Professional Documents
Culture Documents
Coal Project
Coal Project
By
HASSAN MAHMOOD SHAH
0333-5973167
hmshah87@hotmail.com
And
Acknowledgement
Coal
Coal
Coal is a readily combustible black or brownish-black sedimentary rock
normally occurring in rock strata called coal beds. It is composed primarily
of carbon along with variable quantities of other elements, chiefly sulfur,
hydrogen, oxygen and nitrogen. Coal is extracted from the ground by
mining, either underground or in open pits. Coal is a trading commodity.
The international market price of coal has gone up from around $30 per
short ton in 2000 to around $150.00 per short ton as of September 26, 2008.
As of October 31, 2008, the price per short ton has declined to $111.50.
coal was used in Britain during the Bronze Age (2000–3000 years BC),
where it has been detected as forming part of the composition of funeral
pyres.The earliest recognized use is from the Shenyang area 4000 BC where
Neolithic inhabitants had begun carving ornaments from black lignite, but it
was not until the Han Dynasty (206 BC–220 AD) that coal was also used for
fuel. In the past, coal was converted to make coal gas, which was piped to
customers to burn for illumination, heating, and cooking.
Coal is used as a fuel and as a reducing agent in smelting iron ore in a blast
furnace, and in making steel. Coal produces valuable by-products that
include coal tar, ammonia, light oils, coal gas and Ethanol. Coal can also be
converted into liquid fuels like gasoline or diesel by several different
processes. Coal is primarily used as a solid fuel to produce electricity and
heat through combustion.
Of the three fossil fuels (coal, oil and gas) coal has the most widely
distributed reserves; coal is mined in over 100 countries, and on all
continents except Antarctica. The largest reserves are found in the USA,
Russia, Australia, China, India and South Africa.
Reserve Life
Country 2006 Share
(years)
China 2380.0 38.4 % 48
USA 1053.6 17.0 % 234
India 447.3 7.2 % 207
Australia 373.8 6.0 % 210
Russia 309.2 5.0 % 508
South Africa 256.9 4.1 % 190
Total World 6195.1 100 % 142
• The reserve life is an estimate based only on current production levels
for the countries shown, and makes no assumptions of future
production or even current production trends.
• If growth in usage at this rate continues then it is assumed, reserves
would be exhausted in 31 years.
Estimates of the cost of producing liquid fuels from coal suggest that
domestic U.S. production of fuel from coal becomes cost-competitive with
oil priced at around 35 USD per barrel, (break-even cost). With oil prices as
low as around USD 40 per barrel in the U.S. as of December 15, 2008, liquid
coal lost some of its economic allure in the US, but will probably be re-
vitalized, similar to oil sand projects, with an oil price around 70$ per barrel.
It takes 438 kg (966 lb) of coal to power a computer for one full year. One
should also take into account transmission and distribution losses caused by
resistance and heating in the power lines, which is in the order of 5–10%,
depending on distance from the power station and other factors.
The U.S. Energy Information Agency's 1999 report on CO2 emissions for
energy generation, quotes a lower emission factor of 0.963 kg CO2/kWh for
coal power. The same source gives factor for oil power in the U.S. of
0.881 kg CO2/kWh, while natural gas has 0.569 kg CO2/kWh. Estimates for
specific emission from nuclear power, hydro, and wind energy vary, but are
about 100 times lower. There are a number of adverse environmental effects
of coal mining and burning, especially in power stations.
Major industrial consumers are cement industry, brick kilns, power plants,
chemicals and steel industry. It is also used for domestic fuel consumption.
Major suppliers are China, Indonesia and South Africa.
Pakistan is one of the lucky countries which are blessed with vast deposits of
coal. By increasing the share of coal in our energy mix we could have
conserved more valuable gas, which is deplete able resource. Unfortunately,
we have compromised our future by relying excessively on natural gas, and
are now running the risk of energy security.
Coal has gained special importance due to growing concerns for energy
security prompted by the abnormal surge in world oil prices mounting
tensions of the western countries with Iran, interruptions in the international
supply network of gas from Iran and Russia and ongoing stand-off in the
Arabian Gulf.
Unfortunately there are factors, other than those mentioned above, that have
not supported investor’s initiatives for the exploitation of Pakistan’s coal
resource in the past. These are as follows:
Pakistan’s major known coal reserves are located in the province of Sindh,
specifically in Thar, estimated at 175.5 billion tons which account for the
bulk of Pakistan’s total reserves, estimated at 185 billion tons. Current
estimated value of the Thar coal deposits is $ 8 trillion and if converted into
energy its values comes to $ 25 trillion. It has the potential to generate
100,000 MW of electricity for 300 years.
On July 27, a three-member team of the World Bank experts on coal and
mining visited Thar coal fields and met the representatives of civil society
organisations and the local community. The team also visited village Thario
Halepoto near Islamkot, Tharparkar.
The first concern countered by the WB team was the fear of local people
whether Thar and Sindh will actually benefit from the exploitation of the
world’s largest resource of energy.
