Coal Insights, October 2022

G20 SHADOW ON COAL Focus on sustainability

Sumit Maitra

AsIndia assumes the Presidency of the G20 group of world leaders from December for a period of 1 year with a responsibility to host over 200 meetings across the country, the nation’s dependency on coal and efforts towards achieving sustainability will be under close scrutiny.

“With climate change talks at such high

stage of global dialogues and G20 coming to India and also clean energy ministerial held this year, for India, which is a large producer and consumer of coal, it is quite pertinent that the issue of sustainability in the coal sector is going to confront us,” Dr A K Jain, Secretary Coal said at the inaugural event of the 1st National Coal Conclave and Exhibition 2022.

“Heightened level of scrutiny and implementation of the environmental conditions are now the everyday mantra,” he said.

As India embarks on a path of Atmanirbharata in the coal sector with plans to raise output so that demand is met domestically, there is a need for greater focus and even a rethink of the country’s sustainability strategy.

“While on one hand, Coal India plans to move from 625 mt to 1 billion tons (bt) by 2025-26, on the other hand, the onus is on the coal sector to meet the requirements under COP26 commitments made by the country,” Rajiv Mishra, Senior Energy Consultant, World Bank, said at the event.

Broad basing scope of sustainability “Sustainability is not only about the environmental footprints that we leave on the face of the earth or in the air, it is also the sustainability of operations. These two have to go hand-in-hand,” he said.

While Coal India has been taking commendable steps towards achieving sustainable mining, the scope of its flagship First Mile Connectivity project - involving rapid loading stations and coal handling plants at mines - is being extended by lowering the threshold of yearly dispatch from mines from earlier 4 million tons (mt) to now 1 mt.

“All mines with more than 1 mt dispatch in a year will now be seeing mechanical loading,” Jain said.

Reduction in carbon emission in coal mining is also important as every ton of coal mined generates 40 kg of carbon.

“While it is not a big number, it is important still as there is little mitigation,” Mishra said.

In FY22, contribution of coal in carbon emission was 31 mt while mitigation was 10 mt only, he said.

“When the country reaches a production of about 2 bt by, say, 2035-40, carbon emission will touch 80 mt. We have to mitigate that to meet Net Zero. To achieve that, the country needs 30 GW of renewable energy and around 1.5 lakh hectares of plantation apart from other mitigation steps,” Mishra said.

Going for comprehensive mine closure

There is also a need to extend the scope of mine closure and make it more just and scientific.

“Global consumption of coal is set to rise and will keep on rising in India also. Coal continues to be relevant and doesn’t belong to the past. Our idea is how to make it more sustainable. Towards this, we are promoting coal gasification through offering higher incentives and making such projects part of the Productivity Linked Incentive scheme,” Pralhad Joshi, Coal Minister

PSUs give major push to coal gasification

State-owned

entities like Coal India

Ltd, NLC India Ltd, Bharat Heavy Electricals Ltd (BHEL), Indian Oil Corp Ltd (IOCL) and GAIL (India) have given a major push to coal-gasification initiatives as part of the country’s aim to decarbonise by 2070.

MoUs for gasification

The Coal Ministry has recently signed a Memorandum of Understanding (MoU) with five PSUs for setting up 4 large-scale coal-to-chemical projects through surface coal gasification route.

Coal India signed 3 separate MoUs, one each with BHEL, IOCL and GAIL while NLC India signed MoU with BHEL.

MoUs involve an aggregated investment of `35,000 crores in setting up surface coal gasification projects in West Bengal, Odisha, Chattisgarh, Maharashtra and Tamil Nadu.

“Under these MoUs, BHEL will jointly set up a coal-to-ammonium nitrate project with Coal India based on gasification of high ash Indian coal, and a lignite-based gasification pilot plant with NLC India for power generation, utilising BHEL’s indigenously-developed Pressurised Fluidised Bed Gasification (PFBG) technology,” BHEL said in a release.

