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

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World’s First Synthesis gas Based DRI Plant
at JSPL, Angul

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 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)
• 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 DRI

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 Coal Gasification Complex at a Glance
OSBL
Tank Farm
Rectisol

Gas Cooling Gasification

Phenosolvent

Sulphur Recovery

Gas Liquor Separation

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 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 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% )
• 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 ) :

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 : OPPORTUNITIES
A. 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

• 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 )

• 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
• 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 ) &
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
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.
• 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
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 !!