PSA/2007/1

STATUS REPORT ON UNDERGROUND COAL GASIFICATION

AUGUST, 2007

PREPARED BY THE WORKING GROUP ON UNDERGROUND COAL GASIFICATION

Under the auspices of The Office of the Principal Scientific Adviser To the Government of India 326, Vigyan Bhawan Annexe Maulana Azad Road, New Delhi-110 011.
1

CONTENTS
Page Number BACKGROUND 4 CHAPTER-I: INTERNATIONAL STATUS. 6 1.1 Introduction 7 1.2 Ups and Downs of UCG 8 CHAPTER-II: UNDERGROUND COAL GASIFICATION PROCESS. 12 2.1 The UCG Progress 13 CHAPTER-III: UNDERGROUND COAL GASIFICATION IN INDIA. 15 3.1 Introduction 16 3.2 Field Work at Chosen Site 19 3.3 Back-up Laboratory Work 22 CHAPTER-IV: PROCESS MODELLING. 25 CHAPTER-V: ENVIRONMENTAL CHALLENGES. 27 CHAPTER-VI: MANAGING GREENHOUSE GASES. 30 CHAPTER-VII: INPUTS OF THE OIL & NATURAL GAS CORPORATION LIMITED. 33 CHAPTER-VIII: INPUTS OF THE DIRECTORATE GENERAL OF HYDROCARBONS. 36 8.1 Introduction 37 8.2 Future Plans for Developing UCG as an Energy Source 37 8.3 Regulatory Frame work for Underground Coal Gasification 37 8.4 Areas Requiring R&D Efforts 41 CHAPTER-IX: INPUTS OF THE ESSAR OIL LIMITED. 42 9.1 Introduction 43 9.2 Work Plan (Tentative) 44 CHAPTER-X: INPUTS OF THE INDIAN SCHOOL OF MINES. 47 10.1 Introduction 48 10.2 Past and the current work on UCG being done at ISM 48 10.3 Future plans for exploiting UCG as an energy resource 49 CHAPTER-XI: INPUTS OF THE RELIANCE INDUSTRIES LIMITED. 51 11.1 The past and current work done on UCG 52 11.2 Regulatory Framework to be developed for UCG 53 11.3 Fiscal regime for putting R&D on UCG on the fast track 53 11.4 UCG R&D areas 53 11.2 Future plan for exploiting UCG as an energy source 54 CHAPTER-XII: INPUTS OF THE SINGARENI COLLIERIES COMPANY LIMITED. 55 56 12.1 The past and the current work on UCG 12.2 The future plans for exploiting UCG as an energy source 56 12.3 The fiscal regime for putting R&D on UCG on the fast-track 57 12.4 The different areas on which R&D is required to be taken-up 57 CHAPTER-XIII: INPUTS OF THE BHARAT HEAVY ELECTRICALS LIMITED. 58 13.1 Underground Coal Gasification and Power Generation Perceived Role 59 of the Bharat Heavy Electricals Ltd. CHAPTER-XIV: INPUTS OF THE COAL INDIA LIMITED 62 14.1 Past and Present Activities 63 14.2 Future Plan 64 14.3 R&D for putting UCG on Fast Track 64 14.4 The different areas on which R&D is required to be taken-up 65 Title 2

CHAPTER-XV: INPUTS OF THE NEYVELI LIGNITE CORPORATION LIMITED. 15.1 Present Activities 15.2 Further plans for exploiting UCG as an energy source 15.3 The Fiscal regime for putting R&D ON UCG on the fast-track 15.4 The areas on which R&D is required to be taken-up for UCG 15.5 Current issues to be addressed for speedy development of UCG in the Country CHAPTER-XVI: INPUTS OF THE MINERAL EXPLORATION CORPORATION LIMITED. 16.1 The past and current work on UCG 16.2 Future Plan of exploiting UCG as source of energy 16.3 The fiscal regime for putting R&D on UCG on the fast track 16.4 The different areas on which R&D is required to be taken-up CHAPTER-XVII: INPUTS OF THE CENTRAL INSTITUTE OF MINING AND FUEL RESEARCH. 17.1 The past and current activities 17.2 The future plans for exploiting UCG as an energy source 17.3 The fiscal regime for putting R&D on UCG on the fast track 17.4 The different areas on which R&D is required to be taken-up CHAPTER-XVIII: INPUTS OF THE GAIL (INDIA) LIMITED. 18.1 The Past and current work on UCG 18.2 Roadmap for the next course of action 18.3 The future plan for exploiting UCG as an energy source 18.4 Areas on which R&D is required CHAPTER XIX: INPUTS OF THE CENTRAL MINE PLANNING AND DESIGN INSTITUTE LIMITED. 19.1 Initial Initiatives by CMPDI 19.2 Recent Developments 19.3 Actions taken by CMPDI 19.4 Collateral Activities for Development ANNEXURE-I MENTIONED IN THE BACKGROUND. ANNEXURE-II MENTIONED IN THE BACKGROUND.

66 67 68 68 68 69 70 71 72 73 73 74 75 75 76 77 79 80 80 81 81 82 83 83 84 85 86 91

BACKGROUND
On the 19th of April, 2006, a meeting was chaired by the Scientific Secretary to the Principal Scientific Adviser to the Government of India in New Delhi to discuss the subject of Underground Coal Gasification (UCG) with a cross-section of stakeholder organizations in the country. 2. The main decision taken in that meeting was to constitute, under the

chairmanship of the Scientific Secretary, an R&D Committee on UCG with a member each from all the stakeholder organizations in the country. It was also decided that the prime objective of that Committee would be to synergize the various ongoing UCG efforts in the country and help establish commercial UCG power plants in a stipulated time frame. It was further decided in that meeting that the Office of the Principal Scientific Adviser to the Government of India (PSAs Office) would formulate the Terms of Reference (ToR) of that Committee through a consultative process. 3. An email was, accordingly, sent by the PSAs Office to the participants of the said

meeting on the 26th of April, 2006, requesting them to give their suggestions, as stakeholder organizations, on what should be the ToR of the proposed R&D Committee. Based on the responses received, the ToR of the Committee was formulated and the R&D Committee on UCG was formally constituted, with the approval of the Principal Scientific Adviser to the Government of India, on the 4th of May, 2006 (please see Annexure-I). 4. As stated above, the prime objective of that Committee is to synergise the

various ongoing UCG efforts in the country and help establish commercial UCG power plants in a stipulated time frame. The Committee is chaired by Dr. S. K. Sikka, Scientific Secretary to the Principal Scientific Adviser to the Government of India, and has Members from the Coal India Limited (CIL), the Bharat Heavy Electricals Limited (BHEL), the GAIL (India) Ltd. (GAIL), the Neyveli Lignite Corporation Ltd. (NLC), the Mineral Exploration Corporation Ltd., the Directorate General of Hydrocarbons, the Central Electricity Authority, the Oil and Natural Gas Corporation Ltd. (ONGC); the Central Mining Research Institute (now the Central Institute of Mining and Fuel Research, CIMFR), the Indian School of Mines (ISM) and the Singareni Collieries Company Ltd. Dr. K.L. Goyal, Former Director, Institute of Management Development, 4

ONGC, Dehradun, is also a Member. Shri Neeraj Sinha, Scientist E, Office of the Principal Scientific Adviser to the Government of India, is the Member-Secretary to the Committee. Shri A.K. Hazarika, Director (Onshore), ONGC, New Delhi, was coopted as a Member of the Committee immediately after its constitution. 5. In its first meeting held on the 5th of February 2007, the R&D Committee decided

to constitute a Working Group on UCG with Shri A.K.Hazarika, Director (Onshore), ONGC, New Delhi, as the Chairman and Shri Neeraj Sinha, Scientist E, Office of the Principal Scientific Adviser to the Government of India, New Delhi, as the Member Secretary. The Members of the Working Group include representatives of the CIL, the GAIL, the NLC, the BHEL, the CIMFR and the ISM. Dr. K. L. Goyal is a Member of the Working Group as well (please see Annexure-II). Representatives of the ESSAR Oil Ltd. and the Reliance Industries Ltd. were co-opted as Members of the Working Group immediately after its constitution. The prime objective of the Working Group is to prepare a Road Map to develop the UCG technology in the country for various applications (such as power generation, manufacture of pesticides & chemicals, etc.). 6. In its first meeting held on the 12th March 2007, the Working Group decided that

as a first step to the preparation of the said Road Map, it would be a pre-requisite to have a report on the status of the UCG activities of the various stakeholder organizations in the country. i) ii) iii) iv) All the concerned stakeholder organizations were, thereafter, requested by the Member-Secretary to provide inputs on the following: The past and the current work on UCG being done by them, their future plans for exploiting UCG as an energy source, the fiscal regime for putting R&D on UCG on the fast-track, and the different areas on which R&D is required to be taken-up for enabling a time-bound commercialization of the UCG technology for various applications, including power generation. 7. Based on the inputs received, this Status Report on UCG has been compiled by

the Working Group. It gives the details of the UCG activities of all stakeholder organizations in the country. As decided in the first meeting of the Working Group, this Status Report will now pave the way for the preparation of the Road Map.

*********
5

CHAPTER - I

INTERNATIONAL STATUS

1.1

INTRODUCTION 1.1.1. WORLDWIDE, coal reserves are vast: over 10 trillion tonnes. However, unless cleaner and cheaper ways can be found to convert coal to gas or liquid fuels, coal is unlikely to become an acceptable replacement for dwindling and uncertain supplies of oil and natural gas. Mining coal is dangerous work. Coal is dirty to burn and much of the coal in the ground is too deep or too low in quality to be mined economically. Today, less than one sixth of the worlds coal is economically accessible. However, there is a renewed interest world over to revive the old technology that offers promise to substantially increase usable coal reserves and make coal a clean and economic alternative fuel. Known as underground coal gasification (UCG), this technology converts coal to a combustible gas underground. 1.1.2. In the early years of UCG, the technology gained an ugly duckling reputation in the United State of America (USA). The UCG process yielded gas of low heating quality with too much hydrogen and it was considered an environmental risk. But as coal-rich countries now look to replace imported oil with secure domestic energy sources, make hydrogen fuels, and find ways to limit their greenhouse gas emissions, they are rediscovering the potential of UCG. 1.1.3. Coal supplies about 50 percent of the USAs electricity because it is the least expensive energy source. Coal can be gasified or liquefied to make transportation fuels, natural gas or chemical feed stocks. Today, the USA has only one operating coal gasification plant and no commercial liquefaction operation. However, because of the nations goal to produce secure and clean energy from its domestic coal reserves, coal-to-gas and coal-to-liquid conversions may become commonplace. 1.1.4. Applying improved UCG technology to gasify deep, thin, and low grade coal seams could vastly increase the amount of exploitable reserves. The coal could be converted to gas for a variety of uses and emissions of sulphur, nitrous oxides and mercury could be dramatically reduced. UCG 7

could increase recoverable coal reserves by as much as 300 to 400 percent. Another benefit of UCG is that hydrogen accounts for nearly half the total gas product which can be separated and actively used as automotive fuel or as feed-stock for the Chemical Industry. 1.1.5. As with any hydrocarbon combustion process, UCG generates carbon dioxide (CO2), a greenhouse gas. Fortunately, potential sites for UCG operations correspond to locations where sites are plentiful for sequestering CO2 in geologic formations underground. UCG also enhances the storage capacity of the coal seam itself to store injected CO2. The generated gas, called syngas, would be taken from the ground and by-products separated out. The CO2 hole nearby. would then be returned down-

1.2

UPs AND DOWNs OF UCG: 1.2.1 The idea for coal gasification, either underground or in aboveground plants using mined coal, has been around for more than 150 years. The technology was first widely used in the USA during the later 1800s and in India in Calcutta (Kolkata) and Bombay (Mumbai) in early 1900. Lamplighters made their rounds in many cities lighting streetlights fueled by town gas, the product of early and relatively crude forms of coal gasification. Once vast fields of natural gas were discovered and pipelines built to transport the gas to consumers, the use of town gas disappeared. 1.2.2 From the 1930s through the 1990s, the former Soviet Union invested in developing UCG technology at numerous sites and was successful at the commercial scale in several locations. China has been developing the technology since the 1980s and currently has the largest operational UCG programme. Their approach uses abandoned tunnels in conventional mines. 1.2.3 During the energy crisis of the 1970s, interest in the USA spiked in all forms of alternative energy, and the Department of Energy (DOE) invested 8

billions of dollars to develop efficient coal-gasification technologies for power generation. Over 30 UCG pilot tests were run across the USA. At that time, the hydrogen by-product of UCG was viewed as a liability, reducing the perceived quality of the gas. In addition, ground water contamination problems resulted at two sites. 1.2.4 The Lawrence Livermore National Laboratory of the USA, a pioneer in the study of UCG, developed two test sites- one in Centralia, Washington, and the other in Hoe Creek, Wyoming. Livermore researchers also patented a UCG process called Controlled Retraction Ignition Point, which was used in Pilot tests performed in Europe during the 1990s. In the USA, when gas and oil prices dropped in the 1980s and 1990s, efforts to commercialize UCG came to a halt. 1.2.5 Today, high prices of oil and gas and uncertainties about political stability in the Middle East, have renewed interest in all kinds of fuel. A renewed interest in coal gasification is therefore not surprising. Further-more, hydrogen is now a welcome by-product because of the current interest in alternatively fuelled vehicles. 1.2.6 Recently, the DOE was encouraged to revisit UCG as a part of its programme to develop hydrogen-from-coal technology. In February, 2006, the DOE commissioned a team to prepare a document evaluating the current state of UCG technology. Best practices in UCG were completed at the end of 2006 and is awaiting official release by the DOE. 1.2.7 The document explores the UCG efforts that have been undertaken worldwide. Importantly, it also addresses the issues that were problematic in previous UCG operations by evaluating the potential application of technological advances in areas such as environmental risk assessment, combustion-process modelling, geologic subsurface characterization and geo-mechanics.

