Utilization of Fuels
In order to be more environmentally friendly, Taipower's fuel selection emphasizes low-ash, low-sulfur and lownitrogen fuels. Company policy seeks to stabilize the use of coal, and gradually shift to gas. This will help to ensure that coal-fired power plants are able to maintain their operating permits while new and renewed gas-fired units and facilities are constructed, thus stabilizing power supply requirements and ensuring pollutant emissions in fumes generated by thermal power generation remain lower than legally required levels.
In order to reduce emissions, power plants need to add environmental protection equipment and facilities to bring them in line with the environmental protection requirements. Coal quality must also meet the requirements of being high in calorific value, low in ash and low sulfur content. Since coal from mines in different countries have different properties, power plants usually blend coal from multiple sources to adjust their content ratios. For example, the ash content of Australian coal is about 15% higher than average while the ash content of Indonesian coal is about 5% lower. With proper blending, ash levels can be reduced to meet a power plants coal ash level requirements. Similar blending allows calorific values and sulfur contents to meet requirements. In addition, Taipower has added quality requirements for its coal procurement. For example, the Company has decided to reduce the ash content of Indonesian coal from 11% to 8% and sulfur from 1.1% to 0.9%. Further restrictions of mercury content have been imposed. While Taipower exercises strict control of emissions from power plants in the downstream of its supply chain, the Company works even harder to deliver on its commitments on upstream areas of its supply chain. (Please refer to Chapter 6.3.1 for information on Taipower's management and performance in fuel procurement)