The future of coal

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Re-defining the energy basket

Environmental considerations have challenged the use of coal as a fuel in the 21st century. ‘COAL’ WITH NO TOLL’ will it be possible or not? All coal related issues were discussed in the recently concluded (October 5-8) International Pittsburgh Coal Conference 2015. I had the honour to present my keynote address in the plenary session on October 07, 2015 titled: Coal in the Energy Mix of Pakistan’.

Coal has been the historic fuel for humans. The Romans started its use in 2nd century AD. For over 2,000 years it met human needs from heating to cooking. It fuelled the entire Industrial Revolution in Europe. In 1880 the British stretched its use to transportation, power generation, steel making and cement production. Every year 1,000 M ton of Lignite (low grade) coal is mined globally. At 24 percent USA has the largest coal deposits of the world whereas Pakistan is second with 16.1 percent. Pakistan is now moving from a gas dominated energy mix to coal. By some estimates the local use of coal by 2030 will be around 30 percent, for which about 50 M ton of coal will have to be mined annually.

China, USA and India are the largest users of coal. In India National Coal Development Corporation was formed in 1956 to oversee the development of this sector. Environmental degradation has forced China and USA to develop clean coal technologies while pressure is being exercised on India as well. The southern US state of Mississippi has embarked on a very ambitious coal project based on IGCC technology (Integrated Gasification Combined Cycle). It was a great learning experience to visit the site of this plant in Kemper County on October 08, 2015. The plant is expected to produce 582 MW of electric power based on local lignite which will be mined and then gasified above ground using TRIG Gasifier. The gas will then be used to produce Power, Sulphuric Acid and Ammonia. The emitted CO2 will be captured and piped to the Oil exploration companies. Cooling water will be recycled.

Emissions from coal fired power plants are being blamed for the Green House effect resulting in global warming. There is a two pronged approach in the use of coal for power generation thereby making the operations environmentally sustainable. For the existing plants standards have been enforced eg BACT (Best Available Control Technology), MATS (Mercury and Air Toxic Standards), etc, whereas for new plants instead of direct combustion, coal is first gasified and turned into a clean fuel called SNG (Synthetic Natural Gas) which is now competing with LNG (Liquefied Natural Gas) as a clean source of energy.

The Long View Power Plant in West Virginia claims to have the lowest CO2 emissions of any coal-fired plant in the state. It uses pulverised coal, low Nitrogen Oxide (NOx) burners and staged combustion with catalytic reduction for NOx control, hydrated lime injection for acid mist control, > 99 percent removal wet flue gas, desulfurization (FGD) for Sulphur dioxide (SO2) control, substantial mercury control there is no water discharge it is recycled and used.

The gasification approach requires huge capital investment but lower running costs with multiple products. The Kemper Project will indeed decide the future of coal as a 21st century fuel. Mississippi Power, a subsidiary of Southern Company, will operate the plant. It is a very bold initiative of the utility company. The cost of the plant is around US$4.8 billion which will generate 582 MW power, together with NH3 and Sulphuric Acid. The life span of the plant is 40 years with conversion efficiency around 60 percent. The plant will employ approximately 1300 people mostly local and when in full operation will pay $40 million annually in local taxes. It is a fully integrated mouth of mine facility with almost no emissions. The lignite coal being used is very similar to our huge Thar deposit.

The Longview power does burn coal but its combustion technology and emission control systems are state of the art. The plant provides 700 MW of power which ensures social and economic benefits to northern West Virginia and South Western Pennsylvania. It provides 600 skilled and high paying jobs and uses local Northern Appalachian Bituminous coal which is supplied by a conveyor belt.

Pakistan is in the process of re-defining its energy basket. In 1955 the discovery of natural gas at Sui in Baluchistan helped Pakistan in becoming an energy surplus nation. With reserves of 12 TCF it was the largest gas reserve at that time. A comprehensive development plan was developed. Pakistan Petroleum Limited (PPL) owns the deposit; it purifies and compresses the gas which is then supplied to the two distribution companies SNGPL, SSGCL. There is a state of the art distribution network of pipeline spread over 20,000 KMS.

In order to fuel its needs Pakistan needs to develop its large coal reserves. Lakhra is the launching ground where three 50X50X50 MW plants were installed by the Chinese based on local coal deposits. So far the output has been minimal. WAPDA which owns and operates these plants should ensure its operation on a sustainable basis. The development at Thar is also seriously lagging behind with no unified game plan.

In USA there is a Department of Energy (DOE) that ensures affordable and sustainable supply across the country. India has National Coal Development Corporation for a unified development effort. Pakistan has no coal strategy. Currently coal combustion based power plants are being built with Chinese technology and imported coal on odd sites. The USAID has finally offered to evaluate the technology being supplied by our friends while focus of the government remains on power generation at all costs. Coal is poised to play an important role in our fuel mix which must be properly strategised, planned and implemented like the development of natural gas that has so far ensured affordable and sustainable energy for the nation. Adhocism combined with vested interests will not deliver, there has to be a wake-up call.