Thar Coal, A Black Treasure OF Pakistan ( Series of Presentations, (No. 2/17)

BLACK TREASURE OF PAKISTAN THAR COAL ( A SURE BRIGHT FUTURE )

SOLUTIONS FOR ENERGY CRISES OF PAKISTAN SERIES PRESENTATION No. 2 out of 17 Presentations

BY

Malik Tariq Sarwar Awan, Food Technologist,Chairman Research Wing, Pakistan Flour Mills Association,

Editor, Wheat Milling News, PFMA .Member Pakistan Society of Food Scientists and Technologists

& Engineer Saima Khoro,

BE Electrical, MS Engineering Management.Trans World International

by Tariq Sarwar & Engr. Saima 1

World Power Generation fuel Mix 2008-09

World Pakistan

A Comparison of Power Generation fuel Mix

Hydro 16%

Gas 20%

Oil 6%

Coal 41%

Others 2%


Demand & Supply Gap Projection for Pakistan

Current Installed Capacity (MW)Project Demand

Gap (MW)Year MW

19,566

2010 24,474 6,577

2015 36,217 18,320

2020 54,359 36,462

2025 80,566 62,669

2030 113,695 95,798

Future Energy Demand Supply Gap is Alarming!Source: Pakistan Electric Power Company (PEPCO)

3by Tariq Sarwar & Engr. Saima 3

Benefit to Economy – Reduction in Power Generation Cost

• NPV of savings from Block II alone is over Rs. 3.2 Trillion


Annual Savings in Foreign Exchange from Thar Block II

• Cumulative savings of over USD 87 Billion from Block II alone

• Net Present Value of USD 31 B discounted at the rate of inflation (US CPI: 3%)



Pakistan’s Coal Reserves

SindhSindh186.560 billion tonnesThar 175 billion tonnes

PunjabPunjab235 million tonnes

BaBalochistanlochistan217 million tonnes

KPKKPK90 million tonnes

Azad KashmirAzad Kashmir9 million tonnes Thar

Thar

Nation Appreciates the Spirit (unity is the Strength)


GLOBAL COAL BASED POWER GENERATION SCENARIO

• Coal is one of the world‘s most important sources of energy, fuelling almost 40% of electricity worldwide. In many countries, this figure is much higher:

• Poland relies on coal for over 94% of its electricity; • South Africa for 92%; • China for 77%; • Australia for 76%. • Coal has been the world‘s fastest growing energy

source in recent years — faster than gas, oil, nuclear, hydro and renewable sources.


THAR COAL FIELD• The Thar coalfield is located in Thar Desert, Tharparkar

District of Sindh province in Pakistan. The deposits - 6th largest coal reserves in the world, were discovered in 1991 by Geological Survey of Pakistan (GSP) and the United State Agency for International Development.

• Pakistan has emerged as one of the leading countries - seventh in the list of top 20 countries of the world after the discovery of huge lignite coal resources in Sindh. The economic coal deposits of Pakistan are restricted to Paleocene and Eocene rock sequences. It is one of the world’s largest lignite deposits discovered by GSP in 90’s, spread over more than 9,000 km2. comprise around 175 billion tones sufficient to meet the country’s fuel requirements for centuries.


Background Primer on Coal:

• Coal consists of the fossilized remains of ancient plant life that have been transformed through metamorphosis into carbon-rich mineral deposits. Coal mineral classification considers type, rank, and grade. The plant life that coal originated from determines its type, and the degree of metamorphosis determines its rank, grade, and the amount of inorganic mineral matter present. Qualities such as moisture, carbon, sulfur, and ash content contribute to a coal’s heating value as a fuel (measured in British thermal units Btu.


Classification of Coal


The Coal Cycle• After being mined, coal goes through a cleaning

prep facility, where it is cleaned and separated by grades. Cleaning upgrades the quality of the coal by removing some of the impurities such as rock, clay, and other ash-producing material. Utilities burn pulverized coal to produce high-pressure steam that powers an electric generator. As coal is burned, emissions are produced that contain sulfur dioxide, nitrogen oxides, carbon dioxide, particulate matter, ash, and mercury. A discussion of coal combustion emissions is found.


