Energy content Ash BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES

relatively high 10 to 15 and adding a substantial disposal costs for coal customers, especially in densely populated countries with high or increasing environmental awareness such as Hong Kong, Taiwan, Japan, and Eastern Europe. The customers’ pressure on suppliers to reduce the ash content will continue and will likely be used as a bargaining point by buyers and suppliers of sub- bituminous who try to enter the market.

3. Sulfur

In order that the power generation plant could delay the installation of flue gas desulohuritization unit FGD, coal producers are constantly pressured to supply low- sulfur coal. Only if the power producers to install FGD units, as most Western European companies do, then only the high-sulfur coal can be bought if the price is competitive. In general, high-sulfur coal will become less competitive compared with low-sulfur coal in the power generation. This is due to the characteristics of high-sulfur coal that would cause a greater penalty price than the low- sulfur coal to compensate higher sulfur dioxide SO2 emission. In other words, high-sulfur coal would be avoided in the market where there are no FGD units installed and tighter environmental restrictions on SO2 emission. Maximum sulfur content at 1 is generally acceptable level in power generation plants, but this could vary depends on the mixing options of the independent electricity generation. In the future, low-sulfur coal will be preferred by many utilities. Some of the utilities will purchase such coal to avoid the installation of flue gas desulphurization equipment, and some others will be able to mix low-sulfur with high-sulfur coal.

4. Moisture Content or Humidity

Humidity absorbs heat in the evaporation process during combustion, which is mostly lost in the flue gas. Sometimes it is something that is practical for some of the output or a particular size of faction to pass through a wet process without exceeding the specifications of the ash, thereby reducing the water content in it. Water should be added to some particular coal to reduce the environmental problems of dust coagulation in stockpile and conveyance, and in some cases to eliminate the risk of coal ignites spontaneously.