Through the SCG route, coal is converted into syngas. This can be subsequently processed for downstream production of value-added chemicals which are otherwise produced through imported natural gas or crude oil at enormous cost.

Coal Insights Bureau

“Under these MoUs, BHEL will jointly set up a coal-to-ammonium nitrate project with CIL based on gasification of high ash Indian coal, and a lignitebased gasification pilot plant with NLC India for power generation, utilising BHEL’s indigenously-developed PFBG technology.”

BHEL

Indian coal mines stay

report

the mining sector’s depletion rate,” the report recently published by GEM said.

million people, at a time of severe water stress in the country, the report claimed.

Status of existing mining capacities

GEM’s analysis of operating coal mine shows that India’s mining sector suffers chronic underutilisation.

GlobalEnergy Monitor (GEM) has found out in a study that 36 percent of India’s approved coal mine capacity, or about 433 million tons a year is idled and unused out of 1,211 million tons per annum (mtpa) of aggregate capacity.

Which means that India need not invest in new mining capacity to bridge the gap between its mining capacity and projected growth of power demand, the organisation claimed.

“At some large coal mines, underutilisation is so severe that operators mine just 1 percent of available capacity. The scale of underutilisation suggests that India’s 99 coal mine projects and 427 mtpa of capacity under development are not needed: the opening of new coal mines is not immediate enough to ease the short-term supply crunch, nor is this expansion of India’s coal supply by 55 percent necessary to meet the country’s longterm coal demand, even when accounting for

The report comes on the back of the government’s plans to mine more coal and advance its long-standing commitment to produce 1 billion tons in 2023-2024.

To achieve its target, the Coal Ministry has continued with “continued privatisation” of the mining sector and opening of new coal blocks for commercial auction”.

The report also claims that India’s mining expansions pose significant hazards for local communities and environments based on its analysis that coal mines under development threaten to displace at least 165 villages and affect 87,630 families, of which 41,508 families live in scheduled areas of India where the predominant population is tribal communities.

Coal mines under development also threaten 22,686 hectares (ha) of agricultural land and 19,297 ha of forest, and will consume at least 168,041 kiloliters per day, comparable to the daily water needs of over 1

It found that more than one-third (36 percent) of mine capacity remains untapped and unused at operating coal mines, constituting 433 mtpa.

In some major mining regions, like Jharkhand and Odisha, the industry has over 100 mt in unused capacity at active mine sites, amounting to over 40 percent of unused mine capacity in those states.

India’s mining sector has 1,211 mt of normative capacity approved at operating mines alone, according to our data –not including recently closed or mothballed mines that the government has signaled it could recommission in the event of a crisis.

The Center for Research on Energy and Clean Air (CREA) recently estimated that India has over 1,500 mtpa of approved and available capacity all together.

At some of the worst performing mines, GEM analysis found that up to 99 percent of operating capacity is unused for actual output, including those owned by commercial and state-owned enterprises.

Coal mines with the most unused operational capacity

♦ Pachhwara (North) coal mine: West Bengal Power Development Corp owns this mine with 15 mtpa capacity that mined 0.1 mt in FY20 or just 0.66 percent of its capacity

♦ Talabira II & III: NCL India’s 20 mt capacity mine produced 0.27 mt, resulting in 1.35 percent utilisation rate.

♦ Talaipalli: NTPC’s 18 mt capacity plant mined 0.19 mt or 1 percent of capacity.

♦ Bharatpur coal mine: Mahanadi Coalfields Ltd’s (MCL) 20 mtpa mine project generated 4.781 mtpa of 24 percent of its capacity

♦ Magadh coal mine of Central Coalfields Ltd (CCL) mined 5.21 mt out of 20 mtpa capacity leading to utilisation level of 26 percent.

Coal Insights Bureau

UP Genco eyes MDO route for Jharkhand block

(UPRVUNL), via consultant NLC India Ltd, has floated tender for selection of Mine Developer and Operator (MDO) for Saharpur Jamarpani Coal Block having capacity of 18 million tons per annum (mtpa) located at Dumka District of Jharkhand.