Perhaps it was the first-ever official visit and initial brain-storming meeting
of the World Bank officials of this nature to look at the Thar coal issues. The
team comprised Ms Ekaterina N. Mikhaylova, Senior Project Officer Oil,
Gas, Mining and Chemicals Department, Mr Robert Murphy, a Consultant
of Oil,Gas, Mining Policy Division. They were accompanied by officials of
the Sindh Mines and Mineral Department and the Thar Coal Energy Board.
Officials of the Sindh Energy Board and Minerals and Mining Department
claimed that the development of Thar coal reserves has been included in the
priority list of projects likely to be launched during the current financial
year.
Members of the WB team said their mandate was to hear the views of the
community and civil society representatives to prepare their policy
framework expected to be completed in one year. Representatives of leading
Thar-based NGOs including TRDP were present.
Ever-since 1964, when the first feasibility report on the use of Thar coal was
completed, a number of similar studies have been carried out by experts,
establishing the huge abundance of good quality, easily extractable coal and
other mineral deposits in Tharparkar and their potential benefits.
An estimated over 175 billion tons of proven reserves of good quality coal is
spread over 9,000 square kilometers of the Thar Desert. Compare it with the
figures of India’s total coal deposits of 140 billion tons. Yet, for 40 years,
these reserves have remained untapped.
Thar coal expert Syed Mohibullah Shah is of the view that technology exists
to produce potable water from coal while the mineral is utilised for power
generation. Thar coal has a very large water content (over 40 per cent of its
weight) and +is capable of providing an abundant water supply for the
locals.
People of the area acknowledge that the country is under severe electricity
and energy crisis and Sindh is ready to cater the needs but ask as to who will
guarantee the protection of the rights of the local people. The community is
of the view that it should be the first beneficiary of any coal project.
The first-ever baseline survey of the area and people was shared with the
World Bank team and the Sindh officials were advised to do more studies
and surveys to understand the area and community.
Keeping in view the importance of the issue, Thardeep Rural Development
programme (TRDP) has done a baseline survey on the socio-economic and
environmental aspects of this project. The report is re-produced in Sindhi,
English and Urdu. The aim of the re-production of the research study was to
provide baseline information and scientific data to policy and decision
makers and other stakeholders for an open debate.
The local community is happy to see its area developed but wants protection
of political, social, economic, cultural and environmental rights for which a
genuine effort on the part of Sindh government is required. The community
feels more comfortable with the Thar Coal and Energy Board (TCEB) which
it believes be treated as the only notified legal and authorised body to
exercise all powers in deciding matters pertaining to mining and power
generation from Thar coal. It should also address all the concerns and fears
of the local people.
Unfortunately, utility of the coal deposits found at Thar had been viewed
doubtful. Lignite coal has certain characteristics that makes it a low BTU
fuel and difficult to extract and transport. It has high moisture content
(almost 40 – 50%) and mineral matter (especially sodium). These can affect
adversely the efficiency of the plant by causing severe slugging and fouling
in conventional boilers and thus make operation costly. But SFBD
technology designed to produce dry coal, now developed commercially,
provides a solution to these problems.
The other concern about the quality of locally available coal relates to the
presence of high sulfur content which can be dealt with Circulating
Fluidized Bed (CFB) technology. Also the Integrated Gasification and
Combined Cycle (IGCC) technology is designed to make best use of high
moisture lignite coal for power generation. Coal found in Pakistan has high
sulphur content. Therefore for certain applications, Pakistan has to rely on
imported coal. However local coal can be processed to produce clean coal by
setting up sulphur washing plants at respective mine sites. Thus appropriate
technologies are available to ensure desired utility of the available coal
deposits in Pakistan.
While coal is going to be the fuel of next century, the issue of emissions
control and pollution abatement shall have to be properly addressed in the
context of climate change. In the longer term one must also keep in mind
that CO2 mitigation initiatives down the road may become mandatory for
the countries like Pakistan. a typical power coal plant generates 3 million
tons of CO2 or 17 tons of carbon per megawatt and draws about 2.3 billion
gallons of water per annum from nearby source while on land, whereas Sind
is seriously deficient in the supply of water even for agriculture; produces
mercury which not only renders water useless for human consumption but
also for irrigation purpose as well.
Pakistan energy plans and coal:
To meet the targets of vision 2050 strategic plan, besides initiating thar coal
project, Pakistan must explore new reserves of coal. However, given the
checkered history of the plans to exploit existing coal reserves in Pakistan,
these targets appear to be over ambitious. GoP will have to bring about a
drastic shift in the list of its development priorities and demonstrate its
seriousness through a strong political will to make these goals look real.
The thar coal project and exploitation of cheaply available indigenous coal
would help Pakistan benefit in two ways. Firstly it would help achieve
objective of self reliance and relieving burden of costly oil imports and
secondly to generate power, as a least cost solution.
The Board of Investment has an important role to play and need to move fast
to attract potential investors from the world over. The proposed high
powered commission for the development of coal should serve as a one
window operation to support smooth implementation and timely completion
of projects free of procedural hurdles.
REFERENCES
3. www.brecorder.com/
4. www.wikipedia.org/
5. pakobserver.net/
By Ansaar Abbasi.