1.2.8 Over the last few years, the number of activities throughout the world focusing on UCG have rapidly increased. The Chinchilla project, operating from 1997 to 2003 in Queensland, Australia, demonstrated the first longterm UCG pilot in the Western World. That project has now advanced to the stage of raising capital for a coal gas-to-liquids pilot that will make ultra clean diesel and aviation fuel. In South Africa, the electricity supply company Eskom is developing UCG at the Majuba Coal Field and has achieved ignition in January, 2007. 1.2.9 In the United Kingdom, the government undertook a five-year effort to review UCG and study the feasibility of using the technology for exploiting coal on land and offshore. A new UCG partnership, launched in the United Kingdom in 2005, draws its membership from more than eight countries. The partnership hosted its second international conference in February, 2007, in Livermore. In India, interest in the potential of UCG is particularly high. 1.2.10 On March 30, 2006, the Lawrence Livermore National Laboratory signed a memorandum of understanding with Ergo Exergy, which has licensed its proprietary UCG technology to clients in Wyoming (USA), South Africa, India, Australia, New Zealand, Canada and Italy. The two organizations have agreed to cooperate for conducting research on UCG technology, specifically in the areas of process simulation and carbon sequestration, with an emphasis on evaluating the environmental performance of a largescale operation. In addition, BP (formerly British Petroleum) recently executed an agreement with the Lawrence Livermore National Laboratory to develop (i) simulations for optimizing the UCG process and (ii) tools for drilling, monitoring and environmental management that are essential for field deployment of UCG. 1.2.11 The Power River Basin is a massive coal and natural gas deposit that spans the Montana-Wyoming border. It is the largest source of mined coal in the USA and is one of the largest deposits of coal in the world. The Gas Technology Inc. and the Wyoming Business Council recently completed a 10

feasibility study showing UCG to be a better option with respect to cost, emissions and environmental effects compared with conventional coalfired stations and integrated gasification combined-cycle plants. New UCG field pilots are planned for the Powder River Basin. Ergo Exergy will be involved in this test operation.

*********

11

CHAPTER - II
UNDERGROUND COAL GASIFICATION PROCESS

12

2.1

THE UCG PROCESS: 2.1.1 Coal may be gasified in a number of ways. The simplest method, and the first used, was to heat coal in a retort in the absence of air, partially converting coal to gas with a residue of coke. The most complete conversion of coal or coke to gas, that is feasible, was achieved by reacting coal continuously in a vertical retort with air and steam. The gas obtained in this manner is called producer gas and has a relatively low thermal content per unit volume of gas (100-150 Btu/ft3). The development of a cyclic steam-air process in 1873 made possible the production of a gas of higher thermal content (300-350 Btu/ft3), composed chiefly of carbon monoxide and hydrogen, and known as water gas. (Natural Gas has a thermal content of 1000 Btu/ft3). 2.1.2 UCG is a process to convert unminable underground coal/lignite into combustible gases by gasifying the coal in-situ. The coal reacts with injected air or oxygen and steam, to form gases, liquids and ash. Produced gases are a mixture of combustible (carbon monoxide, hydrogen & methane) and non-combustibles (carbon dioxide, nitrogen & un-reacted water vapor) gases. UCG, at present, is the only feasible technology to harness energy from deep unminable coal seams, in an economical and environmentally clean way. 2.1.3 Coal is gasified underground by drilling boreholes from the surface into the coal seam, creating a linkage through the coal seam between the injection and production wells and injecting air (or oxygen) and water (or steam) into the underground reaction zone. In the process, the coal is partially oxidized, producing low and medium Btu gas. If only air is injected, the produced gases contain a high percentage of Nitrogen and have a heating value roughly one-tenth of natural gas, named as low-Btu gas. Injecting oxygen rather than air reduces the nitrogen content and raises the heating value of the produced gas to the medium-Btu gas range of heating value roughly one-fourth of natural gas. If the goal is high-Btu gas (also called as substitute natural gas or SNG), the percentage of methane in the 13

produced gases needs to be boosted. For methane formation in UCG, two additional steps are required. First, some of the carbon monoxide made in the gasification process is reacted with steam to form additional hydrogen. This step, called shift conversion, sets up the proper ratio of gases for the next step called methanation. The hot gas thus produced is allowed to pass through the coal seam to the exit boreholes and is carried to the surface where it is cleaned and upgraded for use.

*********

14

CHAPTER - III
UNDERGROUND COAL GASIFICATION IN INDIA

15

3.1

INTRODUCTION 3.1.1 The Oil and Natural Gas Corporation Limited (ONGC), while drilling in search of hydrocarbons, discovered large reserves of coal at depths more than 600m. These coal seams are spread in Gujarat and West Bengal and have been estimated to contain more than 350 billion tonnes of coal deposit. In Gujarat alone, these coal reserves have been estimated to be around 63 billion tonnes in Mehsana -Ahmedabad block and 60 billion tonnes in Patan- Tharad block. 3.1.2 Due to prevailing sub-surface conditions such as depths, geology, geohydrology, in-situ temperature and high gas content in the coal seam, the exploitation of these coal reserves was not possible with any method except UCG. The quantum of energy estimated for Mehsana Ahmedabad block alone, to be generated from these reserves through UCG, is equivalent to about 15,000 billion cubic meters of natural gas. In addition, the carbon dioxide, which is the main by-product of the produced gases, can be utilized in enhancing the recovery of heavy oil, which has been discovered in this area. 3.1.3 In January, 1981, the relevance of UCG in the Indian context, with particular reference to 63 billion tonnes of coal reserves in Kalol area, was considered. It was decided that initiating UCG at Kalol would be worthwhile and to ensure expeditious development of this new technology, collaboration with outside agencies was also to be considered. The Department of Coal was required to interact with a team headed by Dr. Inderjit Singh of the ONGC and consisting of experts from the Central Fuel Research Institute (CFRI) and the Department of Science and Technology (DST). At the instance of the Planning Commission, the ONGC made the literature survey in January, 1981. 3.1.4 In an Inter-Ministerial meeting under the chairmanship of the Secretary (Petroleum) in March, 1981, it was decided that an expert team consisting of a representative each from the ONGC; the Central Mining Research 16

Station (CMRS); the CFRI and the Technical Adviser, Government of Gujarat, may visit France, Belgium, West Germany, the USSR and the USA to study UCG work in operation in these countries and submit a report for the implementation of UCG in India. The team visited France, Belgium, West Germany and USSR during May, 1981. The expert team recommended that UCG is the only technique available for exploiting coal at deeper depths. 3.1.5 It was suggested that while the Department of Coal would act as the nodal agency for coal seams lying within a depth of 1000m, beyond this depth, the Department of Petroleum would be in a better position to tackle the problem. Later on, a decision was taken that the Department of Coal would be the nodal agency for gasifying the coal in-situ (UCG) upto a depth of 600m. The deeper seams were to be attempted by the Department of Petroleum. The other conclusions of the report were: There is an urgency to tackle the UCG project. A Steering Group comprising of the representatives of the Department of Coal, the Department of Petroleum and the Council of Scientific and Industrial Research (CSIR) should be formed immediately. 3.1.6 A Steering Group was set-up by the Department of Petroleum to plan and review the progress of UCG in the country in October, 1982. The Committee comprised of representatives from the Ministry of Petroleum, the ONGC, the Department of Coal, the CSIR, the Central Mine Planning and Design Institute Limited (CMPDIL) and the Government of Gujarat. 3.1.7 The ONGC prepared a feasibility report on Kalol UCG project in which the specific objectives of the Indian UCG programme were defined as under: To develop technology for producing low BTU gas for electric utility or for industrial use from low rank deep coals of Kalol. To check its feasibility for commercial operation. To train cadres to meet the above objectives.

17

3.1.8 As the ONGC was identified to be responsible for the UCG Pilot Project, the Chairman, ONGC, constituted an internal crash group under Dr. K.L.Goyal to undertake detailed study, to co-ordinate the internal position and to come out with the technical study report on UCG Pilot Project for submission to the Steering Group for early implementation. 3.1.9 The ONGC, while provisioning for R&D budget for 7th Five Year Plan, earmarked Rs. 50 crores under the head Underground Coal Gasification on 4th April,1986. 3.1.10 The report of the said crash group was presented to the ONGC Board giving the relevant advantage and urgent need to develop UCG technology not only to provide energy security but also to get world leadership in this upcoming technology. The cost of the project was estimated to be Rs. 9.60 crores. 3.1.11 The ONGC Board approved conducting of the pilot test on UCG in Mehsana area at an estimated cost of Rs. 9.60 crores. The ONGC Board decided that this project should, more appropriately, be funded by the Oil Industry Development Board (OIDB). 3.1.12 Accordingly, the proposal was sent to the OIDB, following which the OIDB approved a grant of Rs. 9.60 crores to implement the R&D Pilot Project on UCG in Mehsana, Gujarat. The Government of India (Ministry of Petroleum) also approved the UCG R&D Pilot Project. 3.1.13 The objective of the pilot project was to acquire relevant sophisticated and contemporary technology for exploitation of large unmineable coal reserves in North Gujarat area, where the reserves were estimated to be of the order of 63 billion tonnes of which around 37 billion tonnes was estimated to be recoverable through UCG. The arguments in favour of going in for UCG project in India were put forth in the report as follows:

18

1. UCG is the only feasible technology, which enables exploitation of deep (> 700m) coal reserves, which are not amenable to known conventional mining methods. 2. UCG offers an environmentally clean way to harness energy from coal. 3. UCG produces insignificant surface disruption and brings no solid waste to the surface. 4. Even at shallower depths (< 500m), UCG can be more economical than conventional mining. 5. UCG reduces capital investment, operating costs, and the output gases cost by 25 to 50% as compared to surface gasification. 6. Possibilities of transport of medium calorific value gas over a distance of 100 km. exist. 7. Possibilities of using CO2 from the gas for enhanced oil recovery exist. 8. Basic UCG technology is known. 9. Potential for export of know how exists. 10. Conditions in India are far more compelling for adopting UCG than most locations in the world. 3.2 FIELD WORK AT THE CHOSEN SITE 3.2.1 The Steering Group approved by the Government which was steering the project was aware that the UCG Technology at great depths (beyond 800m) is a long range, high technology and very high gain project to provide energy security to energy deficient India. The Group, therefore, debated all the pros and cons of the Project and proceeded very meticulously step-by-step. The doubts raised by Members were studied and debated to arrive at a solution. The pre-project environment studies for subsidence, water and air quality were initiated. In fact, the Government of Gujarat and its pollution department commented that this was one of the best planned projects. 3.2.2 As per recommendations of the report, an Information Well UCG-1 was drilled in 1986 to a depth of 1005m at the selected site, between the wells MC-2 and MC-3, to acquire the sub-surface geological and geo19

hydrological information/ data. All exploratory studies such as complete set of logs, Velocity Seismic Profile (VSP), dipmeter, geo-hydrology, production testing, etc., were carried-out in this well. 3.2.3 During drilling of the UCG-1 well, a number of coal seams of varying thickness were encountered from the depths of 746m to 940m, interbedded with sand, silt, shale and clay formations. The main coal seams of thickness more than 5m were identified as Kalol IX/ X (5.5 m), Sobhasan1 (16.5m), Sobhasan-III (6.25m) and Sobhasan-V(5.5m). 3.2.4 For the first time in ONGC, 3-D seismic survey was carried-out at the proposed pilot area near UCG-1 well to confirm the continuity, frequency and alignment of the coal seams and to locate the presence of faults, folding and other tectonic disturbances etc. in the surrounding area. The data was processed and interpretation was carried out for the first time in India by the ONGC, using interactive workstation GEOQUEST. The possible extension of Sobhasan-III coals was traced. Two-way time contour maps and depth maps were prepared, using time slices, for Sobhasan-I coal top and corresponding to a horizon near Sobhasan-III coal top. It was observed from these maps that the area around UCG-1 well is highly disturbed by the presence of faults. The area least disturbed by the faults and where maximum thickness of Sobhasan-I and III coals was expected was around MC-2 well. In addition, drilling of another information well was proposed to acquire more surface information required for preparation of various models. 3.2.5 Based on the results of 3-D seismic interpretation work, it was decided to drill a second information well (UCG-3) on priority in a fault-free zone. Structural contour maps of horizon, corresponding to top of Sobhasan-I and Sobhasan-III coal, and the isopach map of Sobhasan-1 coal were examined and it was felt that it would be technically most appropriate to locate UCG-3 at a distance of 300 m South East of MC-2 along with the same structural and isopach contours passing through MC-2. The information well UCG-3 was spudded on 16th March, 1990. A number of 20

