Development of Coal Based Non-Conventional Energy Resources: CMPDI’s Endeavour

1. Development of Coal Based Non-Conventional Energy Resources: CMPDI’s Endeavour S R Pump at Moonidih CMM Based Generator

2. POINTS FOR DISCUSSION • Background • Coalbed Methane (CBM) • Coal Mine Methane(CMM) • Underground Coal Gasification (UCG) • Shale Gas • CBM Lab • Future Perspective

3. Background • For ensuring energy security, country is exploring harnessing of all possible energy source. • There is also an impetus on the development of clean energy resources. • Related synergic field of CBM, CMM, UCG and Shale Gas etc. fits in this ambit. • Development of these energy resource will be beneficial for coal industry in safety and fiscal terms as well as on environment front. • CMPDI has developed technical expertise in these fields and has established itself as a premier consultancy organization, nationally and internationally

4. Coal Bed Methane

5. Coalbed Methane: A Clean Energy Source Coalbed Methane is a hydrocarbon and a by-product of coalification process. CBM and its subsets, viz. ,CMM, AMM, VAM are globally an emerging environment-friendly alternate energy resource. Utilization of CBM resource will be very environment friendly as harnessing methane ahead of mining (CMM) : Ensures future mining safe for gassy mines, Prevents release of methane to the atmosphere Provides additional energy from the otherwise wasted resource.

6. CBM Development in India - A historical account • In India CBM activities started in early 90’s. • CMPDI on behalf of M/s AMOCO, USA examined the prospect of CBM in Damodar Valley CF. The matter however did not proceed further due to operational difficulties perceived by AMOCO. • The real thrust in development of CBM came with the announcement of CBM Policy in1997 by the Govt of India. • MoP&NG has been made the administrative ministry for CBM development in the country. • Several investor friendly fiscal incentives were announced in the CBM policy which attracted international attention • As per CBM policy, blocks for global competitive bidding were to be carved out in consultation with MoC.

7. Block delineation under CBM Policy : CMPDI’s role • Govt. of India has so far allotted 33 CBM blocks covering an area of about 17366 Sq. Km with prognosticated resource of 1.78 TCM in 4 rounds of global bidding. • Going by an estimate, the ultimate production potential in the allotted blocks is about 45 MMSCMD, which may support power generation of about 8300 MW. • Data dossiers for most of these blocks have been prepared by CMPDI. • CMPDI is preparing Data Dossiers for forthcoming 5th Round of allotment of CBM blocks • Commercial production has already started in few blocks and at present over 2.5 lac cubic metre of CBM is produced per day. .

8. Block delineation under CBM Policy by CMPDI

9. Implementation of Commercial CBM Projects by CMPDI CIL-ONGC CBM Collaborative Project Govt has allotted 2 CBM blocks (Jharia and Raniganj) for commercial development. CMPDI/CIL carried out exploratory drilling and all related tests while ONGC undertook appraisal drilling. On the above studies, these fields have been found to be commercially viable Commercial Development Plan for both the CBM Blocks submitted for approval of the Govt.

10. CBM specific data generation • CMPDI is generating CBM related data under PRE programme of MoC for enlarging CBM resource base • Studies have been carried out in 71 boreholes(CMPDI 51;GSI 21) during X and XI plan • In XII plan :CBM studies in 40 boreholes to be carried out by CMPDI, 5 completed

11. Development of Coal Mine Methane

12. Commercial development of CMM: A Priority area CMM is harnessing of methane from active/projectised coal mining areas. In terms of methane emissions, India ranks 6th globally with 1 BCM (14.3 MT CO2e) of CMM emissions (2005) CMM constitutes a significant global source of anthropogenic methane emissions. Harnessing and gainful utilization of CMM and VAM is a priority area both at Govt and industry level. GOI has made CMPDI a Nodal Agency for development of CMM in India.

13. CBM Recovery and Commercial Utilization- Demonstration Project 3 CBM wells drilled and 3 potential seams in each well hydro-fractured These wells are producing gas after dewatering Successful implementation of this project proved efficacy of CMM extraction technology in Indian geo-mining conditions. CBM Rig unit SR Pump CMM Based generator Hydro-frac unit

14. Commercial Development of CMM in CIL Areas • CMPDI has identified five blocks, 3 in Jharia and 2 in East Bokaro coalfield, within CIL command areas for commercial development of CMM through a R&D initiative.

15. Commercial Development of CMM : Opportunities & Challenges • CMPDI on behalf of CIL floated tender for selection of suitable developer. • Certain issues regarding operationalization were raised by MoP&NG and the matter is under deliberation between MoC and MoP&NG. • MoP&NG agreed to facilitate development of CMM by CIL in its mining leasehold areas in a meeting held on 17/8/2012 between Adviser, MoC and Secretary, MoP&NG and necessary steps for the purpose is being taken by MoP&NG. • CMPDI on behalf of CIL will float a fresh tender after resolution of the issue.

16. UNDERGROUND COAL GASIFICATION

17. Underground Coal Gasification (UCG) Offers potential means of extracting energy from coal deposits which are not amenable for physical extraction economically at present by conventional methods. The low heat value gas produced from UCG can be used for power generation and can as well be used as a feedstock for chemical industry. Environmental advantages in application of UCG are: Minimum surface disturbances No problem for ash or slag disposal Reduced CO2 emission No production of pollutant. It gives green energy.

