ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)229
Vol.1981/0083

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)229 final
Strasbourg ,6thMay1981
t■ ■-
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tÇc\. •<*'\S>1 t'Y"•V'1
V.U:
"SiL)UL.~
SUBSTITUTION OFCOALFOROILIN"OTHERINDUSTRY"
(Communication fromtheCommission totheCouncil)
COM(81)229final

Substitution ofCoal forOilin"Other Industry "
(Communication .totheCouncil )
(1)TheMember States oftheEuropean Community have setthemselves the
objective ofreducing their dependence onoilimports .Visible progress
hasbeen made inenergy-saving ,but the decisive turning-point interms
ofintroducing substitutes foroilhasnotyetbeen reached .Forthis ,
thepatterns ofconsumption have tobechanged }more usemust bemade
ofalternative sources ofenergy (coal ,nuclear energy ).This type of
structural change must therefore beencouraged intheindustrial sector .
TheEuropean Council of27and28April I98O inLuxembourg ,andthe
Western Economic Summit of22and23June I98O inVenice ,putoutvery
detailed statements onthis subject andexpressly recommended areturn
tocoal .
(2)Figures forthepotential replacement ofoilbycoal have been given in
some international publications }but ,except intheelectricity sector ,
there arefewprecise ideas about thesectors ofconsumption inwhich
this objective canbeachieved andthetechnical andenergy-policy measures
required .Theheat requirements of"other industry "form onesector in
which coal hassuffered particularly serious losses inits share ofthe
market over thepast twenty years ,initially tofuel oilandsubsequently
tonatural gas .Because ofthe large number ofenergy-consuming firms ,
thevariety ofenergy-consuming plant and ,not least ,thefact that the
statistics areinsufficiently broken down ,itisalso asector inwhich
itisdifficult toobtain anoverall view .
(3)TheCommission hastherefore examined thescope forreplacing oilby
coal in"other industry ". Ithasprepared areport .
describing atsome length theproblems involved .
Thefollowing paragraphs summarise thecontents ofthereport andsuggest
anumber ofpoints forconsideration bytheCouncil .
Statistically speaking ,allbranches ofindustry except theenergy
sector ,the steel industry andsmall industry andcrafts .2
(3

-2-
(4)Thecalculatedreplacementpotentialintheheatingrequirementsof
"otherindustry"appearsconsiderable whenitisrecalledthatcoaland
cokeaccountedfor60%ofthethermalconsumptionofthissectorin
I960comparedwithnomorethan3%in1978(llmilliontoe).However,
thisdoesnotmeantosaythatcoalcanmakeupthegroundthatishas
lost.Thesituationofsupplyanddemandhaschangedtoomuchforthat}
moreover,itwillcontinuetochange.Theindustrialproductionapparatus,
themanufacturing processesandtherangeofindustrialproductshave
changedandwillcontinuetochange,preciselybecauseoftheneedto
adoptenergy-saving productiontechniques.Inaddition,naturalgasis
anextremelystrongcompetitortocoal,particularly solongasthe
existingpricedifferential remains.
(5)TheonlybranchofindustryintheCommunitywhichhassofarreverted
tocoaltoanygreatextentisthecementindustry.Thisindustrycannot,
however,betakenasrepresentative sinceitssituationastofuelcosts,
qualityrequirements forthecoalusedandutilisation oftheresulting
a3i(environmental protection)isnotthesameforotherindustries.
(6)Althoughitisimpossibletomakereliableforecasts,marketforcesand
furtherrefinementofcoal-handling and-firingtechniquesinthecourse
oftimecanbeexpectedtoleadtoanincreasinguseofcoalin"other
industry".However,onthebasisoftheenergy-policy datanowavailable,
itseemsclearthat,foreconomicandecologicalreason^thisprocess
willbeslow.Thereasonsareasfollows:
-Thecurrentheat-priceratiobetweencoalandfueloilisnotby
itselfsufficienttopersuadethepotentialinvestortoswitchtocoal.
Firstly,thegeneralinvestmentclimateissufferingfromtoomany
uncertainties regardingeconomictrendsandlong-termeconomicpolicy.
Secondly,thefirmsaremoreconcernedabouttheirfuturecompetitivity
thanthelong-termsecurityoftheirenergysupply.Wherefirmsare
investing,productionapparatusisgivenpriorityoverindustrial
energy-consuming plant.

-3-
Thecosts forconversion from oil "tocoal arecertainly very high
andrepresent anobstacle .They are difficult toforecast because
they depend onthetype ofinvestment (newinstallation ,conversion
orreconversion ofexisting equipment )andvary with thesize of
the "boiler .Smaller installations arerelatively more expensive
than "bigger ones .Data available show that thereconversion ofa
boiler utilizing 50,000 to100,000 tonnes ofcoal perannum may
necessitate acapital expenditure of150to300ECUpertonne of
oiltobesubstituted ;theconversion ofanoil-fired boiler may
even cost 300to500ECUpertonne ofoilreplaced .
Industrial energy-consumers often have noexperience ofusing coal ,
especially incountries with alowconsumption ofcoal .This gives
rise toanumber ofreservations which appear insurmountable for
psychological reasons .There isalack ofconfidence inavailable
technologies andreluctance touseabulk mineral commodity such ascoal .
Finally ,there arenoother plants toserve asanexample when seeking
information about theappropriate solution forindividual case .
Theinsecurity felt byindustrial energy-consumers asaresult of
public opinion about theenvironment andthewait-and-seeattitude
adopted inenergy policy should notbeunderestimated .Investors
arenolonger able tomake anaccurate assessment oftheframework
ofdata imposed onthem (application ofenvironmental andsafety
regulations ,authorization procedures ,etc.).
Industry hasputmore andmore newfuel-oil andgasboilers into
service over thepast ten totwenty years .These boilers often are
notsuitable forconversion tocoal )inmany cases ,they have not
reached theendoftheir useful life .Thequestion ofreplacing them
will not arise until well into the future .Coal-fired boilers are also
relatively expensive while theproportion oftotal production costs
accounted forbyfuel costs isrelatively low }nodirect economic
advantages cantherefore beexpected here from changing the source
ofenergy used .

-4-
-Existing boiler technology and ,insome cases ,environmental
regulations require theuseofsuitably cleaned andsized coal }
supply islimited andprices arehigher .This reduces coal 's
price advantage over fuel oil .
(7)Inthese circumstances ,itisforconsideration what measures must be
taken tointroduce ortospeed upthedesired structural change .
Themost important condition isthat coal should remain attractive to
theconsumer asasecure andcheap source ofenergy .IntheCommission 's
view ,theconversion process should beencouraged byadditional measures
onanational aswell asaCommunity level .Forthis purpose ,thefollow­
ingpossibilities should beinvestigated :
-investment incentives .
I
-promotion ofcoal–fired reference plant todemonstrate existing
coal-firing technologies inregions where these have notyetbeen
applied ;
-promotion ofnewcoal-firing technologies using allcoal available
onthemarket (usual R&D incentives ,support fortheconstruction
ofdemonstration .plant );
-converting theheating ofpublic buildings tocoal-firing (although
this does not come under thebranch ofindustry inquestion ,an
example ofthis type would have aconsiderable effect );
-promotion ofinvestment inthe infrastructure ofthe carriage and
transshipment ofcoal ,right down tothefinal consumer ,including
theelimination oflegal ,administrative orcustomary-law barriers
tooptimum utilisation ofexisting plant ;
-improvement ofmarket transparency bypublishing comprehensive
price comparisons forthevarious sources ofenergy atthe stage of
final consumption ;

-5-
-clearpolicyguidelinesforenvironmental protection,reconciling
environmental interestswiththerequirements ofenergypolicyand
competitive production.:Thisincludestheestablishment ofstandards
and"buildingregulations whichareprecise,realisticandnotsubject
tofrequentchangej
-tetterprovisionofinformationforindustrialenergy-consumers on
existingtechnologies ,coalqualitiesandotherrelevantdata"by
meansofconferences ,exhibitions ,etc.
(8)TheCommissionrequeststhattheCouncilshould,on9June1981,hold
ageneralexchangeofviewsonthesesuggestions.Thereafter,the
CommissionwillmakespecificproposalsforCommunityactionas
appropriate.

REPORT
on
thesubstitution ofcoalforoilin
"otherindustry"

LIST OFCONTENTS
Page
I. Introduction 1
II.Past trends 5
A»Field ofexamination 5
B.Historical background 7
12
III .Technology and the environment
A.Technical aspects oftheutilization ofenergy forthermal purposes 12
1.General comments 12
2.Coal-fired plant 13
3.Coal combustion technologies 15
4<>Specific branches ofindustry 17
B.Environmental problems 19
IV.Infrastructure problems 23
A.The coal trade 23
B.Coal transport ' 24
C.Conclusions 29
V.The future trend indemand 30
VI.General information oninvestment costs 33
Annexes IList oftheindividual criteria influencing thedecision to
replace oilbycoal inindividual industrial undertakings
IIStatistics concerning ;thefinal energy consumption ofthe
"other industry "sector
IIISummary ofvarious forecasts ofcoal consumption inthe
"other industry "sector

-1-
I.INTRODUCTION
1.Inthefifteen years from 195° "to1973f coal quickly lost ground to
oilasafuel ontheCommunity energy market .Ontheonehand .,this
was duetotheincreasingly attractive price ofoil .Ontheother
hand ,theuseofoiloffered advantages such asahigher calorific
value ,lower capital costs }more compact firing units ,lower operating
and labour costs andnoproblems with ash*Coal 'sshare oftotal
primary energy consumption intheCommunity thus fell from 57%in
1958 to19$in1978j this percentage first fell beneath 50$in1961 .
2.Therapid inorease inoilprices since 1973 andthegrowing uncertainty
surrounding supplies have ledtoanumber ofpolitical statements –most
1recently atthetwo summit conferences inVenice –indicating theneed
toreview coal 'srole asasource ofthermal energy and touse more
coal instead ofoilinindustry ingeneral ,ifneed bewith theaidof
taxincentives .The Council oftheEuropean Communities has stressed –
most recently initsResolution of9June 1980 onenergy objectives -
that anattempt should bemade toreduce oil'sshare ofgross energy
consumption to40$by1990.
3.Onthebasis oftheshift inenergy policy ,various publications
have attempted toforecast potential coal trends attheworld or
international level .These publications include :
–"Medium-term guidelines forcoal"(Commission )
–"Steam coal ,prospects to2000"
–MCoal–bridge tothefuture "^
–"Outlook forthelong-term coal supply anddemand trend intheCommunity "^
All -these publications deal with coal markets asawhole ,major sectors
ofuseandproblems ofinfrastructure andproduction .
Heads ofState andGovernment oftheCommunity :12–13 June1980,
Western Economic Summit :22-23 June1980
0JC22of30.1.1975 .
3IEA/0ECD-Paris 1978.
Massachusetts Institute ofTechnology 1980 (WOOOL ).
5C0M(80)117 final .

-2-
4.These studies indicate that there should "benodoubt that electricity
generation will bethebiggest market forsteam coal ,atleast until
theendofthecentury .Irrespective ofthis ,increased useofcoal
inthe "other industry "sector could also help reduce theCommunity 1s
dependence onimported oil.Areport ^bytheECSC Consultative
Committee refers tothefuture importance ofreplacing oilbycoal
forindustrial energy consumption andrecommends that the Commission
examine substitution possibilities intheindustrial steam-raising
market .
TheAssociation oftheCoal Producers oftheEuropean Community has
also worked outdetailed studies onsubstitution problems in"other
23industry ." 1These studies give afavourable assessment ofpossible
future coal trends andsuggest how thesubstitution process canbe
launched and accelerated .
5*Various bodies andprofessional organisations have held public meetings ,
especially intheUnited Kingdom ,France andtheFederal Republic of
Germany ,todiscuss thecomplicated technical andeconomic aspects of
converting oil-fired plant tocoal intheindustrial sector .The
sometimes extensive conference reports contain interesting findings
which aremerely referred tohere without further detail .
6.Thepublications andstatements have prompted theCommission tostate
itsposition onthis very complicated range ofproblems .However ,this
report cannot gointo details ordeal with individual cases .TheCommunity
1"Medium and long-term perspectives for coal inthe Community "
byMr.H.J. Thomas ,OJC161of28June 1979 *
2Report ontheprospects for coal consumption inthe "other
industry "sector oftheCommunity energy market ,September 1979
(unpublished ).
^Technically possible useofcoalinthe"other industry "sector
oftheEuropean Communities uptotheyear 2000 ,April 1980
(unpublished ).