coal seams of varying thickness were encountered. The well was completed at a depth of 1160m. The lithology of the well was as anticipated. The Sobhasan-III target coal seam of thickness 9.5m was encountered between depths of 1026m and 1035.5m. Extensive coring of 266m, which includes 235m continuous coring, was carried-out. 3.2.6 The CMRS, Dhanbad, had undertaken environmental studies at and around the UCG site at Mehsana, with a view to study the ambient environmental status and the impacts of the UCG Pilot Project. The environmental studies at the UCG site were classified into three categories namely (i) Air Quality Monitoring, (ii) Water Quality Monitoring and (iii) Subsidence. The studied parameters were monitored in consultation with the Gujarat State Pollution Control Board (GSPCB). 3.2.7 Subsidence can result due to UCG. For this purpose. a grid of subsidence monitoring stations was planned at and around the UCG site. Subsidence can take place due to various natural and man-made activities, which include pumping of water and petroleum from underground and underground exploitation of coal and minerals. At and around the UCG site, large scale pumping of water from underground was being done for domestic purposes and also for cultivation. Therefore, at and near the UCG site, subsidence can be expected to take place not only due to underground gasification of coal but also due to pumping of water from below ground. Keeping this in view, it was decided to start subsidence study (vertical movement of points on the surface) well in advance of the actual UCG trial. For this purpose, a grid of subsidence monitoring stations was planned at and around the UCG site. Monitoring stations at about 30m intervals were commissioned at the site. 3.2.8 A Joint Commission of the US Department of Energy and India was also established for UCG and Enhanced oil recovery (EOR). Dr.K.L.Goyal represented India on the Joint Commission, while the Under Secretary, US Department of Energy, represented the US Government. This provided access to the work being done in the USA. ONGC Officials 21

visited the UCG sites in the USA, as well as the Lawrence Livermore National Laboratory, and obtained valuable information. 3.3 BACKUP LABORATORY WORK 3.3.1 The coal/core samples collected at various depths of UCG-1 were tested for detailed physico-chemical analysis, petrography, petrology and reactivity tests, etc., at various National Laboratories such as the Coal Survey Lab., Nagpur; the CFRI, Dhanbad; the Indian Institute of Chemical Technology (IICT), Hyderabad; the CMRS, Dhanbad and the Keshava Deva Malviya Institute of Petroleum Exploration (KDMIPE), ONGC, Dehradun. The analysis indicated that the object coal was low rank, soft brown bituminous with high moisture and volatile contents. It was also observed that the coal was highly reactive with carbon dioxide and steam, which indicated its suitability for underground gasification. The non-coal rock samples of the overlying beds were also tested for detailed physicomechanical properties. The rocks were found to be comprised of sand/ sandstone, clay/ claystone, shale/ carbonaceous shale/ coal and intercollations of sand/ silt/ shale, etc. The rock samples were found poorly cemented, less compact and of low strength. 3.3.2 On analysis of geological and geo-hydrological data, coal seams characteristics, lithology, physico-mechanical properties of the roof and floor rocks, etc., the Sobhasan-III coal seam was found most suitable and safer for in-situ gasification during the pilot experimentation. 3.3.3 The integrated study report incorporating details of all the tests carried out in respect of UCG-1 well at various work centres in the ONGC and at other National Laboratories was prepared and submitted to the Steering Group. 3.3.4 The coal samples collected at various depths of UCG-3 were also tested for detailed physico-chemical analysis, petrography, petrology and reactivity tests, etc. at various National Laboratories such as the IICT, the 22

Coal Survey Lab., the CMRS and the KDMIPE.

The non-coal rock

samples of the overlying beds were tested in the KDMIPE in association with the CMPDIL for detailed physico-mechanical properties. 3.3.5 The geological model was prepared using the available data of two drilled wells, i.e. UCG-1 and UCG-3 and other earlier wells, i.e. MC-1,2, 3 & 4 and the interpreted 3-D seismic data. The work identified the area without any faults around UCG-3 and MC-2 wells where two process wells PUCG1 and PUCG-2 were proposed at 150 meters interval. 3.3.6 To further assure all concerned, and clear all doubts, a fully structured International Seminar was organized in September, 1985, with participation from India, the US Department of Energy, the Lawrence Livermore National Laboratory, USA and Belgo-German experts. (The latter had tried UCG at depths of 860m. Their project, however, failed due to some minor mistakes, and unfortunately, because of low oil prices, the project authorities could not get funding for a second attempt for which the ONGC had offered expertise). A questionnaire, for possible doubts that still remained in the minds of participants, was circulated to each participant especially foreign delegates, and they were asked to include their comments on those points in their presentations. Armed with all the backup, the project details were finalized, including the well completion and the technology to be used for crip. 3.3.7 A second International Seminar was organized in September, 1987, to present the final details and firm-up the material specifications. The tender document was also finalized; however, just when the tenders were to be floated, it was decided to rework the financial details by including the cost of surface installation. Naturally, the cost got escalated to about Rs. 50 crores. No agency was approached for the additional funding and the project was shelved. 3.3.8 It may be relevant to point-out that the original aim of the project was to gasify the coal at the projected depth. Being an R&D Project, it was very clear from the beginning that financial return was not the requirement. 23

After gasification, the plan was to model various aspects, like cavity formation, calorific value, quantity and composition of produced gas, temperature profile, requirement of air, water encroachment problem and the like. The model was to be tested and refined in subsequent burns in the same well. All this would have helped to reduce the cost of further wells, both injection and production, to arrive at a reasonable estimate of financial return. 3.3.9 In November, 2006, a Workshop on UCG was hosted jointly by the Ministry of Coal, Government of India and the US Department of Energy. It was attended by representatives from Indias coal industry. At least three pilot projects are now in the planning stages. The Lawrence Livermore National Laboratory, through the US Department of Energy, is working closely with India, on its UCG development.

*********

24

CHAPTER - IV

PROCESS MODELLING

25

4.1

Many organizations are in the process of developing a combustion model to optimize the operating parameters and predict the performance. For e.g., the University of California at Berkele is developing improved combustion process models and a computational fluid dynamics model. The goal of those organizations is to optimize the design, operation and control of UCG processes so that the composition of the product gas can be predicted and, despite variable subsurface conditions, constrained within acceptable limits. Gas composition affects the economic viability of the operation and must stay within the limits of the capabilities of the gas-processing plant at the surface. Thus far, they have developed the essential process model and have integrated it with Aspen Plus, a commercial software package for simulating steady-state chemical processes.

4.2

Upadhye and Wallmans simplified model may work for some variables but not for all, as shown in the table below, which compares model results for UCG gas component levels to measurements made during the U.S field tests in the 1980s. The model quite accurately predicts the hydrogen, methane and water content of the gas. However, it predicts twice the actual level of carbon monoxide and about two-thirds the actual level of CO2. Verification of the models accuracy can only be done with field experiments, notes Upadhye. We cannot run laboratory experiments to verify the models. UGC takes place many hundreds of feet underground and its results can be difficult to measure. Upadhye hopes to test and improve the model using field data from the UGC pilot tests that will occur throughout the world over the next few years. Component UCG model predictions (in %) 27.2 13.0 19.4 7.4 33.0 Field measurements (in %) 27.3 6.3 27.1 6.3 33.0

Hydrogen Carbon monoxide Carbon dioxide Methane Water

*********
26

CHAPTER - V ENVIRONMENTAL CHALLENGES

27

5.1

The new pilot projects will also provide key data for the environmental models being developed by a team of environmental scientists led by Burton at the Lawrence Livermore National Laboratory, USA. Although most of the previous UCG pilots did not produce significant environmental consequences, Livermores 1970s test site at Hoe Creek, Wyoming, USA, unfortunately resulted in contaminated groundwater, as did one pilot in Carbon County, Wyoming. At Hoe Creek, operation of the burn cavity at pressures higher than that in the surrounding rock strata pushed contaminants away from the cavity, which introduced benzene, a carcinogen, in potable groundwater. The contamination has required an expensive and long-term cleanup effort at the site.

5.2

Since those problematic tests in the 1970s, environmental scientists have learned a great deal about the behaviour and types of contaminant compounds produced by UGC as well as about contaminant transport and environmental risk assessment. Several steps can be taken to avoid groundwater pollution. One is balancing operating conditions to minimize the transport of contaminants from over pressurized burn zones. Another is to locate a UGC site where natural geologic seals isolate the burn zone from surrounding strata. Isolating the site form current or future groundwater sources and understanding how UCG affects the local hydrogeology are essential. This knowledge greatly benefited the Chinchilla project. Chinchilla is an excellent example of how to plan a site and operate UCG plant, says Friedmann. The operators maintained negative pressure in the combustion cavity so that contaminants could not flow beyond the cavity.

5.3

Burtons team is creating the first detailed models of contaminant flow and transport, specifically for UCG operations. The standard types of hydrologic models used for environmental assessments do not consider the full effects of UCG operations, she says. UCG requires integrated simulations that capture the complex geochemical, geo-mechanical and geo-hydrological processes occurring during a burn.

28

5.4

Initially, Livermore groundwater specialists Walt McNab and Souheil Ezzedine created and tested a modified version of the groundwater-modeling tool Flex, to generate simple models of contaminant transport from UCG combustion. The models included thermal buoyancy effects on contaminant migration.

5.5

These first simplistic models used a homogeneous subsurface. The layering and permeability contrasts that characterize natural rock sequences associated with coal seams were ignored. In this way, the researchers could isolate important thermal changes when predicting and assessing UCG environmental effects.

5.6

Another environmental concern is that the void created by gasification may cause the land surface to subside. Subsidence is likely to be more of a problem if gasification occurs in a shallow coal seam, closer to the surface. This phenomenon also often occurs above long-wall underground coal mines but is less of a problem if the seam is deep.

*********

29

CHAPTER - VI

MANAGING GREENHOUSE GASES

30

6.1

At the surface, the various combustion products are separated out to make the syngas usable. After cooling, the gas is filtered to remove ash and tar particles. Removal technologies are well established for hydrogen sulphide and ash products such as arsenic, mercury and lead. These compounds are then disposed off safely. Hydrogen can be separated out for use alone, or it can be included as a component in the syngas, which is a mixture of hydrogen and carbon monoxide.

6.2

If the CO2 is to be captured at the surface and sequestered, it must be separated from the syngas. The Lawrence Livermore National Laboratory, USA, is developing a number of separation or capture technologies. At a UCG production site, a significant percentage of the CO2 would likely be sequestered in the void left by the burned coal seam. Ideally, remaining CO2 can be sequestered in deep geologic formations nearby.

6.3

UCG processes cause thermal, geochemical, and geothermal changes to the surrounding rock reservoir, which may affect the reservoirs ability or capacity for CO2 storage. Such changes include the effects of heating and quenching on fractures and rock properties. The reservoir may become more porous as acid leaches from ash, tars, char, coal, and rock minerals. Fluid densities in the reservoir may change because of high combustion temperatures. In addition, organic contaminants in CO2 and metals in acid ground waters may become more soluble because of UCG. Additional research is essential to quantify and characterize the effect of these processes before any CO2 can be pumped back down near a UCG production facility.

6.4

If the CO2 is not sequestered in place, it can be piped to oil fields. Oil companies can then inject it underground to increase production from oil and natural gas wells, a process called enhanced oil recovery. This represents an opportunity to sequester carbon at a lower cost compared with storing it in geologic repositories. Sales of the recovered oil and gas could generate revenues to help offset the expenses of sequestration. The only operating coal gasification plant in the USA, at Beulah, North Dakota, has been piping its captured CO2 to oil fields in Canada for years.

31

6.5

Livermore researchers have developed electromagnetic imaging and electrical resistivity tomography to monitor the CO2 injected underground and ascertain its location over time. Electromagnetic imaging was originally designed as an aid in oil recovery. Electrical resistivity tomography was designed for environmental research but has since been extended for use in oil fields. When existing well casing are used as electrodes, electrical resistivity tomography is a nearly non invasive and low-cost method for monitoring. Three-dimensional modeling at Livermore allows researchers to examine injection scenarios in detail, including those involving enhanced oil recovery, and to test monitoring tools in a virtual environment before expensive prototypes are built.

*********

32

CHAPTER - VII
INPUTS OF THE OIL AND NATURAL GAS CORPORATION LIMITED

33

7.1

After being given a green signal by the Chairman and Managing Director, Oil and Natural Gas Corporation Limited (ONGC), Dehradun, to restart the UCG Project, it was decided that in the beginning, UCG at shallow depths of upto 500m may be taken-up. The ONGC, thereafter, signed an agreement with the Skochinsky Institute of Mining (SIM), Moscow, on the 29th of November, 2004. According to the agreement, the SIM was to provide assistance in selection of suitable sites for UCG, identify and assist in collection of required data and thereafter undertake the actual UCG operations including the well design, surface handling systems and techno-economic analysis.

7.2

Simultaneously, the ONGC signed Memoranda of Understanding (MoUs) with the Gujarat Mineral Development Corporation Ltd (GMDC), the Neyveli Lignite Corporation Ltd. (NLC), the Gujarat Industries Power Company Ltd (GIPCL), the Coal India Ltd. (CIL) and the Singareni Collieries Company Ltd (SCCL) for cooperation in the area of UCG.

