With over 2.5 billion tonnes of above ground proven reserves of fine particulate coal waste in the US alone… the size of this market is potentially huge

The Markets

Coal and Fossil Fuels

Global Coal production in 2005 increased by over 9% compared to 2004, to over 5 billion tonnes/y and has increased over 65% over the last 25 years.  With coal fines (upgrading waste) representing approximately 15% of these totals – or over 750 MT - and with over 2.5 billion tonnes of above ground proven reserves of fine particulate coal waste in the US alone; the size of this market, waiting processing, is very substantial.

High moisture levels in coal make transportation and combustion inefficient. Sub-bituminous coals, which comprise a large and valuable part of the world's coal reserves, contain "chemically attached" moisture within the coal structure (up to 20%-30% moisture). This "moisture" severely limits the use and value of sub-bituminous coals.
For every 3 truckloads of coal that is transported, one truckload of water must also be transported. During combustion this moisture also robs energy from the flame in order to turn to steam. Attempts to drive the moisture out by heating have proved unsuccessful because the coal falls apart as it dries and also becomes susceptible to spontaneous combustion. As a result, very little sub-bituminous coal is traded internationally.

The huge reduction in moisture content by using the AST FuelForm® system is a significant and substantial advantage, as it positively changes the combustion characteristics of any incorporated fuel by raising the useable heat value. Peat, lignite, low rank coals and washery tailings can become premium solid fuels with moisture content of 5% or less as opposed to smoky, low value second class substitutes, or, in some cases, discarded waste. 

Biomass and waste stream fuels

Although the biomass market is still relatively small, this in some respects is “cause and effect” as, to date, there has not been a simple cost effective system which can pelletise the plethora of potential sources of biomass feeds. The present demand for useable biomass solid fuels in the UK and Europe currently exceeds supply. Despite shortages, some companies are still disposing of biomass waste in landfill because the capital and running costs of presently available pelletising equipment is much too high.

Utilisation of viable biomass streams currently tends to bottleneck at the point of pelletising, due to the low output and high capital cost of existing technology. High margins attainable from using the AST BioForm system in this developing industry are likely to be sustainable, as political and environmental interests continue to push for development of renewable energy sources.

On a political level renewable energy production targets in the EU are not currently being met, and there is considerable impetus to increase their usage with a 12% target for 2010, although currently less than 2% is provided from renewable sources. AST has already held discussions with fossil fuel burning power generators, to test the burning of AST BioForm produced biomass pellets.