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Coal Gasification Technologies in Building Energy Security - Some Policy Suggestions

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... looks like heading from bad to worse in the coming days. ... impossible to meet this ... As our President His Excellency Dr. Shri A.P.J.Abdul Kalam ... – PowerPoint PPT presentation

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Title: Coal Gasification Technologies in Building Energy Security - Some Policy Suggestions


1
  • Coal Gasification Technologies in Building Energy
    Security - Some Policy Suggestions
  • R.H. KHWAJA, I.A.S
  • CMD,SCCL

26th July 2006, ENERGY CONCLAVE -2006, NEW DELHI.
2
  • The price of oil hit record high of 78 per
    barrel on 10.7.2006. The energy crunch looks
    like heading from bad to worse in the coming
    days.
  • Report of Goldman Sachs predicts that between
    2000-2050 Indias GDP will rise 60 times and
    Chinas 40 times.
  • It is impossible to meet this demand. The world
    crude oil production today is just 85 Million
    Barrels per day and does not seem likely rise
    much higher.

3
  • Approximately 94 of Indias energy consumption
    is based on 3 sources of fossil fuels coal, oil
    and natural gas. Natural gas has experienced a
    fast rate of growth among the fuels in Indias
    primary energy supply.
  • The imperatives of such rise in demand for energy
    and the rising oil prices dictate that the Energy
    Security of our Nation is as important as that of
    territorial security.
  • As our President His Excellency Dr. Shri
    A.P.J.Abdul Kalam mentioned we should strive for
    energy independence to achieve the higher
    economic growth rate.

4
  • To build energy security of our nation, we should
    have a holistic approach towards various sources
    of energy, which includes renewable and
    non-renewable sources. There has to be an
    integrated approach in evolving a balanced fuel
    mix so that not only our energy needs but our
    environmental concerns are also addressed.
  • Approximately 80 of the world's energy
    consumption is based on three sources of fossil
    fuel coal, oil, and natural gas.

5
  • If we continue to burn fossil fuel at our present
    rate, we could experience a quadrupling of world
    CO2 emissions over the course of the next 125
    years as a consequence of population growth and
    increased energy demands. According to the
    International Energy Agency (IEA), emissions
    generated by world energy consumption will
    increase by 70 by 2020.
  • Since the Natural gas is combustible and burns
    more cleanly than any other energy sources helps
    reinforce its position as one of the most highly
    used energy sources in the future. Oil continues
    to drop even though the oil consumption has
    increased, while coal remains unchanged.

6
  • Therefore in the long run for eco-effective
    energy solutions India has to focus on coal
    gasification technologies like Coal bed Methane
    (CBM), Underground Coal Gasification (UGC),
    Surface Coal Gasification (SCG), Integrated
    Gasification Combined Cycles (IGCC) and Fluidized
    Bed Combustion which are cleanest, safest, and
    most useful forms of energy. RD efforts require
    to be intensified to make these technologies
    commercially viable.

7
  • Coal gasification offers one of the most
    versatile and cleanest ways to convert coal into
    electricity, hydrogen, and other energy forms.
    The first coal gasification electric power plants
    are now operating commercially in the United
    States and in other nations, and many experts
    predict that coal gasification will be at the
    heart of the future generations of clean coal
    technology plants for several decades into the
    future.

8
  • Coal industry should be the flag bearer in this
    extensional domain of mining that is Coal Bed
    Methane and Underground Coal gasification. The
    power and fertilizer industries emerged as the
    key demand drivers for natural gas due to the
    scale of their operations, policy intervention
    and social impact. Another application to emerge
    is the use of CNG for vehicles to replace liquid
    fuels, as urban pollution grows to alarming
    levels.
  • Fossil fuels (coal, oil and gas) are non
    replenishable, hence they need to be utilized
    judiciously through the principle of sustainable
    development and coal gasification route is the
    best option to achieve it.

9
  • Fossil fuels (coal, oil and gas) are non
    replenishable, hence they need to be utilized
    judiciously through the principle of sustainable
    development and coal gasification route is the
    best option to achieve it.
  • India is endowed with rich deposits of coal
    reserves in different sedimentary basins. The
    bulk of the coal resources in our country are
    around 256 billion tonnes. Large resources of
    high rank coal in the country provide ample
    opportunities for harnessing this un-conventional
    source of energy.

