ENERGY CONCLAVE 2006 * By : Shri S. Chaudhuri, Chairman-cum-Managing Director, CMPDI...

ENERGY CONCLAVE 2006 ENERGY CONCLAVE 2006

*

By By : Shri S. Chaudhuri, : Shri S. Chaudhuri,

Chairman-cum-Managing Director, CMPDIChairman-cum-Managing Director, CMPDI

Mobilization of Coal SupplyMobilization of Coal Supply

Resource base

Enlarging Resource base

Enhancing Extractable Reserve

Indigenous Coal Supply

Energy from coal seams- Emerging Technologies

Issues on sustainable coal supply


Resource Base

TYPE-WISE COAL RESOURCES OF TYPE-WISE COAL RESOURCES OF INDIA INDIA

AS ON 1.1.2006AS ON 1.1.2006

Coal Type Category Total

Proved(Bt)

Indicated(Bt)

Inferred

(Bt)

(Bt) (%)

Prime coking

4.6 0.7 - 5.3 2.1

Medium coking

11.4 11.8 1.9 25.1 9.9

Semi coking

0.5 1.0 0.2 1.7 0.7

Total coking

16.5 13.5 2.1 32.1 12.7

Non coking 78.9 106.2 35.2 220.3 87

Tertiary(NE)

0.5 0.1 0.4 1.0 0.4

Total 95.9(37.86%)

119.8(47.3 %)

37.7(14.84%

)

253.3

DEPTH-WISE COAL RESOURCES OF DEPTH-WISE COAL RESOURCES OF INDIA INDIA AS ON 1.1.2006AS ON 1.1.2006

Depth(m)

Proved(Bt)

Indicated

(Bt)

Inferred

(Bt)

Total(Bt) (%)

0-300 73.8 66.6 14.4 154.8 61.1300-600 6.7 41.5 17.5 65.7 25.90-600

(Jharia)13.7 0.5 - 14.2 5.6

600-1200

1.7 11.2 5.8 18.7 7.4

Total 95.87 119.86 37.67 253.3 100% 37.8 47.3 14.9 100

DISTRIBUTION OF COAL RESOURCES OF INDIA

BlocksBlocks TotalTotal % Share% Share

CILCIL 91.6991.69 36.236.2

Non-CIL (Captive)Non-CIL (Captive) 29.3529.35 11.611.6

Non-CIL (Others)Non-CIL (Others) 27.7527.75 11.011.0

Others (TISCO etc.)Others (TISCO etc.) 3.123.12 1.21.2

Un-blockedUn-blocked 83.3183.31 32.932.9

Godavari ValleyGodavari Valley 17.1417.14 6.86.8

NE RegionNE Region 0.940.94 0.40.4

TOTAL :TOTAL : 253.3253.3 100100

AS ON 1.1.2006

in billion tonnes


Enlarging Resource base

Per Capita Proved Coal ReservePer Capita Proved Coal Reserve

Country Population

(million)

Proved reserve at the end of

2005(Bt)

Per capita proved reserve

(in tonne)

INDIA 1080 90 83

USA 296 111 375

AUSTRALIA

20 38.6 1930

RUSSIA 144 49.1 341

Source: WEC and BP Statistical Review, 2005

Enlarging Coal Resource BaseEnlarging Coal Resource Base Regional / Promotional exploration -

About 5,000 Sq. Km. yet to be covered Present rate about 2200 sq. km. area in plan period. Resource addition will be mostly in >300m depth range

Jan’96 to Jan’01 Jan,01 to Jan,06<300m 9.56Bt(80%) 19.17 Bt (48.6%)>300m 2.39Bt(20%) 20.22 Bt (51.4%)Total 11.95Bt 39.40 Bt

Thrust areas for XI plan Left out shallower region (marginal areas) Superior non-coking & coking coal deposits at depth.

Likely achievement in X Plan Regional - 1.5 lakhs m Promotional - 3.8 lakhs m

Total - 5.3 lakhs m

Detailed ExplorationDetailed Exploration

CapacityCapacity

CMPDI 1.92 lakh metre/year

SCCL 1.30 lakh metre/year

State Govt. 0.10 lakh metre/year

Outsourcing 2.50 lakh metre/year* by CMPDI

Total 5.82 lakh metre/year

* Subject to availability of agencies

0 – 300m

(81 Bt.)> 300m(76 Bt.)

Total Resources(253 Bt.)

Non-coking

(76.5 Bt.)

Indic. & Infer.(157 Bt.)

Proved(96 Bt.)

Coking

(4.5 Bt.)REST

(73.8 Bt.)

SCCL & NER

(2.8 Bt.) Inferred(13.8 Bt.)

Indicated(60 Bt.)

Inferior(42.7 Bt.)

Superior(17.2 Bt.)

*

RESOURCE STATUSRESOURCE STATUS

Indicated + Inferred( 0 – 300 m)

(73.8 Bt.)

Rest(9.0 Bt.)

In 9 Major cf(64.8 Bt.)

< 300 M(22.37Bt.)

RESOURCES TARGETTED FOR EXPLORATION(28.7Bt)

Amenable toindependent

OC Mining(10.7 Bt.)

Not amenable to independent

OC Mining(27.9 Bt.)

Constrained(10.6 Bt.)

Not available for Exploration(15.6 Bt.)

> 300 M(6.37 Bt.))

(Incl.1.3Bt coking)CIL

(8.0 Bt.)Non-CIL

(14.37 Bt.)

RESOURCE STATUS

*

Detailed Exploration in XI Plan

Drilling in Lakhs m

Capital (approx)

In Rs. Crore

Likely addition in Proved reserves

In Bt

CIL 5.0 315 8.0

Non-CIL(MoC)

17.5 1130 21

Total 22.5 1445 29.0

SCCL 6.5 N.A N.A

Likely Proved reserves at the end of XI Plan – 135 Bt.


