Part IV Coal gasification - Securing Indian Energy needs

A lot of controversy and difference of opinion prevails with respect to the subject of coal gasification projects in India. The subject has been under consideration for ages, but a consensus on the same is yet to emerge. Nagging doubts on technology, coal quality in India and several integration issues come to mind. The fact remains, that till such time as the crude prices hover above the 70$ band, the issue of Coal gasification as a relevant technology will keep raring its head. Issues:

Technology

1. Gasification technology has matured and China has shown as to how this technology can be explored for the good of the country economically.

2. China though is lucky as it’s coal quality is good with lesser ash content and therefore the gasification technology works.

3. India is not so fortunate as it is bestowed with large quantities of coal similar to China, but the ash content is high between 40-42 % in general, and therefore the technology is restrained. Gasification works when ash content is preferably less than 30% though less than 25% is recommended.

4 Consequently for gasification to be successful either one will have to cater to coal washeries which is an expensive way of ash removal or consider blending of Indian coal with with Pet coke or high quality imported coal. This blending option is the only logical solution.

5. Gasifier technology must operate at high pressures and with bigger sizes of gasifiers, as the technology has been consistently improving and greater confidence on longer lead times between maintenance has been possible. A spare gasifier though continues to be a necessity.

Gasification to chemicals

1. This is an important deduction and what matters is that gasification technology serves its purpose when the syngas produced is optimally utilized for high value add chemicals.

2. Syngas from gasifier could be treated to remove the acid gases with sulfur converted to sulfuric acid or pastils.

3. Syngas gas could be used to produce Ethanol, methanol, DME, Urea and acetic acid. All CO2 to be captively sequestered.

4. All value added hydrocarbons as above would rationalize import bills. The cost of urea production through this route is the lowest.

5. For gasification to be successful consider large capacity of 30-35 million tons of blended coal to be processed at single site.

6. Economics would be helped further if project location is close to an integrated petrochemical complex (IPC)

7. Integration could maximize distillates, displace naphtha from refineries as feedstock to Petrochemical complexes for larger value addition. The DME could be used in refineries to displace LPG as feedstock to IPC.

Gasification on a standalone basis may be difficult to be justified on facility OPEX, CAPEX and reject ash. However, an IPC could change the game as the import of fossil fuels shall reduce. This is a strategic shift which is waiting to happen!

Let the benefits of gasification technologies and sourcing of low ash content coal or coke help obviate a burgeoning problem of the country!