-3-
covers toolarge anarea forthis ;conditions intheindividual Member States ,
inthebranches ofindustry andinthecompanies andthesize ,location and
technical equipment ofthecompanies vary toomuch foracommon denominator tobe
found .Forthesame reasons the -investment .costs ofconversion canonly betreated
inavery general manner ,,Ofcourse ,itispossible togive ageneral indication
oftheaspects onwhich individual companies plan their decision-making concerning
theconversion ofexisting firing plant .Inorder togive thereader some idea
oftherange oftechnical andeconomic -andeven psychological andsubjective -
factors which arise ,Annex Ilists these aspects ,albeit without anyclaim to
completeness .Itisnotpossible toquantify these aspects orgive arational
assessment ofthem inthis study .This isnottheCommission 'sresponsibility but
that ofthecompanies themselves ,theengineering consultancy services andthe
fuel suppliers .This study contains only anoverall summary oftheproblems and
prospects ofincreasing coal consumption inthe industrial sector andindicates
measures which could betaken topromote andaccelerate thetransition from oil-
firing tocoal-firing .
7.Forthepurposes ofthis study ,thefollowing markets arenotincluded either
because they aredealt with inother publications orbecause itisnotyetpossible
topredict their technical development satisfactorily :
-theiron andsteel industry andfoundries ;
-chemical feedstocks ;
-coal gasification andliquefaction .
Thehousehold market isalso excluded from this report .However ,there arere­
peated references tothebulk heat market ortolarge-scale heating .This in­
volves space heating forfactories ,offices ,public buildings ofall
types anddwellings supplied bylarge plants with orwithout thecom­
bined ,generation of.electricity .This market cannot beincluded
l)SeeChapter IIbelow

-4-
inthetables "because ofstatistical difficulties ,"buttheproblems
andprospects ofthis market arevery similar tothose ofsmall and
medium–sized industry .Most ofthe statements inthis report therefore
apply equally tolarge-scale space heating .
Thereport islimited inarea tothenine Member States oftheCommunity .
Greece ,which :became amember oftheCommunity on1January 198l,oould notbe
incorporated asnocomplete orcomparable statistics were available .
8.This report isintended toprompt general discussion inallMember
States ofhow toovercome the current obstacles tothereplacement of
oilbycoal and oftheextent towhich free market forces need tobe
supplemented byenergy policy andother administrative measures inorder
toaccelerate this process intheindustrial sector .This report is
also intended toprovide general information forthose industrial
companies toying with theidea ofconverting their energy –consuming plant
tocoal orwishing toinvest innew coal-fired plant .

-5-
II.PASTTRENDS
9.Lookingbackisbasicallyofonlyhistoricalsignificance !butthepastcon­
tainsimportantpointersforanalysisoftheourrentsituationandmayhelp
toanalyse.it.
Thisanalysisrequiressuitablestatisticalmaterialenablingcomparisonof
differentperiodsanddifferentcountries.Thefieldofexamination mustalsobe
definedandstatistically demarcated.
A.Fieldofexamination
10.AnnexIIofthisreportoontainsstatisticaltablesofthetrendinfinalenergy
consumptionofthe"otherindustry"sectorfromi960to1978»"thelastyearfor
whichcompletestatistics wereavailablewhenthisreportwasdrawnup.Figures
aregivenfortheindividualMemberStatesoftheCommunity(Tablel)aswell
asfortheindividualsourcesofenergyandbranchesofindustry(Tables2-11).
Theterm"otherindustry"isusedintheCommunity'sofficialstatisticsandcovers
allbranchesofindustryexceptthesteelindustry,theenergysectorandsmall
business.
Theterm"finalenergy"coversallsourcesofenergyusedinindustrialpro­
ductionjhowever,non-ensgyconsumptionisexcluded.Theenergyusedbyin­
dustrialselfproducersofelectricityisalsodisregardedinthestatistics
forfinalenergyconsumption.Thisisinkeepingwiththeobjectivesofthis
studywhichintendstoanalyseonlythesubstitution proceduresforcovering
industry'sactualrequirements ofheat.Forinformation purposes,Tables2-11
ofAnnexIIstatetheamountsusedbyindustrialpowerplantin1978togive
someideaoftheordersofmagnitudeinvolved.

-6-
Byrestricting this study toindustrial heating requirements and thesub­
stitution processes inthis sector ,weareforced todisregard electricity
consumption ,aselectricity isused inindustry foronly quite specific heating
processes (metallurgy ),chemicals andforcovering power andlighting require­
ments .Electricity consumption istherefore listed only instatistical table 1
ofAnnex II.
The"other fuels "listed intable 1(patent fuel ,brown coal briquettes ,derived
gases ,etc.)arealso disregarded asthey arerelatively unimportant forthe
substitution procedures .
Thisleaves thestudy withthefollowing major competing energy sources :^^
hard coal
coke
light fuel oil
heavy fuel oil
natural gas .
"Other industry "intheCommunity used 123.1 million toe ofthese energy sources
in1978 .This quantity isequivalent to94%of "thethermal final energy consumption
of"other industry ".Thefigures contained inTables 2-11 ofAnnex IIbreak down
this market according toMember State and individual branch ofindustry whenever
these statistics were available orofsignificance forthestudy .
11.Allthefigures areexpressed intoe (tonnes oilequivalent ).Asvarious statistical
bases analysed contained figures inteeort=t ,these figures had tobeconverted
orrounded off sothat theaggregation oftheindividual figures does notalways
tally with thetotals .
Alarge proportion ofthese figures areourownassessments ,since wehadto
disregard industrial self producers ofelectricity anddifferentiate between
light and heavy fuel oil 0

-7-
B.Historical background
12.Twostages ofdevelopment stand outwhen examining thesubstitution processes
in**other industry ".Coal ,which still covered almost half ofenergy demand in
I960 ,waslargely ousted byoilby1970 *Themost important feature ofthetrend
intheseventies wastheadvance ofnatural gaswhich notonly atefurther into
coal 'sshare ofthesupply market butalso increasingly replaced light andheavy
fuel oil.Since 1976 there hasbeen aslight increase intheuseofooal (see
Figure AandTable 2ofAnnex II).
Figure A
Final consumption ofselected energies in"other industry "
inthe Community
(Percentage shares )
7.lOOrm ,».j ».»»j
90!•«»"•1 KV.*»·ιγ:··ιρ..·?μι··.:·-Mmm^<-
80f.–:•]–
IΑ I β..I70,ν ·* -··.·"
'/Υ/ΖΛ ·< **
Β0'Ψ%ν–ν,–.ν-Ι!I >· >· · <so,!•:i l'A
^0 »•1 L#-1
• « »•
: yZz// »• • <30t::A W/y •< »•
|g|^ ^Natural gas
Heavy fuel oil
Light fuel oil
Coke
Coal
1960 1970 19761978

InI960 hard ,coal andcoke still accounted for59°3%(about 49million toe)
oftotal thermal consumption ;by1978 this figure haddropped to8.8% (around
11million toe).
Thereasons behind this trend areknown ;they were already mentioned inthe
introduction .
Forawide variety ofreasons (discussed inChapter V)itwould beillusory to
assume that the quantitative decline incoal consumption could beused asthe
basis forconclusions ,about theexisting substitution potential orfuture coal
consumption .
13.Looking atthetrend inindividual branches ofindustry (Figure B),itcanbe
seen ,.that although coal 'smarket losses have been considerable inevery sector ,
there aredifferences ;this isbecause these branches ofindustry useenergy
indifferent ways inaccordance with thewide range ofproduction processes
Figure B
Final consumption ofselected energies in"other industry "
bysectors
(Percentage share ofenergy sources )
Χ.ίτ*
AjC* x 0.4
é
lOGi "v,,'.i i».t vi r■."i 1."'T.1■% 1»"f'1 1»s:tiΆ· :ΗΊ 1\1;1Μ:]Μ ;Ι
*• "khvl I*JVj • I* Natural gas
•'1 •v I .•;J •R» •rr.
• '-ο · «'■" ·ΐ'· ··■· . ··• "0 · " ·–* · 'ο Α··« ^7*Α
s •J•ir ••r.\*-\ •.i-/iml •
Heavy fuel oil
il Ha V ''1* w V/V ■ "SI1' 3•LJ • ;• f:j•JLJ •en j1•M. H» • \1*r>H•;,i# F'-l. •n»m*.
;:Ι::ί::Λ«&ιΐ1ϊpm k•mm ^ f-ion
dUN.1 \ • &1ιοΓ·:«-4· -Π–IΓΛ- :Μ·υ-Μ ^-
;H IMrn□m
qr ' ' 1 '1 * ■J * '1h I.JLili.1
1960 197B 1960 1S78 195?*379 1980 1970 IS601978 1960 197B

-9-
appliedoThetrendinthechemicalindustryandintheglass,potteryand
buildingmaterialssectorisparticularly importantinthisrespectoThese
arebyfarthelargestindustrialenergy-users anditisinthesetwosectors
thattheabsolutedropincoalsaleswasthehighest.
14.Thesubstitution ofotherfuelsforcoalhassofarcontinuedunabatedinthe
chemicalindustryand,atjustaround4%tshareofsupplyin1978waslower
thaninothersectors.Increasinguseofnaturalgasintheseventieshasnot
reducedconsumption ofheavyoilinthissector,butithassloweddowntherates
ofincrease ,,
15<>Thetrendintheglass,potteryandbuildingmaterialssectorwasbasicallymore
favourableforcoal.Thissectorremainedthelargestuserofcoal,mainlybecause
ofparticularimportanceofcementmanufacture duringthewholeperiodcovered
bythisreport,astherearenoparticularproblemsassociatedwithcombustion
technologyorashutilization inthissectorandascoal'spriceadvantageover
oilcanberealizedmorequickly.Thecementindustryisnotthereforere­
presentative ofotherindustries.Asaresult,itistheonlyconsumergroup
inwhichtheuseofcoalhasincreasedtoanappreciableextentsince1975/76and
inwhichcoalaccountsforasomewhatlargershareofsupply(12.4%).However,
thereareconsiderable differences herefromonecountrytoanother.Although
largequantities werestillusedinthissectorinFranceandtheFederalRepublic
inI960,coalhadalmostcompletelydisappeared fromthissectorin1978(see
Tables5and6ofAnnexIIInBelgiumandDenmark,ontheotherhand,coal
consumptionhasevenincreasedsincei960(seeTables3and4ofAnnexIl)<>
AlthoughtheuseofcoalinthissectorintheCommunityasawholeincreased
by0„8milliontoebetween1976and1978,mostofthiswasduetothetrendin
theBelgiancementindustry,,
160Goalalsocontinuestoregistersomewhathighersalesintheengineering andother
metalsector(1.5milliontoe),mainlyduetothespecificconditionsinthe
UnitedKingdom.Naturalgasandlightfueloilaregenerallythemostimportant
energysourcesinthissector)coalsubstitution hasnotcontinuedtoincrease
since1976and1978.
17.Ofthesubsectorsselected,food,drinkandtobaccoandthepaperandprintingin­
dustrytodayhavethelowestcoalconsumption ;theytendtodependonheavyfuel
oilmorethanallothersectors.ItisonlyintheUnitedKingdomandtheFederal
RepublicofGermanywherecoalcontinuestoplayanyroleworthmentioninginthis
sector.Since1975/76coalconsumptionhasremainedgenerallystaticorhasin­
creasedslightly.
"l")Recently,however,therehasalsobeenanincreaseinthecoalconsumedbythe
cementindustryinthesetwocountries.