Coal Quality Characteristics

ICF Coal

Grade Coal Rank

Heat Content (MMBtu/ton)

SO2 Content (lbs/MMBtu)

Mercury Content

(lbs/TBtu)

Ash Content (lbs/MMBtu)

Chlorine Content

(lbs/TBtu)

BA Bituminous 22.70 0.69 3.44 7.09 25,874

BB Bituminous 24.64 1.06 5.26 7.82 62,248

BD Bituminous 24.78 1.40 7.00 8.30 91,617

BE Bituminous 25.06 2.34 9.28 7.49 90,230

BG Bituminous 24.27 4.24 9.43 7.90 76,112

BH Bituminous 23.14 5.87 7.87 9.35 71,963

SA Subbituminous 17.63 0.58 4.99 5.47 9,138

SB Subbituminous 17.58 0.94 5.97 7.04 12,995

SD Subbituminous 17.26 1.44 5.44 11.83 7,782

SE Subbituminous 18.19 2.23 7.45 15.97 29,803

LD Lignite 13.63 1.49 7.65 11.84 13,656

LE Lignite 13.32 2.78 12.51 21.86 17,952

LG Lignite 13.14 3.95 15.29 24.96 32,931


(B = bituminous, S = sub-bituminous, L = lignite)

SO2 Grades and Ranges

SO2 Grade SO2 Content Range

(lbs./MMBtu)

A 0.00 – 0.80 B 0.81 – 1.20 D 1.21 – 1.66 E 1.67 – 3.34 G 3.35 – 5.00 H > 5.00


MINING METHODS 1- UNDERGROUND MINING

There are two main methods of underground mining: A- room-and-pillar miningB- long wall mining. • The main advantage of room–and-pillar mining over longwall mining is

that it allows coal production to start much more quickly, using mobile machinery that costs under $5 million (longwall mining machinery can cost $50 million). The choice of mining technique is site specific but always based on economic considerations; differences even within a single mine can lead to both methods being used.

2- SURFACE MINING or open cut mining • Surface mining – also known as opencast or opencut mining – is only

economic when the coal seam is near the surface. This method recovers a higher proportion of the coal deposit than underground mining as all coal seams are exploited – 90% or more of the coal can be recovered.


ROOM AND PILLAR MININGIn room-and-pillar mining, coal deposits are mined by cutting a network of ‘rooms’ into the coal seam and leaving behind ‘pillars’ of coal to support the roof of the mine. These pillars can be up to 40% of the total coal in the seam – although this coal can sometimes be recovered at a later stage. This can be achieved in what is known as ‘retreat mining’, where coal is mined from the pillars as workers retreat. The roof is then allowed to collapse and the mine is abandoned.


LONG WALL MINING• Long wall mining involves the full extraction of coal

from a section of the seam or ‘face’ using mechanical shearers. A long wall face requires careful planning to ensure favorable geology exists throughout the section before development work begins. The coal ‘face’ can vary in length from 100-350m. Self advancing, hydraulically-powered supports temporarily hold up the roof while coal is extracted. When coal has been extracted from the area, the roof is allowed to collapse. Over 75% of the coal in the deposit can be extracted from panels of coal that can extend 3km through the coal seam.


Pakistan Analysis in terms of Coal


COAL RESERVES IN PAKISTAN & AZAD KASHMIR


COAL RESERVES IN BALOCHISTAN


COAL RESERVES SINDH


COAL RESERVES PUNJAB


COAL RESERVES KPK


COAL RESERVES AZAD KASHMIR


Efforts & Achievements of Government of Sindh for Thar

• The road map for the development of Pakistan coal reserve‘ needs to be built on recognizing coal as an integral part of future energy mix and devising strategy to develop it as ‗core resource‘ in energy mix. This approach requires an enabling environment, which can be achieved by investing exclusively in building physical and institutional infrastructure. The government of Sindh has taken many initiatives and following benchmarks have been achieved to provide enabling environment:-


i. Thar Coal Projects declared as Projects of National Importance and development of Thar coal as a matter of national security.

ii. Creation of one window organization viz. TCEB having both federal and provincial governments sit together to facilitate collective decisions making regarding Thar Coal Development.