Enhancing Extractable Reserve

Tentative Extractable Coal Reserve

AreaGeological Resource (In Bt) AS ON

1.1.2005Extractab

le Reserve

(Bt)Proved Indicate

dInferred Total

CIL 67.71 19.42 4.56 91.69 30.03Rest 25.25 97.66 33.24 156.1

522.21

Total 92.96 117.08 37.80 247.84

52.24

Enhancing Extractable Resource Base

Needs continued up gradation on the basis of

Further proving

Improved underground mining technology

Updated economic viability

Removal of surface constraints etc

UNFC SCHEME-CLASSIFICATION OF COAL RESOURCE BASEUNFC SCHEME-CLASSIFICATION OF COAL RESOURCE BASE

ECONOMIC AXIS

(E)

FEASIBILITY AXIS

(F)

GEOLOGICAL AXIS(G)

Proved(1) Indicated(2) Inferred(3)

Economical(1)

PR Available (1) 111 112 113

Pre-feasibility study (2) 121 122 123

PR not available (3) 131 132 133

Marginally Economical

(2)

PR Available (1) 211 212 213



Sub-Economical

(3)

PR Available (1) 311 312 313



UNFC Type codification of Indian coal resources in the full mine / block areas :

THE UNFC SCHEMETHE UNFC SCHEME

Enhancing Extractable Enhancing Extractable ReservesReserves

Expediting detailed exploration for increasing ‘Proved’ resources.

Maximizing opencast operations

Technology up gradation for underground mine Extraction of reserves standing on pillars Extraction of reserves in thick & steep seams Addressing shortage of stowing material

Underground Coal gasification for mining low grade coal at deeper horizon

Implementation of Jharia & Raniganj Masterplan for fire & rehabilitation


Indigenous Coal Supply

Coal Production (2005-06) (in Mt)(provisional)

CompanyCompany CokingCoking Non-cokingNon-coking TotalTotal

CILCIL 24.0424.04 319.33319.33 343.37343.37

SCCLSCCL -- 36.1436.14 36.1436.14

DVC/ DVC/ IISCO/JSMDC/JKIISCO/JSMDC/JKMLML

0.830.83 0.980.98 1.811.81

TISCOTISCO 6.516.51 0.010.01 6.526.52

MeghalayaMeghalaya -- 5.575.57 5.575.57

New Entrants New Entrants (JSPL, BECML, (JSPL, BECML, ICML, HIL, MIL, ICML, HIL, MIL, BLA, CML)BLA, CML)

0.010.01 13.5813.58 13.5913.59

All IndiaAll India 31.3931.39 375.61375.61 407.00407.00

Demand Projection of Coal by various Demand Projection of Coal by various AgenciesAgencies

(in Million Tonnes)

SourceSource Sectors/ Sectors/ PeriodPeriod

Base Base YearYear

06-0706-07 11-1211-12 16-1716-17 21-2221-22 24-2524-25

X Plan X Plan Working Working GroupGroup

PowerPower 322322 469469 617617

Captive Captive PowerPower

2828 3232 3737

SteelSteel 4343 4040 4040

OthersOthers 8080 7979 8686

TotalTotal 2001-022001-02 473473 620620 780780 981981 11261126

Coal Coal Vision Vision 2025 @ 2025 @ 8% GDP8% GDP

PowerPower 322322 427427 553553 699699 804804

Captive Captive PowerPower

2828 4444 6363 9090 112112

SteelSteel 4343 5454 6969 9090 105105

OthersOthers 8080 104104 143143 201201 246246

TotalTotal 2006-072006-07 473473 630630 828828 10791079 12671267

DEMAND OF COAL AT 8% GDP GROWTH (In Mt)

YEARIntegrated Energy Policy

Vision Coal 2025

Power

Non -Power Total Power Non -Power Total

11-12 493 164 657 471 158 629

16-17 656 221 877 616 212 828

21-22 814 299 1113 789 290 1079

24-25 1000 375 1375 916 351 1267

26-27 1133 408 1541 1018 396 1414

CAGR % 5.6 6.4 5.8 5.4 6.2 5.6

Share of coal based energy generation projected to decline from 85% in 2003-04 to

78% in 2031-32. Share of gas based energy is projected to increase to 20% from

current level of 12%.

Producing Producing CompanyCompany

XI Plan XI Plan

(2011-12)(2011-12)

XII Plan XII Plan

(2016-17)(2016-17)

XIV Plan XIV Plan

(2025)(2025)

CILCIL 536536(OC -472,UG-64)(OC -472,UG-64)

653 653 (OC -573,UG-80)(OC -573,UG-80)

839 839 (OC-715, UG-124)(OC-715, UG-124)

Coal. Equiv. Coal. Equiv. CBM-UCGCBM-UCG

-- 55 2525

SCCLSCCL 4141 4545 4747

Captive & Captive & TISCO/IISCOTISCO/IISCO

4444 7575 175175

Total Total 621621 778778 10861086

Fig. in Mt.

Indigenous Coal Supply (As per Coal Vision 2025)

Demand vis-a-vis AvailabilityDemand vis-a-vis Availability (As per Coal Vision 2025)

2016-172016-17 2024-252024-25

Domestic ProductionDomestic Production

778778 10861086Coking $(Washed Coal)Coking $(Washed Coal) 26(13)26(13) 36 (18)36 (18)Low Volatile High Rank $Low Volatile High Rank $(Washed Coal)(Washed Coal) 13(3)13(3) 13 (3)13 (3)

Non-CokingNon-Coking 734734 10121012Coal equi. of CBM/UCGCoal equi. of CBM/UCG 55 2525

Demand at 8% GDPDemand at 8% GDP TotalTotal 828828 12671267CokingCoking 6969 105105Non-cokingNon-coking 759759 11621162

Gap(-)/ Surplus(+) at 8% Gap(-)/ Surplus(+) at 8% GDPGDP

CokingCoking (-)53{40} (-)53{40} @@ (-) 84{63} (-) 84{63} @@Non-cokingNon-coking (-)20(-)20## (-) 125(-) 125

@ Equivalent quantity of Imported Coal with Ash <10% either through coking coal import/CIL overseas equity# Gap Shall be bridged with the middling from beneficiation of coking & low volatile high rank coal & by additional production from captive mines. $ Figures in brackets indicate benificiated coal with 17% ash level for use in Steel sector.

