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Realistic Policy On Coal Essential

February 26, 2009
By The Intelligencer

During a major policy speech Tuesday, President Barack Obama made it a point to compare U.S. strategy in regard to energy independence to that of some other major powers. Some of them indeed could teach us much about energy policy. The question remains whether American officials - including Obama - truly are ready to learn.

"We know the country that harnesses the power of clean, renewable energy will lead the 21st century," Obama said in his address to a joint session of Congress. "And yet," he added, "it is China that has launched the largest effort in history to make their economy energy efficient."

Ohio Valley residents are well aware of the lead China has over the United States in terms of realistic energy policy.

It will be remembered that last year, Consol Energy and a Texas company announced plans to build a large coal gasification and liquefaction facility in Benwood. The $800 million plant would have been a leader in production of energy in an environmentally sound manner.

But just months after the announcement, Consol's partner, Synthesis Energy Systems, of Houston, pulled out of the deal. SES officials said they would be building a plant similar to that planned for Benwood in China. They explained that the regulatory climate in China - combined with the availability of financing - convinced them to make the switch.

On Tuesday, Obama said the budget proposal he will send to Congress will include $15 billion a year to promote development of environmentally friendly energy sources. Clean coal technology is on the president's list.

But $15 billion is not much in the context of energy development. And Obama's preferences for new energy policy are so-called "green" initiatives involving wind and solar power, biofuels and more efficient vehicles. His energy secretary, Steven Chu, has made it clear he wants the United States to use less, not more coal.

Chinese leaders, on the other hand, are aware that coal - including liquefied and gasified forms of it - need to be part of any strong, prosperous nation's energy mix.

We agree with Obama that the United States is lagging behind some other nations in crafting sensible energy policy. China, as the president himself mentioned, is one of those countries.

More emphasis needs to be placed on use of coal if Americans are to lessen our reliance on energy from abroad. It remains to be seen whether Obama understands that and will pursue a realistic policy concerning coal.