10
  • Recent studies indicate that the coal seams in
    the depth range of 600-1000m may yield on an
    average 4.5m3/tonne of gas in the blocks
    identified for Coal Bed Methane in Godavari
    Basin. Possibilities, therefore, exist to extend
    these studies to other areas of this master basin
    in future, where coal mining is not anticipated
    for the next 30 / 35 years.

11
  • UNDERGROUND COAL
  • GASIFICATION (UCG)
  • Underground Coal Gasification (UCG) is an
    emerging technology in which coal can be burnt in
    a controlled manner and gasified under insitu
    conditions to harness energy.
  • In India, UCG was taken up as national project in
    the early 80s. ONGC is engaged in the UCG
    activities as it is having the required expertise
    in deeper drilling, 3D seismic imaging,
    directional drilling and underground ignition/
    combustion.

12
  • SURFACE COAL GASIFICATION (SCG)
  • Surface Coal Gasification (SCG) is a process,
    which converts coal into combustible and
    non-combustible gases at high temperature and
    pressure at surface. The product derived by SCG
    known as syngas can be used for power generation
    and/ or as chemical feedstock. The down stream
    application of Syngas are
  • Ammonia/ Urea
  • Dimethyl Ether (DME) for power generation, as
    LPG substitute, as transportation fuel, as
    chemical feedstock etc.

13
  • Methanol for Gasoline Blending Coal
    gasification route can be extended to
    manufacturing Olefins from Methanol (called MTO)
  • Coal to Liquid Petroleum (CTL)
  • Power generation Syngas can be used for power
    generation through IGCC technique. This is the
    most common use of the syngas.

14
  • COAL TO OIL
  • Last week, Finance Minister P. Chidambaram
    disclosed that South African Company Sasol is
    considering investing 1 billion, rising
    ultimately to 6 billion, for a project to
    convert Indian coal into petroleum products.
    Sasol is a pioneer in CTL (Coal to liquids)
    technology. It developed this technology in
    apartheid days to provide energy security to
    South Africa, which was then facing oil
    sanctions.
  • Oil produced by this process was costly and
    uneconomical at the time. But with the sharp
    rise in oil prices in the last two years,
    coal-to-liquids suddenly looks a bargain
    technology.

15
  • POLICY SUGGESTIONS FOR PROMOTING COAL
  • GASIFICATION TECHNOLOGY
  • With rich coal bed methane resources in this
    country, the development of coal bed methane
    industry will undoubtedly present an important
    impact on the improvement of the national social,
    economic and environmental development. We
    suggest that the government work out a detailed
    overall coal bed methane development program as a
    key component of energy security policy. This
    program shall be included in the national
    development program for the XI XII
    Five-Year-Plans for implementation.
  • Develop transportation and distribution assets in
    the oil and gas sector that provide services
    under common carrier principles applicable to
    natural monopolies.

16
  • Allow foreign operators to bring technology and
    investment to recover oil/gas from currently
    abandoned and/or marginal fields on economic
    considerations.
  • Extend infrastructure status to the coal
    industry. Lower duties on capital goods imported
    for coal mines.
  • We suggest that the government put in appropriate
    amount of funds to increase investments in
    development of infrastructures for CBM and other
    coal gasification technologies in our country.
    Government should consider preferential loan
    inclination policies for the development of such
    alternate technologies.

17
  • We also suggest that preferential treatment of
    income tax reduction or income tax exemption be
    given to investments made for coal bed methane
    Projects and other coal gasification projects.
  • Every effort should be made to encourage the
    private investments in the sector and intensify
    technical and economic links with large
    enterprises and financial institutions at both
    home and abroad.
  • (VIII) Amendments to present labour laws would
    also be necessary for introduction of these
    technologies. Coal mining sector should get
    exemption from provisions u/s 10(1) of Contract
    Labour Act 1970 which restricts outsourcing of
    activities necessary for coal gasification
    technology.

18
THANK YOU
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