Figures in Million Tonnes

16-17 24-25

Demand-supply gap of non coking coal as per Vision Coal 2025

20 125

Demand-supply gap as per Integrated Energy Policy in 2024-25

70 235

Production from captive Sector as per Vision Coal 2025

75 175

Required Total Production by captive sector to bridge the gap in 2024-25

145 410

Augmentation of coal productionFigure in million tonnes

ALLOCATION STATUS OF COAL BLOCKSALLOCATION STATUS OF COAL BLOCKS

ParticularsParticulars Total Total No.No.

AllottedAllotted Application Application InvitedInvited

Offered to State Offered to State Govt.Govt.

Available for Available for allocationallocation

Expl.Expl. Regl. Regl. Expl.Expl. Expl.Expl. Regl. Regl.

Expl.Expl. Expl.Expl. Regl. Regl. Expl.Expl. Expl.Expl. Regl. Regl.

Expl.Expl.

CIL retained CIL retained for for productionproduction

238 238 (44.15)(44.15)

CIL Proposed CIL Proposed to be to be releasedreleased

5151(9.20)(9.20)

1 1 (0.19)(0.19)

3 3 (0.69)(0.69) -- -- -- -- 4040

(5.80)(5.80)88

(3.38) *(3.38) *

Captive Captive Blocks -CILBlocks -CIL

136 $ 136 $ (29.35)(29.35)

67 67 (7.25)(7.25)

1414(6.22)(6.22)

1717(1.94)(1.94) -- -- 2020

(5.86)(5.86)4 4

(0.91)(0.91)1313

(7.36) (7.36)

Captive Captive Blocks -SCCLBlocks -SCCL

77(0.55)(0.55)

11(0.06)(0.06) -- 33

(0.18)(0.18) -- -- -- 33(0.31)(0.31) --

Non -CILNon -CIL 109 109 (27.75)(27.75)

2 2 (0.31)(0.31)

44(2.37)(2.37) -- -- -- 88

(3.29)(3.29)2727

(4.15)(4.15)4141

(13.91)(13.91)

TotalTotal 7171(7.81)(7.81)

2121(9.28)(9.28)

2020(2.12)(2.12)

2828(9.15)(9.15)

7474(11.17)(11.17)

6262(24.65)(24.65)

Figures within bracket are Resources in Bt. * Revised resources$ Includes one block which has been dropped from captive list

Blocks allotted Fully explored Regionally explored

Total

Till 2003 No. 29 8 37

Reserves (Bt) 2.57 1.28 3.85

2004 No. 4 1 5

Reserves (Bt) 1.20 0.74 1.94

2005 No. 18 3 21

Reserves (Bt) 1.40 1.67 3.07

2006 No. 20 9 29

Reserves (Bt) 2.65 5.59 8.24

Total No. 71 21 92

Reserves (Bt) 7.82 9.28 17.10

Reserves in allotted blocks

Energy from coal seams - Emerging Technologies

CBM/CMM/AMM

CBM (Coal & Lignite) gas-in-place resource has been assessed as CBM (Coal & Lignite) gas-in-place resource has been assessed as 1.78 TCM in an area of 16,222 Sq.Km in India.1.78 TCM in an area of 16,222 Sq.Km in India.

16 CBM blocks have so far been allotted with prognosticated 16 CBM blocks have so far been allotted with prognosticated resource of 825 BCM in 7807 Sq. Km area.resource of 825 BCM in 7807 Sq. Km area.

10 CBM blocks proposed for allocation with prognosticated resource 10 CBM blocks proposed for allocation with prognosticated resource of about 600 BCM .of about 600 BCM .

CMM resource assessed for virgin coal reserves in future mining CMM resource assessed for virgin coal reserves in future mining

areas - around 150 BCM. areas - around 150 BCM.

Possibility of sizable resource of AMM exist in abandoned Possibility of sizable resource of AMM exist in abandoned

underground mines. underground mines.

Potentiality of VAM resource also exist in gassy underground active Potentiality of VAM resource also exist in gassy underground active

mines.mines.

CBM/CMM/AMM/VAM

Thrust Areas

Resource modeling & assessment of Resource modeling & assessment of CBM/CMM resources under de- stressed CBM/CMM resources under de- stressed condition of coal seamscondition of coal seams

Formulation of Bankable project report for Formulation of Bankable project report for CBM / CMM / AMM exploitationCBM / CMM / AMM exploitation

Commercial exploitation of CMM & AMM by Commercial exploitation of CMM & AMM by application of superior technology of multi application of superior technology of multi lateral horizontal in-seam drillinglateral horizontal in-seam drilling

Creation of suitable pipeline infrastructure Creation of suitable pipeline infrastructure for cost effective transportation of methanefor cost effective transportation of methane

CBM,CMM,AMM

Energy from coal seams - Emerging Technologies

Underground Coal Gasification

Depthwise & Qualitywise reserves of non-coking coal(as on 01.01.06)

QualityQuality ProvedProved IndicatedIndicated Total in Proved & Total in Proved & IndicatedIndicated

TotalTotal

<300m<300m >300m>300m <300m<300m >300m>300m <300m<300m >300m>300m

SuperiorSuperior 23.3923.39 4.254.25 18.6718.67 19.8219.82 41.0641.06 24.0724.07 65.1365.13

InferiorInferior 44.0444.04 7.647.64 43.9743.97 24.2324.23 88.0188.01 31.8731.87 119.88119.88

TotalTotal 67.4367.43 11.8911.89 62.6462.64 44.0544.05 129.07129.07 55.9455.94 185.01185.01

79.3279.32 106.69106.69 185.01185.01

Quality-wise break up of 35.20 Bt.reserves ( 13.95 in <300m & 21.25 Bt. In >300m) in Inferred category is not available

In Billion tonnes

Thrust areas

Specific study for delineation of suitable UCG blocks.

Taking up pilot scale studies in an collaborative regime for establishing techno-economics.

Separate bye laws, regulatory framework, fiscal incentive etc. are to be evolved

Creation of suitable pipeline infrastructure for Creation of suitable pipeline infrastructure for cost effective transportation of Syn. Gas.cost effective transportation of Syn. Gas.

Underground Coal Gasification


Issues on Sustainable Coal

Supply

Issues on Sustainable Coal SupplyIssues on Sustainable Coal Supply

Continued expansion of resource base

Detailed exploration need be completed about two Plan periods before the year of achieving rated coal production from a block.