7.3

Based on the available data, a total of 11 sites were suggested to the SIM for detailed studies. Out of those 11 sites, five were found not suitable either because of roof and floor characteristics or aquifer problem. Out of the remaining six, five sites required additional data and further analysis. Ultimately, as a first step, one site near Surat, Gujarat, belonging to the GIPCL, was selected for UCG trials. Topography survey of the site was carried-out. Geological and hydrogeological data was collected to complete the geological model. Geochemical data of lignite characteristics and over burden, proximate and ultimate analysis was generated. The lithological and section maps were also prepared. The data was, thereafter, sent for evaluation to the SIM. 18 slim holes were drilled for extensive data collection. Simultaneously, high resolution seismic survey was carried-out in a small pilot area for mapping of lignite seams. The collected data is encouraging. It is planned to carry-out a UCG pilot first.

7.4

Simultaneously, drilling activities are being carried-out for collection of geological and hydro-geological data (pumps test) in other identical sites of HoduSindhari Block and Kurla Block (Rajasthan), Tadkeshwar Block and Bhavnagar Block (Gujarat). The geological and hydro-geological data, proximate and 34

ultimate analysis, geo-mechanical data, etc., alongwith relevant maps, sections, etc. of these sites are being sent to the SIM for further evaluation. The identified site shall follow the same data generation sequences as in the first selected block near Surat.

*********

35

CHAPTER - VIII INPUTS OF THE DIRECTORATE GENERAL OF HYDROCARBONS

36

8.1

INTRODUCTION 8.1.1 Underground coal gasification (UCG) is a physico-chemical process of conversion of coal into gaseous energy source at the place of its occurrence. Through this process, techno-economically unviable coal resources can yield energy for present day use. 8.1.2 Coal on global scale and particularly for developing economy is main source of power generation. Continued use of coal by deploying clean coal technologies can help In protection of environment, and In energy security in view of supplementary supply of energy.

It may also provide price stability against imported petroleum and natural gas. 8.2 FUTURE PLANS FOR DEVELOPING UCG AS AN ENERGY SOURCE 8.2.1 The route to commercial development of UCG is through trial and semicommercial demonstration, with supporting studies to address concerns regarding: Uncontrolled combustion, Escape of pollutants, Ground water contamination and Subsidence. 8.3 REGULATORY FRAME WORK FOR UNDERGROUND COAL GASIFICATION 8.3.1 The Operation, Product and the Process of UCG: i) All the steps involved in development of UCG, viz. well drilling, coal / lignite gasification, production / processing / transportation / usages of the UCG gas is similar to natural gas and Coal Bed Methane (CBM) production operations. The mining plan for UCG would be entirely different from conventional mining plan for underground mining operation. Instead of conventional mine planning, the UCG operation would require the incorporation of well spacing, year wise coal/lignite burning, production of UCG gas and hydrocarbons, etc.

37

ii)

Although the UCG operation is closely associated to coal / lignite deposits / occurrences, operationally it is similar to natural gas operation. The UCG operation is neither akin to coal mining nor the product as the produced gas is syn-gas and not coal and therefore it will not be prudent to consider this activity as supplementary activity to underground coal mining operation.

iii)

The product gases from the gasification process are recovered from the second well. The gasification process is somewhat similar to that utilized in surface gasification plants and the product gases are mixture of hydrogen, carbon monoxide, methane, higher hydrocarbons and carbon dioxide. The produced gas has low calorific value ranging between 800 kCal/m3 to 3000 kCal/m3 and is primarily derived from hydrocarbons.

iv)

Therefore, it would be prudent to consider development of this resource under the Petroleum & Natural Gas Rules, 1959, with minor modification in the definition of Petroleum. The similar terms & conditions framed for the development of CBM resources can be made applicable for the development of UCG resources also. The fiscal and regulatory regime for UCG could be developed on the similar lines of CBM policy jointly by the Ministry of Coal (MoC) and the Ministry of Petroleum and Natural Gas (MoPNG).

v)

Moreover, in para (c) & (d) of the Memorandum of Understanding (MoU),* entered into between the MoC and the MoPNG in September, 1997, there is a provision to include coal gasification project after the exploitation of CBM gas.

* (TO BE GIVEN AS AN ANNEXURE)

vi) The legal and regulatory framework for commercialization of UCG, prepared by the MoC for the development and commercialization of UCG, has been examined keeping in view the above mentioned process of UCG as well as composition of UCG and the present legal position as contained under Oil Fields (Regulation and Development) Act 1948 read with Petroleum & Natural Gas Rules, 1959 (as amended from time to time). 38

vii) It has been observed that UCG, as a product, is compatible to the definition of Hydrocarbon as contained in section 3 (ga) as well as to the definition of Natural Gas as contained in section 3 (i) of Petroleum & Natural Gas Rules, 1959 (as amended from time to time). *

* (TO BE GIVEN AS AN ANNEXURE)

viii) Further, UCG as a product is compatible to the definition of mineral oils as per section 3 (c) of the Oil Fields (Regulation and Development Act 1948). *

* (TO BE GIVEN AS AN ANNEXURE)

ix) The above comments are further fortified by our observation that UCG is not covered by the Mines and Minerals (development and regulation) Act, 1957, since section 3 of the said Act defines minerals as including all minerals except mineral oils and further stating that mineral oils include natural gas and petroleum. x) Natural Gas has been defined under the Petroleum and Natural Gas Rules, (1959) as natural gas or gas means gas obtained from bore-holes and consisting primarily of hydrocarbons but does not include helium xi) Further, Hydrocarbons has been defined in the said act as

hydrocarbons means any organic compound of hydrogen and carbon. It is found that the above definition of hydrocarbon as contained in the Petroleum and Natural Gas Rules (1959) fits the chemical composition of UCG as detailed in the introductory paragraphs and thus the development and commercialization of the said mineral oil would be in terms of the strict definition of both the Oil Fields (Regulation and Development Act 1948) as well as the Petroleum & Natural Gas rules, 1959 (as amended from time to time). However, since UCG is a substance extracted from coal by the application of heat or by a chemical process, it is evident that section 3 (k) of the Petroleum & Natural Gas Rules, (1959), should be amended to bring the process of UCG within the ambit of Oil Fields (Regulation and Development Act, 1948). 39

xii) The policy & regulatory mechanism to govern the exploitation of UCG (whether similar to the existing CBM or other wise) as deemed fit can be framed after effecting the amendment suggested above to the Petroleum & Natural Gas Rules, (1959). Development and commercialization of UCG would require Petroleum Licenses and Mining Lease to be granted under the Petroleum & Natural Gas Rules, (1959) as is the case with other petroleum products. 8.3.2 Fast Track Development of UCG Technology i) In the interest of development of UCG techniques on a fast track, it would be necessary to allow private /foreign companies for setting-up demonstration-cum commercial UCG projects for utilization of deep seated coal and lignite deposits. This will not be feasible if UCG operations are taken-up under the coal mining regulatory framework. It will require changes in these statutes, viz. Coal Mines (Nationalization) Act 1973, in order to avoid the restriction of captive consumption/mining. Therefore, it would be more prudent to consider development of this resource under the legal & regulatory framework as applicable to CBM exploration and production operation wherein there is no restriction of captive consumption/mining and the operator is free to sell the gas in the market at market driven prices. ii) Incentives may be considered, viz. tax-free regime for UCG for next 7 years similar to the CBM policy and the New Exploration Licensing Policy (NELP), to encourage public private partnership. If successful, large resources of deep-seated and isolated lignite & coal deposits, which may not be amenable to conventional physical extraction economically, can be exploited through UCG process. 8.3.3 Safety & Environment Framework 8.3.3.1 UCG operation requires: a. Drilling of wells to access the coal seams. Latest directional drilling and injection control technology is required. Drilling and borehole technology

40

is available with oil companies. Under the present statute, drilling operations are covered by Oil Mines Regulations, 1984. b. Handling large volumes of toxic and high pressure gas which has to be treated before transmission by pipelines. Locating the equipment at the surface UCG station and protecting the local environment from gas escape, equipment failure emergency procedure, blow offs and spillages is a significant challenging operation. c. Oil industry already deals with high pressure gas and oil processing in group gathering stations. Regulation 51 of Oil Mines Regulations, 1984 deals with these issues. d. According to the Directorate General of Mine Safety (DGMS), UCG operations require technical knowledge of various disciplines. Due to diverse and mixed nature of technologies of coal and oil applicable for UCG operations, perhaps a separate set of regulations may have to be developed for UCG operations. Safety features would be needed for : Hydro-geological regime in the area to avoid possible groundwater contamination. Effect of subsidence due to cavity generated as a result of UCG. The technology for terminating underground fire, if so required. 8.4 AREAS REQUIRING R&D EFFORTS 8.4.1 R&D efforts are required to evaluate the potential application of technological advances made in the field of UGC technology since last three decades in the Indian condition. The areas of concern are : Combustion-Process modeling Geological subsurface characterization Geo-mechanics Environmental risk assessment

*********
41

CHAPTER - IX INPUTS OF THE ESSAR OIL LIMITED

42

9.1

INTRODUCTION

9.1.1 Currently, Essar has substantial coal and lignite resources in its Coal Bed Methane (CBM) and Oil & Gas exploration blocks namely RG (E)-CBM/2001/1 (West Bengal) and CB-ON-3 (Gujarat). Under the Production Sharing Contract (PSC), the non-productive areas of the CBM and Oil & Gas blocks will be relinquished by the operator to the Government, at different phases of exploration. These areas would be ideally suited for UCG, as the Coal and Lignite occurring at depth will neither be amenable for mining nor for CBM development. Besides, the key geological parameters required to evaluate the feasibility of UCG, namely quality attributes of coal / lignite, permeability of coal / lignite, engineering properties of rocks associated with the coal/lignite beds, hydro-geological regimes, etc. acquired during the exploration would be available. Furthermore, the dry wells drilled in relinquished areas could possibly be utilized for conducting UCG studies. In the relinquished areas, therefore, with existing infrastructure, i.e. rig, equipments, laboratory facilities, manpower and expertise available, a techno-economic feasibility study for UCG under Indian conditions can be undertaken by Essar at much lower cost. For this purpose, a mining lease for UCG will have to be necessarily obtained from the Ministry of Coal (MoC), New Delhi. The MoC has been provisionally empowered by the Committee of Secretaries, Government of India, to grant UCG lease for captive purposes only. 9.1.2 It is learnt that the Neyveli Lignite Corporation Ltd. (NLC), which has got Government approval for taking-up a UCG Project in lignite deposits of Rajasthan, under Coal S&T, Department of Science and Technology (DST) and NLC funding, has not been able to get a suitable technical partner, so far. The Singareni Collieries Company Ltd. (SCCL) is also interested in the development of UCG in parts of its leasehold. If Essar can have a technical collaborator/ partner, it can get the Government approval for a UCG project, as a joint venture with the NLC and/or the SCCL, early. 9.1.3 Currently, the E & P Division of the Essar Oil Ltd. is handling Oil & Gas and CBM exploration & development activities. This Division can be geared-up to handle 43

the UCG and other coal related activities viz. surface Coal Gasification, identification and acquisition of coal mining blocks in India and abroad, conducting detailed coal exploration for mining, etc. A tentative plan is given in the para 9.2. 9.2 WORK PLAN (TENTATIVE):

9.2.1 The project is proposed to be undertaken by the Essar Oil Ltd. in association with internationally reputed UCG experts like Linc Energy, Australia; Ergo Exergy Technologies, Canada; etc. It would be necessary to identify a suitable consultant/ expert agency. To start with, the Project work is proposed to be carried-out in three stages which are outlined below: Stage I: Pre-selection of block Identification of suitable consultant / expert agency. Collection of all available exploration data of the coal / lignite blocks. Preliminary evaluation and selection of a suitable block based on geology, hydro-geology, structure, seam thickness, quality and quantity etc. Approx Cost: INR 200.00 lakhs. Stage II: Preliminary Exploration and Feasibility study Planning and execution of additional exploration/seismic work in the selected block to generate site specific information. Undertaking feasibility study for establishment of UCG by drilling holes/ wells. Preparation of Environmental Impact Assessment (EIA), Quality Health Safety and Environment Plan (QHSE) and Environment Management Plan (EMP) for the project. Approx Cost: INR 500.00 lakhs. Stage III: Gasification Operation and Evaluation Drilling of Injection, Production, Monitoring wells and construction of sites. Linking of injection and production wells in the coal / lignite seam. Execution of gasification operation using air / oxygen / steam. Establishment of gas testing facility. Establishment of gas monitoring facility. 44

Evaluation of the operation through close monitoring. Approx. Cost: INR 1300.00 Lakhs.

