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Role of Coal
inIndian Energy Basket
PDPU-CFSR Conference on Clean
Coal Technology
S K Chand
November 2009
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Certain myths about Indian coal
1. India has large reservesof coal; over 265billion tonnes
2. India has 100 billion tonnes of proved reserves
3. India is the fourth largest producer of coalinthe World
4. Indian coal is high in ash and sulphur
5.
Coal will continue to be the main source ofenergyfor many years to come
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Indian system of reporting:
Indian Standard Procedure 1957
Based on categories defined by
concentration of exploratory boreholes
Purely geological resource accountingsystem
Does not consider minability /extractability/
economic criteria
Thus highly exaggerated resource
inventory
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Resource data is
gross, cumulative and does not consider
depletion/ sterilization; includes coal
that was extracted during past 230 years of mining
that got burned /is burning in Jharia / Dhanbad andelsewhere
that would be almost impossible to mine
In partially developed thick seams, in mine barriers,
and in inundated mines
Under reserve forests, tiger reserves, townships,
rivers, major railways etc
Seams between 600-1200 mdepths and beyond
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UNFC Classification
International harmonization of classification and reporting of mineral resources Author: Bil l McKay, Ian Lambert and Norm an Miskel ly, http://www.jorc.org/
http: / /www.jorc.org/
pdf/mckay1.pdf
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Indian coal Quality
Coal seams in India are thick and highly inter-banded with shale and sandstone
India produces almost 90% coal from large opencast mines resulting in intermixing and resultanthigh ash
Generally Indian coals are low in sulphur at0.2% to 0.6%
Only a very small fraction of coal (Tertiarydeposits ) in NE are high sulphur low ash
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Thank you
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Domestic Coal Resources
The available coal for future projectisationcannot be ascertained with any degree of
certainty due to non-availability of data inpublic domain
Though GSI now uses resources in the
table, it is used interchangeably withreserves by many
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The GSI data
Depth
m
Proved
Bt
Indicated
Bt
Inferred
Bt
Total
Bt %0-300 75.76 66.56 14.42 155.74 61%
300-600 6.78 41.65 18.04 66.47 26%
0-600 (Jharia) 14 0.5 - 14.5 6%
600-1200 1.67 11.28 5.8 18.75 7%Total 97.92 118.99 38.26 255.17 100
% 38% 47% 15%
Depth-wise Coal Resources as on 1.1.2007*
*Gross and Cumulative
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Proved reserves
Depth
m
Proved
Bt
Share of
resources %
0-300 71.0 90300-600 6.5 8
600-1200 1.5 2
Total (minus Jharia*) 79.0 100
*14.5 Bt in 0-600 range in Jharia is fully developed/ under fire/ inundated etc.
No breakup is available with GSI or with CMPDIL
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Shallow deposit exploitation
90% of reserves proved within a depth
range of 0-300 m, deeper horizons ignored
OC Mining would remain the mainstay
There are hardly any deep-seated
reserves to exploit
either through underground mining or
by in-situ gasification
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Total extractable reserves
Proved
Bt
Indicated
Bt
Inferred
Bt
Total
Bt
Extractable
Bt
% of
Total
CIL 67.71 19.42 4.56 91.69 30.03 33
Rest* 25.25 97.66 33.24 156.15 22.21 14
Total 92.96 117.08 37.80 247.84 52.24# 21
* Includes SCCL, DVC, Tata, Jindal, and all others
Coal Vision 2025 (MOC 2005)
# MOC/ CMPDIL earlierestimates was 40 Bt
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Coal demand projections
Plan Period Power Non
power
Total
XI 2011/12 436 164 627
XII 2016/17 603 221 824
XIII 2021/22 832 299 1131
XIV 2026/27 1109 408 1517
XV 2031/32 1475 562 2037
Million tonnes
Integrated Energy Policy (Plg Comm 2006)
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Coal Vision 2025
With 289 blocks+ existing mines andprojects, CIL proposed to reach 500 Mt in
11/12 and then continue at the same leveltill 36/37
The rest 210 (136 + 74) blocks for captivemining, mostly in indicated and inferredcategories
94 Bt in unexplored areas (un-blocked)
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Meeting the demand?
X Plan 2006/07 XI Plan 2011/12 XII Plan 2016/17
Existing mines / completed projects 241.82 185.97 151.49
Ongoing projects 102.41 165.31 181.59
New projects 19.57 169.22 330.92Total CIL 363.80 520.50 664.00
Existing mines / completed projects 29.64 18.86 6.98
Ongoing projects 7.86 13.62 6.34
New projects 0.0 8.33 31.68
Total SCCL 37.50 40.80 45.00
Pub, Pvt & Meghalaya 13.65 14.62 14.62
Captive mining 17.55 104.08 331.38
All India 432.50 680.00 1055.00
Million Tonnes
MOC (Working Gr. Eleventh Plan 2006)
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Imports
How much
Where from
What are the oddsQuantum of international trade
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International coal trade marketWorld steam and coking coal demand and trade (1982-2005)
Source: The Future Of Coal, B. Kavalov, S.D. Peteves, DG JRC, Institute for Energy, February 2007 and IEO 2009
International coal trade accounted for about 16 percent of total world
coal consumption in 2007
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Future of coal trade Dominance of steam coal in international coal
trade expected to continue
International coal trade expected to grow at anaverage annual rate of only 1.2% from about 20.8quadrillion Btu in 2007 to 27.6 quadrillion Btu in
2030
Share of coal trade as a percentage of global coal consumptionfalls to 14 percent in 2030
Largest increase in demand from China
Price volatility is likely continue Increasing Resource Nationalism in exporting
countries would deter trade
Source: IEO 2009
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What next?
Deplete domestic resources
Buy Mines / Equity in other countries
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Size of units
MW
Units
operating
Av Gross
Effi %
Actual
Av Gross
Effi %
Design
%age
variation
CERC
Norm %
Less than 100 87 25.79 31.23 21.09 -
100 to 200 84 27.55 34.87 26.57 -
200/ 210/250 154 34.62/
34.98
36.23/
37.65
4.65
/7.63
34.40
500 18 35.67 38.13 6.90 35.10
Chikkatur 2005
Year 2005
Efficiency of Indian power plants
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Immediate Action Needed
Must stop
Indiscriminate capacity addition on coal; especially
based on sub-critical technology
Retrofitting of old /smaller/ inefficient units Must shift to more efficient technologies
Super critical
Ultra super critical
IGCC
Restrict total coal based generation capacity to
1,50,000 MW
In addition, all other sources of clean energy must be exploited
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Other Technologies
CTL?
UCG?Oil shale?
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Future
Coaluse will be self-limiting due to Increasing concerns of Climate Change
Difficulty in Land Aquisition Forest Land
R & R
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Thank you
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Power drives the demand of coal
1960/
61
1970/
71
1980/
81
1990/
91
2000/
01
2005/
06
Power (U) 9 13 37 117 237 287Steel & coke
ovens 9 14 22 28 29 20
Cement 2 4 5 10 15 15
Others 34 42 45 54 30 75
Total 54 73 109 209 311 397