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Burning coal requires between 100 and 150% excess air for complete combustion.

Excess air is the air supplied for combustion more then the air required for perfect combustion. Perfect combustion is the minimum amount of air, if all the oxygen is used, to completely burn the coal, (this is impossible).

Oil requires 30-50% excess air and Natural gas requires 10-30% excess air for complete combustion. So combustion of coal is less efficient than these. However, the process of generating steam and producing electricity otherwise is no less efficient than any other means.

Excess air as a result carries more heat up the stack which cannot be recovered, thus the reduction in efficiency. Overall this reduction in efficiency only amounts to about a 5% reduction in plant generating efficiency, or less.

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Q: Why is converting coal into electricity inefficient?
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