18. UCG Development: Recent Initiatives To expedite development of UCG, the following activities were taken up by CMPDI as part of the MoC initiatives: Fixation of criteria for selection of suitable UCG reserves in consultation with GSI, DGMS, SCCL and NLC Selection of suitable lignite / coal blocks in consultation with NLC, GSI, SCCL. Accomplishments: Criteria arrived at in consultation with other organizations. A list of 7 blocks (5 lignite and 2 coal) identified in consultation with NLC, GSI, SCCL after getting it examined by standing committee of CMPDI. The list forwarded to MoC for taking further necessary action for development of UCG

19. Development of UCG in CIL Areas • Development of UCG with ONGC • CMPDI on behalf of CIL is pursuing development of UCG in Kasta Block in RCF under collaborative regime with ONGC. • Additional UCG specific data through exploratory drilling generated and being assessed for examining pilot scale studies. • Report based on the aforesaid data has been sent to ONGC for examination by Russian experts engaged by ONGC.

20. Development of UCG within CIL command area Kaitha, CCL Ramgarh CF Thesgora’C’ Pench Kanhan CF

21. Development of UCG in CIL Areas…. • Tender for identification of suitable developer for commercial development of UCG in 2 blocks within CIL areas, namely Kaitha (CCL) & Thesgora-C (WCL) floated in Jan 2011. • Good response received, work could not be awarded due to technical reasons. • Action for revision of tender document taken up as per the competent decision. Revised Tender Document prepared and is under competent approval.

22. SHALE GAS

23. Shale Gas • Shale gas is natural gas occurring within shale formation, which acts as source as well as reservoir. • Shale Gas mainly constitutes of methane and originates from organic constituents present in shale rock. • Presently, USA is the only country producing commercial shale gas and several other countries are pursuing its development. • Government of India is also actively considering for the development of shale gas potentiality in India.

24. Shale Gas: CMPDI’s Accomplishment • Directorate General of Hydrocarbons (DGH) has initiated the work and assigned CMPDI for carrying out studies for delineation of prospective shale gas areas in Damodar valley and Sohagpur sedimentary basins. • Reports on Shale Gas prepared by CMPDI is the first systematic assessment of Shale Gas in the Coal Bearing Damodar & Sohagpur Basins. • In addition CMPDI is also pursuing implementation of R&D and S&T projects.

25. Visit of CMPDI officials at a Shale Gas site,USA

26. CBM Lab facilities at CMPDI • CMPDI is having state of art CBM lab which is capable in taking up all the parametric tests for evaluating CBM resource viz. Desorption studies, Gas composition & Adsorption Isotherm. • In Sept. 2011, an Adsorption Isotherm equipment capable of generating pressure up to 20 Mpa (approx 2000m depth) has been installed in the lab. Probably only equipment of such capacity in India. • Mine air analysis is also carried out and during 2011-12, 1100 samples were tested. • The lab is in process of acquiring shale gas testing equipments so that shale gas specific tests could be carried out.

27. Implementation of R&D/S&T Projects European Union Research Commission Funding: Greenhouse Gas Recovery from coal mines & un-mineable coal beds and conversion to energy(GHG2E). Project Cost: Rs 2 Cr 2.CIL R& D Job: Assessment of prospects of Shale Gas in Gondwana Basin with special reference to CIL areas with Advance Resource International, USA as collaborative partner. Project Cost: Rs 4 Cr 3. S & T Job( under SSRC ) Shale Gas Potentiality Evaluation of Damodar Valley Basins of India. In collaboration with NGRI and CIMFR. Project Cost Rs 16.86 Cr

28. Development of Coal Based Clean Energy Resource: CMPDI Endeavor India CBM/CMM Clearing House • India CBM/CMM Clearinghouse established in Nov 2008 initially for 3 years under the aegis of MOC and USEPA is functional from CMPDI. • The basic objective is to Promote CBM/CMM industry in India. • A dedicated web site incorporating the existing opportunities in India is being maintained(www.cmmclearinghouse.cmpdi.co.in) • Steps have been taken for extending the terms of Clearinghouse further so that the completion of jobs is facilitated.

29. Future Perspective • To implement commercial projects on development of CMM in CIL areas keeping in view overall advantages on account of: • Making future mining safe • Harnessing of Environment friendly clean energy resource • Revenue generation • Implementation of UCG projects is also a priority area. • These are also in line with the strategic plan of Ministry of Coal, Government of India, wherein the following recommendations have been made: • CIL to take lead for commercial exploitation of CMM from its leasehold areas • CIL to concentrate on areas like CBM and UCG in their leasehold.

30. Conclusion • Renewable energy resource and other coal based non-conventional energy resource viz, CBM, CMM, UCG, shale gas etc needed to bridge the gap of demand- supply demand of energy in India. • Development of CMM is an area which requires serious consideration, as it will give fresh impetus in coal mining as well as provide environmental benefits. Addressal of issues particularly matters related to operationalisation needs early resolution. • To encourage development of CMM, several countries like China, Ukraine etc have announced several fiscal incentives and also issued legislations. Such incentives may be considered in our country also. • There is also need for initiating development of other resources viz VAM, Shale Gas ,UCG,etc.

31. Thanks for Your Kind Attention