InI960hardcoalandcokestillaccountedfor59°3/£(about49milliontoe)
oftotalthermalconsumption ;by1978thisfigurehaddroppedto8.8%(around
11milliontoe).
Thereasonsbehindthistrendareknown;theywerealreadymentionedinthe
introduction .
Forawidevarietyofreasons(discussedinChapterV)itwouldbeillusoryto
assumethatthequantitative declineincoalconsumption couldbeusedasthe
basisforconclusions ,abouttheexistingsubstitution potentialorfuturecoal
consumption.
13.Lookingatthetrendinindividualbranchesofindustry(FigureB),itcanbe
seen,.thatalthoughcoal'smarketlosseshavebeenconsiderable ineverysector,
therearedifferences ;thisisbecausethesebranchesofindustryuseenergy
indifferentwaysinaccordancewiththewiderangeofproductionprocesses
FigureB
Finalconsumption ofselectedenergiesin"otherindustry"
bysectors
(Percentageshareofenergysources)
A*^x o*^,-Vc/^^ cP/V/
v.^^^y/^^
100Γ..1"'·1ΓΤΊΠΖΓΠΓΤΠΓΤ"1ΠΤ1KM
!•*[%V|(•1:1•KxH.T>1 Naturalgas
6CH.hH *•<***011-u::H:•M-::•U-:m&·.·ο.·-..·.
AOm«h–{;■.T–m.–1I»–tr.^j1-/-.U1r-vr-T
30 ffl*H^ç
t' f'V*t5?!•Ï&'-ZÏzLightfueloil
20à;-:■-7^-K:V-tivvz.M .*f*• <y.?v/. I*01 I. IMa II•I.•I1
-1u -rt-ur
IIIfri1IIIIII'Il<>-Hardcoal
19601978196015701953'i<319S01378I960197819601970

-9-
appliedoThetrendinthechemicalindustryandintheglass,potteryand
buildingmaterialssectorisparticularly importantinthisrespect.These
arebyfarthelargestindustrialenergy-users anditisinthesetwosectors
thattheabsolutedropincoalsaleswasthehighest.
14.Thesubstitution ofotherfuelsforcoalhassofarcontinuedunabatedinthe
chemicalindustryand,atjustarounditsshareofsupplyin1978waslower
thaninothersectors.Increasinguseofnaturalgasintheseventieshasnot
reducedconsumption ofheavyoilinthissector,butithassloweddowntherates
ofincrease.
15.Thetrendintheglass,potteryandbuildingmaterialssectorwasbasicallymore
favourableforcoal.Thissectorremainedthelargestuserofcoal,mainlybecause
ofparticularimportanceofcementmanufacture duringthewholeperiodcovered
bythisreport,astherearenoparticularproblemsassociatedwithcombustion
technologyorashutilizationinthissectorandascoal'spriceadvantageover
oilcanberealizedmorequickly.Thecementindustryisnotthereforere­
presentative ofotherindustries.Asaresult,itistheonlyconsumergroup
inwhichtheuseofcoalhasincreasedtoanappreciableextentsince1975/76and
inwhichcoalaccountsforasomewhatlargershareofsupply(l2.4%)«However,
thereareconsiderable differences herefromonecountrytoanother.Although
largequantities werestillusedinthissectorinFranceandtheFederalRepublic
inI960,coalhadalmostcompletelydisappeared fromthissectorin1978(see
Tables5and6ofAnnexIIInBelgiumandDenmark,ontheotherhand,coal
consumptionhasevenincreasedsincei960(seeTables3and4ofAnnexII).
AlthoughtheuseofcoalinthissectorintheCommunityasawholeincreased
by0o8milliontoebetween1976and1978,mostofthiswasduetothetrendin
theBelgiancementindustry.
16.Coalalsocontinuestoregistersomewhathighersalesintheengineering andother
metalsector(l.5milliontoe),mainlyduetothespecificconditionsinthe
UnitedKingdom.Naturalgasandlightfueloilaregenerallythemostimportant
energysourcesinthissector}coalsubstitution hasnotcontinuedtoincrease
since1976and1978.
17.Ofthesubsectorsselected,food,drinkandtobaccoandthepaperandprintingin­
dustrytodayhavethelowestcoalconsumption ;theytendtodependonheavyfuel
oilmorethanallothersectors.ItisonlyintheUnitedKingdomandtheFederal
RepublicofGermanywherecoalcontinuestoplayanyroleworthmentioninginthis
sector.Since1975/76coalconsumptionhasremainedgenerallystaticorhasin­
creasedslightly.
TJRecently,however,therehasalsobeenanincreaseinthecoalconsumedbythe
cementindustryinthesetwocountries.

-10-
18.Finally,itcanbeseenthat,whilecoalconsumptionby"otherindustry"
wasstillrelativelyevenlyspreadamongthevariousbranchesinI960,by1973as
muchas4O/0ofitwasconcentrated ontheglass,potteryandbuildingmaterials
sector.5furthermore ,therearealsoconsiderabledifferences fromcountryto
country}inthisconnection,theproportionofsupplyaccountedforbycoal
isunaffectedwhetherthecountryinquestionproduces(coal'sshareinGermany:
6%tintheUK:15yb)orimportscoal(coal'sshareinItaly:1:/0,inDenmark:22%).
19.Therearemanyreasonswhycoal'sshareofthemarkethasfallen(technical
handling,highinvestmentexpenditure ,theproblemofash,environmental regu­
lations,etc.).Themostimportantdeterminant ,however,wasthefactthatsince
1958/1960thepriceperunitofheatshiftedinfavourofrivalsourcesof
energyandawayfromcoal(seeFigure0)o
20cOnlyinformationforthesix-memberCommunitycouldbeincludedinFigureC
astheperiodcoveredstartsinI960.Forthepurposesofcomparison ,the
calculations since1973arenotextendedtothenine-memher Community.The
figuresgivenaretheaveragedeliveredpricesweightedaccordingtothe
quantitiesused;inthecaseofcoal,onlythesteamcoalpricesasaweighted
averageofCommunitycoalandimportedcoalarecovered.
Thefigureshowsthatthepriceperthermalunitforcoalfromi960to1973
wasalwayshigherthan"theequivalentpriceforheavyfueloil.However',from
1975onwardsthepriceforcoallaybelowthatforheavyfueloilandsince
1977thepriceforcoalhasbeenthelowestincomparisonwithallrivalenergy -
sources,includingnaturalgas.Oneofcoal'sbasichandicapshastherefore
beeneliminated,atleastforlargeconsumerssuchaspowerstations,satisfying
animportantpre-conditionforpowerstationsonceagainusingmorecoalin
future.Inthecaseofindustry,however,thepriceratiofor1980shownin
figureCcannotyetberegardedinthemainassatisfactory ;therecanbeno
self-triggering ofabroad-basedsubstitution processinthissectoruntilthe
heat-priceratiobetweencoalandoilreachesatleast1:2C

-11-
FigureC
Deliveredpricesofvariousenergysourcesforindustrialusers
(Averagepricesfortjjesix-memberCommunityexcludingvalue-addedjUSfl/Giqajoule
<4- ■Η-.
••••••••••• Steamcoal I
Heavyfueloil I
Lightfueloil Ig
«,*++*++***+Naturalgas INΠT ■^M
3-h- /r-s^,7H/I&/ ·♦.·(τ
//!
2~ –2
UisÂi
ι/#
1 1
r*T'ZI–^
o : Il0
1960 1966 1973VA75'767778791980

12-
III .TECHNOLOGY MPTHEENVIRONMENT
A*Technical aspects oftheutilisation ofenergy forthermal purposes .
1.General comments
21.Inspeaking ofindustrial energy consumption adistinction isshown
"between twocategories :i)theproduction ofthermal energy ,andii)
theproduction ofdriving power .Except inthecases ofelectric furnaces ,
orheating "byelectrical means ,theheat requirements aremetby "burning
theoil,gasorcoal atthepoint where theenergy isactually used .On
theother hand ,electricity isnormally used toprovide thedriving power
formachines .Inpractice ,itisonly incovering itsheat requirements
that industry hasanyappreciable opportunity tosave oilbyusing coal .
There arenoenergy consumption statistics broken down into technical
categories (e.g. thermal energy ,motive power ,temperatures ,controllability
oftemperature andcleanness ofthecombustion gases ).Thefollowing
information istherefore based onempirical data from theCommission *s
investigations .According tothese data ,cover ofheating requirements
isparticularly important for thefollowing branches ofindustry :
-cernent ,limestone ,bricks ,tiles ,fireclay
–porcelain ,glass ,earthenware
–paint andenamel drying
–heat bonding methods
–heat treatment inprecision engineering
–non-ferrous metals
–chemicals
–oil refineries
–preliminary treatment oftextiles andleather
–paper andboard
–drying methods
–food fdrink andtobacco
–industrial space heating

-13-
Not allthese branches offer equally good opportunities for thereplacemnt
ofoil bycoal .Because ofitsproduction techniques ,thecement andbrick
industry iswell-suited forconversion .Thesame cannot besaid ofother branches
ofindustry where therequirements asregards cleanness andcontrollability
areparticularly higho
Inaddition ,theproblem ofvarious groups ,andsizes ofcoal hastobecon­
sidered .Coal isnot ahomogeneous product ;thesectors ofindustrial utilization
vary .Some industrial production methods require specific sizes andqualities
ofcoalo
220When assessing thepossibilities ofsubstitution ,thevarious branches ofindustry
canalso bedistinguished according tothetemperatures involved .
-Inthelowtemperature range (uptoaround 500°C )titismainly aquestion of
heat utilization whereby theheat istransferred toaconductive material so
that thespecific fuel characteristics hardly play anypart .This sector offers
very good opportunities forsubstitution ,,
-Themedium temperature range (about 500-900°C )mainly covers metal-process ing„
There arerelatively fewpossibilities ofsubstitution here ,,
-Inthehigh temperature range (about 900-l600°c)tconductive materials are
used only inexceptional cases ,,Thematerials heated (glass ,pottery ,building
materials )normally come into direct contact with thecombustion products .
This sector often offers good possibilities forsubstitution ,butsome pro­
cesses have high requirements which coal cannot always satisfy .
2.Coal-fired plant
23.Industry uses different energy-consuming plant which hastocorrespond tothe
requirements raised asregards thetype andvolume ofheat production .These
plants canuseonly certain sizes andqualities ofcoal andanyvariation hasto
bekept within strict limits .Itwould therefore beofimportance inthefuture
tohave firing plants which could use allsizes andqualities ofcoal .
Adistinction canbemade between thefollowing types ofplant :
Boilers
Theproduct being heated does notcome into contact with thecombustion gases ,
buttheselection ofthefuel may besignificant asthetemperatures must
becontrollable andcorrosion problems must beavoided .Bymeans ofhotwater or
steam ,boilers provide process heat and/orspace heating .Boilers exist inprac­
tically allbranches ofindustry .

-14-
Retorts
Aswith boilers ,theproduct being heated does notcome into contact with the
combustion gases which heat thecontainers containing thesubstance tobeprocessed .
Thechoice offuel isimportant ascorrosion problems must beavoided andappropriate
temperatures must beattained andregulated asnecessary#
Retorts aremainly used inthefollowing branches ofindustry .
(a)Chemicals
(b)Oilrefineries
Open furnaces
There isdirect contact between theproduct being heated andthecombustion gases .
Thedecisive reason forusing more coal would bethebasic question ofwhether
theprocess requires precise regulation andhighpurity ofthecombustion gases
(particularly lowsulphur content ).This gives twocategories :
(a)Special purity andcontrollability notrequired :
-cement
-limestone
-bricks ,roof-tiles ,fireclay
-certain agricultural drying processes ,especially foranimal feed
(b)Purity andcontrollability important :
-glass ,earthenware ,porcelain
-heat treatment inprecision engineering
-most heat bonding methods
-paint andenamel drying
Electric furnaces
Electric furnaces require nodetailed examination asthemetal industry sheat
processes which areinvolved herecanhardly becarried outwithcoal .The
electricity iseither taken fromthepublic gridorgenerated inprivate plant ;
thelatter eventuality comes into theboiler category .

