ICOQM-10

June 28-30, 2011

Evaluation of Cost-benefit Analysis of Washed Coal for Power Sector

Shishir Dutta Atul Pandey rdsdd12@yahoo.co.in atulpandey1@yahoo.com APS University, Rewa S. S. Mishra mishrass@yahoo.com T. R. S. College, Rewa
Coal is the dominant fuel choice for the country for energy security. The non-coking coal reserves with higher ash content bears substantial transportation cost for power plants. It is imperative to limit the ash content of coal. However, in coal washing process, a part of input coal is disposed as rejects. Hence, before deciding in favour of for coal washing, energy efficiency of the system, as a whole, should be considered. The Evaluation of coal washing system must be explored after considering its energy efficiency, utilization of rejects, industry needs, tariffs, potential industry size, sensitivity and future prospect. Keywords: Energy Efficiency, Environmental Aspects, Tariff, ROM Coal, Washing Reject

1. Introduction
The Indian economy has shown strong growth in the recent past and is expected to continue on high growth path in the coming future. The strong growth in the economy will have an implication in terms of energy security for the country. Coal is expected to be the dominant fuel choice for the country for total primary Commercial Energy Supply for the decades to come. Compared to it, the hydrocarbon resources of India are limited and it may be prudent for the nation to acquire international energy resources. The need for diversification in the Coal as a primary source is needed for internal and external factors such as energy security, climate considerations, future competition and value capture.

2. Evaluating Coal Washing

The quality of non-coking coal in India will drive the need for coal washing. The non-coking coal reserves in India are largely concentrated in inferior category with higher ash content. With transportation cost being one of the substantial component of landed cost of coal, it is imperative for coal industry players to limit the ash content of coal before it is transported. Hence, the need for coal washing will remain strong in India. However, in coal washing process, a part of input coal is disposed as rejects. This represents the loss of energy which otherwise might have been put to use. Hence, before deciding in favour of for coal washing, energy efficiency of the system, as a whole, should be considered. The reserves of superior coal in India are much lower compared to inferior coal.
Grades of Non-Coking Coal, GCV and Ash Content Grade A B C D E F G Useful heat value (UHV) (kCal/Kg) Exceeding 6200 Exceeding 5600 but not exceeding 6200 Exceeding 4940 but not exceeding 5600 Exceeding 4200 but not exceeding 4940 Exceeding 3360 but not exceeding 4200 Exceeding 2400 but not exceeding 3360 Exceeding 1300 but not exceeding 2400 Ash% and Moisture% (at 60% RH & 40C) Not exceeding 19.5% 19.6% to 23.8% 23.9% to 28.6% 28.7% to 34.0% 34.1% to 40.0% 40.1% to 47.0% 47.1% to 55.0%

Inferior coal has high ash content and low calorific value.

3. Cost Benefit Analysis of Coal Washing

It is therefore, important to evaluate the coal washing system for its energy efficiency. Energy efficiency is defined as ratio of electric power available to total calorific value of coal mined. 1215

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We consider a case study with power plant system with three scenarios with coal as a primary source for power generation. Run-of-mine (ROM) Coal The coal delivered from the mine is called run-of-mine, or ROM, coal. This is the raw material consists of coal, rocks, middlings, minerals and contamination. Contamination is usually introduced by the mining process and may include machine parts, used consumables and parts of ground engaging tools. ROM coal can have a large variability of moisture and maximum particle size. Washability The washability characteristics of a coal reserve are provided by obtaining liberation data on the raw coal. Liberation refers to the amount of physical breakage required to separate material of different material densities. Low density material is clean coal whereas high density material is reject (rock). The intermediate density material is called middlings. Liberation data is commonly obtained by float and sink analysis. Based on parameters of individual components, the following data is gathered from the power plant with below mentioned configuration. Electricity generated and consumption of coal was determined in each case and the result are arrived at the washeries with input coal with ash content approx 39% and resultant yield of 83% is considered for the economics. Considerations Power Plant Capacity 300 MW PLF 90% Auxiliary Consumption 10% Heat Rate 2300 kCal/kWh Coal Quality Calorific Value 4300 kCal/kg Ash content 39% Washery Target Ash Content 34% Yield 83% Calorific value of Rejects 1360 kCal/kg Reject based Power Plant Heat rate 3,200 kCal/kWh PLF 85% Auxiliary Consumption 10%
ROM Coal Based System (Energy, Billion Kcal) Coal Mined Transport Loss Input Energy Washing Loss Generation Loss 5494 -55 5440 -3406 Washed System (Energy, Billion Kcal) 5494 -52 5442 -293 -3224 Washed Coal including Reject Based (Energy, Billion Kcal) 5494 -52 5442 -293 -3224

