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Published on October 26, 2007

The move is out of fear that inappropriate exploitation could lead to environmental effects on nearby communities, says a ministry source.

The ministry plans to offer low-rate funding to small industrial operators for their investment in "clean coal" technology.

"Large plants like power or industrial plants are subject to standards, but there are few for small operators. We're afraid if we don't take the necessary steps now, then pollution in local communities and the environment will rise, which could lead to higher resistance against the use of coal," the source said.

He noted that in 2004, Thailand's coal consumption stood at 25 million tonnes. While 20 million tonnes went to the Mae Moh power plant of the Electricity Generating Authority of Thailand, the rest went to industrial plants.

Last year, coal consumption rose to 33 million tonnes: 20 million tonnes for Mah Moh and 13 million imported for industrial plants, including 3 million tonnes for BLCP Power's power plant in Rayong.

Data from the Industrial Works Department also showed that many industrial operators had switched to

coal to heat their boilers instead of bunker oil, in order to reduce operating costs. It costs Bt15 to Bt16 per unit of steam to operate a bunker oil-fuelled boiler, but the cost drops to between Bt2 and Bt3 for coal.

The source noted that the lower cost encouraged a number of industrial operators to switch to coal and that some may not have the proper equipment for coal shipment or burning. This would lead to dust or toxic-gas pollution.

"Coal is cheap and becomes an enticing fuel," the source said. "The government cannot bar any party from using it. But we need to find measures to ensure that it is exploited appropriately."

He said the government should promote clean coal technology that would deal with the three stages of precombustion, combustion, and post-combustion.

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