-15-
3«Coal combustion technologies
24.There arefour main combustion technologies formedium tolarge coal-fired
plants s
-mechanical stoker orchain grate
-pulverized fuel (coal-dust firing )
-fluidized-bed methods
~coal-oil mixtures
The first two methods have been common for decades and will not therefore
bediscussed further .Although there aredisadvantages inusing coal instead
ofoilinthese combustion methods (larger dimensions ,complicated operation ,
need togrind thecoal ,etc,),there isnotechnical objection toconverting a
substantial proportion ofexisting boilers tocoal (nuts ,slack ,dust ),
especially asthese processes will begiven further technical improvement and
refinement infuture .
Fluidized-bed method
isfed into the
25.Inthis technology ,small-sized coal orcoal tipto36mm/combust ionchamber in
abed ofcoal-ash orsilica sand .This bed iskept insuspension byacushion
ofairblown through perforations inthechamber floor .
Trials have been conducted formore than tenyears with several types of
fluidized-bed furnaces andboilers which arenow increasingly offered by
manufacturers .Theadvantages ofthese plants aretheir compactness ,their high
combustion intensity andgood heat transfer characteristics ,thepossibility
ofburning coal ofdifferent sizes andqualities andtherelatively non-polluting
combustion gases ;these gases result from theaddition oflimestone ordolomite
tothecombustion material inorder toprevent discharge ofsulphur dioxide .
Ascombustion takes place atmedium-range temperatures (800-900°C ),smaller
quantities ofnitrogen oxides areproduced than intheburning ofpulverized
coal where temperatures ofaround 1800°C arenotuncommon .
With increasing experience intheconstruction andoperation offluidized-bed
furnaces andboilers ,these advantages should toanincreasing extent influence
favourably thechoice ofplant forsmall tomedium thermal requirements ,especi­
ally when converting theunits from oilfiring .Therather complicated and
expensive regulating equipment needed forfluidized –bedcombustion means that
inpractice thelowest level forthis type ofplant is3MWandtheupper level
isaround 20MWjhowever ,fluidized-bed firing will certainly become more
economic than conventional firing .

-16-
Apartfromthefluid.ized.-bed plantsunderatmosphericpressure,whicharenow
comingontothemarket,experimentsarebeingconductedwithplantsworking
underpressuresof10-20bars,especiallyinGermany,theUnitedKingdomand
theUnitedStates0Theseplantsareevenmorecompactandevenlessharmfulto
theenvironment ?theyalsoofferahigherefficiencybyusingtheexhaustgases
todriveagasturbine.However,agooddealofdevelopmentstillhastotake
place.
Coal-oilmixtures
26cThemainvalueofcoal-oilmixturesisthattheycanbetransported andburnedin
existingfacilitiesforheavyfueloilwithaminimumamountofmodification .
Anattemptisnowbeingmadetousecentrally-manufactured standardmixtureswhich
aresuppliedtotheconsumerbypipelineorroadtanker,storedinoiltajiksand
burnedwithlittleornodropinboilerperformance ,,Toachievetheseresults,
anumberofvalvesandburnerswouldhavetobereplaced,devicesinstalledto
trapthefly-ash,andashblowersandashhoppersprovided ,,Noadditional de-
sulphuringplantwouldbeneededifthesulphurcontentofthecoalusedremains
withincertainlimits,i.e.isapproximately thesameasthatofthepartlyre­
placedfueloil.
Therehave,however,beenobjectionsabouttherapidwearontheburnersandthe
reducedboilerperformance .Theplantswouldpossessallthecharacteristics of
acoalboilerandacoal-firedplantwouldthereforebepreferable,atleastin
newinstallations -
4.Spécifiebranchesofîndustry
2JCThissectiongivesabriefdescription ofthemainfeaturesofanumberof
selectedbranchesofindustrywheretherecouldbesubstantial conversionfrom
oiltocoaloThreeimportantpre-conditions havetoexistorbecreatedbefore
conversioncantakeplace:cheapcoal,optimummoderncombustiontechniquesand
lowenvironmental pollution.
Manyoftheexistingplantsinthebranchesofindustrydescribedbelowwere
originallydesignedforcoal-firing andwereonlylaterconvertedtooil-firing.
Technically,thismakesre-conversion tocoal-firing arelativelysimplematter­

-17-
Ontheotherhand,boilerplantdesignedexclusivelytouseoilhastobe
replacedbyanewboilerifcoalistobeused,Thisisarelativelyexpensive
stepasthespecificinvestmentcostsforoilandooal-firedboilerswiththe
sameheatingperformanceareinaratioofabout1:£,5*
28,Manyofthebranchesofindustrydescribed,orthelargerundertakings ,satisfy
onebasicconditionforusingcoalonalargescale:theyarelinkedtoabulk
transportsystem(rail,waterway).
Thesizeoftheundertakingisanadditionalfactor,beoausethetechnical
problemsinvolvedinconvertingfromoil-firingtocoal-firing cannormallybe
resolvedmoreeffectivelyinlargerplantsthaninplantswherespaceisre­
stricted,Costscanalsobecutwithregardtomostsubsidiaryplantsandthe
labourforcerequiredforservicingandmaintenance.
Cement
29oThetechnicalproblemsinvolvedinconvertingtheprocessesofthecement
manufacturing industryfromoiltocoalarerelativelysimpleandarelargely
restrictedtothestorage,transportandgrindingofcoal,Insomeoasesthisprob­
lemcanberesolvedbymeansofgrindingcontractswithooal-firedpowerstations
orbysettingupcentralcoalpreparationplantstoserveanumberofmanu­
facturers 1works;inbothcasesthegroundcoalcanthenbedeliveredtothe
cementworksinspecialvehicles,Awholerangeoftypesofcoaloanbeused,
includingverycheapcoalwithahighashcontentobtainedfromspoiltips
Lime-kilns
30,Inthisbranchtoo,asincementmanufacture-withwhichitisoftenclassified
underoneheading-heatingcostsplayadecisiveroleinproductioncosts.
Coalorcokewastraditionally usedonalargescale.Manykilnswereconverted
tooilornaturalgastoobtainhigher-grade products.

-18-
Bricks,rocftilesandfireclay
310Inthesesectorsenergyismainlyusedforheattreatmentinkilns0
Thepurityofthecombustiongasesdoesnotmattersomuch5butbettercontrolla­
bilityoftemperaturesmeansthatnaturalgashasatechnicaladvantageoverother
fuels.
Therearenoinsurmountable obstaclestotheuseofcoalinmanypartso
thisindustryaslongasthecoalpriceisattractiveenoughtooutweighthe
minortechnicaldisadvantages .
Paperandboard
320Bothproductsaremanufacturedinpracticallythesameway;woodpulpis
usedasarawmaterial.
Woodpulpisobtainedeitherbyshreddingandpoundingthewood-anoperation
whichconsumesagooddealofmotiveenergy-orbymeansofchemicalliquifac-
tionwhichrequiresheatforevaporatingsurplusliquid,,Inbothcaseslarge
quantitiesofprocessheatarerequiredfordryingthefinalproduct.
Theneedforbothprocessheatandmotivepowerforoperatingmachines-in
thecaseofthemechanicalmethodoftreatment-makesitattractivefora
companytogenerateitsownelectricityaspartofacombinedpowerandheat
cyclec

-19-
B.Environmental problems
33«The increased useofcoal leads tothefollowing environmental nuisances :
-noise anddost during carriage ,storage andhandling
-discharges into theatmosphere during combustion
-ashdisposal .
Itiseven more urgent tofind asolution tothese problems inthose areas
with ahigh population density andalarge concentration ofindustries which
also pollute theenvironment .
34.While some oftheenvironmental problems inevery industrial society are
general ,other aspects arespecific tocoal .Thefailure todeal with these
disadvantages inthepast hasledtocoal being viewed unfavourably .Almost
allthese disadvantages canbeeliminated bymeans ofappropriate organization
andadequate funds .Itisaquestion ofcost }theadditional expenditure must
beoffset bytheprice differential between oilandcoal .Thetougher the
environmental protection regulations are inagiven place ,thegreater must be
coal 'sprice advantage tobalance theextra expenditure required tosatisfy
these regulations .
Satisfaction ofstrict regulations isnotnecessarily themajor environmental
problem ofthose firms wishing toconvert from oil tocoal .Theuncertainty
surrounding theinterpretation ofthelegal provisions inthis field and
expensive ,time-consuming andcomplicated authorization procedures mayhave
agreater deterrent effect than strict environmental regulations .
35.Traditional forms ofcoal-handling such asstorage onopen dumps andonly
partially mechanized andunprotected loading andunloading axelabour-intensive
andalso unattractive activities .Coal dust gets into theairandcauses
pollution inother places .

-20-
Inmostcasestherefore,reneweduseofcoalinsteadofoilrequiresthein­
stallationofmodernautomatichandlingplants.Thisincludesenclosedcoal
stores,e.g.underground ,perhapsbeneathparkingareas,andtheenclosed
carriageofcoalinbunkerseitherunderpressureoronaconveyorbeltor
bymeansofacombination ofthesetwomethods.Thecoalfallsfromthebunker
throughchutesorisblownintofurnacesorboilersbyacurrentofair0
Theseplantsrequirealittlemorelabourandservicingthaninthecaseofoil.
Furthermore ,nocoaldustescapesandtheenvironmentisnotthereforepolluted ,,
Whenhandlingcoaldust,considerations ofenvironmental protectionandthe
explosionriskdictatethatthedustmustbecarriedinenclosedvehiclesof
thetankertypeandstoredinspecialbunkersunderaprotectiveatmosphereof
inertgas0Centralizedcrushingbytheproduceroratlarge-scaleusers'works
couldalsoeaseenvironmental problemsandfacilitatethesupplyofsmallcon­
sumers.
36.Allcombustionalsoproducesgaseswhicharedischargedintotheatmosphere ;
whencoal,inparticular,isburned,moreCO^isreleasedthaninthecombustion
ofoilornaturalgas.Itisamootpointwhetherthereleaseofadditional
carbondioxideasaresultofincreasedcoal-burningwillcausedamageinthe
longterm;thereare,however,nosignsofsuchdamageoccurringintheshortor
mediumterm0Itistobehopedthatfurtherresearchinthisfieldwillprovide
moreinformation ,,
Thedischargeofothergasessuchascompoundsofsulphurandnitrogenisnot
specifictocoaltbutnitricoxideemissionsresultingfromthenitrogencontent
ofthefuelarehigherthanwithoilorgas-firingo Asstatedinthechapter
oncombustiontechnologies ,somemethodsevenreducetheproductionorrelease
ofsuchgases.Wherenecessary,thereleaseofsulphurcompoundscanbepractically
avoidedbydesulphurizing thegasorcoal,eventhoughthestorageoftheresidual
wastemayposeproblems.

-21-
37.Theproduction ofash isafactor specific tocoal 5coal-fired plants
aretherefore connected with appropriate ashcollection plants .
Ridding coal-users –especially small –scale users –oftheashproblem isone
important aspect ofthequestion ofreplacing oilbycoal .
Filters have tobeinstalled toprevent ashcomponents from escaping through
theohimney into the environment .
38.Ashinanyform maycontain harmful substances .Iftoxins arepresent in
potentially dangerous quantities ,special disposals procedures must beused .
39.Thesolution oftheashproblem depends onthepossibilities ofutilization
whereby itisimportant todistinguish between twotypes ofash :
-clinker ash
-powder ash .
40.Grate-firing mainly produces clinker .This clinker canbeutilized and is
widely used asconstruction materials ,road-building materials or,forin­
stance ,forland reclamation intheUnited Kingdom .Iftheclinker cannot be
used ,itcanonly bedumped ontotips (which must subsequently beplanted )
orused tofill hollows (inthis case itissubject tocompulsory recultivation ).
Asaresult ,theoccurrence ofeven large amounts ofclinker should not
constitute aninsoluble problem ifcoal consumption bythe "other industry "
sector happens toincrease sharply infuture .This isalso aproblem of
organization .Some coal consumers will beable totackle theproblem oflarge
quantities ontheir own .Alarge number ofsmaller coal-users might raise
theneed fororganizations toexamine thebest possible commercial use ,whereby
thecoal suppliers could assume theresponsibility ofcollecting theashand
utilizing itordumping itonacentralized basis .

-22-
41.Powdered ashisobtained from dust-firing andfrom filters .Itcan beup­
graded byadding binding agents ormaybeofvalue forthecement industry .
Carriage anddumping require special dust-prevention measures .