iii. Provision of Fiscal Incentive Package for attracting FDI to Thar-Thar Coal & Energy Board and ECC approved a comprehensive Incentive package.

iv. There is no customs duty on Coal Mining Machinery and Equipment and 20.5% IRR has been guaranteed by ECC to those projects, which achieve financial close before December 2014. v. Promotion of Joint Venture Partnership in Coal Development has been introduced and bold initiative of entering into a unique joint venture agreement, with one of the largest industrial groups of the country, viz Engro Group for Thar Coal Development is one of the key proactive steps taken by the Government of Sindh.


vi. Detailed exploration and geological assessment of 12 Blocks measuring 1483 Sq Km with total lignite resources of more than 20 billion tons sufficient to meet power requirement of the country for next 100 years.

vii. Construction of Thar Airport to facilitate investors-Thar Coalfield is located 410 km away from nearest airport. Air port Construction works are in full swing and by December 2013 Thar Airport will be available to facilitate travel of local and foreign investors to coalfields and for transportation of light machinery and equipment.

viii. Improvement of Road Network leading to Thar Coal field for movement of heavy Mining Machinery- Government of Sindh has initiated the project for Improvement & Widening of Road Network from Seaport Karachi to Thar Coalfield Area via Thatta, Badin, up to Wango (Phase-I 200 KM) and Wango More to Thar Coalfield Area (Phase-II 134.86 km). The Project will be completed in 2014.


ix. Construction and successful operation of Reverse Osmosis Plants in Thar for supply of potable water to people of Thar Region-the Government of Sindh as part of infrastructure development undertook the task for providing long-term and economical solution of potable water to the inhabitants living near coalfield area of Thar Desert. Brackish/saline groundwater converted into potable water through sophisticated Reverse Osmosis (water desalination) technology. Government of Sindh has installed 110 RO plants in Tharparkar, Thatta, Badin, Umarkot areas catering the population of approx 850000 in four districts. x. Construction of Thar Lodge-Keeping in view the requirements of decent accommodation for investors near Coal Mining site at Islamkot, the Government of Sindh has constructed a high standard accommodation facility by the name of Thar Lodge. Thar Lodge is consisting of five chalets each having two bed rooms and a main building having 10 rooms, drawing/dining hall, kitchen, dormitories, lobby, porch, mosque, garage and servant quarters.


TYPES & USES OF COAL• Low Rank Coals 47% • (High Moisture Content of Coal)

• Lignite 17 %( Used for Power Generation)

• Sub Bituminus 30 %(Used for Power Generation, Cement Manufacture, Industrial Uses)

• Hard Coals 53 %• (Carbon/Energy Content of Coal)

1- Bituminous 52 %

A- Thermal Steam Cool (Used for Power Generation, Cement

Manufacture, Industrial Uses)

B- Metallurgical Coking CoolUsed for Manufacture of Iron and Steel

2- Anthracite .1 % • Used for Domestic, Industrial and For

Smokeless Fuel


Lignite

Coal

Combustion (Steam)

Gasification

AshTarNaphtaPhenolCatecholsCarbon DioxideDephenolized Cresylic Acid

CH4

CO2

H2

H2S

NH3

CO

H2

EthanolJet FuelDieselPetrolParaffinChemicals (Ethylene Polymers

AmmoniaFertilizerExplosives

Fisher Tropsch Synthesis

Crude Oil - Refinery

Electricity (Steam Turbines)

Coal to Liquid

Source: Syngas and Coal Technology, R & D, SASOL – Mr Johannes Van Heerdeen

Uses of LigniteUses of Lignite


Coal in Electricity Generation

• South Africa 93%• Poland 87%• China 79%• Australia 78%• Kazakhstan 75%• India 68%• Israel 58%• Czech Rep 51%• Morocco 51%• Greece 54%• USA 45%• Germany 41%


How is Coal Converted to Electricity?


Lignite Based Power Generation in India• Lignite mining all over the world is being carried out under

complex hydro geological and geotechnical environments causing a range of problems affecting the production method and utilization of run-off mine coal. There are many practical examples of large lignite deposit developments in the world. Neyvelli lignite deposit in South India is among those with similar geological conditions at Thar Pakistan. There are no technical difficulties in developing this lignite field and producing lignite from a deep place.

