Doing more with Less

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Doing more with Less Coal Efficiency and GHG
Intensity enhancement potential for the Steel
Sector in India
Institutional Mentor / Partner
Lead Researchers Dr. Amit Garg, Vivek
Gilani Co-Researchers Gyan Prakash, Saumya
Aggarwal, Bhaskar Govindrajan, Udit Bansal
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Facts from India Coal Market Watch August 2011

• Domestic coal production target for 2011-12 is
  554 mt
• India adds 1660 MW generation capacity in July
  (all Thermal Power)
• Indian plants exceed power generation target in
  July 2011
• Coal India Ltd (CIL) reported a 64.06 rise in
  profit after tax (PAT) during the first quarter
  (April-June) of 2011-12
• So far so good..

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Facts from India Coal Market Watch Out! August
2011

• Indias coal import in 2011-12 likely at 137.03
  mt
• The import of coking coal through Paradip port on
  the eastern coast of India surged by almost
  4,10,095 tons in July 2011 to 6,68,574 tons as
  compared to 2,58,479 tons in June 2011
• Imports of PCI coal through Vizag port in July
  2011 stood at 1,13,467 tons, which was higher by
  86,764 tons than 26,703 tons imported in June
  2011
• The imports of Low Ash Metallurgical (LAM) coke
  through Paradip port in the month of July 2011
  rose sharply to 60,590 tons compared with 6000
  tons in June 2011
• 171 coal mining proposals involving 28,862
  hectares of forest land are awaiting forestry
  clearance as on June 30, 2011
• 44 projects of Coal India Ltd (CIL) stuck under
  Comprehensive Environment Pollution India (CEPI)
  norms introduced by MoEF

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Question? Can the most efficient users of coal
in Indias Steel Sector help - increase Indias
Energy Self-Sufficiency, meet its Climate
Change Commitments, and also save some Forests in
the bargain?
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Trends - GHG Intensity of Production in Sample
Steel Companies
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Trends - GHG Intensity of Production in Sample
Steel Companies
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Coal Efficiency GHG Intensity Enhancement in
Steel Companies
Sr. No. Parameter 2008 2009 2010
  SAMPLE Companies      
1 Total Production - SAMPLE Companies (mt Steel) 68.4 66.1 77.5
2 Sample Universe Ratio 81 82 82
3 Coal Use (Direct Indirect) - SAMPLE Companies (mt Coal) 34.7 42.4 43.7
4 GHG Emissions (Total Production) - SAMPLE Companies (mt CO2e) 91.7 106.4 112.5
5 Potential Coal Savings w. BPT Replication - SAMPLE Companies (mt Coal) 25.3 29.8 29.4
6 Potential GHG Mitigation w. BPT Replication - SAMPLE Companies (mt CO2e) 72.0 82.0 84.5
7 Coal Intensity Improvement- Steel Sec. 73 70 67
8 GHG Intensity Improvement- Steel Sec. 79 77 75
  ENTIRE Steel Sector (Liquid Steel Production)      
9 Total Production - Steel Sec. (mt Steel) 84.6 80.6 94.4
10 Coal Use (Direct Indirect) - Steel Sec. (mt Coal) 42.9 51.7 53.3
11 GHG Emissions (Total Production) - Steel Sec. (mt CO2e) 113.5 129.6 137.1
12 Potential Annual Coal Savings through BPT Replication (mt Coal) 31.3 36.3 35.8
13 Potential Annual GHG Mitigation through BPT Replication - mt CO2e 89.1 100.0 102.9
14 Target of Annual GHG Emissions Mitigation (COP15 commitment) 139.3 156.2 160.8
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Source Mckinsey Environment and energy
sustainability An approach for India
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Energy Efficiency measures

• Process efficiency sinter plant heat recovery,
  coal moisture control
• Optimized energy use - pulverized coal
  injection, coke dry quenching and recovering
  waste heat

Fuel Shift

• Substituting coke used in BF/BOF furnaces with
  fuel based on biomass (charcoal)
• Replacing 10 of coke as the primary blast
  furnace tool

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Technology Changes

• Direct smelting
• remove need for coking plants
• Challenge Issues with technologies need to be
  resolved
• Scrap based steel making
• 1/3 energy required by standard blast furnace
• Challenge if 10 of the total production moved
  to this system 70 of Indias steel would need to
  be recycled which involves a economic cost
• Gas based direct reduced iron
• Challenge Availability of gas to steel plants
• Cogeneration gas from the BOF/BF process is
  recovered, cleaned and used for power generation

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Energy Self-Sufficiency and Indian Steel Sector

• Coking coal prices at 225 a ton for the second
  quarter beginning July 2010 compared with 129 a
  ton level in 2009-10
• Very high dependency on Australia for coking coal
• Energy Self-Sufficiency India would need 2.4
  billion tonnes of steel/yr by 2030 which would
  assume India would need to import 40 of its coal
  needs

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Learnings and Way Forward

• Best practice gap in terms of GHG Intensity of
  Production from Coal for Cement Industry
  increased from ratio of 13.4 to 15.7 in 3 years.
• Best Practice Technology (BPT) replication
  achievable realistically using off-the-shelf
  technologies in India
• BPT replication in Steel Industry alone can yield
  36 million tons of coal saving and reduce Indias
  imports dramatically
• BPT replication from merely this sector can help
  India achieve more than 100 of its GHG Emissions
  commitment to COP15 (reducing GHG intensity of
  the GDP by 20-25 by 2020)
• Thus, despite being a proactive environmental
  research and outreach body not anti-coal as a
  fuel but a rational promoter of the roadmap to
  do more with the lessening coal we have in India
  and globally.
• Need of the hour process optimisation
  technology sharing amongst the Steel Industry and
  active promotion and incentivisation of efficient
  users of coal and low-GHG intensity steel on
  platforms such as coaljunction and metaljunction.