in the existing integrated steel & power...

PRE-FEASIBILITY R E P O R T

ON

SYNTHESIS GAS BASED AMMONIA PROJECT IN THE EXISTING INTEGRATED STEEL & POWER COMPLEX

OF

JINDAL STEEL & POWER LTD

AT

ANGUL, ODISHA

FOR ENVIRONMENTAL CLEARANCE

Prepared By

PROJECTS & DEVELOPMENT INDIA LIMITED

(A Govt. of India Undertaking) PO: Sindri - 828122, Dist: Dhanbad (Jharkhand) QCI NABET Accredited: List 'A' at Sl. No. 117 as on 16.12.2016

JOB NO.: 9722 JANUARY 2017

Projects & Development Inda Ltd., Sindri 1 | 26

PFR for proposed synthesis gas based Ammonia project in the existing Integrated Steel & Power Complex of JSPL at Angul, Odisha

CONTENTS

Chap. No. Title Page no.

1.0 Executive Summary 2 - 6

2.0 Introduction 7 - 10

3.0 Project Description 10 - 21

4.0 Site Analysis 21 - 23

5.0 Planning Brief 23 - 23

6.0 Proposed Infrastructure 23 - 24

7.0 Rehabilitation & Resettlement (R & R) plan 24 - 24

8.0 Project Schedule & Cost Estimate 24 - 25

9.0 Analysis of Proposal 25 - 26



1.0 EXECUTIVE SUMMARY 1.1 Introduction

JSPL operates the largest coal-based sponge iron plant in the world and has an installed

capacity of 3.6 MTPA (million tonnes per annum) of steel at Raigarh in Chhattisgarh.

JSPL is also in the process of setting up a 6.0 MTPA Integrated Steel Plant at Angul.

JSPL’s Angul plant has commissioned DRI plant of 1.8 MTPA (based on coal

gasification Synthesis gas), Steel Melting Shop, Plate mill to produce up to 5.00-m-wide

plates, Bar mill, etc. along with 6 x 135 MW power plant.

1.2 Project proposal JSPL proposes to set up ammonia plant of 1550 MTPD capacity based on surplus

Synthesis gas (approx. 1,15,000 Nm3 per hour) available from the existing Lurgi FBDB

(Fixed Bed Dry Bottom) Coal Gasification Plant at Angul.

The proposed project falls under the Category-“A” of projects listed in Schedule 5 (a) as

per EIA Notification, 2006 of MOEF. The proposed project shall be established within the

existing Steel & Power Complex of JSPL, Angul in the free unencumbered available

land.

1.3 Need & Justification The need and justification of the proposed project is as under:

1. JSPL will be able to utilize the full capacity of its Coal Gasification Plant

2. It will reduce overall gap between demand and supply of Ammonia in the country.

3. It will reduce the import of Ammonia to some extent, thereby resulting in national

savings.

4. It will generate employment opportunity for the people in the region.

5. It will increase the availability of Ammonia to chemicals & fertilizer industries.

6. It has the advantage of ‘economy of scale’ as well as lower energy consumption

thereby resulting in lower production cost.

1.4 Demand-Supply Gap of Ammonia The demand of ammonia for non-fertilizer use i.e. for production of chemicals viz. nitric

acid, ammonium nitrate, amines, soda ash, etc. is estimated at about 20 lakh MT per

annum. Presently, the growth of ammonia based products is at the mercy of fertilizer

manufacturers since these units willing to supply ammonia only as and when surpluses



are available. Thus, the demand supply gap for ammonia in the country will be at a level

around 50 lakh MT.

1.5 Manpower requirement Manpower Considered for Proposed Project

Sl. No. Description Numbers 1. Plant Head 1 2. In-charge / Manager 5 3. Executives/ Assistant Manager 10 4. Operators 24

Total 40

1.6 PROJECT DESCRIPTION The proposed project for installation of 1550 MTPD shall be located in the existing

premises of JSPL at Angul unit in the state of Odisha at latitude 20053.493' N &

Longitude 840 58.771' E at an altitude of 180 m from Mean Sea Level (MSL).

1.6.1 Plant Facilities The proposed project shall consist of Synthesis gas based ammonia plant and related

offsite and utility facilities. The broad provision of plant and facilities to be made for the

proposed project are presented below.

Facilities Considered for the Proposed Project Sl. No. Plants & Facilities Provisions

1. Ammonia Plant 1550 MTPD 2. Condensate Polishing Unit 200 m3/hr 3. Service Boiler for steam generation 300 MTPH 4. Ammonia Storage Facility 1 x 10,000 MT + 1 x 5000 MT

5. Steam Turbo Generator 2.5 MW 6. Safety & Fire Fighting System

including fire water ring with Hydrant System

Provided & shall be integrated with JSPL’s existing facility

7 Effluent Treatment Facility Provided & shall be integrated with JSPL’s existing ETP

8 Railway Siding 2 x 5 Km (Existing) 9 Ammonia Rakes 2 nos. consisting of 35 wagons each

along with 2 engines



1.6.2 Process Description Ammonia production capacity has been estimated to be around 1550 MTPD. Ammonia

production shall involve following steps:

A. Hydrogen (H2) Generation B. Synthesis Gas Generation C. Ammonia Synthesis D. Ammonia Refrigeration.

Condensate Polishing Unit (CPU): Condensate generated in Turbo-Generator Unit (G-

1), Flash vessel (B-18), 1st and 2nd condensate separator (B-2, B-3) and Condensing

Turbines are collected and then treated in Condensate polishing unit (A-3).

1.6.3 Feed, Product & Utility Battery Limit Conditions Stream Pressure Temperature

Feed

Synthesis Gas 25.6 Kg/cm2g 330C Product Ammonia 8 Kg/cm2g (-) 320C

The utilities shall be available at plant battery limit from JSPL’s existing Steel & Power

Complex.

