trade is made through marine transportation. According to the data of 2012, 887 million tons (78%) and 250 million tons (22%) of total global marine trade of 1,14 billion tons are respectively steam coal (78%) and coking coals (22%). Exportation: Whereas global coal exportation was 1,33 billion tons in 2013, it constitutes 16% of total global production. This shows that coal is consumed in the country where it is produced. According to the data of 2013, Australia and Indonesia leads the hard coal exportation respectively with 336,3 and 269,3 million tons. Russian Federation ranking as third and exports as much as half of Indonesia. Global brown coal exportation is only 176,7 million tons. 97% of it is constituted by bituminous coal. As being sub-bituminous coal, lignite does not takes place in international trade. Indonesia leads inarguably brown coal exportation by 89%. It carried out 89% of total exportation of 176,7 million tons in 2013 by itself. Importation: Total coal importation was 1,36 billion tons in 2013. 91% of importation is constituted by hard coal and remaining by brown coal. Even though China is an exporting country, it is the greatest importer also. It became leader with the importation of 341 million tons. Japan and South Korea follow it with 195,6 million tons and 124,7 million tons respectively. These three countries carried out 53% of total global hard coal importation of 1,25 billion tons in the same year. Turkey ranks eighth in the first fifteen countries in global hard coal importation with 27,75 million tons. Turkey carries out only 2,2% of global importation.
Turkey’s Coal Importation
Turkey, which was making production to meet the internal demand until 1981, started coal importation with respect to the development in industry. In 1987 internal production became capable of meeting only half of the demand. Coal importation exceeding 10 million tons in 1990s exceeded 20 million tons per annum in 2000s. Importation which was 27,2 million tons in 2013 became 30,14 million tons in 2014 and reached to 34,5 million in 2015. The aforementioned increase is caused by the rapid increase in the number of the power plants based on imported coal. 11,35 (32,9%), 11,311 (32,79%), 2 (5,83%), 4,98(14,42%), 2,8 million tons(8%) and 175 thousand tons (0,5%) of global importation of 34,5 million in 2015 were made from respectively Colombia, Russian Federation, USA, South Africa, Australia and Ukraine. 94% of coal importation was seen to be made from Colombia, Russia, USA, South Africa and Australia. International payments which was 3 billion $ in 2015 had been 3,2 billion, 3,5 billion and 4,6 billion $ respectively in 2014, 2013 and 2012. Reason of the decrease in total payments as long as quantity of importation increases is the rapid decrease in coal prices. We should be ready up to the moment when they start to rise at the breaking point. Coal-Generated Energy Production Coal-Fired Electricity Generation in the World: According to the data of 2012 share of coal in the global electric power generation was 40,3% on the average. Natural gas, hydraulic sources and nuclear power plants follow it with 22,4%, 16,5% and 10,8% respectively. Coalgenerated electric power is produced by hard coal and brown coal. Shares of hard coal and brown coal are 77,6% and 20,8% respectively. Coal is understood to be the most important source in electricity generation. Countries with high coal reserves are understood to give priority to coal as a source in electricity generation. Considering these values on the basis of countries we encounter with very interesting data (Table 10). Kosovo has the greatest rate in terms of the share of coal in electricity generation with 98,8%. Mongolia, China, Greece and Germany follow it with 95%, 75,8%, 51% and 45,6%. According to the data for 2012 coal rate in Turkey is 28,4%. It follows from this, that there is much progress to be made for Turkey in order to reach peer countries.
Electricity Generation and Coal in Turkey
Turkey’s electricity production is 250.435 GWh in 2014 and 48% of it (120.437 GWh) is obtained from natural gas. Coalfired electricity generation which was 74.040 GWh in 2014 constitutes 29,6 of total quantity. Share of imported coal in coal-sourced electricity generation is 46,7% and its rate in total is 13,8%. Share of local coal in total coal is 53,3% and its rate in total is 15,8%. Hydroelectric sources which are considered in the class of renewable energy with 40.396 GWh (16,1%) take third place in electricity generation. When wind, geothermal and other renewable sources are added, share of renewable energy in total electricity is seen to be 20,9%
Dependence in Foreign Energy
Whereas share of coal use in electricity energy was 33% in 1970, it decreased to 24% in 1980s and increased up to 49% in 1986. It became 29,6% in 2014. But considering local coal rates beside total coal figures import coal i.e. foreign dependency is seen to constitute second factor beside natural gas. The entire 49% in 1986 was completely made up of locally produced coal, the said rate decreased unfortunately to 15,8% in 2014. In 1980s the fact that natural gas operated power plants come into play inflicted a heavy blow into coal and decreased the rates enormously. Reasons like the fact that total share of imported coal in electric energy being 61,9%, foreign dependency in energy, security of supply and foreign trade deficit require immediate precautions. Greenhouse gas emissions in Turkey Turkey became a party to The United Nations Framework Convention on Climate Change (UNFCCC) in 2004 and has started to publish its greenhouse inventories since 2006. According to the agreement greenhouse gases of which emissions are determined are as follows: Carbondioxide (CO2), methane (CH4), dinitrogenmonoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). According to 2013 inventory published by Turkish Statistical Institute, Turkey produces less than 1% of global greenhouse emissions. This rate is in proportion to Turkey’s population and economic magnitude. Considering the sectoral distribution of greenhouse for 2012 shares of energy, industry, waste and agricultural activities are 70,2%,14,4%, 8,2% and 7,3% respectively. Rate of energy in total greenhouse gas emission (70%) are same for 1990 and 2012 (Table 12). Data of greenhouse gas emissions for 1990 and 2012 are listed in the table. Rate of increase in total greenhouse gas emission for 12 years is 133,5%. According to this, carbondioxide, methane and dinitrogenmonoxide are important among the six gases measured as greenhouse gas and others are considered as negligible. Considering the rates of increase within 12 years there are three gases which are most negligible and increase in them is seen to be 1100%. But since their rate in total is 1,4% for 2012, they are not taken into consideration. Considering first three gases methane (81%) and dinitrogenmonoxide (21%) are seen to be under 100% and carbondioxide is remarkable with 152,5%. All these values attribute the reason of the increase in greenhouse gas to carbondioxide and carbon emissions in common use.
