Orot Rabin (2,610 MW) at Hadera and Rutenberg in Ashkelon (2,250 MW). Currently all the coal plant units in Ashkelon and Hadera power stations are of the “critical” technology, that have an efficiency of ~39-40%. The super critic technology (higher temperature in the boilers and additional technological improvements) is more efficient by 3-7% than the critical technology, that has a plant efficiency of 41-43%. The D power plant in Ashkelon which is planned is of that technology. IEC says that it is of 42% efficiency. This plant will probably cost about $2.1 billion or more. The ultra super critic technology is of much higher efficiency 45-48% (that is up to 20% more efficient than the old critic units of IEC). This is the leading technology and all new and repowered power plants in Germany for example are built in this family of technologies in the past 10-15 years. Such a plant (for 1200 MW as IEC plan in the D station) will probably cost $500-700 million more than the planned super critic plan. There are those in Israel, who are trying to convince IEC, the government, the PUA and VATAL, to force IEC to go to that technology although IEC estimates this would take 2-3 years longer to establish the plant.

1st August 2011 – MNI Minister Landau ordered that 4 of the 6 turbines at Orot Rabin be converted to natural gas turbines instead of coal

IEC announced in October 2011 – IEC expects coal consumption 13.3 million mt in 2012, a record for the company. The IEC consumed 12 million mt of coal in 2010 and the amount is expected to increase to 12.5 million in 2011. The supply mix would remain unchanged with about 50% of the coal coming from Colombia, 25-30% from South Africa and the remainder from Russia and other smaller suppliers. Demand for coal in 2013 was likely to drop to 11-11.5 million mt once the Tamar field comes online and the IEC shuts down one of its Hadera plants to install flue gas desulfurization units. Israeli coal demand could drop even further to around 9 million mt a year by 2016 once the IEC proceeds with plans to switch one of the older Hadera plants to gas from coal.

The API#2 index is the benchmark price reference for coal imported into Europe as published by Argus/McCloskey Coal Price Index Report.

API#2 is the coal index that represent closely IEC’s coal price. In 2008 IEC adjusted cost of coal was below the index and in 2009 above it. In 2008 IEC paid an average of 499 NIS per ton of coal and in 2009 418 NIS (based on IEC Financial books for 2009)