TIME SCHEDULE AND ESTIMATED COST ABSTRACT Project Activities Stage-I 1. Identification of Consultant 2. Exploration Data Acquisition 3 Pre-selection study Stage-II 1. Preliminary Exploration 2. Sample testing and special characterization studies 3. Hydro-geological studies 4. Baseline environmental data collection 5. Preparation of EIA & EMP reports 6. Preparation of feasibility report Stage-III Infrastructural Development for the project 1. Obtaining surface rights / ML 2. Land acquisition 3. Construction of site office 4. Making water supply, electricity arrangements etc. Gasification Operation & Evaluation: 1. Drilling and construction of injection & production wells 2. Drilling and construction of monitoring wells 3. Establishment of air/ oxygen/ steam generation facility 4. Linking of wells, UCG operation and gas testing 5. Performance evaluation 6.Documentation Year-wise and stage-wise estimated cost abstract Stage Year 1 Year 2 Year 3 I 200 II 100 300 100 III 200 800 Total 300 500 900 Month From 0 0 4 7 13 20 13 20 20 To 3 4 6 18 19 22 19 23 24 Duration in months 3 4 3 12 7 3 7 4 5

22 22 25 22

25 30 36 30

4 9 12 9

25 25 25 32 42 45

36 40 35 42 45 48

12 16 11 11 4 4

(rupees in lakhs) Year 4 Total 200 500 300 1300 300 2000

45

Note: In the event, the UCG appraisal is conducted in the relinquished areas of Essars CBM / Oil &Gas exploration blocks, the cost of the project study could possibly be reduced to the extent of 20% - 30% of the above estimated expenditure.

*********

46

CHAPTER X INPUTS OF THE INDIAN SCHOOL OF MINES

47

10.1

INTRODUCTION

10.1.1 During the late eighties work on gasification of coal on a laboratory scale was carried-out at the Indian School of Mines (ISM) but it was subsequently suspended due to some unavoidable circumstances. UCG technology is a part of the underground coal-mining subject that has been taught in the past and is being taught here at the Under Graduate / Post Graduate level. The students carry-out their dissertation projects on UCG on a regular basis. The Institute is engaged in the development of human resource base of qualified personnel for UCG industry. A revised full course syllabus is under preparation and shall be introduced as a full subject at the undergraduate/postgraduate level. 10.2 PAST AND THE CURRENT WORK ON UCG BEING DONE AT THE ISM:

10.2.1 In addition to what has been mentioned above, following jobs have been/are being done at the ISM: i. Development of coal reactor technology. (The reactor has been designed and it is under construction. The reactor shall enable us to: (a) Study the characteristics of coal for gasification in which the parameters to be studied would be: Impact of temperature variation Variation of feed rate Molecular combination of gases evolved with different ramp rates and temperature range; (b) Monitor, on-line, the total process by using microprocessor based hybrid-monitoring system.) ii. Study of laboratory scale heating characteristics of coal by using Polish Sz index, Russian U index and by wet oxidation potential difference method. iii. Determination of the composition of coal to be used for gasification by C-H-N analyzer and by proximate analysis (for moisture, volatile matter, fixed carbon and ash). iv. Delineation of coal/lignite blocks suitable for UCG. 48

v. vi. vii. viii. ix. x. xi. xii.

Petrographic characterization of coal/lignite. Study of microscopic pores, cleats and their impact on permeability. Study of the reactivity of minerals and coal. Impact of delineation of organic facies. Porosity and permeability of coal seam and the enclosing strata. Plastic properties of coal. Development gasifier for study of gasification kinetics, using CO2, steam, air and their mixtures at different temperatures. Fixed bed gasification using vertical and horizontal reactor as well as rotary kiln.

10.3

FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY RESOURCE: 10.3.1 The ISM shall engage itself on laboratory and field studies as a part of the research & development project. (The commercial scale exploitation of coal/lignite by UCG technology shall, however, be done by a joint group of organizations like the ONGC, the GAIL, the NLC, the BHEL, the Essar Oil Limited, the Reliance Industries Limited, etc.) 10.3.2 The ISM has submitted a multi-disciplinary R&D project proposal to the Planning Commission for the grant of Rs. 12.00 crores, for the setting-up of a CENTRE OF CLEAN COAL TECHNOLOGY in the ISM campus. This Centre shall act as a nodal centre for all the research activities related to UCG. 10.3.3 The salient features of the above-mentioned multidisciplinary R & D project are being mentioned below: Characterization of the coal/coal-seams and the rocks above & below the coal seams for their geo-mechanical, petrographic, geological & hydrological properties and for the calorific value, combustion and liquefaction of coal. Laboratory model study for underground coal gasification by developing surface and underground gasifiers. 49

Mathematical modelling of UCG technology. Field investigations and pilot plant studies for UCG. Other relevant areas of research. The project duration, as proposed, would be 3 years.

*********

50

CHAPTER - XI INPUTS OF THE RELIANCE INDUSTRIES LIMITED

51

11.1

THE PAST AND CURRENT WORK DONE ON UCG 11.1.1. The need for encouraging production of clean and environmentally friendly gas by in-situ underground gasification of coal/lignite in India cannot be overemphasized. The Reliance Industries Limited (RIL) has been conscious of the strong potential of UCG and has been exploring possibilities for taking up a UCG project in India. 11.1.2. As a measure to understand technology and operations of UCG, a RIL

delegation visited the UCG site at Chinchilla, Australia and the only commercial UCG operations since last 45 years at Angren, Uzbekistan. Further, RIL officials have been attending various national and international UCG conferences to gather the recent developments in the field of UCG all around the world. 11.1.3. Various possible sites for UCG project in India have been under investigation by the RIL for some time now. To gain access to coal for UCG project, a Memorandum of Understanding has been signed with the Gujarat Mineral Development Corporation Limited (GMDC) to undertake UCG projects. A joint committee of the GMDC and the RIL has been examining various possible sites for UCG in GMDC command area. Currently, evaluation of a few lignite blocks is going-on. Likewise, the RIL is exploring the possibility of alliance with other coal leaseholders in India. 11.1.4. For sourcing the operational know-how, the RIL has developed an alliance with an Uzbekistan company and discussions are underway with UCG know-how agencies from the USA. 11.1.5. With the recent notification by Government of India allowing captive mining of coal for underground syngas production end use, the RIL plans to participate in the block allocation process to acquire a couple of blocks for taking-up UCG project.

52

11.2

REGULATORY FRAMEWORK TO BE DEVELOPED FOR UCG 11.2.1 Notification of UCG by the Government of India necessitates that regulatory framework needs to be put in place to facilitate the taking-up of UCG projects. HSE (Health, safety and environmental) regulatory mechanism needs to be developed for taking-up pilot project at the earliest. The regulatory mechanism may be interim in nature, allowing the pilot projects to be taken-up. Experience of pilot projects can be used as input to firm-up the regulatory setup.

11.3

FISCAL REGIME FOR PUTTING UCG R&D ON THE FAST TRACK 11.3.1 Since UCG will be a new technology, which remains untested in India and has many inherent uncertainties, following fiscal incentives should be provided for UCG: Tax holiday of 7 years Zero customs duty No carried interest of the government No upfront payments Phased work programme with exit options Freedom for use, market and pricing of produced gas 11.3.2 Similar fiscal terms have been provided to CBM operators and would go a long way to promote UCG.

11.4

UCG R&D AREAS 11.4.1 Generation of data base for coal / lignite for UCG which may cover relevant parameters is an important area requiring immediate attention. Further, as UCG is a new technology, it is imperative to develop a sound technical base to understand and predict the UCG process. Technical know-how that needs to be created is as follows: 11.4.1.1 SITE CHARACTERIZATION: The physical, chemical, hydrological and geometric properties of coal seam, neighboring strata and

53

overburden need to be assessed to predict the performance of coal gasification. 11.4.1.2 SIMULATION AND MODELING: Various simulations that may be carried-out are given below: UCG process combustion models: To model design, operation and control of UCG processes and to predict gas yields, and composition. Environmental and geo-mechanical simulation: To identify the environmental impacts associated with UCG such as subsidence, contamination of groundwater, etc. Modelling of surface facilities: To model the above ground facilities for gas clean-up and processing. Carbon capture and sequestration: To study the capture, separation and selection of suitable sequestration sites for CO2. Field monitoring: To develop a geochemical and geophysical monitoring programme that can demonstrate environmental suitability of active UCG operations and provide information for taking key decisions. Strict environmental monitoring of the pilot project must be ensured to avoid any failure in a pilot project as it may undermine the future of UCG in India Integration of simulation models: To integrate the baseline assessment of operations, economical and environmental issues associated with the UCG project needed for optimization of site design and operations. 11.5 FUTURE PLAN FOR EXPLOITING UCG AS AN ENERGY SOURCE: 11.5.1 Equipped with requisite technical know-how and financial resources, the RIL plans to seek allotment of captive coal / lignite block to be offered by the Government of India for UCG. Taking-up UCG pilot project and expanding it to commercial scale remains the RILs objective.

*********
54

CHAPTER XII INPUTS OF THE SINGARENI COLLIERIES COMPANY LIMITED

55

12.1

THE PAST AND THE CURRENT WORK ON UCG BEING DONE BY THE SINGARENI COLLIERIES COMPANY LIMITED (SCCL), IN THE GODAVARI VALLEY COALFIELD (GVCF) 12.1.1 The SCCL entered into a Memorandum of Understanding (MoU) with the ONGC on 15.04.2006 for the development of UCG process in the GVCF. Keeping the broad suitable conditions in view, three blocks, namely Manzoor Nagar, Indaram Shaft Block and Manuguru Shaft Block-II are proposed for UCG and the data was submitted to the ONGC for further feasibility study. 12.1.2 Russian experts studied and indicated that Manuguru Shaft Block-II may be suitable for UCG and further advised for generation of required Hydrogeological data. 12.1.3 The required Hydro-geological data was generated and submitted to the ONGC for further study. 12.1.4 Later on, the SCCL entered into an MoU with the Carbon Energy Pty. Limited (CEPL), Australia, for the development of the UCG process in moderately shallow (300m - 500m depth) to deeper blocks (600m-1500m depth) 12.1.5 The CEPL experts visited mines and proposed UCG blocks in the GVCF and collected relevant data and plans. The conceptual report is yet to be received from the CEPL authorities.

12.2

THE FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY SOURCE 12.2.1 The SCCL is planning to develop UCG technology and enhance the energy resource by the UCG process: In shallow and deeper virgin blocks which are not amenable for conventional mining. From left out virgin seams in running mines, which are not amenable for conventional mining and 56

In abandoned mines where 20% - 30% coal reserves only were extracted by conventional mining. 12.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST-TRACK 12.3.1 The SCCL will identify suitable blocks for conducting UCG investigations and also provide local logistic support and the SCCL shall not provide any financial support for R&D investigations due to its limited financial resources. 12.4 THE DIFFERENT AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP FOR ENABLING A TIME-BOUND COMMERCIALIZATION OF THE UCG TECHNOLOGY GENERATION. 12.4.1 The SCCL is interested to conduct R&D on suitability of coal seams, overlying and underlying lithofacies, ground water regime, structural suitability for directional drilling and inter-connections between injection well and production well, suitability of gas for various purposes such as power generation, manufacture of fertilizers and pesticides, separation of Hydrogen and its suitability as transport fuel and also carbon dioxide sequestration. As the SCCL is not having experience, it is planning to conduct the above studies with organizations like the ONGC, the CEPL etc. and with financial support from the Government of India. FOR VARIOUS APPLICATIONS, INCLUDING POWER

*********

57

CHAPTER XIII INPUTS OF THE BHARAT HEAVY ELECTRICALS LIMITED

58

13.1

UNDERGROUND COAL GASIFICATION AND POWER GENERATION PERCEIVED ROLE OF THE BHARAT HEAVY ELECTRICALS LTD (BHEL).

13.1.1

The following is perceived as the role of the BHEL in the development of UCG: As Designer and Manufacturer of equipment and systems For design, manufacture, installation & operation of UCG plant equipment and systems, including up-stream equipment and downstream gas cleaning & utilization plants. As Partner in UCG technology development To adapt existing equipment and develop new hardware to meet the UCG requirements, based on the BHELs experience in coal utilization, including surface gasification. To provide support for modelling & simulation of the system design and performance monitoring of UCG.

13.1.2

The UCG related capabilities in the BHEL, viz. equipment and system supply capabilities and expertise on Indian coal/ lignite utilization, are detailed below: i) UCG related equipment supply capabilities Upstream Equipment High Pressure Compressors for Air, Nitrogen - flow up to 350,000 Nm3/hr - horizontal split casing, up to 40 kg/sq.cm - vertical split casing, up to 350 kg/sq.cm High Pressure Water Pumps - flow 400 to 1200 cubic metre/hr, 200 to 225 bar - flow 20,000 cubic metre/hr, 2.5 bar Drilling rigs - Onshore rigs, for drilling up to a depth of 1500 m to 9000 m. Gasification Equipment 59

 Air & steam mixing vessel Seamless steel tubes Valves Ignitors Downstream Equipment Gas clean-up system Dust cyclones for high ash content Gas coolers Scrubbers electro de-tarring Gas handling systems Centrifugal wet gas compressors- up to 350000 Nm3/hr Piping systems Motors Valves Power Generation System Gas turbines from 4MW to 250 MW capacities Heat recovery steam generator (HRSG) to suit Gas Turbine Steam Turbine to match HRSG Firing UCG gas in boilers Controls & instrumentation Steel stacks The BHEL has an erection & commissioning wing for all field equipment ii) Expertise with respect to Indian coal & lignite utilization, including gasification The BHEL has utilized all types of Indian coals Sub-bituminous, bituminous coals, tertiary coals of Assam lignites of Neyveli (fresh water origin) and of Gujarat & Rajasthan (marine origin) Characterized organics & inorganics from combustion, gasification & emission (NOx, SOx, trace metals) view points 60

gasification reactivity of coal at high pressure & temperature by Total Gas Analyzer (TGA). clinkering propensity of coal by thermo mechanical analysis

Employed different combustion technologies pulverized coal, bubbling fluidized bed & circulating fluidized bed, stoker fired Employed different gasification technologies atmospheric & pressurized moving bed pressurized fluidized bed

Designed, built & operated the only Integrated Gasification Combined Cycle (IGCC) Plant with high ash Indian coals has rich engineering, construction & operational experience with low calorific value gas based IGCC plant like start up, normal & emergency shut down, load change, banking, safety engineering, etc. Simulation & Modelling modelling & simulation of power plant systems computational fluid dynamic studies of reactive & non-reactive phases In-bed control of SOx by limestone characterization of reactivity of limestone w.r.t SOx reduction limestone preparation & feeding to control SOx Has geared up for installation of a 125 MW IGCC Plant.