Exploration in CIL blocks for the production in 2016-17 will be mostly completed by 2006-07.

Explored allotted blocks can produce to match the coal requirement of XII Plan from captive blocks.

Proposed detailed drilling in XI plan will help in achieving coal production from XIII plan onwards.

Forest Clearance procedure for exploration needs to be suitably modified .

Present capacity of coal core analysis (about 30000 m/year) needs to be more than doubled to cater to the detailed exploration during XI Plan.


Underground mining Present production level of 62 mt proposed to be tripled by 2025

as per vision coal 2025.Necessary mine development works for above have to be started

during XI plan itselfSteps to be taken for faster liquidation of upper seams particularly

in Raniganj & Jharia coalfields for introduction of LW in lower seams where geo-mining conditions are favourable

Manual mining should be phased out by 2016-17 as bulk of conventional manual miners will retire by then

Bord & Pillar operations with continuous miner will be the dominant mining technology by 2016-17

Need for increasing indigenous underground mining equipment (continuous miner etc.) manufacturing capability


Enhancement of Extractable Resource

Coal EvacuationEmphasis on transport through MGRUrgent augmentation of NK & Ib valley coalfieldsRail Coal corridor,Slurry pipe lineRiverine/sea transportOthers ( Ropeways, Coal Road hauler etc.)

Land & Rehabilitation

Forest clearancesForest Zoning ‘Yes’ or ‘No’Amendment of legislationUtilization of compensatory afforestation fund


Manpower Requirement

Coal production in coming two decades is set to touch 1.5 billion tonnes

Average age of engineers (in coal PSUs) is about 47 yearsIt requires about 7 years to train & develop engineersTrained manpower will be required for

Conventional miningEmerging technologiesExploration

THANK YOU

Net Efficiency for Coal Fired Power Plant and CO2

Emission Rate

TypeType Net Net Efficiency Efficiency

%%

COCO2 2

Emission Emission Rate %Rate %

StatusStatus

Pulverized Pulverized CoalCoal

30-3530-35 100100 ProvenProven

PC(USC)PC(USC) 40-4240-42 93-9593-95 ProvenProven

PFBCPFBC 42-4542-45 9090 ProvenProven

IGCCIGCC 45-4645-46 8585 DevelopingDeveloping

IGFCIGFC Upto 50Upto 50 7575 DevelopingDeveloping

Tentative Extractable Coal Reserve

Enhancing Extractable Resource Base

An exercise carried out (April, 2004) shows that of the total resources of 91.69 Bt in CIL, 30.03 Bt (32.7%) are extractable as on 1.1.02. The remaining reserves are blocked due to various constraints.

Broad assessment of the extractable reserve of the National Coal Inventory as on 1.1.2005 considering :

Detailed exploration connotes a confidence level of 90% of the reserves established.

A 70% confidence level to Indicated and 40% to Inferred resources.

A study by CMPDI (July, 2001) shows an average Reserve to Production (R:P) ratio as 4.7:1.

Sustainability of coal production- Sustainability of coal production- OpencastOpencast

Share of opencast operations was about 22 % in 1975 which has increased to 84 % in 2004-05 (320 Mt). By 2025, coal production from opencast operations of Coal India will reach a level of about 715 Mt, which can be sustained for next 15 years at that level with further exploration.

Current depth of opencast operations ranges from 70 meters to 120 m whereas the operations have now been planned up to 300 m.

Underground coal production in India has remained stagnant for the last 25 years .For producing 124 mt of coal by 2025, the development work should start by 2006-07.

Application of mass production technology has been envisaged for achieving the aforesaid level of production.Upper seams of Jharia and Raniganj Coalfield are required to be liquidated prior to adoption of mass production technology in lower

virgin seams. In future, for extracting deep-seated coal resource,

underground mines need to be planned for at least 0.5 Mty and higher with appropriate technology mix viz. mechanised Board & Pillar, Powered Support Longwall (PSLW), Blasting Gallery, continuous miner.

Sustainability of coal production- Sustainability of coal production- UndergroundUnderground

Contd..

SECTOR-WISE PROJECTED COAL DEMAND SECTOR-WISE PROJECTED COAL DEMAND IN 2025IN 2025

Scenario : 8 % GDP growthPower (utility

)

Power (captiv

e)

Steel Cement

BRK & Others

Total deman

d

Demand (Mt) 804 112 105 123 123 1267

Share on total demand (%)

63.46 8.84 8.28 9.71 9.71 100

CAGR (06-25)

5.22 7.23 5.10 9.18 5.00 5.62Scenario : 7 % GDP growth

Power (utility

)

Power (captiv

e)

Steel Cement

BRK & Others

Total deman

d

Demand (Mt) 719 102 97 113 116 1147

Share on total demand (%)

62.69 8.89 8.46 9.85 10.11 100

CAGR (06-25)

4.56 6.69 4.64 8.65 4.66 5.04

Indicated & Inferred Resources within 300m in Indicated & Inferred Resources within 300m in Major Coalfields (Non-coking coal)Major Coalfields (Non-coking coal)

CoalfieldCoalfield In already In already explored explored blocksblocks

Already allocatedAlready allocated Available for explorationAvailable for exploration TotalTotal

Under Under expln./ expln./

proposed proposed by CMPDIby CMPDI

To be explored To be explored by allocateeby allocatee

Prioritised Prioritised for expln.for expln.

