INDIAN COAL

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Context

• A recent report by the Organized Crime and Corruption Reporting Project (OCCRP), has brought forth new documents alleging that in 2014, the Adani Group misrepresented the quality of coal imported from Indonesia.
• The report claims that the company labelled 'low-grade' coal as 'high-quality' and inflated its value before selling it to Tamil Nadu's power generation company, TANGEDCO (Tamil Nadu Generation and Distribution Company).

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What is 'High Grade' and 'Low Grade' Coal?

• The terms 'high grade' and 'low grade' coal are relative and depend on the intended use and processing methods.
• The classification of coal is primarily determined by its Gross Calorific Value (GCV), which measures the amount of heat or energy produced when the coal is burned.
• Coal, a fossil fuel, comprises carbon, ash, moisture, and other impurities.
• The quality or 'grade' of coal increases with the amount of available carbon in it.

Grades of Coal

• Coal is graded based on its calorific value, which indicates the energy output per kilogram when burned. According to the Coal Ministry, there are 17 grades of coal:
• Grade 1 (Top Quality): Yields more than 7,000 kcal/kg.
• Lowest Grade: Produces between 2,200-2,500 kcal/kg.

However, calorific value alone does not determine the suitability of coal for specific applications.

Types of Coal for Different Uses

1. Coking Coal: Essential for producing coke, a critical component in steelmaking. Coking coal requires minimal ash content to ensure efficient production of high-quality coke.
2. Non-Coking Coal: Despite having higher ash content, non-coking coal can generate sufficient heat for running boilers and turbines, making it suitable for thermal power plants.

Indian Coal

Indian coal is characterized by several distinct properties that differentiate it from imported coal. These characteristics significantly impact its utilization in power generation and other industries. Here are the key characteristics of Indian coal:

High Ash Content:

• Indian coal typically contains more than 40% ash, compared to less than 10% in imported coal.
• This high ash content leads to more residue after combustion, necessitating more extensive ash handling and disposal systems.
• Higher ash content also contributes to increased particulate matter emissions when burnt, contributing to air pollution.

Low Calorific Value (GCV):

• The Gross Calorific Value (GCV) of Indian thermal coal ranges from 3,500 to 4,000 kcal/kg.
• In contrast, imported thermal coals generally have a GCV of over 6,000 kcal/kg.
• Lower calorific value means that more coal needs to be burnt to produce the same amount of energy, leading to higher consumption rates and increased operational costs.

Pollutant Emissions:

• Burning high-ash Indian coal results in higher emissions of particulate matter, nitrogen oxides (NOx), and sulfur dioxide (SO2).
• These pollutants have significant environmental and health impacts, contributing to air quality degradation and respiratory problems.

Moisture Content:

• Indian coal tends to have higher moisture content compared to imported coal.
• High moisture content reduces the efficiency of combustion and increases the energy required for drying the coal before it can be used effectively.

Price Regulation:

• Since 1954, the Indian government has controlled coal prices to disincentivize the use of high-grade coking coal for power generation.
• This policy aims to preserve high-grade coking coal for the steel industry, which requires coal with specific properties for efficient production processes.

Blending Recommendations:

• To balance the need for coal production, power generation, and pollution control, the government has recommended the use of imported coal.
• The Central Electricity Authority (CEA) in 2012 recommended that Indian power plants blend 10-15% imported coal with domestic coal.
• Blending imported coal with lower ash and moisture content can improve the overall efficiency of combustion and reduce emissions.

Clean Coal

• Clean coal refers to technologies and processes that aim to reduce the environmental impact of coal extraction, processing, and usage, primarily by increasing its carbon content while reducing ash and moisture content.
• The concept encompasses a range of methods designed to make coal a more environmentally friendly energy source. Here are the key methods for achieving clean coal:

Coal Washing:

• Coal washing involves processing coal to remove impurities like ash and moistu
• Washing plants use various techniques, such as blowers or baths, to separate fine and coarse ash from the coal.
• This process increases the carbon content of the coal, making it burn more efficiently and cleanly.
• Despite its benefits, coal washing is costly and adds to the overall expense of power generation.