-23-
IV.INFRASTRUCTURE PROBLEMS
A. The coal trade
42.Theconsumer obtains coal either directly from theproducer orimporter or
via wholesalers and retailers .
There arenotrading problems involved inthedirect supply from producers
orimporters ,even ifdeliveries were toincrease sharply infuture .There should
benoproblems infuture inconnection with thewholesale trade ,provided that
itsells directly tothepurchaser without intermediate storage .However ,
problems oould arise inthecase ofwholesalers with their ownstores andof
retailers .Thefollowing argument applies tothese twotypes oftrader .Defining
their problems ismade more difficult bythefact that norecent statistics
areavailable concerning thecommercial channels serving the"other industry "
sector andtheamounts supplied .Thetraders themselves donotonly have industry
astheir clients }they also have small-scAle users ,households ,public administra­
tions ,etc.;i.e. their problems donotarise solely inthefield ofindustrial
supply .Ageneral upturn inthecoal trade would beofadvantage toallconsumers .
43.Inprevious decades ,coal traders have dealt almost exclusively insolid fuels .
Ascoalsales havedropped since 1958/1959theyhaveeither goneoutofbusiness ^
ordiversified into fuel oil ,building materials ,fertilizers ,etc .Coal often
accounts foronly 15-20$ oftotal sales .
Anyreturn tocoal-trading activities which mayprove necessary infuture
should notmean that activities built upinthepast twenty years should be
abandoned orscaled down ;instead ,thetrader 'soverall activities should be
extended .
Itisdoubtful whether existing firms will always beable toexpand orwhether
new firms will besetup.Theestablishment ofnew firms appears possible as
Two-thirds ofthefirms existing intheFederal Republic in1958 hadclosed
down by1979 .

-24-
thecoaltradeisanattractivecommercialactivity.Theuseofmodernequip­
ment,theavoidanceoflaboriousanddirtyworkandadvantageous creditfacili­
tiesonthepartofproducers,importersandwholesalers wishingtoincrease
salescouldprovideaddedincentives,
44oThetraditionalactivitiesofthecoaltradesuchasadvicetocustomers,
"bulking"oforders,purchasing,carriage,storage,treatmentofthecoalto
improvequality,i.e.weighing,mixing,breaking,siftingand,possibly,putting
intosacksorotherpackaging,and,finally,distribution toconsumersand
possibly,ashrecovery(seepoint40above)can,withoneexception,beaccounted
formoreorlessbymeansofinitiatives andinvestment ;theexceptionisthe
spaceneededforthestorageandhandlingofcoal.Whenthetonnagesoldis
increased,theremustbequickerloadingandunloading(changeofoperating
arrangement,increasedstorageatproducers'andimporters'premises)ornew
areasor,possibly,intermediate storesmustbesetupalongsiderailwaylines
oratseaportsandinlandports.ManyrailwaycompaniesintheCommunitystill
haveunusedlandandshuntingyardswhichcouldsometimesbeconvertedinto
moderncoaldistribution depots,includingfacilitiesfortheautomatLounloading
ofrailwaywagons,automaticstorage,sortingandloadingoflorries.
Theconsiderable increaseincoalconsumption expectedintheCommunityin
futuremayleadtonewproblemsassociatedwiththemixingofdifferentsizes
andqualitiesofcoaltosupplythequalitiesrequiredbytheconsumer.Thisis
particularly trueofimportedcoal;importersmayhavetomixsizesandqualities
ofcoalfromvariousoriginstoobtaintherightmixforuse.
B.Coaltransport
45.Onebasicconditionforusingmorecoalinsteadofoilisasuitablesupply
(transport)system.Thissystemisinexistenceforcoalsupplyasawholeor
fortheeconomyasawhole;itwillnotbepossibletogiveprioritytocoal
suppliesforthe"otherindustry"sector.Thereisthereforenopointincon­
sideringtheamountscarriedforthe"otherindustry"sectorinisolation,
especiallyasnoserioustransportproblemswillariseuptotheyear2000,even
ifthevolumeweretomultiply,astheamountsusedbythe"otherindustry"
sectorarerelativelysmalloFutureproblems-whichtaketimetosolve,
althoughwehaveuptotheyear2000-couldarisebecauseoftheinterdependence

-25-
oftransportsystemsandoftheincreasedcoaldemandfrompowerstations.
Thequantitiesinvolvedcouldincreaseby150-200milliontintheCommunity
t)ytheyear2000.
460Decisivefactorsinconnectionwithtransportandanydifficulties whichmay
arisearethenumberofusers,theirgeographical positioninrelationtothe
internalandimportedsourcesofsupplyandtheextentandrateofthequantita­
tiveincreasesinconsumption 0Theseoriteriaarecomplicated astheyvary
fromcountrytocountryandfromregiontoregion}inaddition,thefuture
trendcannotyetbeassessedwithregardtothesitestowhiohthemajorcoal-
userswillmove.Inadditiontotheeconomicfactors,technicalandenvironmental
aspectsasloplayarolehere.
OneimportantaspectfortheCommunityisthatsupplywillberestructured
iftotalcoalconsumptionweretodoublebytheyear2000.^Evenwithacertain
increaseininternalproductiontotalcoalimportswouldhavetorisebymore
than200milliont.Theincreaseinproductionmainlyaffectsrailwaysandin­
landnavigation,andimportsaffectshippingandtheseaportsand,subsequently ,
alsorailwaysandtheinlandwaterwaysystem,unlessnewlargepowerstations
arebuiltmainlyincoastalareas.
47oThoseMembersoftheCommunitywhichproducecoalshouldbeinabetterposition
tosolvethetransportproblemsthanthosecountrieswhichmerelyoonsumecoal)
butthecoal-producers toohavescaleddowncoaltransportcapacityinresponse
tothelowervolumeorconvertedittoothermerchandiseortopassengertraffio.
Evenifthecapacityoftransportequipmentisexpandedrelativelyquickly-
andalsosubstantially-bymeansofinvestment,therewouldbethequestionof
theextenttowhichthiswouldbepossibleinrespectofthetransportinfra­
structure(road,rail,river,oanal).
1'Seedoc.C0M(80)117final

-26-
48.Someproblemscouldariseifthetransportvolumeweretosaturate,e.g.,the
maintrafficarteries,whiletransportcapacityisstillavailableonother
routesforthesupplyofsmallandgeographically scatteredindustrialunder­
takings.
Inaddition;,therewouldbetheproblemofinvestmentifnewtransportroutes
hadtobecreated.,Inviewofthetimerequiredforbuildingnewroutes,long-
termplanningwouldbeneededtoensurethattheroutesareavailablewhen
transportdemandarises0
49.Forthesereasons,thisstudycannotprovidedetailedinformation aboutcountries
orregions.Thefollowinginformationdealsonlywithgeneralaspectsofthe
variousmodesoftransport.
50.Roadtransport
Asinthecaseofotherbulkgoods,thetransportofcoalonpublichighways
canplaynomorethanalimitedrolebecauseofeconomicconsiderations 5
thevaryingregulationsintheMemberStatesrestricttheusefulloadof
truckstobetween32-g-and50tonnes.Roadtransportalsoraisesenvironmental
andtrafficproblems.
Inmostcases,thelimitsfortheeconomictransportation ofcoalbyroad
intheCommunityareamaximumdistanceofaround100kmandquantitiesofup
to10000tonnesayear,althoughovershorterdistancesroadtransportcan
provetobetheappropriate formoftransportforfarlargeramounts.Road
transportmainlycomesintoconsideration fortheregionaldistribution ofcoal
frompits,portsorintermediate stores.
51.Railtransport
Accordingtothestatisticsavailablefor1977jalmosthalf(some100milliont)
ofthesolidfuelsconsumedinthesixoriginalMemberStates(211milliontee)
werecarriedbyrail.AboutSOfoofthevolumeofsolidfueltransported was
accountedforbypurelydomestictransaction,while10$wasaccountedforby
internationaltrafficformingpartofintra-Community trade(mainlyGermancoal
andcoke).

-27-
In1977therailwaysinallnineMemberStatesregistered 177400million
nettonnekilometresinfreighttraffic,,Assumingthatabouthalf^the
increaseincoalconsumption-i.e.125millionofthe250milliont-will
havetobecarriedbyrailinfuture(uptotheyear2000),thisfigurewould
2riseby25000millionnettonnekilometres.'Thismeansanincreaseofaround
15%onthetotalamountcarriedin1977(seeabove).
Thisappearsfeasiblewhenlookingatrailtransportasawhole,butitdoesnot
gettotheheartoftheproblemoftherailtransportofcoal,asbytheyear
2000thequantitycarriedwouldbemorethandoublethatcarriedin1977«
NewrailwaylineswouldhavetobebuiltinsomeregionsoftheCommunitywhere
newlarge-scale usersofcoalcouldestablishthemselves.
Thewagonfleetandwagoncapacitymustalsobeincreasedandmodernized.
Locomotivesareneeded.Byextendinginstallations ,thenetloadpertraincould
beincreasedfromthecurrentmaximumofI65Otto2800t.
52.Inlandwaterways
InlandwaterwaysintheCommunityexistmainlyintheNetherlands ,Belgium,
PranceandtheFederalRepublic.
Accordingtothestatisticsavailablefor1977»around15%(32milliont)ofthe
solidfuelsusedinEUR-6werecarriedbyinlandwaterway;about50%ofthis
trafficwasaccountedforbycross-frontier trafficbetweenCommunitycountries.
InlandwaterwaysinthenineMemberStatesregistered some100000millionnet
tonnekilometresinfreighttrafficin1977«Assumingthatabout20%"^ofthe
increaseincoalconsumption-i.e.some50milliont^ofthe250milliont-
willhavetobecarriedbyinlandwaterwaysinfuture(uptotheyear2000),the
5figurewouldrisebysome15000millionnettonnekilometres (15%)•This
appearsfeasiblewherethegeneralcapacityutilization oftheinlandwaterways
isconcerned,butthespecialloadingandunloadingfacilitiesforcoalinthe
inlandportswillhavetobemorethandoubled„Thevesselstoowillhaveto
beincreasedinnumber,equippedspecifically forcoalandmodernized.
1)Thisassumptiondoesnottakeaccountofthefuturecompetitivesituation
betweenrailwaysandinlandwaterways.
2)Withanaveragedistancetravelledof200km„
3)Thepercentagewasincreasedfrom15%(1977)"to20%asmoreimportedcoal
willhavetobetransported fromtheportsofimportinfuture.Thisassumption
doesnottakeaccountofthefuturecompetitivesituationbetweenrailways
andinlandwaterways.
4)Thetransportvolumeof1977(32milliont)wouldriseby_150%.
5)Withanaveragedistancetravelledof300km.

-28-
53«Unloadingfacilitiesatseaports
Themainacitivityhereinfuturewillbetoincreasecapacityandexpand
theportstoaccomodatelargecoalfreighterswithacapacityofupto
165000toProblemsofspaceforstoringandmixingthecoalandtheadministra­
tiveprovisionswhichexistinsomeoftheCommunitycountriescouldobstruct
theincreaseincapacity.
Some1100milliontofmerchandise wereunloadedatseaportsinthenine
MemberStatesin1977*If"theCommunity'scurrentcoalimportsfromnon-
membercountries(about74milliontin1980)weretoincreasebyaround
200milliontbytheyear2000,thetotalunloadingcapacityofCommunity
seaportswouldhavetobeincreasedby20%;wherecoalisconcerned,the
unloadingfacilities mustbequadrupled.
54.Maritimetransport
Asshippingisnotexclusively aCommunityfieldbutaninternational market,
itwillnotbediscussedhere,,
55<>Coastalshippingandpipelines
Thecarriageofcoalbycoastalshippingshouldhavesomechanceofexpanding
infutureweretheextensionofportsforlargefreightersnottoproveuse­
fulandeconomicinallregions,withtheresultthatthecoalhadtobe
transhipped tocoastalshipsindeep-seaports0

-29-
Thecarriageofcoalbypipeline-mixedwitheitherwateroroil-will
probablycometoaccountforonlyasmallproportionoftotaltransport
volumeintheCommunity 0Expertsbelievethatacoalpipelinedoesnotoffer
economicadvantagesoverothertransportsystemsunlessooalistransported
inlargequantitiesoverlongdistances(morethan50km)andnomajorinfra­
structurecostsareincurred,,IngeneraltheCommunityhasawell-developed
transportnetwork(rail,road,waterway).
C.Conclusions
56.Theaboveinformation abouttransportproblemsshowsthattheissueisextremely
complicated ,asdataareincompleteevenforthepresentsituationandit
isimpossibletopredictwherecoal-userswillestablishthemselvesinfuture
inrelationtotheCommunity'scoal-producers ortheportsimportingooal.Any
breakdownintoindividual meansoftransportofthetotaladditionaltransport
volumeresultingfromtheincreaseincoalconsumption canbenomorethan
arbitrary }allcarriersandconsumerswillhavetocooperateonthispointin
thefuture.

