Development of Coal Based Non-conventional Energy Resources

1. Development of Coal Based Non-conventional Energy Resources B N Prasad, Advisor, CBM Central Mine Planning & Design Institute, Ranchi, India

3. TOPICS FOR DISCUSSION

4. Global Energy Scenario • One of the major challenge before the world is to meet ever rising demand of energy. • The focus is on development of such resources which is environment friendly and economically sustainable. • In this quest, development of clean resources like CBM, CMM, UCG etc. have gained importance in recent past. • These resources are now considered as a viable source of energy in many coal producing countries/countries.

5. Global Energy Scenario …. • Globally: • Fossil fuel meets over 80% of the energy needs • Coal meets over 25% of the energy requirement • Studies indicate that this position is likely to continue • There is a focus on development of Coal based energy resources like CBM, CMM, UCG etc as they are clean source of energy

6. Global Energy Scenario ….

7. Global Energy Scenario…

8. Future Energy Trend • New Energy forms viz. Shale Gas, Tight Oil and Renewables will account for a significant share of growth in global supply • These sources contribute 43% of the increment in energy production to 2035 • The growth of new energy forms is enabled by the development of technology and large-scale investments • Source: BP Energy Outlook 2035

9. Energy Scenario: SAARC Countries • The SAARC region is home to 23% of the total world population, and a large proportion of the population is living below the poverty line. • There is a wide variation in the energy resource: hydropower, natural gas and coal resources. • The region is well endowed in other renewable energy sources such as biomass, wind, and solar with biomass meeting a large portion of household energy demand across the region. • The energy demand in the region is expected to grow at an annual rate of 5%. • Augmenting the energy supply and diversifying the fuel basket requires consideration.

10. India’sEnergyScenario • The GDP growth of India is hovering around 7%, forecasted to increase in coming years. • India is facing challenge in meeting its ever-increasing energy demand for sustainable growth Source: Mid-year Economic analysis 2014-15; MoF, Department of economic Affairs, Economic division

11. India’sEnergyScenario… • Coal is the main source of energy supply and meets about 53% of energy requirement. • With substantial reserve coal is likely to dominate in the foreseeable future. • Resource position of petroleum/gas is not good. • India Imports more than 1/3rd of its commercial energy needs, putting strain on economy. • Augmenting production from conventional resources and to initiate/expedite development of other non-conventional energy resources is therefore important.

12. India’s Energy Scenario … COAL RESOURCE 301 BT (as on 1st April'14) LIGNITE RESOURCE 41.9 BT (as on 1st April'12)

13. India’s Energy Scenario … India Energy Basket: Present & Future (Source: India Energy Book 2013)

14. India’s Energy Basket… India’s Energy Basket Source: India Energy Book 2012

15. Government Initiative Towards Clean Energy • Keeping in view: • Growing energy demand • Considering the limited resources of Petroleum and Natural gas • Environmental concerns • Problems being faced in development of Nuclear power Need was felt to develop other Non-conventional energy forms which are safe and clean • Coal based non-conventional energy viz: CBM/CMM,UCG and Shale Gas fits under this ambit

16. Clean Energy Resources

17. Why Coal ? Coal is:

18. Coal Utilization: A Concern for Environment In spite of reliability of availability, favorable economics in energy generation, use of coal has adverse affect on environment. Efforts are also being made for making usage of coal environment friendly in pre, concurrent, post mining operations and its usage. The focus on environment protection, mine safety concern, raising energy demand gave impetus to development of Coal Based Clean Energy Resources like CBM, CMM, UCG, along with Shale gas. CIL/CMPDI is taking several pro-active steps to expedite development of these resources.

19. Coal sector contributes to about 8% of the total anthropogenic methane emissions (USEPA estimate). Coal combustion results in greater CO2 emissions than Oil and Natural Gas per unit of heat output. To curb these Green house emissions, India and other coal producing countries are making efforts to making its utilization environment friendly. Coal Utilization: A Concern for Environment

20. WhyCoalbased Non-conventionalresources ? • Non Conventional Coal Based Energy Resources are:

21. Coalbed Methane(CBM) • Methane is a potent greenhouse gas with GWP of 25. • CBM is • Methane generated during the coalification process and stored in the coal beds/ associated porous strata. • Traditionally considered as a mining hazard. • Become explosive if concentration of methane in the mine environment ranges between 4 to 14%. • With the advancement in harnessing and utilisation technology CBM is a potential source of clean energy from otherwise wasted resource.