Electrical Energy generated Aux Consumption Imp in Boiler Efficiency Additional Energy through rejects Energy at bus bar

2034 -204

1925 -193 8

1925 -179 8 71

1830

1740

1825

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4. Cost Benefit of Fuel Cost per Unit of Electricity at Pit Head Power Plant
ROM Coal based System Fixed Cost = Rs 1.45, Fuel Cost = 0.52, Total Cost = 1.97 Washed Coal based System Fixed Cost = Rs 1.45, Change in fuel cost = Rs. 0.03, Total Cost = Rs. 2.07 Washed Coal including Reject based Power Plant Fixed Cost = Rs 1.45, Fuel Cost = 0.55, Rejected based power generation = 0.02 Total Cost = 2.05 It is evident that the advantage of transport loss at pit head is very minimal and washing loss is more, Although the power plants using washed coal are more efficient, but the loss of energy in terms of reject disposal or in case of reject based power plants with lower conversion efficiency does not justify coal washing in pit head power plants in the given scenario. So washed coal based power systems at pit head are less efficient compared to ROM coal based systems. This effectively yield washing as an option for pit-head power plants inefficient. However, in cases, where coal quality is low as compared to boiler specification, washing may be resorted to as an alternative. Based on current freight tariff, washed coal is a viable option for power plants at a distance of approx 1000 km or more from the source of fuel as coal transportation cost shall be high.

5. Coal Washing - Potential Industry Size

As per the study, it is estimated that up to 2017 approx 69 GW of coal based power capacity will be added. Majority of which will be based on domestic coal sources, approx 37 GW. However, as discussed earlier, coal washing for pit head based plants is sub-optimal. Hence, considering the breakeven distance of 1000 km, the additional potential market for coal washing up to 2017 is approx 16 GW. For such power plants, the demand of coal shall be approximately 77 MTPA by 2017 with the assumption of Plant Load Factor of 67%, Coal specific consumptions of 0.7 kg/kWh and 15% loss in washing. With stricter environmental norms and inevitable increase in plant load factor the demand will be still higher and may touch at approx 100 MTPA with 90% PLF. approx 100 MTPA by 2017. Environmental Aspects of Coal Washing Apart from energy conversion efficiency, other environmental aspects also needs consideration particularly, water consumption in coal washing process and disposal of rejects. Further, the improvement in power plant performance based on washed coal is only marginally higher. In view of above, it is essential that coal washing plants should be essentially coupled with rejects based power plant to improve the energy conversion and tackle rejects disposal. Energy Efficiency Even, including reject based power plant, the efficiency of the system is lower compared to ROM coal based system. The advantage of the system is in terms of lower requirement of coal transportation effectively reducing transportation cost per unit energy. Energy conversion efficiency of power plants only increases marginally; is unable to offset loss of energy in terms of rejects. The breakeven distance is 1,000 km. Water Requirement Present wet technology for coal beneficiation is water intensive. For a 10 MTPA Coal Washery, the water requirement is approx 2.5 MLD. By 2017 for a coal washing capacity of approx 100 MTPA, at present rate, the water requirements will be 25 MLD; sufficient for a population of 125,000. Utilization of Rejects Use of rejects is essential for optimal energy recovery from the washed coal system. Industry Need The Improvement in power plant performance on account of washed coal is marginal. The driver of need for washed coal may as well be sized, clean coal more than low ash content.

