Asia Risks Water Scarcity Amid Coal-Fired Power Embrace

Inner Mongolia’s rivers are feeding China’s coal industry, turning grasslands into desert. In India, thousands of farmers have protested diverting water to coal- fired power plants, some committing suicide.

The struggle to control the world’s water is intensifying around energy supply. China and India alone plan to build $720 billion of coal-burning plants in two decades, more than twice today’s total power capacity in the U.S., International Energy Agency data show. Water will be boiled away in the new steam turbines to make electricity and flush coal residue at utilities from China Shenhua Energy Co. (1088) to India’s Tata Power Co. (TPWR) that are favoring coal over nuclear because it’s cheaper.

With China set to vaporize water equal to what flows over Niagara Falls each year, and India’s industrial water demand growing at twice the pace of agricultural or municipal use,Asia’s most populous nations will have to reconsider energy projects to avoid conflict between cities, farmers and industry.

“You’re going to have a huge issue with the competition between water, energy and food,” said Vineet Mittal, managing director of Welspun Energy Ltd., the utility unit of Leon Black’s Apollo Global Management LLC-backedWelspun Group. “Water is something everyone should be probing every chief executive about,” he said in an interview.

Investors have driven up the 49-member S&P Global Water Index (SPGTAQD) about 96 percent from its low point after the 2008 financial crisis. That beat the 88 percent gain in the period by the 1,625-stock the MSCI World Index, a global benchmark, and trailed the Dow Jones Industrial Average’s 101 percent increase. More

 

Burning Rivers : How Coal And Nuclear Are Sucking Up Our Fresh Water

The 20th century was characterized by the frenzied acquisition, storage, and use of oil. But many experts believe that the 21st century will be remembered as the century of water.

One of the most alarming emerging issues is the symbiotic — and often conflicting — relationship between electricity generation and water.

A new report called “Burning Our Rivers: The Water Footprint of Electricity” details this relationship, illustrating the massive amounts of water resources used for electricity generation — particularly from fossil fuels and nuclear.

An average U.S. household’s monthly energy use (weighted by cooling technology and fuel mix) requires 39,829 gallons of water, or five times more than the direct residential water use of that same household…. Electricity—as we generate it today—depends heavily on access to free water. The impact to our freshwater resources is an external cost of electrical production. What the market considers ‘least cost’ electricity is often the most water intensive.

According to the U.S. Geological Survey, 53 percent of all the fresh surface water withdrawn for human consumption in 2005 was used for electricity generation.

While consumption in the U.S. is falling, coal is still the most dominant source of power in the country. It is also the single largest consumer of water resources:

A MWh of electricity generated by coal withdraws approximately 16,052 gallons and consumes approximately 692 gallons of water…. On average (a weighted average taking into account the current mix of cooling technologies being used at coal plants in the U.S.), coal-fired electricity requires the withdrawal of approximately 13,515 gallons and the consumption of 482 gallons of water per MWh for cooling purposes.

The water not used directly for power generation is used in mining coal and other treatment before burning, creating millions of gallons of “sludge” that can potentially pollute freshwater supplies. More