1. Coal Preparation Society of India 3 rd India International DRI Summit-2016 19 th August 2016, New Delhi - India Coal Preparation Society of India 3 rd India International DRI Summit-2016 19 th August 2016, New Delhi - India How to meet coal quality requirement of DRI plants? R K Sachdev President, Coal Preparation Society of India E mail: rksachdev01@gmail.com

2. Coverage Importance of Coal. World Coal Reserves. Coal Reserves of India World Coal Production. Coal Quality Requirement of DRI Industry. Quality Parameters of Indian Coal. Coal Washing. Future Coal Production Scenario. Reaching 1.5 BT coal production goal? Recent Developments in India. COAL after Paris Agreement. India’s approach. Coal is indispensible.

3. Importance of COAL Coal is the most abundant fossil fuel that mankind has been using for almost two millenniums. It provides over 30% of global primary energy needs. Over 40% of the world’s electricity is generated using coal. Over 70% of the world’s steel is produced using coal. Over four billion tonnes of cement is produced every year using about a billion tonnes of coal. About 7% of world’s coal production is used as feed stock for gasification, liquefaction, production of urea, ammonia and host of other chemicals substituting petroleum based products. Hundred thousands of other industries use coal for heating and process feed stock. Over a million households in the world use coal for cooking and space heating

4. World Proved Coal Reserves (Hard coal and lignite in billion tons) USA: 237 Russia: 157 China: 115 India: 61* Australia: 76 Germany: 41 Indonesia: 28 Kazakhstan: 34 Source: BP Statistical Review 2015 *Official figure for Indi is 131 bt - Coal Controller’s Office Ukraine: 34 South Africa: 30 Columbia: 7 Canada: 7 Poland: 6 Turkey: 9 Others: 50 World : 892

5. Coal Resources of India Type-wise coal resources as on 1 st April 2015 are as under: (In billion tonnes) Type Proved Indicated Inferred Total Prime Coking 4.61 0.70 0 5.31 Medium Coking 13.39 12.11 1.88 27.38 Semi coking 0.48 1.00 0.22 1.70 Coking 18.48 13.81 2.10 34.39 Non coking 113.13 129.43 29.64 272.20 Total 131.61 143.24 31.74 306.59 Source: Provisional Coal Statistics, Coal Controller of India

6. Coal Production (2014) PR China: 3748 USA: 916 India: 668 Australia : 491 Indonesia: 471 Russia: 334 South Africa: 253 Germany : 187 Poland: 137 Source: WCA: coal facts for top ten and country reports for others. Kazakhstan: 116 Ukraine: 103 Canada: 68 Turkey: 58 Greece: 48 UK: 12 Hungary: 10 Others: 403 World: 8023

7. Coal quality requirement for DRI DRI industry expects coal of following specs: Total moisture: 8% max. Inherent moisture: 4% max. Volatile matter: 25-32% Fixed carbon: > 40% Ash: 25% Max Sulphur : < 1% Ash Fusion Temp 1280 C o. Quality parameters of domestic coals are discussed in next slide.

8. Quality parameters of Indian coal VM, Sulphur, and Ash Fusion Temperature of most Indian thermal coals meet these requirements. Ash content of coal can be reduced simple washing or beneficiation. Fixed carbon: FC generally varies from 30% to 45% depending on the ash and moisture content. With lower ash content of washed coal, FC is higher. Moisture: content, both IM and TM need special attention on following counts. ◦ Inherent Moisture (IM) content in thermal coal is 5 to 8%. ◦ Total Moisture in ROM coal is in the range of 7 to 10%. ◦ In washed coal TM will be 2-3% units higher. Therefore, DRI industry has to reconcile with the situation, either use the available coal with marginally higher moisture or opt for pre-drying or use imported coal alone or a blend. This has to be a judicious business decision, guided by economics.

9. Coal Washing Coal washing is simple gravity based physical process. Washing helps in reducing the ash content and fixed carbon, being a derived number, goes up. No doubt, there is some marginal (2 to 3%) increase in moisture content. This can be handled, if required, by pre-drying using flue gases. Established dry washing processes are also available. These are less costly, both in capex and opex. World over majority of coal is washed before dispatch. Despite lower ash in ROM coal, in China > 60% coal is washed, in Australia > 90%, in S. Africa > 70% and in USA > 35 % is washed.