Carbon Gas Emission in the World and Turkey
They are considered in two parts as energy- related carbon emissions and coalrelated carbon emissions (International Energy Agency). Total global carbon emission became 31.734 million tons in 2012 and coal-related carbon emission became 13.924 million tons (Table 13). As seen in the table, China leads the way in both emissions. Its carbon emissions are 8.206 million tons (25,86%) and 6.764 million tons (48,58%) respectively in energy-related carbon emissions and coal-related energy emissions. USA follows China in both emissions with 5.074 (18%) and 1.613 (11,58%) million tons. Turkey ranks 19th and 15th respectively in energy-related carbon emissions and coal-related carbon emissions with 302 and 139 million tons. Total emissions of both countries are 44% and 60% respectively in energy and coal related carbon emissions. So, half of the carbon emissions in the world are caused by these two countries. Russia, Japan and Germany follow these countries. Actually majority of the global carbon emissions are caused by the said five countries. Turkey is responsible for 0,95% of total global energy-related carbon emissions and 0,99% of total global coalrelated carbon emissions. Coal-related emission constitutes 46% of energy emission in the country. Given our topic is coal and considering coal-related carbon emission, our country is found not to be so responsible for carbon emission as exaggerated and considering the power plants to be established with new and clean technology its place in global carbon emission is understood not to be changed so.
Coal-Fired Thermal Plants
Local Power Plants
Total 28 power plants using local coal (1 hard coal-fired and 1 asphaltite-fired power plant) are in operation in Turkey. 4 of them are small-scale auto producer and 24 of them have the sufficient capacity which may be taken to consideration. All the ones commissioned before 2013 were operated by public sector until 2013. Today Çanakkale-Çan, Afşin Elbistan A-B and Manisa Soma A power plants with total installed power capacity of 3.159 MW (Table.14) held by public sector. Total installed power of Turkey is 9.812 MW in which 9.107 MW is lignite-fired power, 335 MW is hard coal-fired power and 405 MW is asphaltite-fired power. 8 power plants (2 asphaltite-fired power plant) with installed power capacity of 3.065 MW have production license and are under construction. 8 power plants with installed power capacity have obtained pre-operation license. Pre-operation licensed projects are listed in the table 15.1. All of the projects with pre-operation licenses are the original projects of private sector and 3 of the power plants under construction are the joint works of public-private sectors (TTK, TKİ).
Potential Local Coal Fired Power Plant Sites
Public Grounds: Licenses that are assigned to EÜAŞ and TKİ for power plant following the completion of reserve determination by MTA and that are assigned to MİGEM for tender and their power plant capacities are listed in the table. However information of the sites which have not been assigned yet and still in progress are also stated in the table. The ones of which capacities are determined are totaling more than 24.000 MW. 3.750 MW of them is arising from the projects which have been prepared in advance and still in progress and of which other part have been developed newly. Recently, EÜAŞ announced an auction to ensure that exploration resource and reserves identification processes meet the relevant international standards for Konya Karapınar-Ayrancı and offers received are being assessed. Unique Projects of Private Sector: Power plant sites which are developed by private sector by itself and licensed duly for it are listed in the table 15.2. Total capacities of the projects which are at the stages of exploration, project design, evaluation and waiting guarantee of purchase and/or other incentives are over 2.500 MW.
Imported Coal-Fired Power Plants
Imported coal-fired power plants have gained currency since 2000. As by 2014, their installed power capacity was equivalent to 8,7% of Turkey’s installed power. There are total 10 imported coal-fired power plants which have still been in operation. As seen in the table their total capacity is 6.289 MW. 8 of them are over 150 MW in capacity and other two of them have smaller capacities . Other imported coal-fired power plants are as follows: 2 plants under construction with total capacity of 1.945 MW and 8 plants with ongoing production license with a total of 5.195 MW, pre production license for 4 plants with a capacity of 4.200MW and pre-license at the stage of assessment for 13 plants with a capacity of 12.655 MW. Such investments together with natural gas which are being the reason of our foreign dependency in energy should be balanced with local coal-powered investments.
All legal regulations, incentives, economical structure, banking system and social opportunities sought by foreign investors are available in Turkey. A strong government is in charge, which commits to support coal investments. Our incentive legislation is divided in six regions in accordance with the development level of country. Coal investments equivalent to and lower than 5 benefit from the incentives for 5th Region. So it means a serious incentive throughout the country. Value added tax exemption, customs duty exemption for the machinery and equipments coming from abroad, employer’s national insurance contribution support, free investment place allowance, tax reduction by 70%, investment contribution by 30%, loan interest support by 2 points for external loans and 5 points for internal loans are implemented. In addition to such incentives implemented in the industry, employee salary support is applied also. This constitutes to the half of the salary of a worker employed with minimum wage. Furthermore guarantee of purchase will be applied for the electricity to be generated at the power plants based on local coal. Negotiations between price and rates have been still in progress.