|Orissa to have two mega CTL projects from Tata and Jindal at an investment of Rs 90,000 crore|
14 Jun, 2011, 08.29PM IST, Nageshwar Patnaik,ET Bureau
BHUBANESWAR: Tata Steel and Jindal Steel & Power Ltd. (JSPL) have taken the lead in the country to utilize this huge inferior coal deposits to produce ultra clean liquid fuels like diesel and naphtha ensuring energy security and foreign exchange outgo from the country. India, not blessed with adequate oil and natural gas reserves, has 4th largest coal reserve in the world.
Jindal Synfuels limited (JSFL), a JSPL group company plans to set up a CTL (Coal to Liquid) plant with a capacity of 80,000 barrels per day (bpd) equivalent of key oil products such as Diesel, Naphtha, and LPG while Tata Steel in joint venture with South Africa based Sasol Synfuels (Pty) Ltd will set up a 3.6-million-tonne per annum Coal to Liquid (CTL) plant in Orissa.
These two CTL plants, at an estimated cost of Rs 90,000 crore, are expected to come up by 2016 are first of its kind in the country.
Both the mega projects envisage adoption of state of the art Clean Coal Technology so that the carbon footprint will be drastically lower. The CTL overall process consists of three main sections namely Coal Gasification, Fischers-Tropsch synthesis (liquefaction), and Product Up-gradation.
President of CTL project of JSPL, Dev Anand Tripathy , o Tuesday told "The ET" that various emissions, effluents and solid wastes of CTL project would be very much below the stipulated statutory limits as per stringent World Bank Norms and Indian Pollution Control & Environment agencies. The process waste water would be suitably treated with full recycle ensuring Zero Liquid Discharge, in the process ensuring minimum water consumption. The project would envisage CO2 Capture/Storage & Sequestration in nearby underground Geological Formations & Aquifers, he added.
'The CTL Diesel is ultra pure and smoke less compared to conventional diesel therefore more eco friendly', Mr Tripathy said adding that CTL project does not envisage to acquire fertile and irrigated Land.
JSFL has undertaken detailed global technology search to select the most appropriate technology suitable for utilization of inferior grade (high Ash) Indian coal with emphasis on minimum Carbon Footprints. The final technology selection would be completed shortly.
The government of India has already allocated Ramchandi coal block in Talcher coal field in favor of to set-up the proposed CTL project. The coal block has a potential reserve of around 1500 million tons of low grade coal.
The proposed CTL Project has recently received the necessary clearances and approval of Orissa government to go ahead with the Project. This project will require 30 MTPA washed coal for 80,000 barrels per day and the middlings & rejects will be used for generating 1350 MW power.
Similarly, the coal ministry has allocated coal block at north of Arakhpur coal mines near Talcher to the joint venture company Strategic Energy Technology Systems ( SETSL )) - 50:50 joint venture between Tata Sons and South Africa-based Sasol Synfuels International
Both the projects, targetted to be commissioned in 2018, require about 3,000-3500 acre of land for its main plant, additional land would be required for setting up coal mine, beneficiation plant, coal handling plant, water reservoir, power plant and township.
Besides superior diesel, the plant would also generate naptha and LPG with by-products like tar, phenol, sulpher and amonia, they said adding that 24 gallon of water per day would be required to run the plants
Both the projects are big ticket investment in the state where world's two largest steel makers ArcellorMittal and Posco have committed to invest over 1-lakh crore to set mega steel plants.
"About 70,000 people will get direct and indirect employment in the both coal-to-liquid (CTL) plants to be set up in the state," industries minister Raghunath Mohanty said here.
The proposed plants, billed as the first of its kind in the country, would help in meeting country's fuel requirement, Mr Mohanty said, adding South Africa's 40% of fuel requirement was being met by the Coal-to-Liquid diesel.
Some 22 companies including Reliance Industries Ltd , Reliance Infrastructure , SAIL, GAIL , Indian Oil, GMR Infra and Vedanta submitted their applications to the ministry for this CTL project.