Energy Center - CCTR

Indiana Coal Report 2009

June 30, 2011

Indiana Coal Report 2009

Executive Summary

In 2006 the Daniel’s/Skillman administration ordered a review of energy use in the state, and to prepare a plan that will benefit the citizens of Indiana with secure, low cost, environmentally sound energy supplies. The result of the effort was the Indiana Strategic Energy Plan’s "Hoosier Homegrown Energy." The vision statement sums it up best: Grow Indiana jobs and incomes by producing more of the energy we need from our own natural resources while encouraging conservation and energy efficiency. The "Hoosier Homegrown Energy" plan includes discussion and evaluations of all of Indiana’s indigenous energy resources but the key to the growth of the State’s energy supply is the continued effort to increase the use of Indiana’s primary source of energy, coal. Coal constitutes 52.8% of the primary energy consumed in Indiana (Figure E-1). Hoosiers pay approximately $25.3 Billion per year for energy. This is the total for residential, commercial transportation and industrial uses. Of that amount, approximately $1.4 Billion is from domestic sources and internal value added. This means that about $23.9 Billion Hoosier dollars ($65.5 Million per day) are leaving the state for the purpose of purchasing energy. Economic growth from "Hoosier Homegrown Energy" asserts its first goal: Trade current energy imports for future Indiana economic growth recognizing:

Importing energy will export jobs

New plants will bring new jobs

Potential growth from reducing energy dependency and increasing reliability

The challenge is to keep overall energy cost relatively low, while working to retain more of the capital that has been used to bring energy into the state. To do so, we must focus on domestic energy production, and not export capital to import energy into the state. This means increasing the net use of Indiana’s coal and all other indigenous energy resources. CCTR is working with the Indiana Lt. Governor’s Office of Energy Development to detail how Indiana’s economy, quality of life, and well-being will once again be built on home grown energy. In 2006, according to the EIA, over 72 Million Tons (MTons) of coal were consumed in Indiana (Figure E-2). From the 60.58 MTons delivered to Indiana utilities, only 30.5 MTons were mined in Indiana. Imports from Western mines accounted for 14.5 MTons, other Illinois Basin states 7.8 MTons, and eastern states 9.6 MTons. The recent CCTR forecast showed the future consumption of coal in the state, by 2025, might vary from 52 MTons/year to 80 MTons/year. Regarding Indiana and imported coal use by Indiana businesses a wide range of uses might be considered but so much will depend on adjustments to likely CO2 legislation. Coal gasification appears to be the technology best suited for the conversion of Indiana coal into a clean fuel for power production, the feedstock for substitute natural gas, or the creation of liquid fuels. CCTR in its investigations of this and other technologies has recognized the need for upgrades of the state’s and the region’s infrastructure. Be it rail, water or the grid, there is a need to find ways to improve and expand the movement of energy from producer to end user.

Development of commercially viable coal technologies is now high on the national agenda. Indiana, and its Illinois Coal Basin partners (Illinois, Kentucky), is supportive and leading this long-term policy. The following report is a summary of activities of CCTR, and the many individuals and companies that have ideas or technologies that

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Marty W. Irwin, Director
Phone:  765.494.7414 or 317.232.8970

Steven F. Son, Associate Director
Phone:  765.494.8208

Indiana Center for Coal Technology Research
Energy Center at Discovery Park
Purdue University
203 S Martin Jischke Drive
West Lafayette IN 47907-1971 USA
Phone: 765.494.7037 (leave message, please)
Fax: 765.494.6298