1.6.4 Raw Material, Utility requirement & Transport Facilities Hourly Raw Material & Utility Requirement

Sl. No. Raw Material/Utilities Unit Requirement 1.0 Synthesis Gas (GCV 3450

kcal/Nm3) Nm3 115000

2.0 Coal (GCV 3105 kcal/Kg) MT 33.3 3.0 Nitrogen Nm3 43491 4.0

Cooling Water m3 Make-up: 322

5.0 DM Water m3 83.5 6.0 Total Raw Water requirement m3 (322+83.5)x1.1= 446 7.0 Instrument Air m3 500 8.0 Power KWh 6170

The raw material i.e. H2 & CO required for ammonia production shall be obtained from

existing CGP of JSPL. The raw water requirement shall be met through Samal Barrage

at Brahmani River. Power requirement shall be met through existing CPP of JSPL.

Provision has been kept for 02 nos. of locomotives each of 1200 HP in the project. 02

Nos. of Ammonia rakes consisting of 35 wagons each shall be provided and existing

railway siding shall be utilized for export of product Ammonia.

1.6.5 Quantity of waste generation & its management Solid waste in the form of service boiler ash around 12800 Kg/hr shall be integrated with

the existing Ash Handling Facility of CGP. The hazardous waste in the form of spent



catalyst to the tune of 550 MT in 4 - 5 years shall be disposed off through CPCB

approved recyclers and Hazardous & other waste (Management & Trans-boundary

Movement) rules, 2016.

1.7 Existing Plant Facilities The facilities available in the existing steel & power complex (1.5 MTPA) of JSPL, Angul

are as below:

a) Coal Washery - 1200 TPH (2 units of 600 TPH capacity each)

b) Coal Gasification Plant - 1 unit for producing 225000 nm3/hr. syn gas

c) Direct Reduced Iron Plant (DRI) - 1 unit of 1.8 MTPA

d) Steel Melting Shop 1 (1 No. EAF & 1 No. LF) - 1 unit of 1.5MTPA

e) Slab Caster - 1 unit of 1.62 MTPA

f) Plate Mill - 1 unit of 1.50 MTPA

g) Oxygen plant - 2400 TPD (2 units of 1200 TPD each)

h) Lime and dolomite plant - 1000 TPD (2 units of 500 TPD each)

i) Captive Power Plant - 810 MW (6 units of 135 MW each)

j) Process Boiler - 3 Boilers of 180 TPH

1.7.1 Land Form, Land Use & ownership The proposed project site (shown in the attached Topo-map) is located in the existing

steel & power complex of JSPL. Thus, it is not going to change the land use pattern of

the location. The total land of around 5000 acres is owned by JSPL which includes plant

facilities and township. The land is mostly low productive (single crop, un-irrigated) &

barren. There are several reserved & protected forests within 15 Km radius of the

proposed project site.

1.7.2 Environmental Status Soil of the area is slightly acidic in nature and sandy loam with very low amount of silt

(<10%). The climatic condition of Angul is generally hot with high humidity during April

and May, cold during November and December. The annual average rainfall of the

district is 1421 mm. The dominant wind direction is W & NW and the wind speed ranges

from 5.3- 9.1 kmph. The temperature varies from 13.4 - 40.3 0C

1.8 PPROPOSED INFRASTRUCTURE The land requirement for the proposed project is around 15 acres which is available

within the existing complex of JSPL. The existing township shall be able to meet the

requirement of residential facilities due to the proposed project.



1.9 REHABILITATION & RESETTLEMENT (R & R) PLAN The proposed project does not envisage any RR issues since the project is being set-up

in the existing integrated steel & power complex of JSPL.

1.10 PROJECT SCHEDULE & COST ESTIMATES The proposed project for ammonia production based on coal gasification technology

The Capital Cost of the Project is estimated at around Rs. 1909 Crores.

Pay Back Period The initial capital investment will be paid back in 4.61 years time by annual cash

accruals including depreciation and profit after interests on short term loans at nominal

rated capacity of operation

Internal Rate of Return (IRR) The IRR calculations take into account 36 months of construction period and 15 years of

operating period of the project.

Time Schedule The proposed project will be completed within 36 months

1.11 ANALYSIS OF PROPOSAL The final analysis of proposed may be briefed as under:

a) The proposed project will help to narrow the gap between demand and supply of

Ammonia in the Country.

b) It will reduce the import of Ammonia to some extent, thereby resulting in national

savings of revenue.

b) It will increase the availability of Ammonia to fertilizer industries thereby reducing the

import of fertilizers in the country

c) It has the advantage of ‘economy of scale’ as well as lower energy consumption

thereby resulting in lower production cost of ammonia.

(d) The project enables implementation of Best Available Technology (BAT) which is a

reliable and reproducible in different environment throughout the globe.

(e) JSPL will be able to utilize the full capacity of its Coal Gasification Plant with the

proposed project.

(f) The site is well suitable for establishment of proposed Ammonia at Angul and does

not fall in “CRITICALLY POLLUTED AREA/ ZONE” classified by CPCB.

(g) There is a good potential for direct as well as indirect employment for people in the

nearby area due to the proposed project.



2.0 INTRODUCTION 2.1 Background Jindal Steel and Power Limited (JSPL) is a US$ 3.6 billion business conglomerate, and one of

India’s fastest growing and largest integrated steel manufacturers, significantly present in Steel,

Power Generation and Infrastructure segments, catering to a large part of India’s domestic

energy and infrastructure requirement.

JSPL operates the largest coal-based sponge iron plant in the world and has an installed

capacity of 3.6 MTPA (million tonnes per annum) of steel at Raigarh in Chhattisgarh. Along with

this, Raigarh plant has other downstream facilities such as Medium and Light Structural Mill

(MLSM), Rail & Universal Beam Mill (RUBM), Plate mill and Wire Rod mill. JSPL has set up a

0.6 MTPA wire rod mill and a 1 MTPA capacity bar mill at Patratu, Jharkhand. JSPL’s Angul

plant has DRI plant of 1.8 MTPA (based on coal gasification Synthesis gas), Steel Melting Shop,

Plate mill to produce up to 5.00-m-wide plates, Bar mill, etc. along with 6 x 135 MW power plant.

JSPL is in the process of setting up a 6.0 MTPA Integrated Steel Plant at Angul.

The Coal Gasification Plant of JSPL is based on Lurgi Technology. The Synthesis gas produced

in CGP is used for making Direct Reduced Iron / Steel in JSPL’s Angul Steel & Power complex.

