GASIFICATION INDIA 2019

COAL GASIFICATION

OPPORTUNITIES & CHALLENGES

FOR INDIAN COMPANIES

DIPANKAR SENGUPTA

JSPL

TAJ VIVANTA, NEW DELHI

29th NOV. 2019

India’s only Coal Gasification Plant to produce Synthesis gas

at JSPL, Angul

2

World’s First Synthesis gas Based DRI Plant

at JSPL, Angul

3

DRI & COAL GASIFICATION PLANT CAPACITIES

AT JSPL, ANGUL

• DRI Plant Capacity : 1.80 million TPA - Rated

2.00 million TPA - Max.

• CG Plant Capacity : 225,000 Nm3/hr pure Synthesis Gas

( H2 + CO & CH4 )

• Coal required : 2.2 million Tons per year,

( sized, washed, high FC & AFT )

• Syngas Utilization : 160 – 180,000 Nm3/hr for DRI

45 – 65,000 Nm3/hr as Fuel gas in

Steel Mills

• CGP by-products : 100-125,000 TPA

CGP PROJECT HIGHLIGHTS

• Plant Capacity : 225,000 Nm3/hr of pure Synthesis gas

• Syngas comp : H2+ CO - 84, CH4 - 12, CO2 - 2.5 ( vol % )

• Syngas GCV : 3450 kcal/Nm3

• Project Period : 42 months

• Project cost : Rs 2500 crores

• Plant commng : 2014

• Technology : Lurgi Gmbh, Germany ( now Air Liquide )

No of Gasifiers : 6 + 1 (standby)• No of Gasifiers : 6 + 1 (standby)

• Type of Gasifiers: Fixed Bed Dry Bottom, Mark-IV

• By-Products : Clear Tar, Gasfcn Oil, Phenol, Rectisol

Naphtha, Phenolic Pitch, Sulphur,

Liq Ammo, Dry Ash

• Asso. Units : Coal Washery, ASU ( O2/N2), AHP, ETP,

Utilities & Offsites

Syngas Integration for production of DRISyngas Integration for production of DRI

6

Coal Gasification Complex at a GlanceCoal Gasification Complex at a Glance

OSBL

GasificationGas Cooling

Rectisol

Tank Farm

7

Phenosolvent

Sulphur Recovery

Gas Liquor Separation

7

COAL & PETCOKE GASIFICATION

– MAJOR ADVANTAGES

• Potential for Import Savings ( less dependence on Import of Crude oil, LNG, Coking coal, Chemicals & Petrochemicals, Fertilizers )

• Monetization of unutilized, huge Reserve of low Quality, high Ash Coal & high Sulphur Refinery BottomsCoal & high Sulphur Refinery Bottoms

• Clean Carbon Technology / Environment Friendly ( No Coal dust, No Oily / Tarry spills, low SOx / NOx , CCS ready plants)

• Energy Security (Immunity from Global Politics on Oil & Gas)

Global Gasification Scenario

• No. of CGP plants - 272, No. of Gasifiers ( GG ) - 686

• No. of CGP plants under construction - 74, No. of GG - 238

• Total Syngas Capacity ( 2018 ) : 250,000 MW th

• Gasfcn Capacity Growth : Mostly in China, Mongolia, S Korea, India

• COAL GASFCN produces ===� 25% of World’s AMMONIA producn

===� 30% of World’s METHANOL producn

• Syngas Application Growth ( 2018 – 19 ) : MW th %

Chemicals 140,000 45

Liquid Fuels 55,000 18

Power 25,000 08

Gaseous Fuels 90,000 29

310,000( Ref. – Global Syngas Technologies Council, Arlington, VA, USA )

CHINA CG + CTL SCENARIO• CG / COG + CTL route produces - 80% of China’s Ammonia / Urea producn

- 90% of Methanol producn

Methanol Blending :

• Total MeOH based Blending in Gasoline (Petrol) = 21 MM TPA

( Direct MeOH + Gaso. – 35%, MTBE, MTG + Gaso – 45%,

DME + LPG - 20% )20% )

• MeOH Blends used – M15 ( 15% MeOH + 85% Gaso. ), M25, M50,

M85, M100

Chem / Petrochem :

• Expected CTL Producn ( 2020) , Million MT :

Methanol - 66, LPG – 5, DME – 20, Olefins – 15,

Ethyl Glycol – 2, Oil Products – 30, Ammo - 40, Urea - 70

CHINA CG + CTL SCENARIO

• Zonewise CTL & MeOH Prodn Capa. : CTL, MM TPA MeOH, MM TPA

Xinjiang 10 5

Ningxia 11 7

Inner Mongolia 10

Central China 6

Yunan – Guizhou 6

Large CTL Companies / Plants ( > 1 MM TPA Capa ) :• Large CTL Companies / Plants ( > 1 MM TPA Capa ) :

a. Shenhua Group Corp Ltd - Yinchuan, Ningxia & Ordos,

Inner Mongolia

b. Yitai - Ordos, Zhungeer-Dalu & Guanquambao, Urumchi

c. Yitai Yili Energy - Yili

d. Jincheng Anthracite Mining Co Ltd - Jincheng

e. Shanxi Lu’An Co Ltd - Lu’An

INDIA Scenario : OPPORTUNITIESA. India has huge Coal Reserves• Total Coal Reserve in India : 319 bn MT , upto 1200 mm depth

( Min. of Coal website, as on 01.04.18)

