Innovation and institutional change: the transition to a sustainable ...

100 Chapter 4
government 25 . Nevertheless, many in the electricity world still see coal
gasification as a major future technological option with a large potential
market in countries that depend largely on coal as an energy source, for
example Shell has already licensed the technology to China 26 (Böttcher,
1999; Zon, 2000). An additional characteristic of gasification is that in the
production of synthesis gas it is relatively easy to isolate CO2. In a new
application of gasification of oil residual at a plant of Shell in Pernis, CO2 is
extracted and distributed to horticulture companies 27 while the syngas is used
for petrochemical purposes.
Overall conclusions regarding the re-emergence of coal are:
– With the closure of the nuclear energy route, coal became the most
logical alternative to gas in the perspective of the electricity sector and
government;
– Coal clean-up technology and clean coal technology has been strongly
stimulated by government funding and by the electricity sector;
– Increasing environmental concerns and the second environmental wave
(NEPP in 1989) steadily deteriorated the government attitude towards
coal, the climate problem accelerated this due to the high CO2 contents
of coal;
– Coal gasification, technologically developed by oil companies, was seen
by the electricity sector as a promising alternative because it could
provide a cheap long-term source, has a relative good environmental
profile and can approach efficiencies of the most efficient power plants;
– The technological success of the Buggenum plant was also due to the
strategic interests seen by a leading gas turbine producer that participated
in the project;
– The electricity sector, through its collective organisation SEP, was able to
finance the construction of the Buggenum plant by transferring high
investment costs to consumers, the breakdown of SEP due to ongoing
privatisation has made the plant unprofitable due to high capital costs;
– Experience with coal gasification has also led to further application of the
technique, for example for oil residue (which is commercially applied),
and further R&D on potential application with biomass;
– While the Buggenum plant was seen as one of the most advanced
examples of energy technology; it became economically labelled under
25 SEP was dissolved due to liberalisation and privatisation and the Buggenum plant has been
sold to NUON who uses it as a biomass gasification plant.
26 According to Böttcher (1999: 22) also in Japan coal gasification is seen as an important
medium term option in which various gaseous products can be transported (for example
through co-operation with China) to be used both for energy supply and as input for
chemical processes.
27 CO2 levering aan kassen bijna rond, in Nieuwsblad Stromen, August 18, 2000.