The DRI plant consumes around 50 percent of the gas produced, and JSPL is looking at other

uses for the available surplus gas. JSPL has examined various options for converting surplus

synthesis gas to make methanol / ammonia or ammonia with downstream products. The option

of conversion of synthesis gas to ammonia with downstream products has been found most

feasible.

2.2 Project proposal JSPL proposes to set up ammonia plant of 1550 MTPD capacity based on surplus synthesis

gas (approx. 1,15,000 Nm3 per hour) available from the existing Lurgi FBDB (Fixed Bed Dry

Bottom) Coal Gasification Plant at Angul.

The proposed project falls under the Category-“A” of project listed in Schedule 5 (a) as per EIA

Notification, 2006 of MOEF. The proposed project shall be established within the existing

Integrated Steel & Power Complex of JSPL, Angul in the free unencumbered available land.

JSPL has entrusted the Projects & Development India Ltd. (PDIL) as EIA consultant for

conducting EIA study for seeking environmental clearance (EC) of the proposed project vide

LOA no.: CTL/DEL/12 dated 10.11.2016. PDIL is a NABET accredited EIA consultant



organization at sl no. 119 as on 07.11.2016 in List-A for conducting EIA studies in the following

sectors:

1. Petroleum Refining Industry (Sector 10), Cat-A

2. Chemical Fertilizers (Sector 16), Category-A

3. Oil & gas transportation pipeline (crude and refinery/ petrochemical products), passing

through national parks/ sanctuaries/coral reefs /ecologically sensitive Areas including

LNG terminal (Sector 27), Category-A

4. Isolated storage & handling of hazardous chemicals (As per threshold planning quality

indicated in column 3 of schedule 2 & 3 of MSIHC Rules 1989 amended 2000), (Sector

28), Category-B

5. Airports (Sector 29), Category-A

2.3 Need & Justification The need and justification of the proposed project is as under:

a) JSPL will be able to utilize the full capacity of its Coal Gasification Plant

b) It will reduce overall gap between demand and supply of Ammonia in the country.

c) It will reduce the import of Ammonia to some extent, thereby resulting in national

savings.

d) It will generate employment opportunity for the people in the region.

e) It will increase the availability of Ammonia to chemicals & fertilizer industries.

f) It has the advantage of ‘economy of scale’ as well as lower energy consumption thereby

resulting in lower production cost.

2.4 Demand-Supply Gap of Ammonia The present annual capacity of Ammonia plants in the country is about 150 lakh MT (Source:

Fertilizer Statistics, FAI).

The domestic production of ammonia has been highest at 142.62 lakh MT in 2012-13. On this

basis, India’s ammonia producers operated at 95% of effective capacity. Table 2.1 gives

ammonia production in India from 2000-01 to 2014-15.

Table-2.1: Production of Ammonia in India Year Quantity produced (Lakh MT) 2000-01 128.821 2004-05 128.007 2005-06 127.523 2006-07 125.726



Year Quantity produced (Lakh MT) 2007-08 122.672 2008-09 124.202 2009-10 132.538 2010-11 135.317 2011-12 135.836 2012-13 142.625 2013-14 142.450 2014-15 138.350

Source: Fertilizer Statistics, FAI

A major share of complex fertilizer production in the country is based on imported ammonia.

The quantity of ammonia imported for fertilizer industry is shown in Table 2.2.

Table 2.2: Imports of Ammonia for Fertilizer Industry Year Quantity Imported (Lakh MT) 2000-01 12.886 2005-06 16.285 2007-08 16.680 2009-10 19.157 2011-12 17.258 2012-13 17.052 2013-14 19.567 2014-15 20.719

India imported 20.72 lakh MT of ammonia in 2014-15 in spite of poor capacity utilization of

complex fertilizer plants. The country would need to import around 27.55 lakh MT of ammonia if

NP/NPK plants operate at I00% capacity utilization. Also, some of the plants because of their

location, will not be able to import ammonia. Any reduction in the production of domestic

ammonia will increase dependence on imports of ammonia and finished products like DAP and

NPKs. India is already dependent on the import of fertilizers and fertilizer raw materials to the

extent of more than 70% of requirement. Not providing domestic gas to the complex fertilizers

will be contrary to the efforts to reduce dependence on imported raw materials and fertilizer

products.

The demand of ammonia for non-fertilizer use i.e. for production of chemicals viz. nitric acid,

ammonium nitrate, amines, soda ash, etc. is estimated at about 20 lakh MT per annum.

Presently, the growth of ammonia based products is at the mercy of fertilizer manufacturers

since these units willing to supply ammonia only as and when surpluses are available. Thus, the

demand supply gap for ammonia in the country will be at a level around 50 lakh MT.



Long term, it is expected that India will remain a net importer of ammonia, given its lack of

natural gas, with imports growing for fertilizer industry to 27 Lakh MT by 2020.

2.5 Manpower requirement Table-2.6 Manpower Considered for Proposed Project

Sl. No. Description Numbers 1. Plant Head 1 2. In-charge / Manager 5 3. Executives/ Assistant Manager 10 4. Operators 24

Total 40

The proposed project will provide direct employment to the skilled workers during construction

phase. The manpower requirement for operation of the plant shall be fulfilled to the extent

possible through existing strength of JSPL and fresh induction of manpower is envisaged for

providing specialized services w.r.t. ammonia plant operation & maintenance. However, there

will be a good potential for indirect employment of people in the area during construction phase.

3.0 PROJECT DESCRIPTION 3.1 Project Location General: JSPL is located in the Angul district in the state of Odisha. It is about 5 Km from

Kerjang railway station on South, 15 Km from Angul railway station on SSE and 150 Km from

nearest airport Bhubaneshwar on SE. The nearest river is Brahmini flowing at a distance of 35

Km in North-East direction. The Bhubaneshwar-Sambalpur National Highway NH-55 passes on

south of the proposed site.

Specific: The proposed project for installation of 1550 MTPD shall be located in the existing

premises of JSPL at Angul unit in the state of Odisha. The project site is located at latitude 200

53.493' N & Longitude 840 58.771' E at an altitude of 180 m from Mean Sea Level (MSL). The

location is depicted in the Google map provided below as Plate-I.

