India Energy Congress Round Table Environment Friendly Energy of World Energy Council Indian member committee Round Table on Environment Friendly Energy 31st. January 2007 N.N,Gautam Former Advisor Min. of Coal Advisor, UNDP/GEF-GoI CBM Project

India’s per capita energy consumption is one of the lowest among developing countries. In 2001, it was 0.31 TOE compared to the world average of 1.68 TOE and 0.74 TOE of developing countries. On a high growth trajectory of over 8%, the per capita consumption is likely to be 1.042 – 1.24 TOE in 2031but still lower than the world average of 2001 (Integrated Energy Policy Report,2006). The Indian economy is growing at a rate of 8% per annum and is likely to continue at this rate in the coming future too. If such a growth rate is to continue, then it will need high growth of the energy sector as well otherwise the GDP growth rate will not be sustainable.

ENERGY TYPE WORLD INDIA (CONSUMPTION) (FIGS. IN MTOE) ENERGY TYPE WORLD INDIA (CONSUMPTION) 2003 2030 2003 2030 OIL 3639- 43 % 5775- 42% 119 - 37% 435 - 29% NATURAL GAS 2243- 26% 4125- 30% 29 - 9% 224 - 15% COAL 2581- 31% 3597- 26% 167 - 53% 816 - 55% TOTAL 8463 3497 315 1475 SOURCE: INTERNATIONAL ENERGY AGENCY (IEA) - 2005

SHARE OF COAL IN TOTAL ELECTRICITY GENERATING CAPACITY IN INDIA. Total Generation (2003-04) : 556.175 Bill. KWtt

Future requirement of coal at growth rate of 8% Figs in Mts. Items Current Status(2004-05) Projections (2024-25) Demand Metallurgical Coal 36.62 105.00 Thermal Coal 380.20 1162.00 Total Coal 414.82 1267.00 Production/Supply 18.07 49.00 361.27 1037.00 379.34 1086.00 Gaps 16.55 56.00 18.93 125.00 Total Gap 35.48 181.00 Coal equivalent from Production abroad/Import - 10.00 CBM/CMM/Coal to oil 15.00

Coal even though contributing over 30% in the world and 60% in India to the commercial energy it is not given due credit in the sustainable energy future due to its “poor” environmental credentials. Coal mining is less Capital intensive than extraction of oil and gas but its combustion is associated with higher environmental risk than its main competitor - gas and as such can match by application on clean coal technologies. Gas by contrast, though a much cleaner fuel, is facing a risk of higher prices, affecting its competitiveness. The increase in Gas prices have given much higher scope of development of clean coal technologies. Developing countries will have to be more serious in adopting available clean coal technologies and will need to find ways and means to absorb the additional cost for sake of environment. World coal based power generation efficiency is around 32% while stae of art is 42 to 45% ( these efficiencies are obtained incooler climate and not in tropical climate). Advanced cleaner power generation technologies promise efficiencies of 50 to 53%

Clean coal Technologies : The projected growth of energy demand particularly in developing countries will prompt a significant increase of CO2 emissions. Steps will need to be taken to reduce the CO2 emissions and precautionary measures against climate change. Raising efficiency Carbon capture and sequestration Promoting cleaner fossil fuel technologies Large investment in R & D for development of clean coal technologies to make efforts towards developing ultra low- CO2 or even zero – CO2 energy supplies. e) coal technologies and will need to find ways ans means to absorb the additional cost for sake of environmental sake. f) Development of product range of gases and liquids from Coal

Development of CBM Recovery Coal Bed Methane (CBM), an unconventional source of natural gas is now considered as an alternative source for augmenting the country’s energy resources. CBM which 21 times more potent GHG than CO2 if not extracted before coal mining will find its way in atmosphere have a serious impact on climate change. Having the 4th largest proven coal reserves and being the third largest coal producer in the world, India holds significant prospects for commercial recovery of CBM. From recovery point of view, CBM is classified into three main categories as under: Virgin Coal Bed Methane (VCBM) Coal-Mine Methane (CMM) c) Abandoned Mine Methane (AMM)

CMM and AMM Recovery in present leasehold/working coal bearing areas by leasehold owner. CBM Gas Recovery in this group will have the fulfilment of the following objectives. a) CMM Gas Recovery as a clean source of energy. If CMM Recovery is not done in advance of mining, this CMM will be discharged to the atmosphere during course of mining contributing to Global warming. c) Subsequent to CBM Recovery the coal mining operations to follow shall be much safer due to much reduced incidence of methane. d) Production and Productivity after CBM Recovery will be greatly enhanced. e) The Cost of mining will be considerably reduced on account of saving in ventilation and equipment. CBM Recovery will provide additional revenue. f) The impact of CBM Recovery will be known on the future coal mining which will closely follow CBM recovery and will help future planning of coal mining activities of replicated projects. g) Projects under this group are eligible for CDM benefits/carbon trading.

Allocation and Development of VCBM blocks DGH in close interaction with Ministry of Coal (MOC), carved out several CBM blocks in different coalfields of the country and put them for global bidding. CBM–I: 7 blocks offered of which 5 blocks have been awarded and contract signed. Contract for another 3 blocks awarded on nomination basis were also executed. CBM-II: 9 blocks were offered, 14 bids were received for 8 blocks. Contracts for 8 blocks were signed in June 2004. CBM-III: 10 CBM blocks were offered and have been allotted. A total of 54 bids were received from 26 companies including 8 foreign and 18 Indian companies. Commercial assessment is completed in 4 blocks. The total established reserves in these blocks is 6.24 TCF. Commercial production of CBM in India is now a reality and is expected to commence from 2007. Exploitation of CMM & AMM At present exploitation of CMM & AMM is being undertaken by the UNDP/GEF-GoI “CBM Recovery and Commercial Utilization” project, a pilot scale, demonstration project at two sites in BCCL. More projects for recovery of exploitation of CMM & AMM needs to be taken by the coal Cos. These projects attract CDM funding

Underground Coal Gasification Underground Coal gasification (UCG) is a process by which coal is converted in situ to combustible gas that can be used as fuel or chemical feed stock. The process The process involves drilling of two adjacent wells into coal seams (>100 m depth) and injection of pressurized oxidant such as air/oxygen/steam from one hole. The coal is ignited and combustion is maintained by continuous oxidant flow. The product gases are recovered from second hole. As the underground reaction proceeds a void is created that extends to the full thickness of the coal seam. The gasification is similar to that existing in surface coal gasification plants and the product gases are also similar. The surface gassifier is practically replaced by underground cavity which is confined by the coal/rocks surrounding the chamber in the coal seam.

Commercial and Environmental Benefits of UCG. Poor quality coals with low calorific value which can not be mined economically through conventional means, can be exploited by UCG. India has lot of deep seated lignite deposits in Gujarat, Rajasthan, Tamil Nadu, Karala, J & K. These states are far removed from the main coal deposits and have to pay very heavy transport charges to get fossil fuel to their state. With UCG they can tap the energy available with in the state it self in a viable and environmentally friendly manner. UCG causes minimal surface disturbance from its operations. UCG provides increased worker safety No need for surface disposal of ash and coal tailings from coal washing plants. Needs minimal site rehabilitation. Reduced CO2 emissions due to combined cycle efficiencies. Potential to remove CO2 from product gas before combustion, sequester it in the coal seam and further reduce emission.

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