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	Coal is critical to the economy of the United States. Coal-fired generation and the U.S. gross domestic product (GDP) have grown at nearly the same pace over the last 30 years.

By 2025, our Nation's consumption of electricity is projected to grow by 50 percent versus 2003 levels. To meet this rising demand, while also retiring inefficient older plants, 281,000 megawatts of new power generation capacity will be needed by 2025 – equivalent to almost 950 new power plants of 300 megawatts each.¹ Demand for electricity is growing even faster on a global basis – particularly in developing countries.

Coal reserves are abundant in the United States and in many areas of the world, making coal an attractive option for new power plants from the standpoint of affordability and supply reliability. Yet coal's considerable energy potential is accompanied by significant challenges related to its effects on the environment and human health.

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Proved reserves of domestic coal are more than 200 times that of oil and natural gas. Based on current rates of consumption, supplies could last another 200 years.

Advanced technologies widen the policy options available for addressing this challenge. The President's National Energy Policy specifically endorses clean coal technology RD&D that can help power generators cost effectively meet environmental standards through improved efficiency and pollution controls.

Coal power plants have been a cornerstone of our Nation's power generation capabilities for decades. In the future, they are expected to remain a major contributor to a diverse and reliable U.S. energy portfolio.

Domestic coal is projected to remain plentiful and affordable for decades to come. Indeed, the United States has 272 billion tons of coal reserves – with an energy value roughly comparable to all the world's known oil reserves.² Based on current rates of consumption, the U.S. coal supply could last another 200 years.³

The United States is not alone in having rich coal resources. About three-quarters of the world's total estimated coal reserves are outside the United States, including in rapidly growing countries. With international demand for electricity outpacing U.S. demand in coming decades, coal power generation is likely to grow dramatically in many regions.

U.S. and international policymakers continue to seek options for reducing the environmental and health consequences of coal use. Federal R&D efforts focus on expanding the policy options available for economically and effectively addressing these issues. Advanced technologies can be instrumental in enabling tomorrow's coal power plants to meet current and pending regulations while providing the affordable electricity essential to economic vitality.

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	Through 2025, coal is projected to continue meeting about half of U.S. electricity demand.
	Coal is used in the United States today almost exclusively for power generation.
	World electricity demand will continue to grow faster than U.S. demand.
	Even with coal demand steadily increasing, emissions of criteria pollutants are at their lowest levels ever. NETL RD&D will ultimately lead to coal technologies that result in near-zero emissions of all criteria pollutants and CO2.

Meeting fast-growing
electricity demand
Our Nation is projected to need 281,000 megawatts of new power generation capacity by 2025. Natural gas technologies are expected to account for more than 60 percent of new capacity additions, and coal technologies for more than 30 percent (87,000 megawatts). Coal-fired power plants are expected to continue supplying most of the Nation's electricity through 2025 despite rapid growth in natural gas and modest growth in renewable and nuclear power generation.⁴

Overall, coal consumption in the electric power sector is expected to grow as existing coal-fired plants are used more intensively and new ones are added after 2011. Of all the coal consumed in 2003, 92 percent was used for electricity generation, and that share is expected to rise to 94 percent in 2025.  

While electricity consumption will grow at 1.8 percent annually in the United States between now and 2025, demand on a global scale is expected to rise markedly faster.⁵ In emerging and transitional economies, including China, India, and the former Soviet Union, electricity consumption will grow at more than double the rate in the United States. All of these regions have significant coal reserves and are expected to continue relying on coal for a large proportion of their electricity needs.

Expanding policy options for environmental and health protection
Coal is a complex chemical latticework of carbon, hydrogen, and dozens of trace elements. When combusted, some of these elements, such as sulfur, nitrogen, and mercury, are converted to chemical forms that can create pollutants in the air and water. Carbon, the main constituent of coal, combines with oxygen from the air to form carbon dioxide which, in turn, can act as a greenhouse gas in the atmosphere.

Policy efforts aimed at preserving U.S. air and water quality, protecting human health, and mitigating climate change have significant impacts on coal power generation. Current and proposed regulations will drive efforts to use coal more cleanly and efficiently.

Water quality. The link between power generation and water quality is clearly recognized in President Bush's National Energy Policy. Fossil-fueled power plants account for approximately 39 percent of the water used in the United States, second only to agriculture. Most of the water is used for cooling. Water quality can be affected by the intake and discharge of cooling water as well as by power plant air emissions. Under regulations established by the EPA, several legislative acts potentially could impact water quality requirements and waste use for fossil power generation. These include the Clean Water Act, Safe Water Drinking Act, and Resource Recovery and Conservation Act.