The preliminary plot plan has been prepared and attached herewith as Drg No: FS-131-1000-

0002 and FS-131-1000-0003 for Ammonia Storage.



3.2 Type of project Ammonia is the basic building block of the nitrogen industry. It is the starting material for the

production of a various type of nitrogenous fertilizers like urea, ammonia phosphate, ammonium

sulphate, ammonium nitrate etc. It is also used directly or indirectly as the source for the

production of hexa-methylene-di-amine for the manufacture of nylon-6,6. In the manufacture of

rayon, ammonia is used in the preparation of ammoniacal copper hydroxide solution for

dissolving the copper linters. Oxidation of propylene with ammonia gives acrylonitrile, used for

the manufacture of acrylic fibres, resins and elastomers. There are several other lesser known

uses of ammonia. India annually imports around 1.3 million MT of ammonia for production of

complex fertilizers.

According to the Fertilizer statistics of FAI, India would need to import around 27.55 lakh MT of

ammonia, if NP/NPK plants operate at I00% capacity utilization. Moreover, the demand of

ammonia for non-fertilizer use is estimated to the tune of 20 lakh MTPA. In order to bridge the

demand-supply gap of Ammonia production in India and to lessen the import burden of the

ammonia users, JSPL proposes to install ammonia plant of 1550 MTPD capacity in their Angul

unit, Odisha.

3.3 Plant Facilities The proposed project shall consist of Synthesis gas based ammonia plant and related offsite

and utility facilities. The broad provision of plant and facilities to be made for the proposed

project are presented in Table-3.1.

Table- 3.1 Facilities Considered for the Proposed Project

Sl. No. Plants & Facilities Provisions 1. Ammonia Plant 1550 MTPD

2. Condensate Polishing Unit 200 m3/hr

3. Service Boiler for steam generation 300 MTPH

4. Ammonia Storage Facility 1 x10,000 MT +1 x5000 MT

5. Steam Turbo Generator 2.5 MW 6. Safety & Fire Fighting System

including fire water ring with Hydrant Provided & shall be integrated with JSPL’s

existing facility



Sl. No. Plants & Facilities Provisions System

7. Effluent Treatment Facility Provided & shall be integrated with JSPL’s existing ETP

8. Railway Siding 2 x 5 Km (Existing)

9. Ammonia Rakes 2 nos. consisting of 35 wagons each along with 2 engines

3.3.1 Ammonia Plant The Ammonia Plant will be of single stream having a capacity of 1550 MTPD. The plant will be

designed to use Synthesis gas (CO+H2) from JSPL’s Coal Gasification plant to produce

Ammonia. The modern high capacity plant has the advantage of ‘economy of scale’ as well as

lower energy consumption thereby resulting in lower production cost.

Table 3.2 Product (Ammonia) Specification S.No. Component Unit Specification

1 Ammonia Content Wt% 99.7 Minimum

2 Water Wt% 0.3 Maximum

3. Oil ppm Wt 5 Maximum

3.3.2 Ammonia Storage

The provision of one (1x10000 MT) and one (1x5000MT) double walled double integrity

atmospheric ammonia storage tanks with all associated facilities have been considered for the

proposed Project.

3.3.3 Power Generation and Supply

The power requirement for the proposed project is 6170 KWh and shall be met through existing

facilities of JSPL. Additional MP superheated steam coming from MP Super-heater shall be

utilized in Turbo Generator (TG) Unit for generating in-plant power. TG Unit shall generate

around 1.83 MW power by utilizing MP superheated steam at 3000C & 45 ata. Power supply

system for various units of the proposed project has been considered.

3.3.4 Steam Generation



One Service boiler of 300 MTPH capacity has been considered. Small quantity of Tail gas from

Nitrogen Wash Unit shall be used as fuel along with coal, which shall be the predominant fuel in

Service Boiler unit.

3.3.5 Fire Fighting System Fire-fighting system, pumps etc. shall be integrated with the existing system of JSPL which is

adequate to meet the requirement of proposed plant. Provision has been made for firewater ring

and other fire & safety equipment.

3.3.5 Effluent Treatment Ammonia Plant shall be provided with Process Condensate Stripper for stripping and re-using of

condensate in ammonia plant. Disc. Oil separator shall be provided for removal of oil from oil

bearing effluents generated in various compressors system.

The occasional effluent generated during plant upset conditions shall be stored in effluent delay

pond from where, it shall be discharged to treated effluent pond at controlled rate after treatment

in steam stripper.

3.4 Alternative sites No alternative sites have been considered for the proposed project. The proposed location has

been found to be most suitable for installation and operation of the project from environment &

operation point of view.

3.5 Process Description Ammonia production capacity has been estimated to be around 1550 MTPD. Ammonia Plant

shall consist of following sections:

E. Hydrogen (H2) Generation

F. Synthesis Gas Generation

G. Ammonia Synthesis

H. Ammonia Refrigeration.

Section-wise process description is presented in the following paragraphs.

(A) Hydrogen (H2) Generation



From H2 Generation Section:

Synthesis gas obtained from JSPL B/L contains around 52 (50-54) vol. % Hydrogen. Syn gas is fed to Feed Gas Compressor (K-1). Compressed feed gas is pre-heated in steam heater (E-25) and HT shift feed/ Effluent exchanger (E-2).

