Abstract
Energy use and pollution from coal-burning industrial boilers have been major climate and environmental issues in China. Assessing the economics of various options to address coal-fired boilers is essential to identify cost-effective solutions. This paper discusses the work in using actual fuel price data and other information to assess the economics of fuel switching options of replacing coal with alternative fuels to address the industrial coal-fired boilers; our study evaluates four fuel switching options, i.e., using natural gas, oil, biomass, and electric boilers. It compares the fixed vs. operation costs and pollutant emission reduction cost of these options relative to coal-fired boilers. It concludes that natural gas would be the best option among the four alternatives in replacing coal-fired boilers. However, natural gas price plays an important role in determining how economical the replacement is. The research has established a method to assess fuel switching options for industrial coal-fired boilers, assisting policy-makers in developing cost-effective fuel switching strategies to address the energy and environmental challenges of coal-fired industrial boilers.
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