In areas In areas constrained constrained for miningfor mining

Not amenable Not amenable for independent for independent

OC miningOC mining

TalcherTalcher 0.350.35 1.861.86 1.391.39 1.381.38 1.491.49 12.1012.10 18.5818.58

IB ValleyIB Valley 0.670.67 0.270.27 0.260.26 1.231.23 0.420.42 6.296.29 9.149.14

KorbaKorba 0.270.27 -- -- 0.070.07 -- 2.472.47 2.802.80

Hasdeo-ArandHasdeo-Arand 0.010.01 -- 0.980.98 1.201.20 0.090.09 1.481.48 3.763.76

AurangaAuranga -- 0.100.10 0.950.95 0.520.52 0.020.02 -- 1.591.59

RajmahalRajmahal 0.400.40 -- 2.802.80 2.662.66 2.652.65 0.310.31 8.828.82

SingrauliSingrauli 0.980.98 -- 0.470.47 0.160.16 0.500.50 1.681.68 3.783.78

N.KaranpuraN.Karanpura 0.750.75 -- -- 1.081.08 -- 1.601.60 3.433.43

Mand-RaigarhMand-Raigarh 0.260.26 -- 2.812.81 2.452.45 5.455.45 1.941.94 12.9112.91

TotalTotal 3.673.67 2.232.23 9.669.66 10.7610.76 10.6010.60 27.8827.88 64.8264.82

(Billion tonnes)

Note: Resources in other coalfields - 8.95 Bt

CONCLUSIONSCONCLUSIONS

● ● Cost of washing is nullified due to reduction in washed Cost of washing is nullified due to reduction in washed coal requirement for the same capacity of power plantcoal requirement for the same capacity of power plant

● ● Using washed coal in conventional power plant and rejects in Using washed coal in conventional power plant and rejects in FBC / CFBC power plant will lead to increased generation of FBC / CFBC power plant will lead to increased generation of power from the samepower from the same quantity of raw coal quantity of raw coal

● ● Specific COSpecific CO22 emission per unit of electricity generated will emission per unit of electricity generated will reduce by using washed coalreduce by using washed coal

Fig. in Mt.

PROJECTED COAL DEMAND & AVAILABILITY IN 2024-25

* Gap in coking coal shall be bridged with middlings to be generated from beneficiation of coking & low volatile high rank coal.

Domestic Domestic ProductioProductionn

TotalTotal 10861086Coking (Washed)Coking (Washed) 36 (18)36 (18)Low volatile High rank Low volatile High rank (Washed)(Washed)

13 (3)13 (3)

Non-CokingNon-Coking 10121012Coal equivalent of Coal equivalent of CBM / UCGCBM / UCG

2525

Deamd at Deamd at 7 % GDP 7 % GDP

TotalTotal 11471147CokingCoking 9797Non-cokingNon-coking 10501050

Gap(-) / Gap(-) / Surplus Surplus (+) at 7 % (+) at 7 % GDPGDP

CokingCoking (-) 76 (57)*(-) 76 (57)*Non-cokingNon-coking (-) 13(-) 13

Fig. in Mt.

PROJECTED COAL DEMAND & AVAILABILITY IN 2024-25

* Gap in coking coal shall be bridged with middlings to be generated from beneficiation of coking & low volatile high rank coal.

Domestic Domestic ProductionProduction

TotalTotal 10861086Coking (Washed)Coking (Washed) 36 (18)36 (18)Low volatile High rank Low volatile High rank (Washed)(Washed)

13 (3)13 (3)

Non-CokingNon-Coking 10121012Coal equivalent of CBM / Coal equivalent of CBM / UCGUCG

2525

Deamd at Deamd at 8 % GDP8 % GDP

TotalTotal 12671267CokingCoking 105105Non-cokingNon-coking 11621162

Gap(-) / Gap(-) / Surplus Surplus (+) at 8 % (+) at 8 % GDPGDP

CokingCoking (-) 84 (63)*(-) 84 (63)*Non-cokingNon-coking (-) 125(-) 125

Clean Coal Technologies: Clean Coal Technologies: During CombustionDuring Combustion

Following advanced combustion technologies are Following advanced combustion technologies are being employed/ under various stages of being employed/ under various stages of development to reduce emission of GHGs & development to reduce emission of GHGs & increase thermalincrease thermal efficiencies:efficiencies:

Pressurized Fluidized Bed Combustion Combined Cycle (PFBC)Pressurized Fluidized Bed Combustion Combined Cycle (PFBC)

Integrated Coal Gasification Combined Cycle(IGCC)Integrated Coal Gasification Combined Cycle(IGCC)

Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)

Hydrogen Production from Coal with Carbon Dioxide Hydrogen Production from Coal with Carbon Dioxide Recovery(HyPr-RING)Recovery(HyPr-RING)

OUTLOOK ON COAL

Coal is the key contributor to the Indian energy scenario. 55 % of the current total commercial energy needs are met by coal.

Coal has the largest domestic base and largest share of India's energy production amongst four major Indian fuel sources - oil, natural gas, coal and uranium.

A far smaller percentage of domestic coal demand is met by imports than for the other major fuels.

It is projected that by 2024-25, the share of coal in national energy scenario would come down marginally to about 50 % level.

Integrated Energy Policy - IssuesIntegrated Energy Policy - Issues To bridge the gap between demand and supply

encourage import which are also needed from a longer term perspective

Create needed infrastructure to facilitate coal import

Imported coal is far more cost competitive to imported gas for power generation along the western & southern coast

Domestic coal production should be stepped up by allotting coal blocks to PSUs as well as to notified end users

Coal blocks held by CIL, which will not be brought into production by 2016-17 be made available to other eligible candidates for bringing into production by 2011-12.

Coal Mines (Nationalisation) Act 1973 be amended to enable private participation for purposes other than those specified & offering of future coal blocks to potential entrepreneurs

Integrated Energy Policy - IssuesIntegrated Energy Policy - Issues Enlarging coal resource base is important to meet coal requirement.

Deshaling, improved mining procedures and sizing of coal to be considered for bringing down the average ash content of Indian coal.

Full washing to reduce ash content further thereby saving transport cost and resulting in improved of power plants to be considered.

Independent regulatory body to regulate upstream allotment and exploitation of coal blocks to yield coal, CBM, mine mouth methane and for in-situ coal gasification to be created.

Integrated Energy Policy - IssuesIntegrated Energy Policy - Issues Rationalise rail freight rates for coal transport. Gradually reduce cross subsidy surcharges imposed on freight traffic.

Alternate means for moving coal through coastal shipping, river/canal movement and coal slurry pipeline to be considered.

Infrastructure status to coal industry. Lower duties on capital goods imported for coal mines to make them uniform with such duties for other energy sub-sectors.

20% of total coal available should be sold through

e-marketing.

Raise the domestic level of trading and marketing of coal by removing it from the list of essential commodities.

