Assessment of Clean Power Generation Technologies using Low Calorific Value Coal in SAARC Region SAARC Energy Centre December 2019 Table of Contents LIST OF TABLES ................................................................................................................................ III LIST OF FIGURES ............................................................................................................................... V LIST OF ABBREVIATIONS ............................................................................................................... VIII FORWARD ........................................................................................................................................ XIII EXECUTIVE SUMMARY ................................................................................................................... XIV 1. INTRODUCTION ......................................................................................................................... 2 1.1. BACKGROUND .......................................................................................................................... 2 1.2. SAARC COAL RESERVES & SHARE OF LOW CALORIFIC VALUE COAL ....................................... 15 1.2.1. Classification of Coal ........................................................................................................ 15 1.2.2. Coal Reserves - Region Wise Spread of Coal in SAARC Region ..................................... 16 1.2.3. Definition of “low calorific value” coal – KPIs and implications .......................................... 24 1.2.4. Share of Low CV Coal in the total consumption of coal .................................................... 28 1.3. PURPOSE AND OBJECTIVE OF STUDY ...................................................................................... 30 1.3.1. Purpose of Study .............................................................................................................. 30 1.3.2. Objective of Study ............................................................................................................. 30 1.4. SCOPE OF THE STUDY ............................................................................................................ 30 1.5. METHODOLOGY OF STUDY ...................................................................................................... 31 1.6. LIMITATION(S) OF STUDY ........................................................................................................ 32 2. LOW CALORIFIC VALUE COAL .............................................................................................. 34 2.1. GROWING IMPORTANCE OF LOW CALORIFIC VALUE COAL ......................................................... 34 2.2. SUCCESSFUL USE OF LOW CALORIFIC VALUE COAL.................................................................. 34 2.3. LOW CV COAL PRODUCTION AND CONSUMPTION ..................................................................... 35 2.4. ADVANTAGES AND DISADVANTAGES OF USING LOW QUALITY COALS ......................................... 35 2.5. COMPETITION WITH OTHER CONSUMING SECTORS ................................................................... 36 2.5.1. Consumption of Anthracite / Bituminous for Coking Purposes.......................................... 36 2.5.2. Other Industries Depending on Coking Coal..................................................................... 39 2.5.3. Implications of consumption of Medium/High CV coal on industries ................................. 40 2.6. DEPENDENCE ON LCV COAL TO MEET THE ENERGY REQUIREMENTS OF THE SAARC COUNTRIES 41 3. CURRENT TECHNOLOGIES FOR CCTS TO UTILIZE LCV COALS ...................................... 44 3.1. TECHNOLOGIES AND FEATURES OF COAL BASED TPP: ............................................................. 44 3.1.1. Subcritical Power Plants ................................................................................................... 44 3.1.2. Supercritical Power Plants ................................................................................................ 46 3.1.3. Ultra-supercritical Power Plants ........................................................................................ 47 3.1.4. Advanced Ultra-supercritical Power Plants ....................................................................... 49 3.1.5. Integrated Gasification Combined Cycle (IGCC) Power Plants ........................................ 51 3.2. CLASSIFICATION OF CLEAN TECHNOLOGIES: ............................................................................ 55 3.2.1. Pre-Combustion Clean Coal Technologies ....................................................................... 56 3.2.2. During Combustion Clean Coal Technologies .................................................................. 63 3.2.3. Post-combustion clean coal technologies ......................................................................... 67 3.2.4. Conversion Techniques .................................................................................................... 73 3.3. COMPARING THE ECONOMIC VALUE OF DIFFERENT SOURCES OF POWER GENERATION.............. 74 3.3.1. Energy Return on Investment ........................................................................................... 74 3.3.2. EROI Computation for various generation sources ........................................................... 75 3.4. FINANCIAL MODELS FOR ADOPTION OF CLEAN COAL POWER GENERATION TECHNOLOGIES ........ 76 3.5. PARAMETERS TO ASSESS SUITABILITY OF SUCH TECHNOLOGIES TO SAARC COUNTRIES .......... 77 4. INTERNATIONAL SUCCESSFUL EXPERIENCES .................................................................. 79 4.1. SUCCESSFUL CLEAN POWER GENERATION TECHNOLOGIES USING LCV COALS ......................... 79 i 4.1.1. Pre-combustion Clean Coal Technologies ........................................................................ 79 4.1.2. ‘During Combustion’ Clean Coal Technologies................................................................. 80 4.2. PREVAILING POLICIES GOVERNING LCV COAL UTILIZATION IN DEVELOPED ECONOMIES ............. 85 4.2.1. The United States ............................................................................................................. 85 4.2.2. Australia ............................................................................................................................ 88 4.2.3. China ................................................................................................................................ 89 4.3. GUIDELINES OF INTERNATIONAL ENVIRONMENTAL ORGANIZATIONS ON UTILIZING LCV COAL ...... 90 4.3.1. United Nations Framework Convention on Climate Change (UNFCCC) .......................... 90 4.3.2. The European Union ......................................................................................................... 91 5. SAARC COUNTRY OUTLOOK ON NEED FOR CCTS USING LCV COAL .......................... 95 5.1. POTENTIAL OF CLEAN COAL TECHNOLOGIES ............................................................................ 95 5.2. CURRENT DEPLOYMENT OF COAL BASED THERMAL BASED ON CLEAN COAL TECHNOLOGIES ....100 5.3. UPCOMING THERMAL POWER PLANTS IN THE SAARC REGIONS ..............................................102 5.4. ENVIRONMENTAL REGULATION ...............................................................................................106 5.5. GAP ASSESSMENT AND PROPOSED MITIGATIONS IN DEPLOYMENT OF CCTS.............................109 6. KEY RECOMMENDATIONS AND WAY FORWARD ..............................................................117 6.1. RECOMMENDATIONS .............................................................................................................117 6.2. WAY FORWARD ....................................................................................................................119 7. BIBLIOGRAPHY ......................................................................................................................123 ii List of Tables Table 1: Installed Capacity (MW) as on FY-2019 ...................................................................... 2 Table 2: Details of Domestic Energy Consumption ................................................................... 5 Table 3: Summary of Coal Availability in SAARC Countries ................................................... 10 Table 4: Details of Coal Fields of Bangladesh......................................................................... 11 Table 5: Grades of Non-Coking Coal ...................................................................................... 12 Table 6: Status of Coal Resources in India During Last 5 years (Billion Tonne) ..................... 13 Table 7: Lignite Reserves in India (Million Tonne) as on FY-2018 .......................................... 13 Table 8: Quality of Coal Reserves in Pakistan ........................................................................ 14 Table 9: Coal Resources in Bangladesh ................................................................................. 18 Table 10: Characteristics of the Coal in Three Coal Fields ....................................................... 18 Table 11: Indian Coal Reserves Based on Formation (million tonne) ....................................... 20 Table 12: Different Types of Coal Resources (million tonne) .................................................... 21 Table 13: Quality of Coal in Nepal ............................................................................................