UPRVIJNL has also informed the Coal Ministry that it is in the process of selection of MDO through NIT for the development of Jamarpani coal block and the production of coal from the coal block is likely to commence in 2028, as per agenda items for the Long Term Linkage committee meeting.

Saharpur-Jamarpani coal block was allotted to UPRVUNL in 2015 for supplying coal to Harduaganj Extn plant, Jawaharpur plant, Obra C and Panki Extn plant.

The Saharpur - Jamarpani coal block falls in Rajmahal Group of Coalfields, located in Dumka District of Jharkhand and lies in South Eastern part of Brahmani basin.

The coal block is spread over an area of 15.10 sq km.

Coal linkage

Saharpur Jamarpani coal block allocated to UPRVLINL is linked to Harduaganj Ext TPP (l x 660 MW), Jawaharpur TPP (2 x 660 MW), Obra ‘C’ TPP (2 x 660 MW) and Panki Ext TPP (l x 660 MW).

“Harduaganj Ext TPP (l x 660 MW) has been in commercial operation since February 2022. Further, Jawaharpur TPP (2X 660 MW) and Obra ‘C’ TPP (2 X 660 MW) are scheduled to be operational in2023 and coal for commissioning is required for these two TPPs,” the agenda document said.

UPRVUNL vide letter dated September 29 has requested for time extension of bridge

linkage for Jawahapur TPP (2 x 660 MW) and Obra ‘C’ TPP (2 x 660 MW) for further 6 years i.e. up to August’2028, so that supply of coal to these Super Critical technology based Power plants can be ensured.

Logistics requirement

As per the tender document, MDO has to make arrangements to carry coal to Harinsing siding by road and loading into railway wagon.

Till the construction of Pit head Coal Handling Plant, conveyor system, construction of the designated railway siding and Silo loading system, MDO shall transport coal from Saharpur Jamarpani mine to Haringsing railway siding and then load in to the wagons.

The MDO is also required to transport coal to Harinsing Siding initially until establishment of the designated Railway siding at the site.

Coal Insights Bureau

UPRajya Vidyut Utpadan Nigam Ltd

Global alliance setting Net Zero methodology for steel

Aglobal

alliance, which counts major steel makers including the Tata group, JSW Steel and ArcelorMittal as its members, is developing science-based target setting methodologies, tools and guidance for steel companies.

The alliance, called the Science Based Targets Initiative (SBTi) aims to help companies to understand and implement the level of climate ambition required to meet the 1.5°C goal of the Paris Agreement.

SBTi is a partnership between the global disclosure system CDP, United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

“SBTi will open a month-long public consultation period towards the end of 2022, during which experts from the industry and non-industry representatives will be encouraged to provide feedback to the

guidance and target setting tool. We plan to launch the final version of the SBTi Steel Guidance and Target Setting Tool by the end of June 2023,” the alliance has said.

In collaboration with the Mission Possible Partnership (MPP), SBTi is working to provide granular decarbonisation pathways that are 1.5°C aligned for the iron and steel sector.

MPP is an alliance of climate leaders focused on accelerating the decarbonization of these industrial sectors. Led by the Energy Transitions Commission, RMI, the We Mean Business Coalition and the World Economic Forum, its goal is to propel a committed community of CEOs from carbon-intensive industries, together with their financiers, customers, suppliers, to agree and more importantly to act on the essential decisions required for decarbonizing industry and transport in this decade.

ArcelorMittal, BlueScope, JSW Steel Ltd, Liberty Steel, Nippon Steel, Nucor

Corp, Outokumpu, POSCO, Tata Steel Group and World Steel Association among others are part of the Expert Advisory Group.

“Tata Steel, along with leading industry players, is proud to endorse MPP Industry’s updated steel sector transition strategy which aims to accelerate the global journey towards sustainable steel manufacturing and make decarbonisation and Net Zero a reality,” Tata Steel has said.