22. CBM Development: International Scenario • The United States is the world’s leading producer of CBM where it is meeting over 8% of the Natural Gas requirement. • Global CBM production totals around 162 MMSMD from USA, Canada, Australia, China, and India with USA dominating with nearly 140 MMSMD of production. • In Australia also CBM made up about 10% of country's gas production (As on 2013). Likely to provide up to 50 % of the Australian east coast natural gas supply by 2020 (source: USEPA). • CBM production in China is 4.2 MMSMD, whereas in India it is about 1.2 MMSMD which is likely to increase soon.

23. CBM Development: India’s Perspective • CBM related studies in India started during early 90s by CMPDI • Consequent to announcement of CBM Policy in 1997, 33 CBM blocks have been allotted through 4 rounds of global bidding. • The data dossiers on most of the blocks were prepared by CMPDI which facilitated award of blocks. The dossiers were highly appreciated. • Commercial production of CBM has already started in few allotted blocks which is around 1.2 MMSCMD. Likely to increase soon.

24. Coal Mine Methane (CMM) • CMM is a harnessing of methane from areas where coal mining is either going on or projectised. • Over 1 BCM of methane is annually released from coal mining operations in India (Source:USEPA). • As the country is increasing its coal production year after year, methane emission will be much higher in coming years.

25. Coal Mine Methane: International Scenario • CMM development is encouraged in all the coal producing countries and is getting Govt support. • Majority of projects making use of captured methane is in China, USA, Poland, Ukraine, Czech Republic, Germany (AMM) and the United Kingdom (AMM). • USA encouraged tax policies for development of unconventional source of natural gas including CBM and CMM.

26. Coal Mine Methane: International Scenario • Ukraine implemented Green Tariff Law that provides a feed-in tariff for CMM up to 20 years. • Ukraine also adopted CMM law to legally clarify CMM and also issued CMM lease with coal lease to mine operators. • China announced several industry friendly policies resulting in tremendous growth of CMM production. • Govt of India permitted CIL for commercial harnessing of CMM from its areas.

27. CIL/CMPDI initiative for Development of CBM/CMM • Attempts were made to degasify a gassy mine Amlabad Mine of Jharia Coalfield in early 70’s. • Successful implementation of CMM Demonstration Project under a UNDP/GEF/MoC funding at Moonidih mine, BCCL proving efficacy of CMM development in Indian geo-mining condition. • Generating CBM specific data for enhancing the resource base, created state of art lab for taking related studies. • Pursuing commercial development of CBM in two CBM blocks located in Jharia and Raniganj with ONGC. • Initiated actions for commercial development of CMM in 5 blocks within CIL areas and has been permitted by the Govt for commercial extraction from its areas. • Also assessed potentiality of CMM in projectised areas of OC mining areas for pre-drainage.

28. CMM Development in CIL Areas: • CIL operates over 470 coal mines • of which 102 are Degree-II and 18 • are Degree-III mines; • Since mining operation is • very old, a good • understanding has been • developed regarding geology • and mining. • Target seams for CMM development are Virgin coal seams lying below the active mining/worked out/goaved/abandoned areas;

29. Opportunities for CMM Development • CIL is putting major thrust on mining of Deeper coal deposit in near future. • For safety of mine personnel and mines warrant pre-drainage of methane will be taken up. • Further corporate objective of CIL is Green Mining and harnessing and utilisation of methane is priority.

30. Ventilation Air Methane (VAM) • The return air of ventilation shafts contain methane, typically less than 1%. • Substantial amount of methane is vented into the atmosphere due to mining operations. • VAM constitutes about 50% of the total CMM emissions. • Recovery and gainful utilisation of such low concentration methane from VAM is a technological challenge. • Few VAM projects have been successfully commissioned in Australia, China and the USA.

31. Development of VAM: Indian Scenario • Gassy U/G mines are target for VAM project development • CMPDI has recently generated VAM specific data in several D-III mines of ECL, BCCL and CCL. • Few mines have been prima-facie found to be potential for VAM project, subject to feasibility study. • VAM project under NCEF contemplated by CMPDI and a project under formulation with CSIRO, Australia at Moonidih mine, BCCL. • The proposed project will aim for mitigation/utilization of VAM • This will be the pioneer effort to bring VAM technology in India

32. Way ahead for development of CMM/VAM projects • Thrust to increase U/G coal production in CIL • High capacity mechanized U/G mines are being planned • Govt. of India had allotted more than 200 blocks to private sector for captive use which has been de-allocated now. • Many of the operators of these blocks may deploy fully mechanized high capacity UG methods in coming years. • This will create good opportunity for CMM/VAM projects development.