-30-
V.THEFUTURETRENDINDEMAND
57«Itisnotthemainaimofthisstudytoconsiderthefuturequantitative
coalconsumptionpotentialofthe"otherindustry"sectorintheCommunity.
Thefollowinginformationshouldservemerelyasanindication,sincemany
1 2organizations ,authorities ,etc.,-andalsotheCommission-havedealt
withfuturetrendsinworldandCommunitycoalconsumption inspecial
publications .Somefiguresdealingwiththeconsumptionofthe"otherindustry
sectorintheCommunityintheyear2000andtakenfromthepublications
mentionedarecontainedinthetwotablesofAnnexIII.
58.Promthemethodicalviewpoint,therecanbenoadequatemathematical
scenariosfordrawingupquantitative estimatesofthefuturecoalrequire­
mentsofthe"otherindustry"sector0Themethodsusedfortheestimates
aregeneral,thefiguresare"guesstimates"and oftenthecoalrequirements
of"otherindustry"arecalculatedasaresidualfigurewithoutusingany
specialmethod.Itwouldcertainlynotberationaltotakethegroundlost
bycoalinthe"otherindustry"sectoroverthepasttwentyyearsand
assumethattheformerlevelwillbeattainedoverthenexttwentyyears.
Notonlyhasthemarketforcoalchangedinthepast,butitwillcontinue
tochangein'futureinlinewithconditionsofsupplyontheworldenergy
market.Theindustrialproductionapparatus,thetechnicalproduction
methodsandtherangeofproductshavealsochangedandwillcontinueto
change.Whensubstituting otherfuelsforoil,industrywilloftenbefaced
bythedecisionofwhethertoconverttacoalor,ifavailable,gas.
Naturalgaswillprobablyremainastronglong-termrivalofcoalbecause
ofitsobviousadvantages.Coalgasification ,whichwillgaininimportance
inthenineties,isapossibilitytoconsiderinthisconnection.However,
coalrequirements inthissectorcannotbeestimatedwithsufficientre­
liability.
IEA/OECD,UNEconomieCommission,MIT(WOCOL),CEPCEO,etal.
2Seedoc.C0M(80)117final

-31-
59.ThisandthetechnicalandeconomicproblemsoutlinedinChaptersIIIand
IVofthisstudyautomatically leadtoconsiderable differencesinthe
forecasts.Nevertheless ,itcanbeseenthatthepotentialforincreasing
coalconsumptioninindustryisgenerallyconsideredhigh.
ThefigurescontainedinthetablesofAnnexIIIleadtotwoimportantfindings.
Table1showsthatthelaterforecastspredicthigherconsumptionfiguresthan
dothepreviously-published studies.Thisisbecause,asyet,allthepossibi­
litieshavenotbeenexaminedandbecausenowitisexpectedthatconversion
tocoal-firingwillbemorerapidthanpreviouslyassumed.Thesecondfinding,
containedinTable2,isthatthehighestabsoluteincreasesincoalconsumption
inthe"otherindustry"sectorareexpectedinthoseMemberStatesinwhich
coalstillplayedaconsiderable roleinthemid-seventies .
60.Itisbynomeanscertainthattheconversions fromoiltocoalexpectedin
thissectorinthelongtermwilltakeplaceasthecontinuousdevelopment
ofaprocessalreadyinitiated.Inthefinalanalysis,substitution takesplace
asaresultofindividualbusinessdecisionswhicharetakenonlyinthepre­
senceofimportantbasicconditionssuchasadequateheat-pricedifferential ,
acoalcombustiontechnologysatisfyingthedemandsoftheparticularproduction
processinquestionandminimalenvironmental pollution.Conversiontocoalis
alreadywelladvancedinthecementindustryasallthesebasicconditionshave
beenmet;thisisnot,however,thecaseinmostotherbranchesofindustry.
Rapidcontinuation ofthesubstitution processoftenfailsasindustrial
energy-consumers hesitatetoconverttoeventechnically advancedcoal-fired
plantbecauseoftheirgenerallackofexperienceinusingsolidfuels.An­
otherinhibitingfactoristheagestructureoftheexistingoilandgas-fired
boilers-alargeproportionofthisplantwillnotreachitsnormallifeof
20-30yearsuntilthenineties.

-32-
Thedelayingfactorsindicatedwillprobablymeanthatthesubstitution
processwill,forthetimebeing,continueonlyinanumberofparticularly
energy-intensive industrialsectorsandthennormallywithlittledynamism
ofitsown0Aslongasentrepreneurs failtoconsidertheprobability of
considerable changesintheheat-priceratiowhenplanninginvestment,or
underestimate thehazardsofenergysupply,theindividualdecisionstoconvert
maynotreachtheproportionsdesiredbyenergypolicyuntilthenineties ,,In
thesecircumstances ,thereplacement ofoilbycoalin"otherindustry"willnot
takeplacemorequicklyandonabroaderbaseuntilspecialmeasuresaretaken
tochangetheexternalconditionsfacingpotentialinvestors.

-33-
CHAPTERVI
Generalinformal ;iononinvestment costs
61.Anumberofgeneralindications abouttheinvestmentcostsinvolvedin
replacingoilaretobegivenhereinthefinalchapterasinformation
additionaltothepreviouslymentionedtechnicalandquantitative problems.
Thefollowingcommentsapplyonlytoindustry-theinfrastructure sectors
dealtwithpreviouslyarenotincludedhereasthereisvirtuallynoinformation
availableontheirinvestmentrequirements .
Thisreferencetoindustry'sinvestmentcostsshouldgivesomeimpression
oftheamountofcapitalrequiredforthesubstitution process.Theavailability
ofcapital,irrespective ofwhetheritisborrowedornot,isnotadecisive
point,butitisanimportantfactorinafirm'sdecisiontoreplacefueloil
withcoal.
62.Whendeterminingtheamountofcapitalinvestmentneeded,firmswillalso
ofcoursecalculatetheexpectedprofitability oftheinvestment ;thisdepends
onalargenumberoffactorsandcannotthereforebediscussedhere.However,the
Commissionhasinformation fromindustry,showingthattheproblemofthepay­
backperiodisanimportantcriterionwhendecidingwhetherornottoinvest.
Althoughthisproblemtoocanbesolvedonlyonacase-by-casebasis,somegeneral
commentsaremadebelowinpoint67.
63.Themeasurestobetakenwhenreplacingoilvarydependingoncountry,sector
ofindustryandfirm;thepricesofthecapitalgoodsalsovary.However,the
followinggeneralstatements maybemade:
-Mostofthetotalinvestmentisaccountedforbytheboilerequipment.
-Coal-firedboilersrequireconsiderably higherinvestmentexpenditurethan
oilorgas-firedboilers.
Thereasonforthelatterfactisthatcoal-firedboilersmustbeofgreater
dimensionsthanoil-firedboilersiftheyaretoachievethesameperformance
andthatadditionaldeviceshavetobeinstalledforsuchthingsasgrinding

-34-
equipment,fluegasdesulphurization andtheashdisposal.Inextremecases,
theresultinginvestmentcostsforcoal-firedboilersmaybe50^-250$higherthan
thecorresponding investmentcostsforoil-firedboilers;thepricedifferential
betweenoil-firedandcoal-firedboilersisestimatedroughlyat1:2.
64«Apartfromtherelativeinvestmentcostsforcoal-firedboilers,theabsolute
investmentexpenditureforsubstitution isalsoimportant ;thisvariesaccording
towhetheritisacaseof:
-reconversion ;
-conversion,or:
-acompletely newinstallation
Reconversion isforoil-firedboilerswhichusedtobeoperatedwithcoaland
arenowtobereconverted toburncoal.
Conversionistheadjustmentofanyinstallations whichweredesignedasoil-
firedboilersandwhicharetobeconvertedtocoal.
Inadditiontothesecriteria,investmentcostsarenotproportional tothe
sizeoftheboiler-theinvestmentcostsperunitofboilerperformance drops
asboilersizeincreases.Thefactthattheconversion ofsmallerboilersre­
quiresrelativelyhigherinvestmentcoststhanforlargerboilersrunscounter
tothefuturesubstitution trend.
65oWhentheabovecriteriaareappliedtoalarge-scaleindustrialpowerplant
-withacapacityof750
–operatedfor6000hoursayear;
-andconsumingonemilliontonnesoffueloilayear(or1.5mtonnesofcoal),
thefollowinginvestmentcostsmaybeexpected(asageneralindication ):

-35-
Specificinvestment ex-
penditureTotalinvestment
expenditureInvestment ex-
penditure
pertonneoffuel
oilreplaced
ECU/kW mKfiir ΚΓΠ
Reconversion 100 75 75
Conversion 250 190 190
Newconstruction 500 375 375
TheinvestmentcostsinvolvedinreplacingonetonneoffUeloilthusdependtoavery
largeextentontheformthisreplaceranttakes.
66.TheamountofcapitalpertonneoffUeloilneededforconvertingalargeplantis
relativelylowcomparedwithsmallplants.Althoughdealingwithindividualcasesandthus
ofonlylimitedsignificance forgaugingtheoverallsituation,certaininformation
suggeststhatinvestmentexpenditurepertonneoffueloilreplacedcanbeexpectedtoto­
tal
150-300ECUforreconversion
300-500forconversion
xinplantswithanannualcoalthroughputofsome50000-100000t(35000-000t
offueloil).
Thecapitalrequiredbysmallindustrialplantsforeachmilliontonneoffueloilto
bereplacedbycoalthereforeamountstoseveralhundredmillionECU.
67.DuringtheCommission'sinvestigations ,industrypointedoutthatthereplacementof
fueloilbycoalissubjecttoalargenumberofimponderables whichmakefirmsadopt
await-and-seeattitudebeforereachingadecisionaboutreplacement.Theimponderables
consistnotonlyofgeneralriskswhichmustnormallybetakenintoaccountwithany
investment,butarisespecifically inthecaseofreplacement,sincethefuturetrend
inthepricerelationbetweenfueloilandcoalisfraughtwithproblemsofenergypolicy,
oilpricepolicyandexchangerates,etc.,whichcanhardlybepredicted-and thusthe

-36-
pay-backperiodrepresenting theratiobetweencapitalinvestment and.cost
saving-aredetermined bythetrendinthispricedifferential .Inviewof
theserisks,firmsseektomakethepay-backperiodasshortaspossible,i.e.
sometwotothreeyears.
Itshouldalsobeconsideredthatthepay-backperiodfortheinvestedcapital
dependsnotonlyontherelativepricedifferential betweenfueloilandcoalbut
alsofromtheutilization ofboilercapacity.Iftheboilerisoperatedfor
6000hoursayearandthefuelthroughputiscorrespondingly high,thetotalcost-
savingisalsohighand,comparedwiththecapitalinvestment,resultsinare­
lativelyshorterpay-backperiodthanincaseswherethesameboilerisusedfor
only2000hoursayear,whichoftenhappensinsmallerplants.Thesmallerin­
dustrialplantsareinaworsepositionthanlargeplantsinthisrespect.
Asfarasexperienceisavailableandcalculations canbemade,thepay-backperiod
insmallerplantsamountstosome5-6yearsorlonger;decisionsonreplacement
areofterndelayedforthatreason.Ifcoal'spriceadvantageoverfueloilshould
increaseinfutureorifthecapitalinvestmentcouldbereducedormadecheaperby
meansofaidmeasures,thewait-and-seeattitudewhichmayatpresentbeobserved
couldbeovercome.