Feed gas, after getting heated in HT shift feed/ Effluent exchanger (E-2) is introduced to Hydro-Desulphurization Reactor (R-4) followed by passing through ZnO absorber (R-5). Sulphur present in feed gas gets reduced to less than 0.05 ppm by wt. Feed gas free from sulphur, is then mixed with MP steam (3750C & 37 ata) in Mixing Vessel (B-13). Mixed steam- feed gas mixture from B-13 at 3500C & 30 ata is introduced to HT Shift Reactor (R-1), consisting 2 nos. of catalyst beds. In HT Shift Reactor, CO is converted to H2 & CO2, through shift reaction. Being an exothermic reaction and with feed gas containing higher amount of CO, higher amount of exothermic heat is generated in 1st bed. Gas from 1st bed is then cooled in Converted Gas Boiler (E-1), where temperature of gas is reduced from 4400C to 3700C before entering 2nd bed of R-1. Hot Gas at around 4250C from HT Shift reactor exit, containing Hydrogen (H2), unconverted Carbon monoxide (CO), steam & Carbon-di-Oxide (CO2) passes through a series of heat exchangers to reduce temperature of gas. Gas outlet from HT Shift Reactor, R-1 is cooled in HT shift feed/ Effluent exchanger (E-2) by heat exchange with feed Gas entering reactor R-4. BFW coming from BFW pumps passes through Conv. Gas Boiler (E-1), Synthesis Waste Heat Boiler, and Synthesis BFW Heater (E-10, E-11). 97000 kg/hr steam at 3230C & 120 ata is generated in waste heat boiler and is sent to Service Boiler Unit.

The process gas at 28.2 ata is then cooled to 2000C by exchanging heat with BFW at 1330C coming from Deaerator. Gas, leaving E-2, passes through series of heat exchangers i.e. MP Steam Superheater (E-3), MP steam Boiler (E-4), MP BFW Preheater (E-5) after which gas temperature drops to 2000C.

MP superheated steam of 24200 kg/hr at 3000C & 45 ata is generated in E-3. 14000 Kg/hr MP superheated steam from E-3 is utilized to generate in-plant power. 10200 Kg/hr MP superheated steam from E-3 is used to preheat R-4 feed gas in steam heater (E-25). Steam-condensate obtained from E-25 is flashed in flash vessel (B-18), LP steam from B-18 is fed to LP steam header, and condensate from B-18 is fed to condensate polishing unit (A-3).

Hot gas from E-5 at 2000C & 28.2 ata is fed to LT Shift Reactor (R-3), which is an adiabatic packed bed reactor. R-3 outlet gas at 2200C enters in 1st condensate Separator (B-2) after passing through DM water Heater (E-6).



200280 kg/hr DM water from CPU & 83500 kg/hr DM water from JSPL are mixed together and preheated in E-6 from 400C to 1250C and fed to Deaerator (B-4).

Process Gas from B-2 at 1700C enters MDEA Stripper Reboiler (E-7) & MDEA DMW Heater (E-8) followed by 2nd Condensate Separator (B-3). Condensate obtained from B-2 & B-3 is cooled in Condensate Cooler (E-9) and sent to Condensate Polishing Unit (CPU). 152640 Nm3/hr of gas from B-3 is sent to MDEA Absorber.

H2 Generation from Tail Gas Methane:

A major part of Compressed Tail Gas (CO+CH4) from K-4 discharge is used as feed while the balance amount of Tail Gas from K-4 discharge is used as fuel in Primary Reformer (H-3). Small part of Tail Gas is used as fuel in Service Boiler.

Tail Gas as a Feed:

Feed gas is preheated in a Feed Gas Preheater (HE-3) and mixed with Process steam at 375⁰C & 30 ata from MP steam header. The mixed feed gas is further preheated to 500⁰C & 27.5 ata in a Mixed Gas Preheater Coil (HE-1) followed by passing through Primary Reformer Coil (HE-3). Reforming reaction is carried out in catalyst filled Primary Reformer (H-3) tubes. The overall reaction in Primary Reformer, H-3, is endothermic. Primary Reformer outlet gas (at 850⁰C) goes to RG Boiler Coil (HE-6) where heat is recovered from reformed gas by raising HP Steam in RG Boiler. The gas then passes to downstream Steam Superheater Coil (HE-7), where temperature of reformed gas drops to around 350⁰C, before entering HT Shift Reactor (R-6). HT Shift Reactor is a packed bed reactor. Due to exothermic reaction, temperature inside HT Shift Reactor rises. Heat in gas exit HT Shift Reactor is recovered in CG Boiler (HE-8) and in Final BFW Heater (HE-10). During heat recovery, gas temperature drops to around 200⁰C. Gas from HE-10 enters in LT Shift Reactor (R-7), which is a packed bed adiabatic reactor. Hot gas leaving R-7 is further cooled up to 164⁰C in BFW Preheater (HE-9) and passes to 1st Condensate Separator (B-15).

Gas from B-15 top enters MDEA Stripper Reboiler (HE-11) where gas temperature reduces to 134⁰C and through MDEA DMW Heater (HE-12) where temperature drops to around 70⁰C. Gas is then further cooled in Final Gas Cooler (HE-13) followed by 2nd condensate Separator (B-16). Condensate obtained from B-15 & B-16 is mixed and sent to 1st Condensate Separator (B-2). 42880 Nm3/hr gas from top of B-16 is then fed to MDEA Decarbonation Unit (A-1) after compressing in Absorber Feed Gas Compressor (K-5).



BFW at 133⁰C coming from BFW Pump P-1A/B/C discharge, is preheated up to 300⁰C in BFW Preheater HE-9 & Final BFW Heater HE-10 and fed to Steam Drum (B-14). HP Steam at 324⁰C & 120 ata is generated in RG Boiler (HE-6) & CG Boiler (HE-8). 63200 Kg/hr HP steam generated in RG & CG boilers is superheated to 525⁰C & 108 ata and sent to HP Superheated Turbine Steam Header after passing through a series of Steam Superheater Coils (HE-7) & (HE-2).

Tail Gas as a Fuel:

Compressed Tail Gas from K-4 is preheated in Fuel NG Heater Coil (HE-5). Combustion air

from Combustion Air Blower (F-3) is preheated in combustion Air Preheater Coil (HE-4) and is

mixed with preheated Tail gas and burnt in Primary Reformer (H-3) as fuel. Exhaust gases are

vented at 1600C through reformer stack after recovering heat from series of heat exchanger

Coils banks, i.e, HE-1, HE-2, HE-3, HE-4 & HE-5 respectively.