• Proven : 148 bn MT, Indicated : 139 bn MT, Inferred : 31 bn MT

• Coking Coal : 34.5 bn MT, Non – Coking Coal : 283 bn MT

B. Coal Production is very low B. Coal Production is very low • Actual Coal Production, 2016 -17 : 0.72 bn MT

• Target Coal Production, 2019 – 20 : 1.00 bn MT

C. India imports Chemicals + Petrochems worth US$ 45 bn / yr.

50% of these chemicals can be produced thru CG + CTL route

and can save US$ 21 Bn / yr

INDIA Scenario : Coal/Petcoke Gasfcn Projects

• JSPL, Angul, Odhisha - 7 Lurgi / AL FBDB Coal Gasifiers to make DRI ( Steel ) & Fuel gas

• RIL, Jamnagar, Gujarat - 10 ( 4+6 ) CBI / Mcdermott e-Gas type Entrained Bed type Petcoke ( + Coal ) Gasifiers to meet Refinery H2 demand , Power ( later SNG, Chemicals ) later SNG, Chemicals )

• TFL, Talcher, Odhisha - 1+1 Shell / Air Products SCGP Entrained Bed Coal + Petcoke Gasifiers to make Ammo / Urea ( later Methanol, SNG, etc. )

• CIL, Dankuni, West Bengal - probably Entrained Bed Coal Gasifiers to make Methanol & SNG

COAL GASIFICATION : HUGE CHALLENGES IN INDIA

A. Coal related :

• Poor quality of non-coking Coal - high Ash, low Fixed Carbon , low Rank, weathered / deactivated coal

• Large quantity of Coal Fines in Feedstock ( problem in Fixed Bed Gasifiers )

• Problems of reutilization & monetization of Coal Fines• Problems of reutilization & monetization of Coal Fines

• Long distance between Coal source and Plant location - high Freights, more fines, deactivation

• Major variation in quality of feedstock Coal between Mines

• Non-availibility of Dedicated Coal Mines suitable for Coal Gasification

• Inadequate number and capacity of Coal Washing & Blending Facilities

• High price of Domestic & Imported Coal at Factory gate

COAL GASIFICATION : CHALLENGES IN INDIA

B. Environment related :

• Large quantities of Waste / Black water generation

• Costly WW Treatment Plants to meet PCB Norms for ‘Zero Discharge’ & reuse ( Primary, Secondary, Tertiary treatments )

Costly systems for CO2, H2S removal ( Rectisol Gas cleaning & SRU ) & • Costly systems for CO2, H2S removal ( Rectisol – Gas cleaning & SRU ) & Dust Emissions control

• Large area requirement & transportation for huge quantities of Ash storage & disposal / reuse

• CO2 Capture Systems and Applications ( Piping Network, Sequestration, EOR ) not yet fully developed in India

• Increasing global focus for compliance to Climate Change Norms

COAL GASIFICATION : CHALLENGES IN INDIA

C. Technology & Project related :

• Major issue of getting suitable & proven Technology for Indian poor quality Coal

• Coal Feed preparation is very critical, complex & costly , but absolutely essential for success of Gasification technologies and sustainable operation essential for success of Gasification technologies and sustainable operation of such plants

• Frequent change-over of Technology ownership at Global level causes uncertainty

• Very high Project Capex and high Coal price significantly affects Syngas & downstream products costs & overall Project viability

• Hardly any Incentives on Coal price , Products prices , Interest on LT / ST loans, Cess / Duties on Coal, etc. for viability of such Coal Gasification / CTL Projects, so critical for a country like India

COAL GASIFICATION – CHALLENGES IN INDIA

C. Technology & Project related ( contd.) :

• Large Land mass required for Coal storage, handling, sizing, Blending, long distance conveyers, Ash handling, storage, etc.

• Huge quantity of Water resources should be available nearby

• Costly large capacity Cryogenic ASU plants required for Oxygen gas supply

• Sizeable Utilities & Offsites facilities reqd.facilities reqd.

• Inexperienced Vendors vis-à-vis fabrication of critical Equipment ( mainly Gasifiers & its associated parts / equpts ) – to be imported

• Very costly Spares, still have to keep high Inventories

• Experienced EPC / LSTK Contractors not many for Gasification plants

• Experienced O&M Manpower not readily available

• Costly Laboratory Analytical equipment & trained Manpower are required

• No Single Product Plant is viable due to Market demand / price fluctuations - only Polygeneration route configuration is Viable

SUCCESS OF CG / CTL PROJECTS : KEY FACTORS

A. A “National Policy for Coal Gasification & Liquefaction“ needs to be urgently formulated & promulgated to give a ‘big push’ to CG / CTL Projects

B. ‘Dedicated, closeby Coal Mines’ to be earmarked for CG / CTL Projects ( to be bought thru Auction Linkage ) for better Coal Size & Quality consistency, closer Mining cost control & shorter Transportation

C. Financial Incentives by Govt needed to reduce burden of very high Capex of CG / CTL Projects C. Financial Incentives by Govt needed to reduce burden of very high Capex of CG / CTL Projects and to improve Viability of ‘Energy Security’ Projects

D. Exemption from excessive Cess / Duties on Coal Feedstock prices

for stringent Environment Norms compliant CG / CTL Projects due to

Clean Technologies

E. Schemes for ‘Blending Methanol, DME with Gasoline & LPG’ respectively to

be implemented at the earliest

THANK YOU !!

THANKS FOR PATIENT HEARING !!