ANNEXI
Listoftheindividualcriteriainfluencing thedecision
toreplaceoilbycoalinindividualindustrialundertakings
1.Whencomingtoadecisionaboutconvertingfiringplantfromoiltocoal,
undertakings inthe"otherindustry"sectorfacetwotypesofproblem:
(i)generaldataextraneoustotheundertaking
Cii)technicalandfinancialconditionswithintheundertakingitself.
2.Generaldataextraneoustotheundertaking
Thefollowingaspectscanbementionedbywayofexample:
-thegeneralstateofdevelopment ofcoal-firing methods(rational,
convenient,clean,environmentally acceptable,etc.)
-problemsassociatedwithobtainingcoal(networkofdealersanddistributors,
availability ofimportsof"Communitycod,transport)
-ashdisposalorashutilization
-assessmentofthesupplyrisksforoilandcoal
-futuretrendsinthedifferential ofthepriceperthermalunitbetween
oil,importedcoal,Communitycoal,lignite,gas,electricity,etc.
-othermeansforreplacingoilnotbycoalbutbyotherenergysources
(lignite,-gas,electricity,etc.)
-localenvironmental protectionregulations andtheaccompanying official
authorization procedures
-development ofenvironmental législation
-howcompetitorsaredealingwiththequestionofplantconversion

-2-
-generaleconomicprospects
-prospects onthemarketinthespecificproductsmanufactured bythe
undertaking .
Technical andfinancialconditionswithintheundertakingitself
(a)Technicalconditions
-heightanddimensionsofboilerhouses,boilers,firingplant,chimneys,etc.
-storagespaceatthefactory,bunkers-underground,aboveground
-transport fromstoreorbunkertofiringplant
-accessandexitroutesonfactorypremises
-technicalrequirements oftheproduction process(purity,uniformity,
controllability ,flametemperature )
(b)Financialconditions
1.Financial advantage
Thereisonlyoneadvantage :thedifferential inthepriceperthermal
unit.Fromtheprobabledifferential inthepriceperthermalunitwhich
workstocoal'sadvantage mustbesubtracted theeffectduetothe
-possibly-lowerdegreeofefficiency .Theefficiencyratingcovers
notonlytheboilerbutalsotheindividual requirements ofoperational
preparedness forproduction purposes(istheflameneededcontinually or
onlyintermittently ?).
2.Financialdisadvantages
-Raisingtheamountofinvestment neededforconversion (including
landforstores,etc.).Thisiseitheraproblemofacquiringcapital,
ifoutsidefundsarerequiredforfinance(particularly importantinthe
caseofsmallandmedium-sized firmswhichdonothaveaccesstothe
stockmarket),oraproblemofliquidity (inthecaseofself-financing ).

-interestpaymentsandrepaymentconditionsforinvestments conducted
bymeansofoutsidefinance
-depreciation ,consistingoftwocategories :
–extraordinary depreciation ontheolddismantledfiringplant
–normaldepreciation onthenewly-installed plant
-labourcosts,expenditure onmaterials andrepairsinvolvedinthe
operationofconvertedplant
-dangersorfinancialconsequences ofinterruptions inproduction dueto
conversion (maybemitigated bytemporary useofauxiliaryunitsorby
production forstocks).
Conclusion
Theaspectsmentionedinpoints2and3mustbeweighedUDbytheinvestor
andthenassessed.
Itisbynomeanscertainthatthisoverallassessmentwillbebased
exclusively onquantifiable financialconsiderations inindividual cases.
Thefinancialaspectwillcertainly beasupportingfactorinthedecision-
making.However,thisfactormustbeweightedifitisconsideredinconnection
withtherisksassociatedwiththesupplyofoilandthesecurityofsupplyin
thecaseofcoal.

ANNEXII.
(Tablel)
TotalFinalEnergyConsumption in"OtherIndustry*
(Selfproducersofelectricityexcluded)
(in1000t.o.e)
Hardcoal,coke
fueloil(lightOtherSub-totalelectricityTOTAL
andheavy)nat­
uralgas
Belgique 1°">3913 494 4407 1763 6170
ηo66S2 468 7120 3129 10249
l'i. (2^5 344 6579 4098 10677
Danmark 19'o 99? 105 1097 385 14
19Y0 3291 232 3523 769 4292
I97ö 2402 255 2(57 1113 3770
Deutschland 19c019570 6303 25873 15266 41139
(BR) 1970 32613 3830 36443 22482 58925
1978 31606 2615 34221 23181 (2402
France lQí014817 1200 16017 8606 2462}
19,027012 1027 28039 13793 41812
19!"■24444 1572 26016 16839 4?»5r>
1ro]and ι·>o (P2 682 175 "VI
wo 1248 63 1311 4-7 17V<
w11317 123 1440 730 2I70
Italia 19'o10136 320 10456 6413 16869
1970 22940 2289 25229 12441 37670
19Π21533' 642 22180 15110 37290
Luxembourg 19'0 59 3 62 52 114
1970 138 26 164 107 271
197Β 151 26 177 266 443
Nrderland19'o3658 585 4243 1713 595'
19Ό72(3 460 7729 3736 11465
1978 8252 297 8549 5710 14259
UnitedKingdom19(028699 2835 31534 10675 42209
1970 31199 2731 33930 18828 52753
197-27194 1659 28853 19471 48324
Community 19£0 82526 11845 94371 45048139419
1970132362 11126 143488 75712219200
1978123139 7533 130672 91518222I90

ANNEXII
(Table2)
COMMUNITY
FinalConsumption ofSelectedEnergiesin"OtherIndustry"
(Selfproducersofelectricityexcluded)
(in10t.o.e.)
.Light,Heavy NaturalΦΓνΡΔΤ
.Industry•Coal Cokefueloilfueloilgas
Chemioa}industrioso 72712712 4254217 107915704
19704066 1317223913315691027897
19761223 7592156146201031629109
19701125 662 174214964103^228795
1978"1578 23 107 34032075 71B6
Glass,pottery,.,1"ό097Ó62104 6456135 70719357
building 19703837 1386 317418371537532193
materials 19762717 497 187113169973023004
19783470 364 184312342987?27896
19/8«2 - - 10 11 23
Food,drink19Ó05367 532 90S 3771 246108?4
mdtobaoco 197022&t 29429C39020 1541160.Î4
1976Co3 192 1945815?361714719
1978855 187 1 79334217151V
1978"94 4 3311 169 586
Daperand 1%03913 134 992034 24164"6
srinting 197020^7 83 52958;.·39-?29414
1076366 544249-020457333·
1973531 4424480026328441
197ß4550 9 13 1118 35720.J7
Engineering and19603652 1831 162235:-247611103
>thermetals1970185?13746427726)263319610
19761398 6394790497665461'J349
1978 1474 4544606480174"313823
197®*127 6 11 272 149 •jC·)
Others 191.010302 138022744512 6/141911»
119702932 10^78926124ÓÓ 1e?327'<'04
19761331 6677050101635942?5153
19/81196 514726',942256·/,24O52
1973»789 7 12 1441455 2704
TOTAL 1960402768693597324191339382526
197017073551124250662''419?59132362
19767£18275913254rj6035332261?3172
1973εJ51213^177705431740216123139
-I9/Ö*3140 49 1516555321613111
*Selfproducersofelectricity
N.B.figuresmaydifferfromthetotalofthoseforMemberStateslisted
intables3to11duetoconversion fromt.o.e..tot.o.e.

ANNEXII
(Table3)
BELGIQUE/BELGIE
FinalConsumptionofSelectedEnergiesin"OtherIndustry"
(Selfproducersofelectricityexcluded)
(in10t.o.e)
•Industry Coal CokeLight
fueloilHeavy
fueloilNatural
gasTOTAL
Chemicalin-1960 161 110 40 330 641
dustry 1970 2 90 112 909 293 14C6
1976 θ 50 66 643 838 1605
1973 20 29 70 380 738 1237
1970*- - - 27 106 133
Glaas,pottery,19Ó0307 80 82 306 – 715
"building 1970320 97 318 1199 287 2221
materials 1976422 32 187 433 997 2071
1973935 22 196 453 875 2481
197'V - - - - - -
Food,drink, 172 22 73 22? 489
andtobaoco19/032 13 155yj 65'jI
1976 8 6 109 230 117 520
197;'·3 7 114 294 67485 ¡
197"· - - - 22 3
Paperand10601?·> 15 93 238printing1970 14 34 52 193 2300
1976 - – 18 122 57 197
1973 - - 19 129 64 ."M2
197""- - - 20 11 31
Engineering 19!"'063 22 O5 145 320
andother 1970 16 164 186 293 69 733
metals 1976 14 44 120 157 151 516
1973 6 ?2 126 197 137 488
197'» - - - 8 - 3
Others 1960509 176 222 543– 145°
1970 57 66 531 630 157 1441
1976 9 52 303 451 231 1051
1973 7 41 322 75·? 210 1332
197C' - - - 32 82 114
TOTAL 19^01342 410 517 1Í44 3913
1970 441 464 1353 3575 8146652
1976461 184 Co3 211623915<16'0
1973971 121 8472205 20916235
1973' - - 109 202 311
*Selfproducersofelectricity

ANNEXII
(Table4)
DANMARK
FinalConsumptionofSelectedEnergiesin*"OtherIndustry"
(Selfproducersofelectrictyexcluded)
(in10t.o.e.)
Industry ;Coal Coke„Light·
fueloilHeavy-
fueloilNatural
gas'TOTAL
Chemical I960 1 14 56 _ 71
industry I97O - 1 70 145 - 216
1976 1 mm 43 111 – 155
1978 3 – 49 111 - 16}
197Û"- - - – – -
'Glass,pottery,1960170 14 18 194 _ 396
'building 1970149 19 69 759 - 996
materials 1976280 14 55 335 – 7M
I97O338 12 62 381 – 843
1973" mm - - - - -
Food,drink.19υ0 5 1 18 212 236
andtobacco1970 7 3 638:2 - 900
1976 21 4 54 417 - 496
197349 3 61413 - 526
1973"- - - - -
Paperand19^0 _ 4 47 _ 51
printing ·1970 - - 12 183 - 195
197642 – 0 93 – 144
197«.77 _ 11 92 – 130
1973 - - - - -
.Engineering 1960 mm 1 21 45 67
andother 1970 - 1 82 176 _ 259
metals 1976 - 2 66 C9 – 157
1973 - 1 73 87mm 161
1973 - - - - - -
•Others 19Ó0 1 124 46 171
1970 4 1463 257 – 725
1976 1 – 335 02 - 473
19/33 mm 434 92 _ *29
19/C*– – - 70 - 70
TOTAL I960175 18 199 Ceo 992
1970160 25 7642y.2 – 3291
1976345 20 C12 1107 - 2164
1973.520 16690 1176 _2402
I973· – - – 70 – 70
*Selfproducersofelectricity

AMEXII
(Table5)
DEUTSCHLAND (B.R.)
FinalConsumptionofSelectedEnergiesi*1Industry
(Selfproducersofeleotricityexcluded)
Industry Coal CokeLi^ht
fueloilHeavy
fueloilNatural
Cas'ΤΟΤΛΤι
Ohornical 1960
industry 1970
1976
1978
1970'1813
969
900
730
11661137
5^3
305
33693
477
440
431
1932
3461
3602
4104
594103
2324
2CAi
34'M
6944033
7789
8033
90/2
2455
'h.pottery,19tO
il.'int;1970
Uerials 19/6
1970
1973*3214
509
231
264
21293
692
280
197163
1315
816
7551157
4231
3266
3070
101733
2179
2343
85837
8535
6772
6639
20
¡•'ood,drink1960
Anutobacco I97O
1976
1973
1973"1303
535
214
210
24IC2
69
47
50144
792
861
821616
1737
1935
1917
110218
524
633
101224r)
33M
35ÖI
3631
235
Paperand1960
orintin,:·1970
1976
1973
1973"378
3?4
131
183
9261
9
2
119
235
226
198380
1431
1331
1379
545164
407
593
1621338
2213
2097>
2354·
79?
À'n(;;ncering 1rjC0
•indother 1970
inotuTS I976
1978
1973
Others 1960
I97O
1976
1973
197C·787
413
213
193
73587
245
112
103402
2100
1979
1771
1649
1322
10/10
1or>4
1921133
1347
1670
1322425
5213
4691
4771
403
2064
703
325
2Ó9
33433
522
329
231234
1443
1369
1399762
2124
1790
1305
10749
715
2599
1805
1363642
5512
6412
5m
281
■lOTAL 19ÓO
1970
1976
19/3
1973·10059
3453
2014
1924
14003743
2095
1075
9231110
6362
5691
5415
2449Ó
1440ό
13164
12799
1553157
6
9697
10S45
123319570
32613
31641
31606
4193
*Selfproducersofelectricity