33. Underground Coal Gasification • The UCG is a physico-chemical process of conversion of coal into gaseous energy source at the place of its occurrence • Calorific value in the range of 850 to 1100K.Cal/M3 for air injection • Techno-economically unviable coal resource for mining due to greater depth/ isolated nature can yield energy for present day use through UCG

34. Underground Coal Gasification… • The process has several benefits including environmental benefits: • Minimum surface disturbances • No ash or slag removal • Minimal site rehabilitation • Reduced CO2 emission and potential to remove CO2 from the product gas before combustion.

35. Process of UCG Coal is ignited, combustion is maintained by injecting air or oxygen and steam The resulting gases are brought to surface by the second bore hole

36. Process of UCG…

37. ERGO EXERGY(Canada) provided technology to LINC Energy, Australia Process of UCG… Chinchilla is the largest UCG project in the west UCG through vertical wells The method involves drilling of two vertical wells, one for injection of oxidants & other for product gas This method was used in Chinchilla, Australia and former Soviet Union sites

38. Process of UCG… • Man-built galleries in the coal seam used as gasification channels • The work uses abandoned galleries of disused coalmines for the gasification. • Vertical boreholes are drilled into the gallery to act as the injection and production wells. • The process operates on alternating air and steam injection. • This method is practiced in China

39. Process of UCG… Lawrence Livermore National Laboratory developed the CRIP method for efficient production of synthetic gas from underground coal seams Directional drilling in the coal seam with controlled injection of oxidants: Controlled Retractable Injection Procedure (CRIP) which uses oxygen rather than air, for gasification This method is being practiced in the US and European field trials

40. Underground Coal Gasification: Global Scenario • Technological preparedness & analysis of economic viability has been proven recently at many places in the world • Russia, Australia, China have developed considerable expertise. • UCG is a priority area for development in India.

41. International UCG Trials

42. UCG in India’s Perspective • Indian coal resources are dominated by low rank coals (about 80%) some of which are isolated in nature & occurring at depth. • Most of these deposits cannot be mined at present due to techno economic reasons. • Such deposits may be amenable for implementation of UCG technology. • UCG in India was taken up in mid 80's by ONGC and CIL under technical collaboration with erstwhile USSR. • CMPDI generated data at Merta Road Lignite deposit, Rajasthan. • Although found suitable for pilot scale studies but the test could not be pursued on apprehension of contamination of ground water. • With advancement on technological front and recent global experiences have regenerated technical confidence in UCG with adherence to environmental requirement.

43. UCG in India’s Perspective • UCG is now a priority area for development as several areas could be amenable for application of this technology. • To facilitate this MoC issued Gazette notification in July 2007 paving way for taking up UCG by public/private entrepreneurs. • MoC in July 09 issued guidelines for carrying out commercial exploitation of UCG. • A UCG policy is under formulation at the Govt. level • The process will get a boost after issuance of the policy.

44. UCG Development: CIL/CMPDI’s Endeavor • CMPDI extended technical support to MoC in identification of blocks and other issues. • Further, floated tender in 2011 for selection of prospective bidders take up UCG in 2 identified blocks within CIL areas. • Good response received, however the matter could not be proceeded with due to technical reasons. • Further actions are being taken in this regard.

45. Challenges in UCG Development:

46. UCG Development : Ways Ahead • UCG being emerging technology area, expertise for its development is not indigenously available and there will be dependence on foreign experts / organizations • Several base line data will have to be generated for examining suitability of block for UCG with special reference to overcome environmental concern • The process right from data generation to syn-gas generation will be capital intensive.

47. Shale Gas: A Game Changer • Shale gas is now emerged as a ‘Game Changer’ in United State’s energy supply scenario. • Shale gas in USA, constitutes about 23% of US natural gas production and expected to reach up to 46% by year 2035 (EIA estimate). • US shale gas plays has encouraged other countries. • India has also started pursuing development of shale gas and is now a priority area both at Government and industry level.

48. Increasing Role of Shale Gas

49. Study of shale gas is under focus and several companies viz CIL, ONGC etc. are pursuing for its development. • Few trials for shale gas development made in Raniganj CF by ONGC indicated positive results. • CMPDI is generating Shale gas specific data in the boreholes being drilled and also created in-house facility for tests. • CMPDI carried out studies on shale gas potentials in few areas in and prepared Data Dossiers at the behest of DGH. • CMPDI is also implementing research projects with national/international agencies dealing in this field. Shale Gas: Indian Perspective

50. Shale Gas: Challenges