Published on March 2, 2014
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
A Comparison of Power Generation fuel Mix World Pakistan World Power Generation fuel Mix 2008-09 Others 2% Coal 41% Hydro 16% Gas 20% Oil 6% by Tariq Sarwar & Engr. Saima 2
Demand & Supply Gap Projection for Pakistan Project Demand Current Installed Capacity (MW) Gap (MW) Year 2010 24,474 6,577 2015 19,566 MW 36,217 18,320 54,359 36,462 80,566 62,669 113,695 95,798 2020 2025 2030 Source: Pakistan Electric Power Company (PEPCO) Future Energy Demand Supply Gap is Alarming! 3 by 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 by Tariq Sarwar & Engr. Saima 4
Annual Savings in Foreign Exchange from Thar Block II • Cumulative savings of over USD 87 Billion from Block II alone by Tariq Sarwar & Engr. Saima 5
Pakistan’s Coal Reserves Sindh 186.560 billion tonnes Thar 175 billion tonnes Punjab 235 million tonnes Balochistan 217 million tonnes KPK 90 million tonnes Azad Kashmir Thar Thar 9 million tonnes by Tariq Sarwar & Engr. Saima 6
Nation Appreciates the Spirit (unity is the Strength) by Tariq Sarwar & Engr. Saima 7
by Tariq Sarwar & Engr. Saima 8
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. by Tariq Sarwar & Engr. Saima 9
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. by Tariq Sarwar & Engr. Saima 10
by Tariq Sarwar & Engr. Saima 11
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. by Tariq Sarwar & Engr. Saima 12
Classification of Coal by Tariq Sarwar & Engr. Saima 13
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 ashproducing 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. by Tariq Sarwar & Engr. Saima 14
Coal Quality Characteristics (B = bituminous, S = sub-bituminous, L = lignite) ICF Coal Grade BA Heat Content (MMBtu/ton) SO2 Content (lbs/MMBtu) Bituminous 22.70 0.69 Mercury Content (lbs/TBtu) 3.44 7.09 Chlorine Content (lbs/TBtu) 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 Coal Rank by Tariq Sarwar & Engr. Saima Ash Content (lbs/MMBtu) 15
SO2 Grades and Ranges SO2 Grade SO2 Content Range (lbs./MMBtu) A B D E G H 0.00 – 0.80 0.81 – 1.20 1.21 – 1.66 1.67 – 3.34 3.35 – 5.00 > 5.00 by Tariq Sarwar & Engr. Saima 16
MINING METHODS UNDERGROUND MINING There are two main methods of underground mining: A- room-and-pillar mining B- 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. 1- by Tariq Sarwar & Engr. Saima 17
ROOM AND PILLAR MINING In 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. by Tariq Sarwar & Engr. Saima 18
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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. by Tariq Sarwar & Engr. Saima 20
Pakistan Analysis in terms of Coal by Tariq Sarwar & Engr. Saima 21
COAL RESERVES IN PAKISTAN & AZAD KASHMIR by Tariq Sarwar & Engr. Saima 22
COAL RESERVES IN BALOCHISTAN by Tariq Sarwar & Engr. Saima 23
COAL RESERVES SINDH by Tariq Sarwar & Engr. Saima 24
COAL RESERVES PUNJAB by Tariq Sarwar & Engr. Saima 25
COAL RESERVES KPK by Tariq Sarwar & Engr. Saima 26
COAL RESERVES AZAD KASHMIR by Tariq Sarwar & Engr. Saima 27
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:- by Tariq Sarwar & Engr. Saima 28
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. by Tariq Sarwar & Engr. Saima 29
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. by Tariq Sarwar & Engr. Saima 30
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. by Tariq Sarwar & Engr. Saima 31
TYPES & USES OF COAL • Low Rank Coals 47% • (High Moisture Content of Coal) • Hard Coals 53 % • Lignite 17 % ( Used for Power Generation) 1- Bituminous • Sub Bituminus 30 % (Used for Power Generation, Cement Manufacture, Industrial Uses) • (Carbon/Energy Content of Coal) 52 % A- Thermal Steam Cool (Used for Power Generation, Cement Manufacture, Industrial Uses) B- Metallurgical Coking Cool Used for Manufacture of Iron and Steel 2- Anthracite .1 % • Used for Domestic, Industrial and For Smokeless Fuel by Tariq Sarwar & Engr. Saima 32
Uses of Lignite Lignite Coal Combustion (Steam) Electricity (Steam Turbines) Ash Tar Naphta Phenol Catechols Carbon Dioxide Dephenolized Cresylic Acid CH4 CO CO2 Gasification H2 H2 H2S Crude Oil Refinery Coal to Liquid Fisher Tropsch Synthesis NH3 Ammonia Fertilizer Explosives Source: Syngas and Coal Technology, R & D, SASOL – Mr Johannes Van Heerdeen by Tariq Sarwar & Engr. Saima 33 Ethanol Jet Fuel Diesel Petrol Paraffin Chemicals (Ethylene Polymers
Coal in Electricity Generation • • • • • • • • • • • • South Africa Poland China Australia Kazakhstan India Israel Czech Rep Morocco Greece USA Germany 41% 93% 87% 79% 78% 75% 68% 58% 51% 51% 54% 45% by Tariq Sarwar & Engr. Saima 34
How is Coal Converted to Electricity? by Tariq Sarwar & Engr. Saima 35
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). by Tariq Sarwar & Engr. Saima 36
Neyveli Lignite Corporation Limited India • Neyveli Lignite Corporation Limited (NLC) is a governmentowned 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) by Tariq Sarwar & Engr. Saima 37
Pakistan Coal vs India Coal Thar 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 3.0 by 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 by Tariq Sarwar & Engr. Saima 39
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. by Tariq Sarwar & Engr. Saima 40
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