*********

61

CHAPTER - XIV INPUTS OF THE COAL INDIA LIMITED

62

14.1

PAST AND PRESENT ACTIVITIES 14.1.1 Previous work done by the Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi 14.1.1.1 In India, UCG was taken up as a national project in the early 1980s. Initially, 13 coal/lignite blocks were identified by the CMPDIL for UCG. However, only 3 blocks were selected by the Soviet experts for generation of additional data. Data was generated by the CMPDIL in few blocks selected by the Soviet experts for pilot studies for evaluating techno-economic viability of the process under the Science & Technology (S&T) grant of the Ministry of Coal. Merta Lignite deposit was found to be technologically feasible for pilot project studies for techno-economic evaluation, but keeping in view the chances of contamination of aquifers lying above and below the lignite seam, the S&T project recommended that it should not be pursued further as the entire population of the area is dependent on the ground water. As such, the project was not pursued further. 14.1.2 Recent Developments: 14.1.2.1 The Coal India Limited (CIL) has entered into a Memorandum of Understanding (MoU) with the ONGC to jointly pursue UCG. Parallely, the ONGC has also entered into an MoU with the Skochinsky Institute of Mining (SIM), Russia, for providing technical consultancy in this field. 14.1.2.2 The CIL/ the CMPDIL have identified 5 blocks and data packages were prepared for these blocks based on the formats supplied by the ONGC/ the SIM. The data supplied was examined by the Soviet experts and only one block, namely Kasta in Raniganj coalfield, was selected for generation of additional data for considering its suitability for taking-up pilot scale studies. Actions have been taken to generate the requisite data. 63

14.1.3 Various collateral works to support UCG development has been undertaken as indicated below: 14.1.3.1 Draft regulatory framework to support UCG operation has been formulated by a multi organizational group and submitted to the Ministry of Coal for consideration. 14.1.3.2 In the 3rd Indo-US Working Group meeting held in April, 2006, UCG has been identified as one of the possible areas for collaboration. 14.1.3.3 Under the aegis of the Indo-US Working Group, a workshop was organized in November, 2006, at Kolkata with a focus on the criteria for identification of suitable sites. 14.2 FUTURE PLAN: 14.2.1 In case additional data generated at Kasta turns out acceptable for UCG, the pilot scale studies would be pursued. 14.2.2 As a follow-up of the UCG workshop, identification of additional UCG blocks is under active consideration at the CMPDIL. 14.2.3 After identification, this would be discussed with the international experts for short-listing of 4-5 blocks for generation of UCG specific data for taking-up pilot scale studies. 14.3 R&D FOR PUTTING UCG ON THE FAST TRACK: 14.3.1 The world over, UCG development has largely been concerned with enhancing the connection between boreholes in coal/lignite, controlled underground process engineering and scaling-up of the process to commercial size operations. Since the route to UCG development is through trial and semi-commercial demonstrations, a corpus may be created to promote developmental activities leading to commercialization. Support from this corpus for part funding of the activities related to environmental impact assessment may be considered in addition to several incentives already proposed in the draft regulatory framework prepared by a multi-organizational team appointed by the Ministry of Coal and now awaiting the Government of Indias approval. 64

14.4

THE DIFFERENT AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP

14.4.1 Uncontrolled combustion. 14.4.2 Controlled process engineering to: (i) Restrict escape of pollutants, and (ii) Yield consistent quality of gas. 14.4.3 Development of model for real time assessment of reactor behaviour.

*********

65

CHAPTER - XV INPUTS OF THE NEYVELI LIGNITE CORPORATION LIMITED

66

15.1

PRESENT ACTIVITIES 15.1.1 UCG Project sanctioned jointly by the Ministry of Coal (under its S&T grant), the Department of Science and Technology (DST) and the Neyveli Lignite Corporation Limited (NLC). 15.1.1.1 The project entitled Underground Coal Gasification and its utilization for power generation studies in Lignite deposit of Rajasthan Phase-I was sanctioned during August, 2005. The commencement date of the project was fixed as September, 1, 2005. The total estimated cost of the project is Rs. 1125.00 lakhs, which is to be shared by Coal S&T (Rs. 562.50 lakhs), the DST (Rs. 375.00 lakhs) and the NLC (Rs. 187.50 lakhs). The UCG pilot study is to be taken-up in a suitable shallow lignite block in Rajasthan to be identified by the consultant to the project. The NLC had floated global tender for appointment of consultant to the project. 15.1.1.2 Since no one responded, after negotiating with certain prospective firms, the NLC issued limited tender enquiry to four parties and got response from two and appointment of consultation for the project is under finalization. 15.1.2 The NLC-ONGC joint venture UCG Project: 15.1.2.1 The NLC has signed a Memorandum of Understanding with the ONGC on 24th September, 2005, intending to cooperate in service, operation, process development and research related to UCG in coal/ lignite bearing States of India. 15.1.2.2 Initially, the NLC has identified Hodu-Sindhari lignite block in Rajasthan and Tadkeshwar lignite block in South of Gujarat area. Subsequently, East of Kurla Block in Barmer District of Rajasthan was also identified. In order to generate additional 67

data on geo-mechanical properties of overburden, hydrogeological data, etc., core drilling, sampling and analysis of geomechanical properties and hydrological tests were undertaken in Hodu-Sindhari and Tadkeshwar Blocks. The data was submitted to the ONGC consultant Schokinsky Institute of Mining (SIM), Russia. studies would be initiated. 15.2 FURTHER PLANS FOR EXPLOITING UCG AS AN ENERGY SOURCE 15.2.1 The NLC has planned to utilize the UCG gas in the Integrated Gasification Combined Cycle (IGCC) Power Plant to be taken-up under Phase-II of the Coal S&T Project. The exact capacity of the IGCC plant would be decided after ascertaining the UCG gas quality and the calorific value of the producer gas in the Phase-I studies. 15.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST-TRACK 15.3.1 Since the above-mentioned two UCG projects are in nascent stages, fiscal regime for putting R&D on UCG would be decided after the pilot studies. 15.4 THE AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP FOR UCG 15.4.1 Linking of wells at shallow level. (Deviation drilling/ inclined drilling). 15.4.2 Successful ignition technology for lignite seams since it contains high moisture. 15.4.3 Surface mapping of gasification chamber through geophysical methods. 15.4.4 Commercialization and using syngas in IGCC power plant for domestic purpose. After scrutiny of the data by the consultant SIM, Russia further course of action for UCG pilot

68

15.5

CURRENT ISSUES TO BE ADDRESSED FOR SPEEDY DEVELOPMENT OF UCG IN THE COUNTRY 15.5.1 15.5.2 Allotment of UCG block for development. Need-based changes in the statutory requirements under the existing Coal Mines Regulation Act 1957 and Oil Mine Regulation Act 1984. 15.5.3 Regulatory framework should be developed to facilitate final stage operation. 15.5.4 Legal, statutory, safety and conservation aspect related to environmental issues. 15.5.5 A specific license would be required for pursuing UCG. 15.5.6 Royalty on gas produced should not be charged during the pilot/ developmental period until commercialization.

*********

69

CHAPTER - XVI INPUTS OF THE MINERAL EXPLORATION CORPORATION LIMITED

70

16.1 THE PAST AND CURRENT WORK ON UCG BY THE MINERAL EXPLORATION CORPORATION LIMITED (MECL) 16.1.1 The concept of UCG in India is in infancy stage and not much work has been done. The progress is largely confined to compilation of available data and initiatives to formulate regulatory frame work, etc. The MECL has assumed a leading role in establishing the coal and lignite resources in different parts of the country. It has played a vital role in delineating/ locating new potential areas both for coal and lignite. So far, it has carriedout detailed assessment of over 800 prospects of coal and lignite involving over 53 lakh metres of drilling and associated geological and analytical studies, leading to proving of about 82 million tonnes and 33 million tonnes of coal and lignite reserves, respectively. Over 91% of the total lignite reserves in the country have been established by the MECL. It has implemented coal and lignite exploration programmes by adopting integrated approach with the use of remote sensing technology followed by surface geophysical studies, regional scanning by drilling followed by detailed exploration in number of areas leading to delineation of new coal and lignite prospects. 16.1.2 In addition, it has played a pivotal role in Coal Bed Methane investigation in the country since the early nineties. It has extended its service of slim hole drilling to all the agencies engaged in exploration and development of CBM blocks. During the course of investigation, it has drilled a deepest borehole upto a depth of 1400 m in Jharia coalfield which is the only store house of coking coal in India. 16.1.3 The MECL has got experienced geo-scientists and engineers, fleet of medium and deep capacity drills supported with laboratory facilities and state-of-the-art IT centre. 16.1.4 With the aforesaid experience and the infrastructure available, the MECL can play a vital role in exploration and development of areas for UCG. It can extend the services for topographical survey, geological studies, surface geo-physical studies, drilling, sampling, borehole geophysical 71

logging, borehole deviation survey, laboratory studies, environmental studies and 3-D core body modelling culminating into preparation of the geological report. 16.2 FUTURE PLAN OF EXPLOITING UCG AS SOURCE OF ENERGY 16.2.1 The global coal reserves are over 10 trillion metric tonnes. India, with 253 billion tonnes of coal reserves, ranks 4th as far as the world coal inventory is concerned. In terms of production, India is the third largest coal producer (383 million tonnes during 2005). 16.2.2 The coal reserves of the country have been estimated/ assessed upto a depth of 1200m, while the mining activities are largely confined upto 300m except that in some areas, the coal is being mined at greater depths, i.e upto 450m. The near surface and shallow deposits are on the verge of depletion. In terms of quality, the major resources are of low grade with high ash content. Further, the mining in most of the existing mines is being carried-out with conventional methods resulting in low recovery and high cost of operations. Thus, in the given circumstances, UCG could be considered as an alternate option both in terms of eco-friendly as well as cost effective proposition. 16.2.3 The Indian coal deposits are normally multi seams and the inter seam parting is represented by sandstone of various grain size, shales, inter bedding of shale and sandstones, thus depicting wide permeability contrast. During the process of UCG, the hydrostatic imbalance is expected, resulting in movement of ground water into different litho units depending on permeability. There is a possibility of the ground water getting contaminated with variety of elements, some of which may be hazardous to human beings. Therefore, a detailed study in this aspect would be needed before implementation of UCG projects. 16.2.4 With sizeable coal and lignite reserves available in the country which could not be developed economically due to constraints of depth, inclination of strata, high ash content, etc., UCG is expected to be a viable 72

future source of energy. The MECL is committed for extending its services for mineral exploration and development in the country and would play a vital role in development of UCG blocks &, in turn, in its exploration. 16.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST TRACK 16.3.1 In our opinion, there is an urgent need for expediting and expanding the R&D activities which are being carried-out in India w.r.t UCG. It would facilitate identification of potential coal/ lignite areas which could be considered for detailed exploration/ studies before these could be developed commercially for the end use of UCG technology. 16.4 THE DIFFERENT AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP FOR ENABLING A TIME BOUND COMMERCIALIZATION OF THE UCG TECHNOLOGY GENERATION 16.4.1 In our opinion, for enabling a time bound commercialization, there is an urgent need of : 16.4.1.1 Compilation of the available data which should be made available free of cost to the nodal agency by the custodian. 16.4.1.2 Creating necessary infrastructure in terms of high capacity, high performance drills for speedy exploration of potential areas. 16.4.1.3 Additional laboratory facilities for chemical, physico-mechanical, hydro-geological studies, exclusively for UCG programme as the available resources may not be adequate to match the processing of data generated during the exploration. 16.4.1.4 Finalization of regulatory frame work. FOR VARIOUS APPLICATIONS, INCLUDING POWER

*********

73

CHAPTER - XVII INPUTS OF THE CENTRAL INSTITUTE OF MINING AND FUEL RESEARCH (ERSTWHILE CENTRAL MINING RESEARCH INSTITUTE)