(B) Synthesis Gas Generation

Gases from B-3 top & K-5 discharge are combined and fed to MDEA Decarbonation Unit (A-1). MDEA Decarbonation Unit (A-1) consists of MDEA Absorber, MDEA LP Flash Tower, etc. Decarbonated gas from MDEA Decarbonation Unit (A-1) passes through Decarbonated Gas K. O. Drum (B-17) followed by Product H2 Cooler (E-24). Nitrogen (N2) from JSPL B/L enters Nitrogen Wash Unit (A-2) while gas consisting of H2, CO, CH4 etc. enters N2 wash unit from E-24. 16371 Nm3/hr Methane-Rich Tail Gas from A-2 is compressed in Tail Gas Compressor (K-4) and fed to Primary Reformer (H-3). Methane-rich tail gas is used as feed as well as fuel in H-3. 171313 Nm3/hr Ammonia Synthesis Gas Mixture (N2 + H2) obtained from Nitrogen wash unit (A-2) is sent to Ammonia Synthesis Unit for Ammonia Production. Ammonia synthesis gas mixture consists of 75% Hydrogen & 25% Nitrogen.

(C) Ammonia Synthesis

Mixed Ammonia Syn. Gas comprising of (N2+H2) mixture from Nitrogen wash Unit is fed to Makeup Synthesis Gas compressor (K-2) after passing through M-U Synthesis gas Chiller (E-16) & M-U Synthesis Gas K. O. Drum (B-5). Make-up Ammonia Syn. gas mixture then enters ammonia synthesis loop. Ammonia is produced in Ammonia Synthesis Convertor (R-2). Hot ammonia gas from Ammonia Convertor exit containing converted ammonia is then cooled during passage of gas through series of heat exchangers i.e., Synthesis Waste Heat Boiler (E-10), Synthesis BFW Preheater (E-11), Hot Heat Exchanger (E-12), Water Cooler (E-13), Cold Heat Exchanger (E-14) and Ammonia Condenser (E-15) respectively. Liquid Ammonia is



separated in ammonia Separator (B-6). Unconverted (N2+H2) mixture from B-6 is recycled to Recycle Barrel of Synthesis Gas Compressor, for sending back to Ammonia Synthesis Convertor, via, hot heat exchanger (E-12).

Liquid ammonia from separator (B-6) at around 170 ata is let-down to a pressure of around 45-46 ata in let-down vessel (B-7). Desorbed gases from B-7 and consisting mainly Hydrogen (H2), Nitrogen (N2), Ammonia Vapor & small quantity of Argon (Ar) is fed back to 1st stage suction of make-up gas compressor (K-2). From let-down vessel (B-7), liquid Ammonia pressure is let-down to around 1.08-1.1 ata in Ammonia Flash Vessel (B-8). Vapors from flash vessel (B-8) are taken to 1st stage suction of refrigeration compressor (K-3). Liquid ammonia from Ammonia Flash vessel (B-8), at around (-) 32.7⁰C is sent via ammonia Product Pump (P-2 A/B) to atmospheric Ammonia Storage Unit.

(D) Ammonia Refrigeration

Ammonia Refrigeration Unit comprises of 4-stage Refrigeration Compressor with suction separators at suction of each stage, Ammonia Condenser at compressor discharge and interstage coolers. Ammonia refrigeration unit supplies necessary cold in coolers, Ammonia Chillers, etc. for separation of Liquid Ammonia from converted gas. The chillers operate through 2 refrigeration levels for separation of Ammonia from gas through successive cooling, namely

i. 1.2 ata, -300C

ii. 8 ata, 17.80C

Additionally, refrigeration unit supplies necessary cold for cooling of product Ammonia to sub-zero temperature and is sent by product pump (P-2A/B) to atmospheric, cryogenic ammonia storage unit after it has passed through series of vessels, i.e. Ammonia Let-down vessel (B-7) & Ammonia Flash Vessel (B-8) respectively.

3.5.2 Service Boiler Unit

Around 260000 kg/hr of Superheated HP steam at 5250C & 108 ata, used for driving Synthesis Gas Compressor (SGC) turbine, is produced in a Service Boiler Unit. Small quantity of Tail gas from Nitrogen Wash Unit shall be used as fuel along with coal, which shall be the predominant fuel in Service Boiler unit, as a fuel.

97000 kg/hr MP Saturated Steam at 3230C & 120 ata generated in Conv gas Boiler, (E-1) & waste heat boiler, (E-10) is fed to service boiler unit, for superheating upto a temperature of 5250C. DM Water coming from JSPL B/L and CPU is premix and heated in DMW Heater (E-6) upto 1250C and fed to Deaerator (B-4). LP Steam from Turbine Exhaust is used for Dearation.



100800 kg/hr BFW from Deaerator (B-4) is pumped by BFW Pump (P-1 A/B/C) to Economizer Coil Bank (E-18) of Service Boiler. Other coil bank in Service Boiler Unit consists of Boiler Coil Bank (E-19), Superheater Coil bank-1 (E-20) & Superheater Coil bank- 2(E-21). Flue gas from Service Boiler is vented through Chimney Stack (ST-1).

3.5.3 Power Generation

MP superheated steam from MP Superheater (E-3) is utilized in Turbo-Generator Unit for generating in-plant power. Turbo Generator Unit (G-1) shall generate 1830 KWh/hr Power by utilizing 14000 kg/hr of MP superheated steam at 3000C & 45 ata. Turbo Generator Unit shall comprise of Steam Turbine generator, Condensate cooler (E-27), Condensate pump (P-8 A/B), etc.

3.5.4 Condensate Polishing Unit (CPU)

Condensate generated in:

Turbo-Generator Unit (G-1)

Flash vessel (B-18)

1st and 2nd condensate separator (B-2, B-3) and

Condensing Turbines

are collected and then treated in Condensate polishing unit (A-3). DM water imported to Ammonia Plant from JSPL is thereby reduced by generating 200280 Kg/hr of DM water in A-3 Unit. Total 206974 kg/hr condensate shall be treated in condensate polishing unit. Approximately 6700 kg/hr of liquid effluent from CPU shall be sent to JSPL B/L for treatment in neutralization pit of JSPL DM Plant.

