Context:
A recent report by the Organized Crime and Corruption Reporting Project alleges that in 2014, the Adani Group falsely labeled low-grade Indonesian coal as high-quality, inflating its value before selling it to Tamil Nadu’s power generation company, TANGEDCO. The reporting project is backed by billionaire hedge fund manager and philanthropist, George Soros.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Status of the Coal Sector in India
- Coal Quality and Gradation
- What is Clean Coal?
- Challenges Related to Coal for India
Status of the Coal Sector in India:
- Coal, a naturally occurring combustible sedimentary rock, holds significant importance in India’s energy landscape.
Geographic Distribution:
- India’s coal reserves are concentrated in the eastern and central regions, with major coal-producing states being Odisha, Chhattisgarh, Jharkhand, and parts of Madhya Pradesh.
Types of Coal and Clusters:
Anthracite:
- Carbon content: 80% to 95%
- Limited quantities, primarily found in Jammu and Kashmir.
Bituminous Coal:
- Carbon content: 60% to 80%
- Predominantly found in Jharkhand, West Bengal, Odisha, Chhattisgarh, and Madhya Pradesh.
Lignite:
- Carbon content: 40% to 55%
- High moisture levels
- Found in Tamil Nadu, Puducherry, Gujarat, Rajasthan, and Jammu & Kashmir.
Peat:
- Carbon content below 40%
- Represents the earliest stage of the transformation from organic matter into coal.
Characteristics of Indian Coal
Ash Content and Calorific Value:
- Indian coal typically has a high ash content and a lower calorific value compared to imported coal.
- The Gross Calorific Value (GCV) of domestic thermal coal ranges from 3,500 to 4,000 kcal/kg, whereas imported thermal coal has a GCV of over 6,000 kcal/kg.
Environmental Impact:
- The average ash content in Indian coal exceeds 40%, while imported coal has less than 10% ash content.
- Burning high-ash coal leads to higher emissions of particulate matter, nitrogen oxides, and sulfur dioxide.
Government Policies:
- Since 1954, the Indian government has regulated coal prices to limit the use of high-grade coking coal for power generation.
- To manage coal production, power needs, and pollution, the government advises using imported coal with lower ash and moisture content.
- The Central Electricity Authority (CEA) in 2012 suggested blending 10-15% imported coal with Indian coal for power boilers designed for low-quality domestic coal.
Coal Quality and Gradation
Determining Quality:
- Coal quality is measured by its Gross Calorific Value (GCV), which indicates the heat or energy released upon combustion.
- As a fossil fuel, coal is composed of carbon, ash, moisture, and various impurities. Higher carbon content signifies superior quality or grade of coal.
Categories:
- Non-coking coal: Graded by Gross Heat content.
- Coking coal: Graded based on ash percentage.
- Semi-coking coal: Graded based on ash and moisture percentages.
Grades:
- Coal quality varies with 17 different grades from grade 1 (highest quality) yielding over 7,000 kcal/kg to the lowest grades yielding 2,200-2,500 kcal/kg.
Applications:
- Non-coking coal: Utilized in thermal power plants, capable of providing adequate heat despite higher ash content.
- Coking coal: Crucial for steel production, necessitates minimal ash content.
What is Clean Coal?
Definition:
- Clean coal technologies aim to mitigate the environmental impact of coal energy production by increasing carbon content and reducing ash content.
Technologies:
- Carbon Capture and Storage (CCS): Captures CO2 emissions from coal-fired power plants and stores them underground.
- Coal Washing: Removes impurities before combustion, reducing emissions of ash, sulfur, and other pollutants.
- Flue Gas Desulfurization (FGD): Scrubs sulfur dioxide from exhaust gases.
- Gasification: Converts coal into synthetic gas (syngas) that burns cleaner than coal.
- Advanced Combustion Techniques: Enhances combustion efficiency to reduce emissions and boost energy output.
- Challenges:
- Coal Washing: Although it removes ash and moisture, the process is expensive and increases production costs.
- Coal Gasification: Converts coal into gas using IGCC systems, which improve efficiency by generating both steam and syngas.
Coal Imports in India:
- Import Policy:
- The current import policy allows unrestricted coal imports under an Open General License.
- Consumer Categories:
- Steel, power, and cement sectors, along with coal traders, can import coal based on their commercial requirements.
- Coking Coal in Steel Sector:
- The steel sector primarily imports coking coal to supplement domestic availability and improve quality.
- Non-Coking Coal Imports:
- Other sectors like power and cement, as well as coal traders, import non-coking coal to meet their respective needs.
Significance of Coal for India:
- Energy Source:
- Accounts for 55% of the country’s energy needs, making it the most important and abundant fossil fuel.
- Power Generation:
- 70% of India’s power demand is met by thermal power plants, mostly powered by coal.
- Energy Consumption Trends:
- Over the past four decades, commercial primary energy consumption in India has increased by approximately 700%.
- Per Capita Consumption:
- Current per capita consumption is around 350 kilograms of oil equivalent per year, still lower than developed countries.
Challenges Related to Coal for India:
Environmental Impact:
- Pollution and Greenhouse Gas Emissions:
- Coal mining and combustion contribute to air and water pollution, greenhouse gas emissions, deforestation, and habitat destruction, necessitating the management of environmental impacts.
- Addressing Environmental Impacts:
- Balancing the need for energy security with addressing environmental impacts remains a significant challenge.
Health Risks:
- Community Health Hazards:
- Exposure to coal dust, particulate matter, and emissions from coal-fired power plants poses health risks to communities, leading to respiratory diseases and other health issues.
Social Challenges:
- Land Acquisition and Displacement:
- Acquiring land for coal mining often displaces communities, disrupting livelihoods and posing challenges for proper rehabilitation and resettlement.
- Socio-economic Hardships:
- Rehabilitation and resettlement efforts encounter challenges, with affected populations facing social and economic hardships.
Technology Adoption:
- Limited Adoption of Clean Coal Technologies:
- Despite advancements in technologies like carbon capture and storage (CCS), their widespread adoption in India is limited due to high costs and technical challenges.
Transition to Renewable Energy:
- Balancing Energy Security and Renewable Transition:
- India’s commitment to transitioning to renewable energy sources and reducing greenhouse gas emissions presents challenges for the coal sector.
Finding a Balance:
- Striking a balance between ensuring energy security and meeting climate change mitigation objectives remains a significant hurdle.
-Source: The Hindu