Amend the provisions of Contract Labour (Regulation & Abolition) Act, 1970 to facilitate off-loading activities in coal mining for improved economics of operation.

Integrated Energy Policy - IssuesIntegrated Energy Policy - Issues

Improved Governance is essential for dealing with malpractices and corruption like black marketing of coal, pilferages and illegal mining.

Coal projects are often delayed due to environmental regulations and delays in approval of EMPs. Simplification of procedures, preparation of comprehensive EMPs and demonstration of environmental responsibilities on the ground can help reduce such delays.

Reserve of compensatory afforestation built in advance should be accepted against specific project-wise commitments to reduce such delays

Production ProjectionsProduction Projections

Producing CompanyProducing Company Projected Production (Mt)Projected Production (Mt)

XII Plan (2016-17)XII Plan (2016-17) XIV Plan (2025)XIV Plan (2025)

OCOC UGUG TotalTotal OCOC UGUG TotalTotal

CIL Total:CIL Total:(Incl. NE)(Incl. NE)

568568 8080 648648 658658 124124 782782

Non-CIL AreasNon-CIL AreasUnblocked AreasUnblocked Areas

55 -- 55 5757 -- 5757

Total CILTotal CIL 573573 8080 653653 715715 124124 839839

Coal Equivalent CBM-Coal Equivalent CBM-UCGUCG

-- -- 55 -- -- 2525

SCCLSCCL 4545 4747

Others: Captive Others: Captive TISCO/IISCO TISCO/IISCO

7575 175175

Grand Total Grand Total (Domestic)(Domestic)

778778 10861086


Demand vis-a-vis AvailabilityDemand vis-a-vis Availability

Domestic ProductionDomestic Production TotalTotal 10861086

Coking (Washed Coal)Coking (Washed Coal) 36 (18)36 (18)

Low Volatile High Rank (Washed Coal)Low Volatile High Rank (Washed Coal) 13 (3)13 (3)

Non-CokingNon-Coking 10121012

Coal equiv.of CBM/UCGCoal equiv.of CBM/UCG 2525

Demand at 7% GDPDemand at 7% GDP TotalTotal 11471147

CokingCoking 9797

Non-CokingNon-Coking 10501050

Gap (-) / Surplus(+) Gap (-) / Surplus(+) at 7% GDPat 7% GDP

CokingCoking (-) 76 {57}(-) 76 {57}

Non-CokingNon-Coking (-) 13(-) 13


The production projected as above is based on broad The production projected as above is based on broad assessment, keeping in view various considerations like assessment, keeping in view various considerations like geo-mining, techno-economic and surface constraints, geo-mining, techno-economic and surface constraints, specific to different coalfields .specific to different coalfields .

Large opencast mines would continue to play dominant role Large opencast mines would continue to play dominant role in country’s coal production in next 3 decadesin country’s coal production in next 3 decades. .

It is expected that coal production from opencast operation It is expected that coal production from opencast operation of CIL will peak at 715 Mty by 2025, in addition a production of CIL will peak at 715 Mty by 2025, in addition a production of 160 Mty is expected to come from the of 160 Mty is expected to come from the opencast-mines/blocks identified for allocation to captive opencast-mines/blocks identified for allocation to captive users. SCCL will also contribute a production of 27 Mty from users. SCCL will also contribute a production of 27 Mty from opencast mines by 2025opencast mines by 2025


Private sector participation in coal through captive mining Private sector participation in coal through captive mining has been allowed by the Govt. since 1993has been allowed by the Govt. since 1993. .

17 Captive Blocks of tentative production capacity of 26.45 17 Captive Blocks of tentative production capacity of 26.45 MTY were allocated till 2000. The production from these MTY were allocated till 2000. The production from these blocks which was 3.83 mt in 2000, has increased to 9.58 mt blocks which was 3.83 mt in 2000, has increased to 9.58 mt in 2005. in 2005.

70 more captive blocks of potential production capacity of 70 more captive blocks of potential production capacity of 172.55 mty have been allocated and are under allocation 172.55 mty have been allocated and are under allocation process between 2001 & 2005process between 2001 & 2005..

Development of Coalbed Methane and Underground Coal Development of Coalbed Methane and Underground Coal GasificationGasification

Coal Bed MethaneCoal Bed Methane In 1997, a CBM policy was formulated and DGH was nominated as the In 1997, a CBM policy was formulated and DGH was nominated as the

nodal agency for management and promotion of CBM in the country. nodal agency for management and promotion of CBM in the country. Two rounds of global competitive bidding have already been Two rounds of global competitive bidding have already been concluded where blocks were delineated by CMPDI at the instance of concluded where blocks were delineated by CMPDI at the instance of MoC and corresponding data package were also largely prepared by MoC and corresponding data package were also largely prepared by CMPDICMPDI..

A mine-related CBM demonstration project for Coal Bed Methane A mine-related CBM demonstration project for Coal Bed Methane Recovery and Commercial Utilization aided by UNDP/Global Recovery and Commercial Utilization aided by UNDP/Global Environment Facility (GEF) and Govt. of India as collaborators has Environment Facility (GEF) and Govt. of India as collaborators has been taken up. been taken up.

A consortium of CIL and ONGC has been allotted two blocks for A consortium of CIL and ONGC has been allotted two blocks for exploration and commercial exploitation of CBM located in Jharia and exploration and commercial exploitation of CBM located in Jharia and Raniganj coalfields. CMPDI is to implement this project on behalf of Raniganj coalfields. CMPDI is to implement this project on behalf of CIL. The project is under implementation.CIL. The project is under implementation.


Coal Mine Methane / Abandoned Mine MethaneCoal Mine Methane / Abandoned Mine Methane Coal Mine Methane/Abandoned Mine Methane (CMM/AMM) Coal Mine Methane/Abandoned Mine Methane (CMM/AMM)

have been considered as an important sub-set of CBM which have been considered as an important sub-set of CBM which relate to CBM produced before, during and after coal mining. relate to CBM produced before, during and after coal mining.

CIL has drawn a long term perspective for commercial CIL has drawn a long term perspective for commercial recovery of CMM/AMMrecovery of CMM/AMM. .