74

17.1 THE PAST AND CURRENT ACTIVITIES 17.1.1 In 1984, the Government of India constituted a Steering Group on UCG with Prof. M.M. Sharma as the Chairman. The Central Institute of Mining and Fuel Research (CIMFR) [erstwhile Central Mining Research Institute (CMRI)/ Central Mining Research Station (CMRS)] was one of the participating institutions. The coal samples of different seams were evaluated for their detailed in-situ gas content, petrology, reactivity and physico-mechanical properties, etc. 17.1.2 The CIMFR conducted laboratory study of channel gasification with steam-air blast in sub-bituminous coal in 2003. It was found that addition of steam to the injection blast, generally, lowers the temperature of the reaction zones and thus improves the gasification efficiency. Large proportion of steam, however, slows the gasification due to further lowering of temperature in reaction zones. Addition of steam to the blast increased the fuel value of the product gas. Optimum percentage (average) of CO + H2 (58.45) was obtained. 17.1.3 Prepared background paper on UCG for the Technology Information, Forecasting and Assessment Council (TIFAC) in 2006. Global technological status, barriers, technological and policy interventions required and prospects of UCG in India have been highlighted in this work. 17.2 THE FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY SOURCE 17.2.1 Compilation of general characteristics of coal seams and identification of suitable sites for UCG. Evaluation of technical and economic indices. Study of geology of UCG blocks, coal quality, roof and floor rock lithology, geohydrology, geological models and numerical modelling to assist a UCG-Pilot programme. A project proposal has been submitted to the Council of Scientific and Industrial Research (CSIR) under the 11th Five Year Plan to undertake the above study in association with some public sector companies. 75

17.3

THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST TRACK 17.3.1 Before answering this question, let us first understand if finance is the constraint. It does not appear to be so. The outlay for S&T projects in the Ministry of Coal remains unutilized year after year. The Coal India Limited itself has some finance earmarked for S&T which is rarely utilized because there is no serious contender with a serious project proposal. 17.3.2 If there are cutting edge technologies like UCG where R&D can help and if finance is not the problem, why R&D projects are not being undertaken? The answer to this perhaps would have to be searched in inadequate R&D base in the country serving coal and mineral industries, the size of which is quite big even by global standards. 17.3.3 To answer the question asked, it can be said that initially Rs. 20.00 - Rs. 40.00 crores (5-10 million US dollars) is required to decide whether UCG is feasible or not. Subsequently, Rs. 160.00 crores (40 million US dollars) is needed for a demonstration project. Cost of 100MW IGCC Plant Vs an equivalent capacity UCG plant (Rs. in crores) Description Power block (Combined cycle) cost Gasifier and particulate cleaning Coal and ash handling plants Acid gas removal and sulphur recovery Balance of Plant (BOP) Mechanical/Electrical/Civil Land/ Site development/ Erection and Commissioning/ Taxes/ Duties Total 850 640 IGCC 365 100 35 50 100 200 UCG 365 0 0 50 75 150

76

17.4

THE DIFFERENT AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP FOR ENABLING A TIME-BOUND COMMERCIALIZATION OF THE UCG TECHNOLOGY GENERATION. 17.4.1 R&D is required in the following areas for commercialization of UCG: 17.4.1.1 Scanning of available data and identification of suitable UCG sites. 17.4.1.2 Drilling exploratory wells in the identified areas and collection of core samples. 17.4.1.3 Characterization of coal. 17.4.1.4 Development of laboratory scale model. 17.4.1.5 Seismic studies for better understanding of coal seam and aquifer occurrence. 17.4.1.6 Understanding the cavity formation because of UCG in various geotechnical conditions. 17.4.1.7 Defining the cavity and its characteristics mathematically/numerically vis--vis rate of production, total product output, time, etc. 17.4.1.8 Hydro-geological conditions and aquifer characterization. 17.4.1.9 Experimental study of the compressibility characteristics of partially/fully gasified remnants. 17.4.1.10 Development of norms for defining the subsidence engineering parameters pertinent to UCG cavity formation. 17.4.1.11 Three-dimensional subsidence prediction software using the above subsidence parameters and cavity modelling. 17.4.1.12 Establishment of terrestrial as well as remote ground movement monitoring systems over some of the UCG sites. 17.4.1.13 Suggestions for design of UCG sites to minimize subsidence and keep the subsidence and strains within the threshold values. 17.4.1.14 Examination of sensitivity of the production behaviour on parameters like coal permeability, cleat density, fracture length, etc., through modelling. FOR VARIOUS APPLICATIONS INCLUDING POWER

77

17.4.1.15 Pressure transient tests for in-situ permeability and stress measurements. 17.4.1.16 Testing for compressibility characteristics for coal samples from various coalfields in India. 17.4.1.17 Development of models for cavity simulation, various zones such as caved and compressible zones. 17.4.1.18 Development of three dimensional subsidence prediction model. 17.4.1.19 Producing combustible gases and pyrolysis products from the producing well. 17.4.1.20 Assessment of composition and heat values of the producer gas and effect of temperature and pressure on heating value. 17.4.1.21 Establishment of a power station of appropriate size wherein the product gas will be used as a feedstock for electricity generation. 17.4.1.22 Demonstration of the UCG-IGCC technology constantly for a given period.

*********

78

CHAPTER - XVIII

INPUTS OF THE GAIL (INDIA) LIMITED

79

18.1

THE PAST AND CURRENT WORK ON UCG. 18.1.1 The GAIL (India) Limited (GAIL) has signed a Memorandum of Understanding (MoU) with the Government of Rajasthan on 26th September, 2005 to set-up a pilot project at Barmer, Rajasthan. The GAIL has also signed an MoU with M/s Ergo Exergy, Canada the technology provider for UCG on t15th February, 2005 for developing projects using their technology in India. The Government of Rajasthan has ear-marked two sites of 195km2 and 32km2 out of block RJ-ON-90/1 (1691.75km2) in October, 2005, for GAIL's pilot project. Clear cut and land lease assurance for the commercial project was also obtained from the Government of Rajasthan. 18.1.2 An assessment of the preliminary data collected from the Government of Rajasthan was made by M/s Ergo Exergy, Canada, which indicates that 25 km2 of lignite field in Barmer holds high potential of gas which can generate 1000 MW of power for 110 years. 18.1.3 At present, top management approval is in progress for signing the General License Agreement with M/s Ergo Exergy, Canada and award of site selection and pre-feasibility study.

18.2

ROADMAP FOR THE NEXT COURSE OF ACTION Sl. No. a b Activities Signing of General License Agreement Award of contract for site selection and pre-feasibility study c d Site Selection & Pre-Feasibility report Pilot plant setup February, 2008 August, 2009 Date/ Timeline 31st July, 2007 15th August, 2007

80

18.3

THE FUTURE PLAN FOR EXPLOITING UCG AS AN ENERGY SOURCE 18.3.1 Based on the available sizes of Industrial Gas turbine, it is envisaged to go for a commercial plant of 750 MW after successful pilot stage operation. 18.3.2 Steps of execution are planned in the following manner: Step-I: Pilot plant of 5 MW - by 2009. Based on successful implementation of the Pilot Project of 5 MW power plant, first commercial plant of 177MW will be completed by 2011 and second commercial plant of 177 MW will be completed by 2013 and, finally, the third commercial plant of 400 MW will be commissioned by 2015.

18.4

AREAS ON WHICH R&D IS REQUIRED 18.4.1 Through Site Selection & Pre-feasibility and site characterization, the following things, amongst others, will be studied by M/s Ergo Exergy: 18.4.1.1 Coal seam density and characteristics. 18.4.1.2 Depth of coal seam. 18.4.1.3 Assessment of environmental risk. 18.4.1.4 Techno-economical feasibility for commercial power plant based on UCG.

*********

81

CHAPTER - XIX
INPUTS OF THE CENTRAL MINE PLANNING AND DESIGN INSTITUTE LIMITED

82

19.1

INITIAL INITIATIVES BY THE CENTRAL MINE PLANNING AND DESIGN INSTITUTE LIMITED (CMPDIL) 19.1.1 In India, UCG was taken up as an S&T project in the early 1980s. Initially, 13 coal/ lignite blocks were identified for UCG. However, only 3 blocks were selected by the Soviet experts for generation of additional data. Data was generated by the CMPDIL in few blocks selected by Soviet experts for pilot studies for evaluating techno-economic viability of the process under the Science & Technology (S&T) grant of the Ministry of Coal. Merta Lignite deposit was found to be technologically feasible for pilot project studies for techno-economic evaluation; but keeping in view the chances of contamination of aquifers lying above and below the lignite seam, the S&T project recommended that it should not be pursued further as the entire population of the area is dependent on the ground water. As such, the project was not pursued further.

19.2

RECENT DEVELOPMENTS 19.2.1 The Coal India Limited (CIL) has entered into a Memorandum of Understanding (MoU) with the Oil and Natural Gas Corporation Limited (ONGC) to jointly pursue UCG. The ONGC has entered into an MoU with the Skochinsky Institute of Mining (SIM), Russia, for providing technical consultancy in this field. . 19.2.2 The CIL/CMPDIL has identified 5 blocks and data packages were prepared for these blocks based on the formats supplied by the ONGC/SIM. The data supplied was examined by the Soviet experts and only one block, namely Kasta in Raniganj coalfield, was selected for generation of additional data for considering its suitability for taking-up pilot scale studies. Actions have been taken to generate the requisite data. 19.2.3 A UCG related project with an approved outlay of Rs 11.25 crores and duration of 4 years, funded jointly by the S&T grant of the Ministry of Coal and the Department of Science & Technology, has been taken-up by the 83

Neyveli Lignite Corporation Limited (NLC) in 2005 with an objective of evaluation of exploration data and selection of a Lignite block for UCG trial to carry-out pilot scale studies and also to assess the heat value of the gas produced. The project is under implementation. 19.2.4 The Adviser (Projects), Ministry of Coal, vide his D.O.No. 14011/4/05-CRC dated the 18th of May 2007, addressed to the Chairman and Managing Director (CMD), CMPDIL, has requested for the following: To demarcate potential blocks for UCG application, it is being proposed to make the CMPDIL as the nodal agency along with the Geological Survey of India (GSI), the Singareni Collieries Company Ltd (SCCL), the NLC and the Directorate General of Mine Safety (DGMS) for fixing criteria for selection of suitable coal reserves for application of UCG. These reserves can be available in abandoned mines, existing mines or in Greenfield areas. While fixing-up the criteria, interaction and assistance with foreign experts in this field of operation will be required. The identified blocks can be offered for further development through public/private/joint venture participation. The modalities for offering UCG blocks initially can be adopted in the similar manner as that of allocation of coal blocks with suitable modifications. 19.2.5 To facilitate operation of UCG, it is a necessity that suitable regulatory framework has to be in place for implementation of UCG. A committee has already drafted the regulatory framework for operation of UCG and for the time being, it appears to be in order to initiate implementation of UCG in India. 19.3 ACTIONS TAKEN BY THE CMPDIL ON THE ABOVE 19.3.1 A meeting was convened by the CMD, CMPDIL, on the 10th of June, 2007 at the CMPDIL, Ranchi, in which representatives from the GSI, the SCCL,

84

the NLC and the CMPDIL participated. In this meeting, the broad criteria for selection of UCG blocks was decided. 19.3.2 In a subsequent meeting held on the 11th of July, 2007, the NLC and the GSI have submitted a list of a few blocks where UCG could be taken-up. These blocks are currently under examination. 19.3.3 In addition, the CMD, CMPDIL, has requested the CMDs of all the coal producing subsidiaries of the CIL, the SCCL and the NLC for furnishing the list of suitable blocks for UCG. 19.4 COLLATERAL ACTIVITIES FOR DEVELOPMENT 19.4.1 Draft Regulatory Framework for UCG Development: The Ministry of Coal has constituted a committee comprising members from the CMPDIL, the NLC, the Directorate General of Hydrocarbons, the ONGC and the Mineral Exploration Corporation Limited (MECL) where the DGMS was later co-opted as a member for drafting the regulatory framework to govern UCG in India. A recommendation in this regard was made by this committee in August, 2006, which is currently under examination by the Ministry of Coal.

*********

85

ANNEXURE-I MENTIONED IN THE BACKGROUND

F.No.: Prn.SA/UCG/2003

GOVERNMENT OF INDIA OFFICE OF THE PRINCIPAL SCIENTIFIC ADVISER TO THE GOVERNMENT OF INDIA 326, Vigyan Bhawan Annexe Maulana Azad Road New Delhi-110 011 Tel. No.: 011-2302 2091 : 011-2302 2115 Fax No.: 011-2302 2113 : 011-2302 2116 E-mail: [email protected] [email protected] Dated: 4th May, 2006

OFFICE MEMORANDUM
Sub.: Constitution of an R&D Committee on Underground Coal Gasification reg. The undersigned has been directed to convey the decision of the Government of India to constitute an R&D Committee on Underground Coal Gasification (UCG), the prime objective of that Committee being to synergize the various ongoing UCG efforts in the country and help establish commercial UCG power plants in a stipulated time frame. As decided in the meeting held in this Office on the 19th of April, 2006 with the various stakeholder organizations in the country, the Terms of Reference of that Committee have been formulated through a consultative process. 2. The following shall be the Composition and the Terms of Reference of the said Committee: 2.1 Composition: Sr. No. i. Name, Designation and Organization Status Chairman

ii.

iii.

Dr. S.K. Sikka, Scientific Secretary to the Principal Scientific Adviser to the Government of India, 324-A, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi - 110 011. Dr. K.L. Goyal, Former Director, Institute of Management Development, Oil and Natural Gas Corporation Limited, Dehradun. Current Address: 8-A, Bengali Mohalla Road, Dehra Dun 248 001. Shri L. Jha, Director (Tech.), Coal India Limited, 10, Netaji Subhas Road, Kolkata-700 001.

Member

Member

86

iv.

