Coal: Marketing/Energy

Coal electricity generation pie graph from 2010

Coal is the most abundant fossil fuel in our nation and is found in 38 states, actively mined in 25 states, and is consumed for electricity generation in 48 of the 50 states in the nation. America uses an array of energy sources to produce electricity with approximately 45% of the electricity consumed in the U.S. produced using coal. Other fuels include nuclear, natural gas, hydroelectric facilities, non-hydro renewable (including wind and solar) and petroleum.

Coal-based electricity has nearly tripled since 1970
While at the same time emissions have been reduced by 40%

(Source: ABEC – Americans for Balanced Energy Choices)

Coal based electricity has nearly tripled since 1970.

Alaska fossil fuel energy resources.

Graph of the coal effect on electricity rates by state.

How Alaska uses its resources
to produce electricity

Alaska electricity fuel mix pie chart.

Why does it make sense to produce energy with Alaskan Coal?

Coal is Alaska's most abundant energy resource. There is more contained energy in Alaskan coal than in all the combined oil and natural gas in Alaska. UCM has permitted reserves in excess of 50 years at current production rates. Usibelli has identified a reserve base of 700 million tons on current leased lands. At a rate of 2 million tons per year, there is easily enough coal for 350 years.

Usibelli Coal Mine has a proven record of being a reliable supplier of coal since 1943. The four generation family-run business has a customer satisfaction rate highly enviable within the industry. Delivery of a quality product, on time, in the proper quantity, is the hallmark of Usibelli Coal Mine.

As other fuels have experienced extreme fluctuations in price, coal (especially in Alaska) has maintained a very stable price during the past several decades.

State-of-the-art developments within the electrical power generation industry and new technologies have eliminated the stigma of "dirty" coal. In fact, coal is very environmentally sound. Specifically Usibelli coal is ultra-low in sulfur, low nitrogen, high in calcium, and is quick-burning, all very environmentally friendly characteristics. All UCM coal customers have incorporated bag house technologies to reduce particulate emissions.

UCM has a favorable economic impact on Interior Alaska. More than 640 full-time quality jobs are directly attributed to the coal industry as a result of UCM operations. The second and third order effects for jobs by suppliers and vendors are tremendous.

Road, rail, and electricity grid, infrastructure are well in-place to accommodate current production levels and to double production without significant capital investment. The delivery and supply infrastructure (workforce, vehicles, fuel, crushing/screening equipment, storage facilities, and conveyors) are in place and functional for the foreseeable future for both domestic and international markets.

The strategic location of Alaska on the globe offers convenient and efficient shipping lines to various locations. Usibelli coal has been a very competitive resource for the Pacific Rim international market and will likely continue for years to come.

Risk reduction is important to every business. The extremely high cost of medical care, lost productivity due to employee absence and the fact that accidents result in injury or loss of life, warrant constant vigilance. UCM is extremely proud of its safety record. During the past two decades, the workforce has experienced relatively low-severity and low-frequency of incidents. This is a very impressive record for any business but an extremely noteworthy accomplishment for a coal mine operating in remote Alaska, under challenging conditions, 24 hours a day, seven days a week and every day of the year.

The Usibelli family is proud of its heritage and has a proven long-term commitment to support the local community and works hard to reinvest in local Interior Alaska businesses. Buy, build and hire Alaskan are key watchwords within the company.

The global war on terrorism has affected everyone's life. The world situation is unstable and uncertain. The coal industry maintains an important position as a low-risk, relatively secure commodity in today's very volatile environment. Natural disasters and terrorism are not likely to impact the distribution and availability of coal in comparison to other world energy sources.

UCM, the Alaska Railroad Corporation and the Seward Coal Terminal have worked in partnership for many years and enjoy a successful working relationship. The coal delivery system is durable and flexible. The Seward coal handling system is capable of stockpiling one to two ocean-going vessel payloads on the ground at one time.

The former Healy Clean Coal Project (HCCP), now operational as Golden Valley Electric Association’s Healy Unit #2, was designed and constructed to burn low-rank coal mined by UCM. Usibelli has maintained a long-term commitment to Clean Coal Technology and will provide coal to the mine-mouth facility for many years in the future.

UCM is conveniently located along the Railbelt grid of Alaska. The electrical transmission lines over coal mine property could easily facilitate future development of mine-mouth power generation for rapidly growing future energy needs both south to the Anchorage bowl and north to the Fairbanks area.

Usibelli Coal Mine has a well-established and proven history of reclamation and restoration success for air, land and water.

Mining operations in Healy, Alaska continue uninterrupted during all weather conditions for the entire year. The extreme climatic conditions of snow, extreme cold and short daylight hours during the harsh winters do not impede progress at the mine. In fact, the customers' demands are greater during the winter months. The employees work hard to satisfy the requirement to provide the fuel necessary to transform the cold and dark of Alaskan winters and make it warm and bright for the people of the Last Frontier.

While approximately 45% of the electrical energy produced in the United States comes from coal, only approximately 10% of the state's electrical energy is coal fired. There is tremendous potential to stabilize long-term cost of electricity in the Railbelt by increased use of coal for power generation.