3.5.5 Energy Consumption

Considering energy inputs to Ammonia plant in the form of:

i) Feed Gas supplied by JSPL ii) Electric power supplied by JSPL

iii) Superheated Steam (at 110 ata & 5250C) from Boiler

And energy output from Ammonia plant in the form of:

i) Saturated HP Steam (at 110 ata) ii) Tail Gas Export (for firing of Boiler)



The specific energy consumption per MT of ammonia is at 7.398 Gcal. Equipment List is given in Document No. FS-131-1000-930A2

3.6 Feed, Product & Utility Battery Limit Conditions

3.6.1 Feed S.N

Stream Pressure Temperature

1 Synthesis Gas 25.6 ata 330C

3.6.2 Product

S.No. Stream Pressure Temperature 1 Ammonia 8 Kg/cm2g (-) 320C

3.6.3 Utilities:

The following utilities shall be available at plant battery limit from JSPL’s existing Steel & Power Complex. The expected conditions of utilities at Ammonia Plant battery limit are given below:

Table-3.3 Ammonia Plant Utilities Condition S. No. Parameter Normal

1. High Pressure (HP) Steam (for start-up only) Pressure, ata 98 Temperature, ⁰C Saturated at 98 ata

2.

Cooling Water Pressure, ata 4 Temperature, ⁰C (at inlet to B/L) 33 Max return temp at B/L, ⁰C 41

3. De-mineralized Water B/L Pressure, ata 3.6 B/L Temperature, ⁰C 40

4. Process Water B/L Pressure, ata - B/L Temperature, ⁰C -

5.

Nitrogen (Process) B/L Pressure, ata 36 B/L Temperature, ⁰C Ambient Nitrogen Purity, Vol% 99.99%

6. Nitrogen (Utility) B/L Pressure, ata 9



3.7 Raw Material, Utility requirement & Transport Facilities

The raw material required for ammonia production is Synthesis gas i.e. H2 & CO, which shall be obtained from existing coal gasification unit of JSPL. Provision has been kept for 02 nos. of locomotives each of 1200 HP in the project. 02 Nos. of Ammonia rakes consisting of 35 wagons each shall be provided and existing railway siding shall be utilised for export of product Ammonia. The raw water requirement of 446 m3/hr shall be met through Samal Barrage at Brahmani River located at a distance of 35 km from JSPL. The consent for withdrawal of 66 Cusec per day of water has been granted to JSPL by Water Resource Deptt., Govt of Odisha. Power requirement shall be met through existing CPP of JSPL. The details of raw material and utility requirement for production of Synthesis gas and subsequently to ammonia are given in table-3.4:

Table-3.4 Hourly Raw Material & Utility Requirement

Sl. No. Raw Material/Utilities Unit Requirement

1.0 Synthesis Gas (GCV 3450 kcal/Nm3) Nm3 115000

B/L Temperature, ⁰C Ambient Nitrogen Purity, Vol% 99.99%

7.

Instrument Air B/L Pressure, ata 9 B/L Temperature, ⁰C Ambient Due Point (-) 40⁰C at atmospheric

Quality Free from Oil and Dust

8.

Service Air B/L Pressure, ata - B/L Temperature, ⁰C - Quality Oil Free

9.

Electrical Installation Following supply of electric power from JSPL, shall be provided at the B/L of proposed Ammonia Plant (alternative I & II):- 11 kV 3-phase with resistance earthed neutral 3.3 kV 3-phase with resistance earthed neutral 0.415 kV 3-phase with solidly earthed neutral 0.24 kV 3-single phase with solidly earthed neutral The above voltages have a tolerance of ±10% and a 50Hz frequency with a tolerance of (+) 3 and (-) 5%.

10.

Instrumentation Motorized control valves (4 wire system) 3 x 415 V A

Solenoid valves 115V AC(UPS) DCS-and PLC-system 115V AC(UPS) Ill i ti f l l 240V AC



2.0 Coal (GCV 3105 kcal/Kg) MT 33.3

3.0 Nitrogen Nm3 43491

4.0

Cooling Water m3 Make-up: 322

5.0 DM Water m3 83.5

6.0 Total Raw Water requirement m3 (322+83.5)x1.1= 446

7.0 Instrument Air m3 500

8.0 Power KWh 6170

3.8 Quantity of waste generation & its management

3.8.1 Liquid effluents

The existing ETP facility at JSPL Plant premises shall treat all effluents, continuous, intermittent or emergency discharges, originating from all process units inside B/L of proposed Ammonia Plant.

3.8.2 Solid Waste

Solid waste shall be mainly in the form of service boiler ash around 12800 Kg/hr (Ash% and GCV has been considered as 38.4% and 3105 Kcal/kg). The hazardous waste in the form of spent catalyst shall be to the tune of 550 MT in 4 - 5 years.

The handling of ash shall be integrated with the existing Ash Handling Facility of Coal Gasification plant. The spent catalyst shall be disposed off through CPCB approved recyclers and Hazardous & other waste (Management & Trans-boundary Movement) rules 2016.

3.8.4 Noise Level

(a) Nearby Equipment

The maximum allowable noise level shall be 85 dB within one meter from the equipment, during normal operation and with control valves in line.

(b) Near Working Environment

Overall noise level in the working environment shall be below 85 dB.

(c) Outside Plant Battery Limit

The average noise level shall be 60 dB at 100 m from the boundary of Plant



4.0 SITE ANALYSIS

4.1 Connectivity

Angul is well connected with Railway as well as National Highway. NH-42 (Connecting high way of NH-5 and NH- 6), NH-23 (Banarpal to Rourkela) and NH-6 (Kolkata to Mumbai) passes through the district. Also there is a proposal for construction of another National Highway that is NH-200 which will also pass through the district. Angul is well linked with cities like Kolkata, Mumbai, Raipur and Ahmadabad.

4.2 Land Form, Land Use & ownership

The proposed project site is located in the existing steel & power complex of JSPL. Thus, it is not going to change the land use pattern of the location. The total land of around 5000 acres is owned by JSPL which includes plant facilities and township. The land is mostly low productive (single crop, un-irrigated) & barren. There are several reserved & protected forests within 15 Km radius of the proposed project site.

4.3 Topography

The proposed project is located in Angul district of Odisha which falls in Brahmani Basin.

