Water issues in the coal supply chain in China

Water shortage and geographically uneven distribution of coal and water pose great challenges for the sustainable development of the coal industry in China. Due to the dominant influence of the coal industry on China´s primary energy system, its future has direct and significant impacts on the total energy consumption, energy security, and reduction of greenhouse gas emissions in China. In this paper, we illustrate the major challenges currently exist in the coal industry from a supply chain viewpoint, and propose technical and policy suggestions in addressing these challenges. We provide quantitative information about water withdrawal, consumption, and waste water drainage in each stage of the coal supply chain, from coal mining, preparation, to final conversion in terms of power generation and chemical synthesis. Our results show that without effective water-saving measures or regulations, the water demand in the coal industry could dramatically increase and probably surpass China´s water supply capacity in the near-term future, bringing great uncertainty to the sustainable development of China´s economy. We also illustrate that coal-fired power generation, with appropriate technical improvement and proper policy supports, has the greatest potential for water savings in the coal industry.