Shri Ramji Rai, Director (Engg. R&D), Bharat Heavy Electricals Limited, BHEL House, Siri Fort, New Delhi-110 049. Shri B.S. Negi, Director (Business Development.), GAIL (India) Limited, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110 066. Shri K.S. Anandan, Director (Mines), Neyveli Lignite Corporation Limited, Block-1, Neyveli-607 801. Dr. S.K. Haldar, Director (Tech.), Mineral Exploration Corporation Limited, Dr. Baba Saheb Ambedkar Bhawan, Seminary Hills, Nagpur-440 006. Shri V.K. Sibal, Director General, Directorate General of Hydrocarbons, 4th Floor, Hindustan Times House, Kasturba Gandhi Marg, New Delhi-110 001. Shri R.K. Jain, Member (Thermal), Central Electricity Authority, Sewa Bhawan, R.K. Puram, New Delhi-110 066. Dr. D.M. Kale, Executive Director, Keshava Deva Malaviya Institute of Petroleum Exploration, Oil and Natural Gas Corporation Limited, 9, Kaulagarh Road, Dehradun-248 195. Dr. Amalendu Sinha, Director, Central Mining Research Institute, Barwa Road, Dhanbad-826 001. Dr. S.B. Srivastava, Professor (Mining Engineering), Indian School of Mines, Dhanbad-826 004. Dr. K.V. Narappa, Deputy General Manager (Geology), The Singareni Collieries Company Limited, Kothagudem-507 101, Khammam District (A.P.). Shri Neeraj Sinha, Scientist E, Office of the Principal Scientific Adviser to the Government of India, 326, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi 110 011.

Member

v.

Member

vi. vii.

Member Member

viii.

Member

ix.

Member

x.

Member

xi. xii. xiii.

Member Member Member

xiv.

MemberSecretary

2.2

Terms of Reference: The following shall be the Terms of Reference of the Committee:i. The Committee will review the international and national status of the UCG technology, identify the technology gaps vis--vis the world status and recommend steps to bridge those gaps through indigenous R&D. The Committee will study the available data on UCG and encourage the use of technologies like slim hole drilling for generating more data in the event of necessity.

ii.

87

iii.

The Committee will frame and recommend demonstration projects for power generation through UCG and guide those projects through all the phases till testing and evaluation. The Committee will recommend appropriate regulatory, fiscal and other such measures for ensuring that the UCG technology is commercialized for various applications (such as power generation, manufacture of pesticides & chemicals, etc.) in the shortest possible time frame. The Committee shall have the power to take, on payment of appropriate remuneration, the services of senior experts, as and when required, for discharging its duties. The Committee will also execute any other task that is assigned to it, from time-to-time, by the Office of the Principal Scientific Adviser to the Government of India. Initially, the tenure of the Committee will be two years from the date of issue of the Office Memorandum notifying its constitution. The tenure can be extended beyond the said period, if deemed fit by the Government of India. The Committee will meet atleast once every four months during its entire tenure. The Chairman of the Committee shall have the authority to co-opt members as and when required, and shall also have the authority to call for emergency meetings of the Committee, even when they are not due. Special invitees can be invited to attend meetings of the Committee, with prior consent of the Chairman. The travelling and daily allowances will be payable, as per the existing rules of the Government of India, to the non-official constituents, if any, of the Committee. Official members of the Committee will be entitled to draw travelling and daily allowances from their respective organizations to attend the meetings of the Committee.

iv.

v.

vi.

vii.

viii. ix.

x. xi.

3. This issues with the approval of the Principal Scientific Adviser to the Government of India. Sd/(NEERAJ SINHA) SCIENTIST E To: i) Dr. K.L. Goyal, Former Director, Institute of Management Development, Oil and Natural Gas Corporation Limited, Dehradun. Current Address: 8-A, Bengali Mohalla Road, Dehradun 248 001. ii) iii) iv) Shri L. Jha, Director (Tech.), Coal India Limited, 10, Netaji Subhas Road, Kolkata-700 001. Shri Ramji Rai, Director (Engg. R&D), Bharat Heavy Electricals Limited, BHEL House, Siri Fort, New Delhi-110 049. Shri B.S. Negi, Director (Business Development.), GAIL (India) Limited, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110 066. 88

v) vi) vii) viii) ix)

Shri K.S. Anandan, Director (Mines), Neyveli Lignite Corporation Limited, Block-1, Neyveli-607 801. Dr. S.K. Haldar, Director (Tech.), Mineral Exploration Corporation Limited, Dr. Baba Saheb Ambedkar Bhawan, Seminary Hills, Nagpur-440 006. Shri V.K. Sibal, Director General, Directorate General of Hydrocarbons, 4th Floor, Hindustan Times House, Kasturba Gandhi Marg, New Delhi-110 001. Shri R.K. Jain, Member (Thermal), Central Electricity Authority, Sewa Bhawan, R.K. Puram, New Delhi-110 066. Dr. D.M. Kale, Executive Director, Keshava Deva Malaviya Institute of Petroleum Exploration, Oil and Natural Gas Corporation Limited, 9, Kaulagarh Road, Dehradun-248 195. Dr. Amalendu Sinha, Director, Central Mining Research Institute, Barwa Road, Dhanbad-826 001. Dr. S.B. Srivastava, Professor (Mining Engineering), Indian School of Mines, Dhanbad-826 004. Dr. K.V. Narappa, Deputy General Manager (Geology), The Singareni Collieries Company Limited, Kothagudem-507 101, Khammam District (A.P.).

x) xi) xii)

Copy, for information, to: i) ii) iii) Shri M. S. Srinivasan, Secretary, Ministry of Petroleum & Natural Gas, Room No. 207, 2nd Floor, Shastri Bhawan, New Delhi-110 001. Shri Harish Chandra Gupta , Secretary, Ministry of Coal, Room No. 317, A Wing, Shastri Bhawan, New Delhi-110 001. Shri Subir Raha, Chairman and Managing Director, Oil and Natural Gas Corporation Limited, Jeevan Bharti Building, Indira Chowk, New Delhi -110 001. Shri Shashi Kumar, Chairman, Coal India Limited, 10, Netaji Subhas Road, Kolkata-700 001. Shri A.K. Puri, Chairman and Managing Director, Bharat Heavy Electricals Limited, BHEL House, Siri Fort, New Delhi 110 049. Shri Prashanto Banerjee, Chairman and Managing Director, GAIL (India) Limited, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi -110 066. Shri S. Jayaraman, Chairman and Managing Director, Neyveli Lignite Corporation Limited, Block 1, Neyveli 607 801, Cuddalore District, Tamilnadu. Dr. A.K. Lomas, Chairman and Managing Director, Mineral Exploration Corporation Limited, Dr Baba Saheb Ambedkar Bhawan, Seminary Hills, Nagpur 440 006.

iv) v) vi) vii)

viii)

89

ix) x)

Shri Rakesh Nath, Chairperson, Central Electricity Authority, Sewa Bhavan, R.K. Puram, New Delhi 110 066. Shri R. H. Khwaja, Chairman and Managing Director, The Singareni Collieries Company Limited, Singareni Bhavan, Red Hills, Khairatabad, Hyderabad 500 004. Dr. T. Kumar, Director, Indian School of Mines, Dhanbad 826 004.

xi)

Copy also to: i) ii) Dr. R. Chidambaram, Principal Scientific Adviser to the Government of India, 318, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi 110 011. Dr. S.K. Sikka, Scientific Secretary to the Principal Scientific Adviser to the Government of India, 324-A, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi 110 011. Sd/(NEERAJ SINHA)

90

ANNEXURE-II MENTIONED IN THE BACKGROUND

F.No.: Prn.SA/UCG/2003

GOVERNMENT OF INDIA OFFICE OF THE PRINCIPAL SCIENTIFIC ADVISER TO THE GOVERNMENT OF INDIA 326, Vigyan Bhawan Annexe Maulana Azad Road New Delhi-110 011 Tel. No.: 011-2302 2091 : 011-2302 2115 Fax No.: 011-2302 2113 : 011-2302 2116 E-mail: [email protected] [email protected] [email protected] Dated: 12th February, 2007

OFFICE MEMORANDUM
Sub.: Constitution of a Working Group on Underground Coal Gasification reg. In accordance with the decisions taken in the recently held 1st meeting of the R&D Committee on Underground Coal Gasification, the undersigned has been directed to convey the approval of the Government of India to the constitution of a Working Group on Underground Coal Gasification, the prime objective of that Group being to prepare a Road map to develop the Underground Coal Gasification technology in the country for various applications (such as power generation, manufacture of pesticides & chemicals, etc.). 2. The following shall be the Composition and the Terms of Reference of the said Group: 2.1 Composition: Sr. No. i. ii. iii. iv. v. Name, Designation and Organization Status

Shri A.K. Hazarika, Director (Onshore), Oil and Natural Gas Chairman Corporation Limited, New Delhi. Shri L. Jha, Director (Tech.), Coal India Limited, Kolkata. Member Shri A.K. Purwaha, Director (Business Development.), GAIL Member (India) Limited, New Delhi. Shri K.S. Anandan, Director Corporation Limited, Neyveli. (Mines), Neyveli Lignite Member

Shri A.K. Ghosh, General Manager (PSE), Bharat Heavy Member Electricals Limited, New Delhi.

91

vi. vii. viii. ix.

Dr. Amalendu Sinha, Director, Central Mining Research Member Institute, Dhanbad. Dr. S.B. Srivastava, Professor (Mining Engineering), Indian Member School of Mines, Dhanbad. Dr. K.L. Goyal, Former Director, Institute of Management Member Development, Oil and Natural Gas Corporation Ltd., Dehradun. Shri Neeraj Sinha, Scientist E, Office of the Principal Scientific MemberAdviser to the Government of India, New Delhi. Secretary Terms of Reference:

2.2 i.

The Working Group will prepare and submit, to the R&D Committee on Underground Coal Gasification, a Road Map for the development of the Underground Coal Gasification technology for various applications (such as power generation, manufacture of pesticides & chemicals, etc.). For accomplishing the above, the Working Group will assess the on-going efforts and future plans of different organizations, both in the public as well as the private sector, on Underground Coal Gasification technology. The Working Group will identify, plan and initiate the R&D to be done in Underground Coal Gasification by the various involved stakeholders. For discharging its duties, the Working Group may hire the services of senior experts/ consultants on payment of appropriate remuneration. The tenure of the Working Group will be 9 months from the date of its constitution, i.e. from the date of issue of this Office Memorandum.

ii.

iii. iv. v.

3. This issues with the approval of the Scientific Secretary to the Principal Scientific Adviser to the Government of India.
Sd/(NEERAJ SINHA) SCIENTIST E and Member-Secretary to the R&D Committee To: i) ii) Shri A.K. Hazarika, Director (Onshore), Oil and Natural Gas Corporation Limited, Jeevan Bharati Buidling, 9th Floor, Tower II, 124 Indira Chowk, New Delhi-110 001. Dr. K.L. Goyal, Former Director, Institute of Management Development, Oil and Natural Gas Corporation Limited, Dehradun. Current Address: 8-A, Bengali Mohalla Road, Dehradun 248 001. iii) iv) Shri L. Jha, Director (Tech.), Coal India Limited, 10, Netaji Subhas Road, Kolkata700 001. Shri A.K. Purwaha, Director (Business Development.), GAIL (India) Limited, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110 066.

92

v) vi) vii) viii)

Shri K.S. Anandan, Director (Mines), Neyveli Lignite Corporation Limited, Block-1, Neyveli-607 801.

Shri A.K. Ghosh, General Manager (PSE), Bharat Heavy Electricals Limited, BHEL House, Siri Fort, New Delhi 110 049. Dr. Amalendu Sinha, Director, Central Mining Research Institute, Barwa Road, Dhanbad-826 001.
Dr. S.B. Srivastava, Professor (Mining Engineering), Indian School of Mines, Dhanbad-826 004.

Copy, for information, to:

i) ii) iii) iv) v) vi) Shri C.P. Singh, Director (Engg. R&D), Bharat Heavy Electricals Limited, BHEL House, Siri Fort, New Delhi-110 049. Dr. S.K. Haldar, Director (Tech.), Mineral Exploration Corporation Limited, Dr. Baba Saheb Ambedkar Bhawan, Seminary Hills, Nagpur-440 006. Shri V.K. Sibal, Director General, Directorate General of Hydrocarbons, 4th Floor, Hindustan Times House, Kasturba Gandhi Marg, New Delhi-110 001. Shri R. Dahiya, Member (Thermal), Central Electricity Authority, Sewa Bhawan, R.K. Puram, New Delhi-110 066. Dr. D.M. Kale, Executive Director (R&D), Oil and Natural Gas Corporation Limited, SCOPE Minar, 15th Floor, Lakshmi Nagar, Delhi-110 092. Dr. K.V. Narappa, Deputy General Manager (Geology), The Singareni Collieries Company Limited, Kothagudem-507 101, Khammam District (A.P.).

Copy also to:

i) ii) Dr. R. Chidambaram, Principal Scientific Adviser to the Government of India, 318, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi 110 011. Dr. S.K. Sikka, Scientific Secretary to the Principal Scientific Adviser to the Government of India and Chairman of the R&D Committee, 324-A, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi 110 011. Sd/(NEERAJ SINHA)

93