4.4 Existing Plant Facilities The facilities available in the existing steel & power complex (1.5 MTPA) of JSPL, Angul

are as below:

a) Coal Washery - 1200 TPH (2 units of 600 TPH capacity each)

b) Coal Gasification Plant - 1 unit for producing 225000 nm3/hr. syn gas

c) Direct Reduced Iron Plant (DRI) - 1 unit of 1.8 MTPA

d) Steel Melting Shop 1 (1 No. EAF & 1 No. LF) - 1 unit of 1.5 MTPA

e) Slab Caster - 1 unit of 1.62 MTPA

f) Plate Mill - 1 unit of 1.50 MTPA

g) Oxygen plant - 2400 TPD (2 units of 1200 TPD each )

h) Lime and dolomite plant - 1000 TPD (2 units of 500 TPD each)

i) Captive Power Plant - 810 MW (6 units of 135 MW each)

j) Process Boiler - 3 Boilers of 180 TPH

4.5 Soil Classification



Soil of the area is slightly acidic in nature and sandy loam with very low amount of silt

(<10%). Organic matter is moderate. The available nitrogen content of the soil is

moderate to high and the available potassium and phosphorus content is moderate. 4.6 Climatic Data

The climatic condition of Angul is generally hot with high humidity during April and

May, cold during November and December. The annual average rainfall of the district

is 1421 mm.

The dominant wind direction is W & NW and the wind speed ranges from 5.3- 9.1 kmph. The temperature varies from 13.4 - 40.3 0C

5.0 PLANNING BRIEF

The proposed project falls under schedule-5 (a) of Category-A projects of EIA notification, 2006 under Chemical Fertilizers and shall be located in the existing premises of JSPL’s Integrated Steel & Power Complex at village Nisa, Angul District in the State of Odisha.

The site is near Kerjang Railway station of East Coast Railways which is in between Angul and Sambalpur and is close to NH-55 that links Sambalpur and Angul. The plant location has been decided after evaluation of available infrastructural facilities, considering its proximity to raw material resources and finished product (Ammonia) demand centres. It is well connected with Railway as well as National Highway.

The existing Steel & Power Complex has infrastructure to supply all utilities such as cooling water, DM water, instrument air, process steam, electric power, nitrogen, etc. The requisite quantities of all these utilities are available from the JSPL’s existing Steel Power Complex. The existing complex also has township and other related amenities.

6.0 PPROPOSED INFRASTRUCTURE

The land requirement for the proposed project is around 15 acres which is available within the existing complex of JSPL. The existing township shall be able to meet the requirement of residential facilities due to the proposed project.

The Sewage Treatment Plant of 2 MLD capacity is being operated to treat the domestic sewage of the complex. The treated water from STP is being used for gardening and maintenance of green belt in the complex after proper disinfection.



Existing Effluent Treatment Plant (ETP) facility in the JSPL’s Coal Gasification Plant premises shall treat all liquid effluent (Continuous, intermittent or emergency discharges) originating from the process area of Ammonia Plant. Treated Effluent water from this ETP will be further treated up to tertiary level to reuse/recycle the same in the process as Cooling Water make-up.

JSPL is engaged in various CSR activities in the villages located in the vicinity of Angul complex. Few of them are providing:

• School & medical facilities

• Skill development to the local villagers

• Drinking water & sanitation

• Road & electrification, etc.

7.0 REHABILITATION & RESETTLEMENT (R & R) PLAN

The proposed project does not envisage any RR issues since the project is being set-up in the existing integrated steel & power complex of JSPL.

8.0 PROJECT SCHEDULE & COST ESTIMATES The present investment proposal of JSPL is to implement a single stream of 1550

MTPD Ammonia plant. The Capital Cost of the Project is estimated at around Rs. 1909

Crores. Foreign exchange requirement has been optimised by making the best

possible efforts for sourcing maximum amount of equipment and services of Indian

origin. The estimated capital requirement is given in Table-8.1.

Table-8.1 Project Capital Cost Estimates

Sl.No. Particulars Rs. Lakhs 1.0 Ammonia Plant 118019 2.0 Off-site Facilities 25133 3.0 Spares 688 4.0 Logistics 17845 5.0 Project Management Charges 2240 6.0 Engineering Fees 4098 7.0 Non Plant building 300 8.0 Working Capital Margin 711 9.0 Contingency 7523

10.0 Net Commissioning Expenses 1000 11.0 Interest During Construction 13353

Total Project Cost 190910



8.1 Profitability The return on total investment (fixed capital plus working capital) and the equity capital

has been worked out at 100% and 90% levels of operation for second and first year

respectively and summarized at Table-8.2.

Table - 8.2 Return on Investment and Equity

Sl. No. Level of Production Return on Investment Return on Equity 1. 100% 21.69% 44.63% 2. 90% 18.86% 35.05%

8.2 Pay Back Period The initial capital investment will be paid back in 4.61 years time by annual cash

accruals including depreciation and profit after interests on short term loans at nominal

rated capacity of operation

8.3 Internal Rate of Return (IRR) The IRR calculations take into account 36 months of construction period and 15 years

of operating period of the project. The production build up in the first and subsequent

years of operation has been taken at 90% and 100% level of the rated capacities. On

the above basis, Post-tax IRR of the proposed project is estimated as 18.57%.

8.4 Time Schedule The proposed project will be completed within 36 months.

9.0 ANALYSIS OF PROPOSAL The final analysis of Proposal may be briefed as under:

a) The proposed project will help to narrow the gap between demand and supply of

Ammonia in the country. It will reduce the import of Ammonia to some extent,

thereby resulting in national savings.

b) It will increase the availability of Ammonia to fertilizer industries thereby reducing

the import of fertilizers in the country

c) It has the advantage of ‘economy of scale’ as well as lower energy consumption

thereby resulting in lower production cost of ammonia.

(d) The project enables implementation of Best Available Technology (BAT) which is

a reliable and reproducible in different environment throughout the globe.



(e) JSPL will be able to utilize the full capacity of its Coal Gasification Plant with the

proposed project.

(f) The site is well suited for establishment of proposed Ammonia at Angul and does

not fall in “CRITICALLY POLLUTED AREA/ ZONE” classified by CPCB.

(g) There is a good potential for direct as well as indirect employment for people in

the nearby area due to the proposed project.

PLATE- I

in the existing integrated steel & power...

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