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Bullboard - Stock Discussion Forum Cline Mining Corporation T.CMK

TSX:CMK - Post Discussion

Cline Mining Corporation > Coal to Gas Powerplant Conversion
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Post by waterboy2 on Jul 18, 2012 9:58am

Coal to Gas Powerplant Conversion

This is definitely going on but not as easy as flicking a switch.

A coal plant needs to have access to Natural Gas, if the plant is too far from a NG transmission line it would be too costly to connect. If NG is available the coal fired burners have to be reconfigured, new burnersand other equipment such as different heat exchangers need to be installed.

All this takes time and money. The cost of conversion depends on the scope of work obviously.

Flicking a switch? NOT!

 

GLTA

Comment by steeler07 on Jul 18, 2012 10:12am
Thermal coal -  issue is that gas fired electrical power generation plants are selling cheaper electricity into the grid, due to lower nat gas prices.  Coal fired generation plants have not picked up increased demand because they can not meet price required.  Natuarl gas generation stations are positioned to supply increased demand.  As Nat gas price increases, coal fired ...more  
Comment by stockhousepundit on Jul 18, 2012 10:40am
What does any of this have to do with Metallurgical coal?  If your thesis is based upon the adage "A rising tide lifts all boats", then I understand.  Anything to improve the sentiment of this sector would be welcomed.
Comment by steeler07 on Jul 18, 2012 10:59am
When I read Waterboy2 - statement I initially though he was refering to PCI and the inpact of Nat gas on demand of this grade of met coal, but after a second reading he was refering to thermal coal and power generation. to your point -  I agree -  "a rising tide will lift all baots" my point -  power plants do not flip back and forth -  nat gas generators are selling ...more  
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