The perspective includes policy formulation and generation of The perspective includes policy formulation and generation of base line data for evaluation of areas under mining, base line data for evaluation of areas under mining, abandoned mines and future mining areas for delineation of abandoned mines and future mining areas for delineation of viable CMM/AMM blocks for commercial recovery of viable CMM/AMM blocks for commercial recovery of CMM/AMMCMM/AMM


CBM Data GenerationCBM Data Generation

During the course of initial assessment of CBM resources, it has During the course of initial assessment of CBM resources, it has been observed that there is lack of dedicated database in respect of been observed that there is lack of dedicated database in respect of desorption and adsorption character of coal for CBM potentiality desorption and adsorption character of coal for CBM potentiality assessment. In view of this, it was evolved in the National assessment. In view of this, it was evolved in the National perspective that routine coal exploration through boreholes under perspective that routine coal exploration through boreholes under Promotional funding by the Govt. may be used for incremental data Promotional funding by the Govt. may be used for incremental data generation in regard of CBM potentiality assessment. Accordingly, a generation in regard of CBM potentiality assessment. Accordingly, a scheme of assessment of CBM Gas-in-Place Resources of Indian scheme of assessment of CBM Gas-in-Place Resources of Indian coalfields during X Plan has been approved by the Govt. at an coalfields during X Plan has been approved by the Govt. at an estimated cost of Rs.8 crores. The scheme is under implementation estimated cost of Rs.8 crores. The scheme is under implementation by CMPDI and the data in various coalfields are being generated by CMPDI and the data in various coalfields are being generated


Underground Coal GasificationUnderground Coal Gasification In India, a large amount of coal exists beyond present techno-In India, a large amount of coal exists beyond present techno-economically viable mining depth. They are falling within Proved to economically viable mining depth. They are falling within Proved to Indicated categories. Such coals have immense potential to yield energy Indicated categories. Such coals have immense potential to yield energy through UCG. Besides, within mineable depth also, there are many small through UCG. Besides, within mineable depth also, there are many small isolated patches of coal occurrence, which are presently not viable for isolated patches of coal occurrence, which are presently not viable for mining and the same can be considered for underground coal conversion.mining and the same can be considered for underground coal conversion.

Additionally, there is a huge occurrence of lignite in India, which has not Additionally, there is a huge occurrence of lignite in India, which has not even brought into lignite resource inventory, but otherwise known in course even brought into lignite resource inventory, but otherwise known in course of oil and gas exploration in the country. These lignite fields need proper of oil and gas exploration in the country. These lignite fields need proper exploration and may be taken up for UCG in addition to known lignite exploration and may be taken up for UCG in addition to known lignite deposits, which could not be economically mined due to greater depth. deposits, which could not be economically mined due to greater depth. Visualizing the opportunity, CIL Board has cleared a MoU with ONGC for Visualizing the opportunity, CIL Board has cleared a MoU with ONGC for pursuing UCG under collaborative regime on 50:50 cost sharing and is pursuing UCG under collaborative regime on 50:50 cost sharing and is awaiting approval of Govt.awaiting approval of Govt.

ConclusionConclusion

Coal will remain the major primary source of commercial energy in the Coal will remain the major primary source of commercial energy in the India owing to its large resource base.India owing to its large resource base.

Presently, the extractable coal reserves upto a depth range of 600m Presently, the extractable coal reserves upto a depth range of 600m has been assessed as 52 billion tonneshas been assessed as 52 billion tonnes..

Considering the average production level of 600-700 Mty with peak of Considering the average production level of 600-700 Mty with peak of the production reaching to the forecasted level of 2025, the country’s the production reaching to the forecasted level of 2025, the country’s coal resources is expected to last for more than 60 years. By this time, coal resources is expected to last for more than 60 years. By this time, new alternative source of energy will come into commercial operationnew alternative source of energy will come into commercial operation

Projected high growth rate in coal production is subject to removal of Projected high growth rate in coal production is subject to removal of barriersbarriers

There is a need to expand the coal resource base of the country by There is a need to expand the coal resource base of the country by expediting coal exploration both regional and detailedexpediting coal exploration both regional and detailed..

Indian system of coal resource classification needs to be replaced by Indian system of coal resource classification needs to be replaced by UNFC based classification system for better appreciation of the UNFC based classification system for better appreciation of the economy of coal resources of the countryeconomy of coal resources of the country


Coal Production ProjectionCoal Production ProjectionCompanyCompany Production in 2025 (Mt)Production in 2025 (Mt)

Non-cokingNon-coking CokingCoking TotalTotal

CILCIL 809809 3030 839839

Non-CILNon-CIL

SCCLSCCL 4747 -- 4747

Captive & TISCO / Captive & TISCO / IISCOIISCO

169169 66 175175

CBM-UCGCBM-UCG 2525 -- 2525

Sub total Non-CILSub total Non-CIL 241241 66 247247

All IndiaAll India 10501050 3636 10861086

Issues on Coal SupplyIssues on Coal Supply

Augmenting indigenous production from

CIL, & SCCL

Others (TISCO,IISCO etc.)

Captive blocks

CBM & UCG operations

Sustainability of coal production

Opencast

Underground

Issues on Coal SupplyIssues on Coal Supply

Removal of infrastructural constraints

Coal evacuation

Land & rehabilitation

Creating indigenous equipment manufacturing base

Review of Policy issues

Forest Zoning/ EMP clearance

Fiscal incentive for UCG & coal washing

Lower import duty on mining equipment

Creation of corpus fund for mine closure

Production Potential from allotted Captive blocksProduction Potential from allotted Captive blocks

Captive Blocks (including TISCO, IISCO etc.):A. Production Requirement (Mt)

06-07 11-12 16-17

28.8 44.0 75.0

B. Blocks allotted: Fully Explored Regionally Explored

TotalTill 2003 No. 29 8

37 Reserve(Bt) 2.57 1.28 3.85

2004-06 No. 41 13 54

Reserve(Bt) 5.19 8.0 13.19

Total No. 70 21 91

Reserve(Bt) 7.76 9.28 17.04

1. Blocks allotted till 2003 have sufficient Proved reserves to attain 44 Mt production by 2011-122. Blocks allotted till date have sufficient Proved reserves to attain 200 Mt production by 2020

COAL BENEFICIATION

Indian Coals - Need for beneficiation

Unlike Western Coal, most of the Indian coals contain high percentage of inorganic impurities (due to Drift origin).