• The lignite seam in Neyvelli lignite deposit was first exposed in August 1961, and regular mining of lignite commenced in May 1962. Neyvelli Lignite Corporation Ltd. is producing approximately 2.4 million tons of lignite from four open cast pits, and feeds the lignite to mine-mouth power plants (Total capacity 2740 MW).


Neyveli Lignite Corporation Limited India • Neyveli Lignite Corporation Limited (NLC) is a government-

owned lignite mining and power generating company in India. NLC operates the largest open-pit lignite mines in India, presently mining 24 MT of lignite and has an installed capacity of 2,740 MW of electricity. It also supplies a large quantity of sweet water to Chennai from the artesian aquifers in the lignite mines. On 11 April 2011, it joined the elite group of Navratna Companies. In 1956 NLC was formed as a Corporate body.

• • Founded1956• HeadquartersChennai, India• Key people Shri. B Surender Mohan (Chairman & MD)• Revenue 48.66 billion(US$780 million)(2011–2012)• Net income 14.11 billion(US$230 million)(2011–2012)

Employees 18,434 (2011)


Pakistan Coal vs India CoalThar Lignite Coal field

Pakistan

Neyveli Lignite deposits

India

Overburden Condition Upper strata dune sand 14-93 m (av 50 m) sand slit clay

Lower strata Alluvial deposit 11-209 m (av 150 m) sand stone siltstone

Cuddalore sandstone 45 m to 103 m (Lateric-clayey very hard sand stone)

Annual Production Planned

5.0 million Tons (Bl. 1)

6.5 Million Tons (Bl. 2)

2.4 Million Tons (Bl. 6)

Mine 1 10.5 Million Tons,

Mine 1-A 3.0 Million Tons,

Mine 2 15.0 Million Tons,

Barsinsar 2.1 Million Tons

Strip Ratio 6.6 :1 (m3:t) 7.0 :1 (m3:t)

Quality Control Rank Lignite A to Lignite B Lignite (no coal rank data)

Moisture 44.77% 53.0 %

Volatile Matter 23.42 % 24.0 %

Fixed Carbon 16.66 % 20.0 %

Sulphur 1.16 % 0.6 %

Heating Value (3208 Kcal/kg 2400 Kcal/kg

Ash 6.24 3.0by Tariq Sarwar & Engr. Saima 38

Status of Mining & Power Projects at Thar Coal

THAR COAL BLOCKS STATUS TIMELINES

BLOCK 1

Global Mining Company of China

Open cast mining of 10 mtpa 900 MW

Coal Supply to Local Thermal Plants and Cement Industry

Bankable Feasibility Completed

Planned Coal Prod. by 2015-2016

Power Generation by 2017-2018

BLOCK 2

Sindh Engro Coal Mining Company

(JV 51 % GoS, 49 % Engro)

Open cast mining of 6.5 mtpa 600 MW

Bankable Feasibility completed 2010

Sovereign Guarantees by Goop for mining approved to facilitate by Chinese financial institutions

Ground Breaking held 14 March, 2013

Over burden removal on Jan 2014

Project plans to reach 3.5 years 2017

BLOCK 5

Under ground coal gasification Project

And Power plant Planned

36 bore holes have been drilled

Test bum done in Dec 2011 & Syn Gas being produced

Power plant of 8-10 MW is being installed

BLOCK 6

Oracle Coal Fields PLC UK

Open cast mine of 2.2 mtpa

Detailed feasibility completed April 2011, Start of mine development 2014

Agreement with KESC for 300 MW


Thanks a Lot• It’s a Series of Presentations and Comprehensive

papers will be later printed in the shape for a Book which will include INTEGRATED ENERGY MODEL FOR PAKISTAN and WORKABLE SOLUTIONS TO ENERGY CRISES IN PAKISTAN.

• Best Regards From:MALIK TARIQ SARWAR AWAN and ENGR. SAIMA KHORO. Hope our Efforts for Betterment of Pakistan Will be appreciated by Our Viewers.


Thar Coal, A Black Treasure OF Pakistan ( Series of Presentations, (No. 2/17)

Technology

Transcript of Thar Coal, A Black Treasure OF Pakistan ( Series of Presentations, (No. 2/17)