Fuel Supply Evaluation and Planning

Utility and industrial companies and domestic and international power developers rely on John T. Boyd Company's proactive approach to fuel supply issues.

We maintain a database of worldwide coal suppliers and coal characteristics associated with their mining operations. As a mining consultant, this allows us to effectively identify coal sources suitable for use at selected coal-fired generating units.

As experienced mining consultants, our staff also performs due diligence studies of potential coal suppliers on an international basis.

We are experienced in assessing coal supply issues and our work as a consultant is tailored to the needs and requirements of our customers.

Our mining services extend beyond the initial coal delivery in that we monitor coal contract terms and conditions, and assist in evaluating market price adjustments.

The John T. Boyd Annual Publication - US CoalVision 2010 leverages John T. Boyd Company’s substantial understanding of US Coal mines and markets by combining the collective insights gained from decades of mining and market experience with a flexible, databased modeling approach.

Supply issues incorporated in the analysis include: future levels of coal mine productivity, regional mining costs, new mine development and corresponding lead times, capital investment requirements for increased production capacity, reserve availability, transportation costs, and the potential for coal imports.

Coal demand issues include: environmental compliance strategies at existing coal-fired power plants, the likely impacts of energy policies, and the future requirements for new coal-fired generation capacity

Coal Supply Evaluation - Consultant Services

• Review of Power Plant Specifications
• Comment of Coal-Related Issues in Power Purchase Agreements
• Bid Document Preparation
• Evaluation of Bids and Preferred Coal Supplier Recommendations
• Due Diligence Supplier Site Visits
• Evaluation of Coal Transport Options (inland and ocean)
• Preparation of Letters of Intent
• Development of Fuel and Transport Contract Terms and Conditions
• Contract Negotiations
• Presentation of Coal Supply Plans to Company Officials and Financial Lending Institutions

Example Projects Include:

• Conducted a site visit to coal mining operations in Shandong and Shanxi Provinces, China, to:
  
  
  • Review fuel supply plans for three proposed generating stations.
  • Conduct site visits to selected proposed suppliers.
  • Evaluate coal reserve and quality data and production capability of proposed suppliers.
  • Review rail transportation arrangements for moving fuel to station sites.
    
    Submitted a due diligence report on fuel supply and transport plans.
  
  
  
• Retained by a major independent power producer to develop a coal supply plan for deliveries to an independent power generating facility in Europe. BOYD examined both coal supply and transport delivery alternatives to the facility. The project included:
  
  
  • Identifying potential coal suppliers.
  • Mailing bid packages.
  • Reviewing bids and recommending shortlist of candidates.
  • Completing site visits.
  • Negotiating coal and transport contracts.
  
  
  
• Completed a solicitation for supplying coal to existing domestic generating stations. Assignment included:
  
  
  • Preparing bid documents and identifying suppliers, both domestic and international.
  • Reviewing received bids.
  • Tabulating bid responses and recommending preferred suppliers.
    
    Bid packages were forwarded to over 180 potential coal suppliers.
  
  
  
• Provided independent fuel advisory services in regard to the development of a lignite surface mining operation in Mississippi. Scope of work included a review of:
  
  
  • Property control, coal reserves, and quality.
  • Mine plans and sequence.
  • Selected equipment complements.
  • Mine labor force.
  • Mine infrastructure.
  • Permit and base review.
  • Mining cost projections and operating costs.
  • Mine profitability.
  
  
  
• Completed the following tasks as part of client’s due diligence process relative to the potential purchase of a major steel producer’s coke-producing facilities:
  
  
  • Compiled 20-year historic met coal production and prices.
  • Provided overview of major US met coal producers and outlook for future production.
  • Prepared a forecast of demand for met coal by sector and 10-year price forecast.
  • Discussed met coal availability and pricing issues to coke plants in question.
  
  
  
• Retained to complete a fuel supply plan for the developers of a proposed coal gasification facility. Our work scope included identifying potential coal suppliers and meeting with them to discuss their ability and willingness to supply coal. Reviewed transport options and provided opinions on coal and transport contract term and conditions.

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