ANNEXII
(Table6)
PRANCE
FinalConsumptionofSelectedEnergiesin"OtherIndue-try."
(Selfproducersofelectricityexcluded)
(in10t.o.e)
Industry Co.il CokeLi.^ht
fueloilHeavy
fueloilNatural
Cas'TOTA!,
Chemical
induntry1960
1970
1976
197a
1973"351
559
292
257
24257
317
135
177149
Û55
339
382
17413
1666
2916
2935
273339
741
110υ
1335
2592000
4138
4888
5130
573
Cla33,pottery,
'building
rrnteriale19Ó0
1970
1976
I97O
1973*1635
480
120
91233
271
80
48272
1050
413
424830
3305
3617
3640'141
697
1457
14963116
5O03
5687
5699
j'ood,drink
Midtobacco19Ó0
1970
1976
1973
1973"1199
305
56
80
3103
67
50
66561
15'0
4"3
397411
1853
2303
2371
807
70
225
m2281
38Vj
304?.
3213
«3
Payorand
printi»v;·I9ÓO
I97O
1976
I97B.
1973740
274
38
50
71 33
140
82
81353
861
1122
1145
24685
191
194
233
101212
1466
14',6
1514
2O3
2n¿;ineering
andother
wetalsI960
I97O
I9/6
1973
19/3*470
209
87
100362
313
66
50753
3010
1337
1325317
817
777
70724
260
BSo
12361*?6
4¿09
3153
3413
Others 1900
1970
1976
1973
197e·2079
947
453
393
14363
340
199
1051056
3695
2565
2500
2743
2036
1790
1732
10127
93
436
599
224273
7161
5403
5459
13«
TOTAL I9ÓO
I97O
1976
19/3
1973·6974
2774
10.16
971
431324
1303
530
5262824
10290
5194
5109
193072
10533
125?5
126}0
700623
20^2
4VA
5203
29114P.17
27012
23699
24ΑΛΛ
1058
*Selfproducersofelectricity

ANNcXII
(Tabla7)
IRELAND
KlnilOonnmnptionofSelectedEnergiesin"OtherIndustry"
(Selfproducersofelectricityexcluded)
(in10t.o.e.)
lnduDtry Coal Cok·Light
fueloilHeavy·
fueloil1Natural
gasTOTAL
Chemical 19^0
industry 19/0
1976
19/Λ
19;»·Breakdownbyeeotoranotavailable)
*11figuresinoludedin"others'·
yGlatu,pottery}<)(0
buiJding 1970
materials 1976
19/8
1973·
JFood,drink,19'0
andtobaooo19/0
1IK
197«
Paperand19'0
printing 19/0
1976
1978
197»·
iúi¿7ineering 19*0
andother 19/0
metals 19/^'
19/M
197»·
Othecs ^9'0
1970
1976
1978
1978·4(2
104
21
257
7
7
749
156
177
367164
981
953
918
49-6'!2
1243
1158
1317
49
TOTAL 19'0462 7 49 164 _ 632
1970 104 7 156 981 - 1248
19/621 7 177 953 - 1158
I978 25 7 367 •918 - 1317
1978· - - – 49– 49
#Selfproducersofeleotricity

ANNEX II
(Table 8)
ITALIA
Final Consumption ofSelected Energies inOther Indugtry ^
(SelfproduoerB ofelectricity excluded ) (in10^t.o.e .)
Induotry Coal CokeLight
fueloilHeavy
fueloilNatural
gasTOTAL
Chemical 1960186 198 3 1110 631 2128
industry 197087 146 453 4769 853 6313
.1976 13 83 36 4916 1576 6624
1978 10 56 31 4653 1366 6116
1973' - 4 1493 137 1684
01ao(\pottoryi19C0680 171 52I69 566 3591
building 1970131 145 406050 1823 8I8Q
materiale 197Ó58 31 106 4292 3104 7591
197384 21 98 3666 3040 6909
197C"- - - - – –
Food,drink
nndtobaccoI960 11 24 3850 238 1126
1970 4 34 12 1450 355 1855
1976 1 45 70 1250 701 2067
1978 1 35 59 1019 724 1833
19/3«- - 34 36 70
TaperandI960 4 3 390 157 554
printing 197O - - 10 1350 221 1581
1976em - 19 1153 333 15ÓO
I97O • _ 17 930 516 1463
19/0"mm - - 236 126 412
Engineering 1960 31 64 •25 630 •452 1202
andother 1970 9 218 68 1600 433 2378
metals 1976 6 279 235 1046 1303 2874
1978 7 140 215 913 1073 2353
1978"- - - 54 15 69
Others 190O 68 27 2 904 534 1535
1970 28 16 92121 4SO 262.1
1976 52 66 170 2299 753 33tS
197-*59 35 151 190I 710 28S9
1973"15 - - 1009 110 113*
TOTAL 19"09OO 4P4 41 60r)32ym 10136
19702Ü9 559 592 173404ivo ?.?940
1976130 504 636 149r;67835 24061
197ÍÍ 161 287 571130^5 7434 21S38.
1970"15 - 428/6 474 3369
♦SoIfproducers ofelectricity

ANNfcDC II
(Table 9)
LUXKMHOURO
Final Consumption ofSelected Energies In"Other Industry "
(Self producers ofelectricity excluded ) •«
(in10Uo.o.)
ìInduotry Coal CokeLieht
fuol oilHoavy
fuol oilNatural
caoTOTAL
•Chora ical 1960 « 3 8 •Β 11
induu try 1970mm 34 29 ma 63
1976 – - - 46 • 46
1978 – - 14 38 - 52
1978 " - - - -
Clauijpottety •1960 13 1 5- 3 22
vbuilding 1970 mm - 19 11 - 30
matorinlo 197Ó – _ •14 1 – 15
1978 - _ - - •
1978 " - - - - -
Kood ,drink 1960.t
'and tobacco 1970
197Ó
19/3
1973 "
'Paper and i960 Breakdown bysectors notavailable »
printing 1970
1976allfigures inoluded in"others ";
19/8,
1978
Knginooring I960
and othoz 19/0
notalo 1976
1978
1973
'Others 1960 12 3 4 7 W .26
1970 14 1 16 14α» 4i>
J976- 1 18 15 17 51
197« _ 1 21 72 5 99
197.'»· - mm - - - -
•TOTAL 1960 25 4 12 18 _ 59
1970 14 1 69 54 - 133
1976 - 1 32 62 17 112
1973 - 1 35 110 5 151 '
1970 * - – – – – -
•Solf producers ofelectricity'

ANNEXII
(Table10)
NEDERLAND
FinalConsumption ofSelectedEnergiesin"OtherIndustry"
(Selfproducersofelectricityexcluded)
(in10t.o.e.)
Industry Coal CokeLight ■
fueloilHeavy
fueloilNatural
Cas'TOTA,.
C.'i-Trucal I960
industry 1970
1976
1978
1970*I136
)22
15
36
!35123
95
100
1233
14
1021
591530
534
309
69O
CO2183
2635
2175
603CP2
2903
4130
3504
723
Olona,pottery,19ΙΌ
'buildin,;19/0
materials 19/6
197«
1973"I216
92
7
313
1
15
1619
7
12
22216
340
106
124650
794
829464
1090
931
991
Pood,drink19(30
andtobacco 1970
1976
1973
1973"Ì222
I1
I725
11
1519
30
34
38691
692
172
173
30822
1129
1367
27957
1556
1350
1573
64
paperandI960
prj.ni.iiv:·1970r 1?76
1973
1978*226
14-4
12
2
4207
329
30
39
20333
2Ü4
532
48437
674
316
575
1>·2
Engineering 1960
•wdotht.r 1970
:necaxB I9/6
1978
1973"39
I2
!143
19
20
1356
93
50
117162
203
44
55270
442
736300
5«
557
921
Others i960
1970
19/6
1973
19/e·240
j29
!1
1
I236
142
74
26
44355
407
71
92
3135
303
233
543
10Λ6/3
Cl.:
3"7
6Γ0
V/í
TOTAL 1960
1970
1976
19/3
1973·I1079
1/16
!30
140
79210
127
150
41173
230
1145
8162161
2560
732
1173
1613'.
4r/ó
5617
6i:í2
7¿73C58
7C2')
7674
8252
1027
♦Selfproducersofelectricity

ANNEX II
(Table 11)
UNITED KINGDOM
final Consumption ofSelected Energies in"Other .Industry "
(Self producers ofelectricity excluded ) ,
v (in10Jt.o.e .)
Industry Coal CokeLight
fueloilHeavy
fueloilNatural
gasTOTAL
Chemical I960
! 1970
1976
1970
1978*4124
2427
1
20
353887
110
36
52
2391
274
154
175
85839
1722
1877
2003
9365O6
14Q9
1267
2205941
5039
3567
3517
1617
Clasr·,pottory1960
(building 1970
matorialo 1976
1973
19783531
2207
1599
1685290
161
45
4777
357
263
2521259
2426
1090
1003179
1199
1289
35157
5330
4201
4231
3
,Food,drinki960
andtobacco1970
1976
1973
1978"2455
1397
503
513
61175
97
26
26
391
305
410
396
8769
2123
1801
1800
3670
921
1122
23490
3992
3606
3857
110
•Paperand 196O
printing 1970
197Ó
1978
1973*1945
1445
156
220
43771
40
3
3
921
6°
86
94
13559
1422
1129
103511
715
7392596
2937
2039
2142
459
Engineering i960
andother1970
notal 1976
1978
1970·2257
1203
1076
1162
487^2
415
116
120
6280
889
1002
980
101573
2848
1794
1013
18474
2413
2631
24862
5O29
6401
6711
84
Othoro i960
1970
1976
1978
1973»4863
1043
462'
440
699316
102
12
14
74f9
2537
2039
2025
10930
4234
2702
2503
41106
1570
1704
260'j3
8022
6735
66'36
759
TOTAL 196O
I97O
1976
1978,
197919130
9722
802
4cv,o
15932491
925
233
262
481049
4431
3959
3922
1265979
14775
10393
10213
10311346
8317
8752
22923609
31199
26709
27194
3032
•Self producers ofelectricity

ANNEX III
Table 1
Summary ofvarious Forecasts ofCoal Consumption
in?Other Industry "
COMMUNITY
Mtoe
Steam Coal 2000 (l)Base Year 1990 2000
1976
10.8 21.3 37.2
CEPCEO (2) 1976
11.9 •· 7O.O-IO5.O
WOCOL (3) 1977
13.6 24.5-41.8 42.2-78.9
Doc.COM (80)117final (4) 1980
14.5 30.0 35.0
ECEQuestionnaire (5) 1978
44.9 65.7-67.3 •0
(1)IEA/OECD :Steam Coal Prospects to2000 ,Paris 1978 ,figures ofAnnex 1,table 1-1
under "other coal ".Inaddition toOther .Industry ,these figures include Households
andTransport .TheCommission hasdeducted thelatter twofrom thebase year andadjusted
theforecasts byassuming afurther drop inhousehold consumption .
(2)Association oftheCoal Producers oftheEuropean Community :Report onProspects ofCoal
Consumption inthe Other Industry Sector oftheCommunity Energy Market ,Brussels 1979 *
(3)Coal–Bridge totheFuture ^Report oftheWorld CoalStudy (WOCOL ),Cambridge Massachu­
setts ,USA1980 ,pages 226ff.Figures forBelgium ,Luxembourg andIreland areCommission
estimates .
(4)Commission oftheEuropean Communities :Outlook fortheLong-Term Coal Supply andDemand
Trend intheCommunity ,Doc.COM (80)117final ,18.3.1980 .
(5)Replies byGovernments ofMember States toECEQuestionnaire 1979 .These figures are
notstrictly comparable as,subject tocertain adjustments ,they include consumption by
thesteel industry .

AfirraIII
Table2
Foree.-vstsofCo?lConcentionin"OtherIndustry"
W0C0L1930 Mtoe
1977 1990 2000
Belgique(ï) 0.7 2.0-2.4 2.7-3.4
Paiinark 0.5 0.5-0.8 0.5-1.0
Doutochland 3.5 4.2-6.3 '5.6-8.4
F.ance 2.1 4.9-13.3 9.8-28.0
11eland(1) 0.1 .0.1-0.2 0.2-0.3
Italia 0.2 1.4 1.7-2.1
LuxcTiboiuc(1) - - -
Kcàorland 0.2 1.6-2.0 2.1-2.8
UnitodKingdom 6.3 9.8-15.4 19.6-?29
CoHununity ν13.6 24.5-41.3 42.2-78.9
(1)EstinatoabytheCommission–notshownin'WOCOLStudy