“Globally, the steel sector’s direct CO2 emissions amounted to 2.6 Gt in 2019, or 7 percent of total energy sector emissions and 28 percent of industrial emissions. Demand for steel is projected to continue rising. If action is not taken to optimize its efficiency in use, we will see an increase in absolute

Coal Insights Bureau

“SBTi will open a month-long public consultation period towards the end of 2022, during which experts from the industry and nonindustry representatives will be encouraged to provide feedback to the guidance and target setting tool. We plan to launch the final version of the SBTi Steel Guidance and Target Setting Tool by the end of June 2023.”

BHEL secures Talcher EPC project order

NBPPL winding up of NBPPL. MoP had advised NTPC to consider buyout of BHEL stake in NBPPL. NTPC in its response had proposed that any decision regarding the subject may be taken after completion of the above project.

Advanced Ultra Supercritical technology

The Advanced Ultra Supercritical (AUSC) technology has been successfully developed by BHEL in collaboration with NTPC and Indira Gandhi Centre for Atomic Research (IGCAR) provides best-in-class efficiency in coal-based power generation and has the potential to reduce CO2 emissions by 20 percent as compared to subcritical technology-based power plants, BHEL has disclosed in its annual report for FY22.

“This gains significance considering over 145 GW of installed capacity in the country is based on subcritical technology of which over 45 GW is more than 20 years old,” the company said.

Clean coal tech to gain traction

State-owned

BHEL has received an order for setting up the 2x660 MW Talcher thermal power project Stage-III on Engineering, Procurement & Construction (EPC) basis from NTPC Ltd.

“BHEL has secured the order for setting up the 2x660 MW Talcher thermal power project stage-lll in Odisha through international competitive bidding. The project is located at Talcher in Angul district of Odisha. BHEL’s scope of work includes design, engineering, manufacture, supply, construction, erection, testing and commissioning for 2 sets of supercritical boilers, turbines along with its auxiliaries, electrical, controls and instrumentation, balance of plant packages, etc,” the company told stock exchanges.

The project will be executed over a period of 54 months.

“Considering the changes happening across the globe, while giving utmost thrust for adding renewable capacity, need

has been felt for adding some coal-based capacity as it will provide resilience to the sector for meeting the increasing demand. Accordingly, your Company is considering a few expansion projects at the existing pithead plant locations. In this direction, we have already finalized the tender for (2X660 MW) capacity at Talcher thermal power plant as a replacement project,” NTPC said in its annual report.

BHEL had earlier bagged the order for NTPC’s Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a JV with Jharkhand Bijli Vitran Nigam Limited (JBVNL).

PVUNL is setting up a 4,000 MW coalbased power project in two phases. Phase-I of (3X800) MW. BHEL was awarded the project in March 2018 and construction work is in progress.

NTPC-BHEL Power Projects Pvt Ltd (NBPPL), a JV between the 2 entities, is currently executing the balance works of a plant at Unchahar of capacity 1X500MW.

In 2018, both the promoters of the JV had approached respective ministries to exit from

“The rise in crude oil prices, as well as the recent energy crisis across Europe has further highlighted the importance of energy security for the nation, and underlined the need for India to rely on utilizing its vast coal reserves for reducing dependence on hydrocarbon imports. Technologies for cleaner use of coal are, therefore, likely to gain traction in the coming years,” Dr Nalin Shinghal, Chairman & Managing Director, BHEL, said at the annual general meeting.

Biomass co-firing

Ministry of Power has framed a policy for biomass co-firing in thermal power plants. The first successful demonstration of biomass co-firing at NTPC Dadri thermal power plant by BHEL has been followed by implementation of biomass co-firing at many BHEL supplied boilers.

“The company aims to further support the country’s utilities in reducing their greenhouse emissions through its engineering services and solutions for biomass co-firing,” CMD said.

Coal Insights Bureau