65% of non-coking coal belongs to high ash category (grade ‘E’ and below)

Ash content in ROM coking coal is around 26-35% against ash requirement for steel making 17+0.5

Contain high percentage of Near Gravity Materials (NGM)

Substantial reserves of High Ash (>34%) Non-coking coal in the country .

Deterioration in coal quality due to increased mechanization of mines

MOEF’s mandatory requirements Varying customers’ needs & need for market

retention To reduce load on Railways Transportation system

Prospect Of Coal Beneficiation : Prospect Of Coal Beneficiation : 2011-122011-12

Sl. No.

Type of Coal Projected

Production MTY

Existing Washing Cap, MTY

Capacity Addition required

1 Coking Coal 26 31 Existing washeries to

be Modernized/

Replaced

2 Low Volatile High Rank (LVHR), i.e., high ash Coking coal

13 Nil 13

3 Non-Coking Coal

3.1 Superior Grade 147 Need based

3.2 Pit Head TPP linked low grade Coal (approx)

160 Need based

3.3 Remaining Low Grade Coal (approx)

275 90 185

LEVEL OF WASHING

Partial washing For Non-coking coal : Require banding of UHV to narrow

down the calorific ranges & subsequent pricing to reap the benefit of non-coking coal washing

Full scale washing For Coking coal

ECONOMICS OF WASHING OF NON-COKING COAL – A CASE ECONOMICS OF WASHING OF NON-COKING COAL – A CASE STUDYSTUDY

● ● Raw coal characteristics of Talcher Coalfield Raw coal characteristics of Talcher Coalfield

Ash – 40.2%Ash – 40.2%

GCV – 4074 Kcal/kgGCV – 4074 Kcal/kg

Price – Rs. 515 / Te (without sizing)Price – Rs. 515 / Te (without sizing)

●● Washed coal at 34% ashWashed coal at 34% ash

Yield % - 80.8Yield % - 80.8

GCV – 4439 Kcal/KgGCV – 4439 Kcal/Kg

Price – Rs 736 / te (excluding sales Price – Rs 736 / te (excluding sales realisation of rejects) , Rs 701 / realisation of rejects) , Rs 701 / te (including sales realisation of rejects @ Rs 150 / te)te (including sales realisation of rejects @ Rs 150 / te)

ECONOMICS OF WASHING OF NON-COKING COAL – A CASE ECONOMICS OF WASHING OF NON-COKING COAL – A CASE STUDYSTUDY

● ● Price of 1000 Kcal in case of raw coal = 12.6 Price of 1000 Kcal in case of raw coal = 12.6 paisapaisa

●● Price of 1000 Kcal in case of washed coal (excluding Price of 1000 Kcal in case of washed coal (excluding sales realisation of rejects) = 13.3 paisasales realisation of rejects) = 13.3 paisa

●● Price of 1000 Kcal in case of washed coal (including sales Price of 1000 Kcal in case of washed coal (including sales realisation of rejects) = 12.6 paisarealisation of rejects) = 12.6 paisa

Assumption : Requirement of washed coal in a thermal Assumption : Requirement of washed coal in a thermal power plant is equivalent to 80% of raw coal power plant is equivalent to 80% of raw coal requirementrequirement

PRESENT STATUS OF WASHING & FUTURE REQUIREMENTPRESENT STATUS OF WASHING & FUTURE REQUIREMENT

● ● As per Coal Vision – 2025, production is projected as 1060 As per Coal Vision – 2025, production is projected as 1060 Mty out of which 874 Mty need to be washedMty out of which 874 Mty need to be washed

●● Present washing capacities of all non-coking coal Present washing capacities of all non-coking coal washeries ( inside CIL & outside) = 90 Mtywasheries ( inside CIL & outside) = 90 Mty

●● 3 more3 more washeries of 24 Mty combined capacity are under washeries of 24 Mty combined capacity are under constructionconstruction

● ● Likely quantity of rejects to be produced = 218 Mty to 260 Mty Likely quantity of rejects to be produced = 218 Mty to 260 Mty which will produce about 17000 Mw to 20000 Mw of power by which will produce about 17000 Mw to 20000 Mw of power by FBC / CFBC technologyFBC / CFBC technology

ENVIRONMENTAL IMPACTENVIRONMENTAL IMPACT

● ● As per a Japanese estimate, for producing 2.17 million As per a Japanese estimate, for producing 2.17 million MWHr electricity i.e. for a 275 Mw Power Plant unit, MWHr electricity i.e. for a 275 Mw Power Plant unit, reduction of 550,000 Te of COreduction of 550,000 Te of CO22 emission can be emission can be achieved by using washed coal (34% ASH) instead of achieved by using washed coal (34% ASH) instead of 42% ash raw coal.42% ash raw coal.

Washery Rejects : Washery Rejects : Present ScenarioPresent Scenario

Generation of Rejects in 2004-05 was 2.44 Mt from CIL washeries having

Coking Coal Washeries : 10 - 15 % of RC feed

Non-coking Coal Washeries : 15 - 20 % of RC feed

Washing capacity in non-CIL plants about 81 Mt : Coking Coal : 11.27Mt Non-Coking : 69.6 Mt Percentage of Reject is likely to be the same as in

CIL Washeries

Addl. non-coking Coal Beneficiation by 2011-12(Anticipated) : 185 Mty

Approx.

Washery Rejects : Washery Rejects : Present ScenarioPresent Scenario

Disposal of Rejects in an environment friendly manner posing problem

7 units of 10 MW has been installed at five locations for utilising coking coal washery rejects for ash % ranging from 55 to 72 in BCCL and CCL.

Thrust Area : Reject Utilization

To establish an Efficient cost-effective technique for power generation from Washery rejects

Ash generated from the power plant will be disposed as a back-fill material in the Opencast Mines.

The Power Plants to envisage post combustion

emission control technologies e.g. CO2

control / sequestration etc.

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ENERGY CONCLAVE 2006 * By : Shri S. Chaudhuri, Chairman-cum-Managing Director, CMPDI...

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