Usibelli Coal Mine Details Vital Impact of Coal in Interior
Usibelli Coal Mine contracted with the McKinley Research Group to produce a report analyzing the importance of coal in Interior Alaska. McKinley’s predecessor, the McDowell Group, had produced similar reports in 2014, 2015 and 2018. The updated report, Energy and Economic Impacts of Coal in Interior Alaska, highlights the Interior’s energy infrastructure and supply and environmental considerations, compares fuel sources, discusses employment and community statistics, and analyzes the future of coal in energy production. Among key points defined in the report: n Coal accounts for approximately 43 percent of Golden Valley Electric Association’s electricity generation. n Including the military bases, coal accounted for 50 percent of electricity generation in the Interior. n Coal continues to be Interior Alaska’s lowest-cost source of energy. n Coal provides stability in energy rates. n If coal were removed from the grid entirely, Interior Alaska would face a rate increase of about $242 million annually for electric generation. The complete report is available online at: usibelli.com/ pdf/2022-Economic-Impacts-of-Coal.pdf Several key factors make coal well-positioned to continue meeting the energy needs of Interior Alaska: n Coal is Interior Alaska’s lowest-cost source of energy. As a reliable and low-cost source of energy, coal supports stable consumer prices relative to heating oil, naphtha, or natural gas. With hundreds of years of coal resources available and established infrastructure, coal prices in the Interior are likely to remain stable into the future. n Proximity of Golden Valley Electric Association’s (GVEA’s) plants to the mine and other power plants’ ability to stockpile coal are important to the region’s energy security. n The Interior has the advantage of access to high- quality, ultra-low sulfur coal and improvements in coal technology now offer more efficient, cost-effective ways to use the resource. “We hope this report helps educate policy makers, rate payers, and other stakeholders about the importance of coal in Interior Alaska,” Usibelli Vice President Lorali Simon said. “Because of our close association in the business community, we would like to make sure you have this information at your fingertips.
“This is the third update to this report,” Lorali said. “It’s an excellent tool to tell the great story about coal in Alaska, our mine, and our economic impact in the state.” Often the discussion of transitioning from fossil fuels highlights a readily available alternative. While Gov. Dunleavy’s recent focus on new energy sources, both renewable and nuclear, might seem contrary, the governor remains a proponent of Alaska coal. “Make no mistake, Gov. Dunleavy understands the importance of coal in Alaska,” she said. The price advantage of coal over other fuels helps to stabilize energy rates in the region. In 2020, fuel costs averaged $0.06 per kilowatt hour (kWh) at GVEA’s coal- fired plants, compared to $0.15/kWh for diesel. The report is a useful tool for educating more Alaskans about the importance of coal, she added. “The answer to Interior Alaska’s energy needs is hidden in plain sight. Coal has provided reliable, affordable fuel for heat and power to the Interior for nearly 80 years. Government intervention, whether that be subsidies for other fuel sources like natural gas, or renewable energy portfolio standards, only drive up the price of energy and pick winners and losers in the market.” In business since 1943, UCM has long generated economic activity in Interior Alaska. The mine employs a 100 percent Alaskan workforce and UCM jobs are especially important in Healy where mine employees represent 10 percent of the community’s population. n In 2020, the mine spent $28.4 million with more than 285 Alaska vendors to purchase goods and services. About 90 percent of in-state spending was with companies or organizations based in the Interior or Anchorage area. n Shipping coal from the mine to power producers is an important part of the Alaska Railroad Corporation’s (ARRC’s) freight business. In 2020, 690,000 tons were shipped via rail, 27% of total tonnage moved by ARRC. n As UCM pays employees and spends money in the Alaska economy, the mine creates indirect and induced economic impacts. Including all direct, indirect, and induced employment in 2020, UCM accounted for about 464 jobs and $42.8 million in annual wages in Interior Alaska. Statewide, the mine’s impact included a total 554 jobs and $48.6 million in wages. n UCM’s economic impact includes financial support of nonprofit organizations through The Usibelli Foundation (TUF), which contributed $120,000 to more than 100 nonprofits in 2020.
IMPROVE TOTAL FUEL ECONOMY BY 6 % * OUR IRON WILL WAS TO
SO YOUR IRON WILL BE EVEN MORE EFFICIENT.
DONE AND DONE. INTRODUCING THE EX1200-7. See all the improvements at HitachiConstruction.com/EX1200-7.
Jeb Baughman Sales Representative Fairbanks Branch
Kirk Currey Sales Representative Anchorage Branch
ANCHORAGE BRANCH 5400 Homer Drive Anchorage, AK 99518
FAIRBANKS BRANCH 2615 20th Ave Fairbanks, AK 99709 (907) 931-8808 (907) 931-8838 F
JUNEAU BRANCH 5302 Commercial Blvd
KETCHIKAN BRANCH 7332 N. Tongass Hwy. Ketchikan, AK 99901 (907) 247-2228 (907) 247-2229 F
Juneau, AK 99801 (907) 802-4242 (907) 802-4340 F
(907) 563-3822 (907) 563-1381 F
HitachiConstruction.com
*Comparison of Cummins engine configuration against EX1200-6.
2
February 2022 I The Alaska Miner I www.alaskaminers.org
www.alaskaminers.org I The Alaska Miner I February 2022
3
Made with FlippingBook. PDF to flipbook with ease