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Mining Implications Loss in energy in terms of reject; higher quantity of coal to be mined for the same system.

6. Conclusion
Higher proportion of Inferior coal reserves in India with high ash content and low GCV necessitates the coal washing in India. However, Coal Washing is not energy efficient for power facilities at pit-head. But for power facilities at average distance equal to 1000 km or more, the reduction in transportation cost of coal offsets the higher cost for washing. Further, coal washery should be essentially couple with rejects based power plant to optimize the energy conversion and manage environmental aspects of rejects disposal. With the economic growth of GDP at 8% the potential size of coal washing industry, based on incremental coal based power plants is approx 100 MTPA by 2017. Hence there is a lot of scope for the industries for setting up and operations of coal washing facilities and to invest in businesses and technologies to reduce the carbon footprint of India in the global environment context. Going further, Companies should increase its operations to value additive activities like coal beneficiation, delivered coal options for better margins and competitive advantage as higher value is available for vertically integrated companies. The washery capacity Utilization by CIL in FY2009 was only 19% for Coking Coal and 39% for Non Coking coal. At 100 % utilization, it is estimated that the total revenues could have been higher by approx Rs 2,500 cr.

7. References
1. A., Chaudhuri, Sen, Kalyan , Chowdhury, S. G., Dasgupta, R., Biswas, S. and DAS, N. S. Nov. 25-27, 1999 Technological Implication of Coal Quality Improvement for Power Stations by Benefication and Blending, International Conference & Exhibition on Mining Challenges of the 21st Century, New Delhi, India. Boparai, S. S., March 9-11, 2000, Coal Sector in India- Some Policy issues Coal Prep India, International Conference & Exhibition on Coal Beneficiation & Allied subject, New Delhi, India. Coal Washing & Power Generation from Washery Rejects: 2nd Indo-US Coal Working Group Meeting, Washington, November, 2005. Coal Statistics, Coal Controllers Organization, GoI, Ministry of Coal, Kolkata. Coal Production Data: Directorate (Technical), Coal India Ltd. Das C. K., Das, N. S., Mitra, S. K., Gouricharan, T. Sen, Kalyan, 19 March 2004 'Washing of Indian Non-coking coal Concept to Reality', Seminar on Mining and Washing of Non-Coking Coal in India: challenges and Opportunities, Coal Consumers Association of India, Kolkata, India. Ghosh A. B: The Economics of Coal Washing in India, New Age Publishers Private Ltd, Calcutta - 12: New Delhi, 1964. pp 35 & 36. Jain, Surendra and Sachdev, R. K. 20 22 February 2001, 'Washing of Indian thermal coal Some Technical and economic issues', presented in International conference & Exhibition on coal For Indias power year 2010, New Delhi, India. irit S. Parikh, Vivek Karandikar, Ashish Rana, Prasanna Dani, Projecting Indias energy requirements for policy formulation; Energy 34 (2009) 928-941, Table 16. Sachdev, R.K., March 9-11, 2000, Beneficiation of Thermal Coals- need for motivating the Investor, Coal Prep India, International Conference & Exhibition on Coal Beneficiation & Allied subject, New Delhi, India. Sen, Kalyan, and Das, N. S., 21 Feb. 2002, 'Economic washing of Indian Power coal & availability of indigenous technology, Seminar on Challenges Facing Indian Coal, Coal Consumers Association of India, Kolkata, India. Sen, Kalyan , Choudhury, A., Das, N. S., Biswas, S., and Roychoudhury,G. P., Jan. 22-24, 1999 Possibility of Dry Deshaling of Non-coking Coals, International Symposium on Clean Coal Initiatives (CMRI), New Delhi, India. Staats Gary, Rao Nagaraja and Gollakota Sai: The Status and Future of Coal Preparation in India: Coal Liquefaction & Solid Fuels Contractors Review Conference, Pittsburgh, Pennsylvania, 1997. (www.netl.doe.gov) Websites of Ministry of Coal, Government of India, Coal India Ltd.

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