10. Future coal production scenario  In FY 2015-16 total coal production was 638 mt and 184 mt coal was imported.  Total supply was 824; including DRI demand of 23 mt.  For FY 2016-17 following three scenarios have been projected:  885 mt on BAU basis.  893 mt with hydro generation at 2015-16 level.  913 mt CEA has projected for higher power demand.  MoC is reported to have assumed 893 as the realistic figure.  For future years, no official coal production figures for the coming five years are available, except that the government has announced a target of 1408 million tonnes by 2020 with the following break up:  Coal India Ltd. – 908 mt.  Singareni Collieries Company Ltd – 100 mt.  Others – 400 mt.  Total – 1408 mt.

11. Reaching 1.5 BT coal production goal?  Total coal production reaching 1.5 BT is contingent upon factors like….  How fast government opens up the coal sector for commercial mining?  How soon the statutory clearances for mining projects like forestry, land and environment etc are available to the coal companies?  How soon Coal India up grades its technological standards, both equipment and operational skills, of mining, washing / processing, transportation and loading of coal?  How soon three new railway lines planned to evacuate coal from new mines will get commissioned?  A big Question? Will there be demand for so much coal?  This would depend on up-turn in the economic growth particularly for demand of electricity, steel, cement and other industrial products and related services.

12. Recent developments in India Thermal coal :  Mandated upper limit of ash content is 34 % for power plants located beyond 500 KM from supply sources and those located in urban and environmentally sensitive locations.  Coal allocations, linkages etc are given through auction process.  Allocation to government companies is done by nomination.  Government companies are being given coal blocks for commercial mining of coal.  Coal policy is under review for allowing private investments.  Government companies under pressure to increase coal production.  Stress on coal quality.  Coal washing has been incorporated in coal policy. Coking coal :  Efforts are on to increase domestic production of coking coal.  Old coking coal washeries being revamped and new washeries being set up which can process low volatile medium coking coal.

13. COAL after Paris Agreement  Touted as the most ambitious climate change pact to date, the Paris Agreement lays out a plan to curb GHG emissions.  Coal is at the centre stage of global climate change action plan and 195 participating countries are now working on the ways to implement their commitments.  Advanced countries having already reached the pinnacle of growth, are now despising coal despite the fact that:  Over 40% of world’s electricity, over 70% of its steel and over 4 BT of cement are coal dependent, providing billions of people much needed requirements of life.  Coal industry employs millions world wide  Coal is abundantly available; accessible and cheap source of energy.  In countries like India, power plant ash helps in soil conservation by substituting soils / clay based construction materials.  Coal is abundantly available; accessible and cheap source of energy.  Continued…… 

14. COAL after Paris Agreement COAL after Paris Agreement  No doubt the search for alternative, affordable and bulk supply energy sources is now under sharper focus, however, despite Paris commitments, many countries will continue to rely on coal.  Due to heavy import dependence of natural gas and its high price, coal consumption will continue to rise in Japan, South Korea, India and many other countries.  World seems to have reconciled to the fact that COAL just can’t be wished away.  In this context, high- efficiency- low - emission (HELE) coal plants are becoming a viable alternative, especially as nuclear power remains controversial and storage based solar is very costly.  Now time has come to pursue Carbon Capture, Storage and value added utilisation of CO2.  For DRI industry gasification route, subject to the scale economics offers, a low carbon path for production.

15. India’s approach India’s approach In order to secure reliable, adequate and affordable supply of electricity, coal will continue to dominate power generation in future. Besides initiatives listed under INDCs, India has doubled ‘Clean Energy Cess’ on coal from INR 200 to INR 400 (USD 6) to support financing clean technologies and renewable energy. Notwithstanding the fact that India is the 3rd largest emitter of CO 2 but it is the smallest in quantum. India’s low carbon approach inter alia aims at: ◦ Improving the efficiency of coal based power plants and to reduce its carbon footprint. ◦ Use of washed coal has been made mandatory for over power plants located 500 KM distance from supply sources. ◦ All new, large coal-based generating stations have been mandated to use the high efficiency low emission supercritical technology ◦ Introduction of ultra-supercritical technology, as and when commercially available is part of future policy. ◦ Stringent emission standards being contemplated for thermal plants would significantly reduce emissions. To meet COP 21 target, India is increasing its renewable energy based generation capacity by seven fold and will reduce emissions by 2030 by 35 % of 2005 levels, and 40% of its installed capacity will be non- fossil fuels based.

16. Coal is indispensible.. Coal is the keystone of India’s economic development. It fuels over 70 % of electricity generation. Iron & steel, cement and many other industries are heavily coal dependent. India has 306 billion tonnes of prognostic coal resources as estimated by GSI. There are issues about quality, no doubt. Challenge before us is how to harness maximum energy out of coal and more environmentally friendly manner. Here comes the role of Clean Coal Technologies, driven by economics, environmental concerns and energy independence at the same time!

17. Thank you!