Coal Gasification:

• Coal gasification converts coal into a gas before it is burned, bypassing the need for direct combustion.
• An Integrated Gasification Combined Cycle (IGCC) system is often used in this process.
• In IGCC, coal reacts with steam and hot pressurized air or oxygen, breaking apart carbon molecules to produce syngas (a mixture of carbon monoxide, hydrogen, CO2, and water vapor).
• The syngas is cleaned to remove impurities and then burned in a gas turbine to generate electricity.
• This process also produces steam, which can be used to generate additional electricity, thereby increasing the overall efficiency of the coal used.

Advantages of Clean Coal Technologies:

• Reduced Emissions: By removing ash and moisture, and through gasification, clean coal technologies can significantly reduce emissions of particulate matter, sulfur dioxide, nitrogen oxides, and other pollutants.
• Improved Efficiency: Processes like IGCC can enhance the efficiency of coal-fired power plants by producing both electricity and steam.
• Lower Environmental Impact: Clean coal technologies can mitigate some of the environmental damage associated with traditional coal usage, including air and water pollution.

Challenges of Clean Coal Technologies:

• High Costs: The equipment and processes involved in coal washing and gasification are expensive, leading to higher costs for power generation.
• Complexity: Implementing clean coal technologies requires sophisticated infrastructure and maintenance, making it a complex undertaking.
• Economic Viability: The higher costs associated with clean coal can be a barrier to its widespread adoption, especially in regions where cheaper alternatives are available.

Future of coal in India

• The future of coal in India is shaped by a dynamic interplay between the country's growing energy demands, its commitments to reducing greenhouse gas emissions, and the increasing adoption of renewable energy sources. Here are key points outlining the current trends and the potential future trajectory of coal in India:

Current Scenario

Production and Dependence:

• In 2023-24, India produced 997 million tonnes of coal, marking an 11% growth over the previous year.
• State-owned Coal India Ltd and its subsidiaries are the primary producers.
• As of March 2024, India produced 261 million tonnes of coal, with 58 million tonnes being coking coal.
• Despite the push towards renewable energy, coal remains the backbone of India's energy economy, fulfilling a significant portion of its power generation needs.

Renewable Energy Surge:

• For the first time in early 2024, renewable energy accounted for 71.5% of the record 13.6 GW of power generation capacity added in India.
• Coal’s share of total power capacity fell below 50%, a significant milestone reflecting the increasing role of renewables.

Future Prospects

Balancing Act:

• India faces the challenge of balancing its rapid economic growth and energy needs with environmental sustainability.
• While coal will continue to play a crucial role in the near term, especially in industries like steel production which require coking coal, the transition towards cleaner energy sources is accelerating.

Policy and Investment:

• Government policies are gradually shifting towards promoting renewable energy.
• Initiatives like the National Solar Mission and incentives for wind and other renewables are driving this change.
• Investments in clean coal technologies, such as coal washing and gasification, are also being explored to reduce the environmental impact of coal usage.

Technological Advancements:

• The adoption of clean coal technologies, including Integrated Gasification Combined Cycle (IGCC) systems, can make coal usage more efficient and environmentally friendly.
• Innovations in carbon capture and storage (CCS) may further mitigate the environmental impact of coal-fired power plants.

Global Trends and Commitments:

• India's international commitments to reduce carbon emissions, as part of the Paris Agreement and other global initiatives, are driving a gradual shift away from coal.
• Increasing global pressure and the falling costs of renewable energy technologies are making renewables more competitive compared to coal.

Economic Considerations:

• The economics of energy production are shifting as the cost of renewable energy continues to decrease, making it more attractive for new capacity additions.
• The potential for job creation in the renewable energy sector may also influence the transition, as the coal industry faces challenges related to mechanization and declining global demand.

Conclusion

• Coal will likely remain a significant part of India’s energy mix in the near future due to its abundant domestic availability and the infrastructure already in place.
• However, the trend towards increasing renewable energy capacity is clear, driven by both economic factors and environmental imperatives.
• The future of coal in India will thus be characterized by a gradual but steady transition towards cleaner energy sources, supported by policy shifts, technological advancements, and changing market dynamics.

SOURCE: THE HINDU