Assignment No: 3

ENERGY RESOURCE UTILIZATION

Topic: Coal resources in Pakistan

Submitted to: Sir Saqib Naseer
Submitted by: Hussn-e-yazdan
Roll no. : 14-MCE-40

NFC-Institute of Engineering and Fertilizers Research-Faisalabad

The vast coal reserves of Pakistan, estimated at around 186 billion tons have finally started to
attract foreign investment, the most prominent being China interested to setup a coal-powered
power generation plant by end this year at Thar, the area that houses the largest reserves of over
175 billion tons. Though many other countries, including Bosnia, have also shown keen interest
in coal exploration. This article primary highlights the Chinese interest that would fuel coal
exploration in the country.

A pre-feasibility study of the Thar coal reserves has already being conducted by the Shinhua
Group. As is, coal plays an important role as the primary and an inexpensive source for power
generation. For instance, over half of the power generation in the US comes from coal, the share
of which is expected to increase to 54 per cent by the year 2020. In many other developed
countries it is also being used as the primary source for power generation.

The policy makers in Pakistan have also realized the importance of coal as inexpensive power
generation resource and that explains the government's plans meet 20 per cent of its energy
demand from coal in the near future. The plant at Thar, funded by China would provide half a
million dollars soft credit for the proposed 600 mw plant. It would be one of many other coal-
powered plants across the country generating a total of 3,000 mw under the plan that envisages
to meet 20 per cent of the energy demand from coal as planned.

While no two coals are alike primary due to the fact that each has its very own chemical
properties, it is encouraging to note that lignite type of coal found in Pakistan is suitable for
power generation despite certain limitations. it contains high sulphur content and also high ash.
However, lignite could be processed and washed to make it suitable for use in power generation.
Coal found at Lakra mines, which has substantial reserves of over 1.3 billion tons, is found most
suitable for washing. A national company, Shahzad International, with international links signed
a MoU with the Sindh Government to set up a washing plant in November 2002 in the country
which costing $ 4 million with an annual capacity of 1 million ton primary to be used by the
cement industry.

A number of studies have also been conducted for the use of Lakhra coal for power generation
including government of Sindh, Pakistan Mineral Development Corporation and others. The coal
is primary used by brick kilns and though, as reported by PAGE in its Issue No. 4 this year the
half of cement industry has also converted to coal and the remaining is expected to shift from gas
to coal by end this year, the conversion has not benefited the local coal because cement units use
costly imported coal as the local coal is of low quality. However, the conversion has helped local
coal find a new market because it is used in the mixing with the imported counterpart.

While power plants could be a major consumer of indigenous coal, the high sulphur and ash
content make it unsuitabel for the purpose and thus, at present, brick kilns are its major
consumers.

China's willingness to setup coal-powered plant around the coal mines in Thar makes all the
more sense because it would help save heavy transportation expenses which otherwise makes the
use of coal economically unviable. In addition, lignite found in Thar has comparative lower
sulphur content to make it more suitable for power generation after the most suitable washing
process and the most appropriate plant design.

As mentioned earlier each coal differs from other in ways and no two coals are exactly the same.
Just as oil is fossalised animals, coal is fossalised plants. Coals, however, differ in many different
ways as per their heating value, ash melting, temperature, suphur and other impurities, and
numerous other chemical and physical properties. These numerous properties of a coal determine
its use for a particular purpose.

Coal is primary classified into four major categories, or 'ranks'. Lginite, sub-bituminous,
bituminous and anthracite. One of the most valuable content of coal is its carbon content which
supplies most of its heating value. However, various other factors are also important to determine
the amount of energy per unit weight of a particular coal.

Bituminous and sub-bituminous 'ranks' of coal are inferior to anthracite while lignite ranks the
lowest. Anthracite, the top ranked coal has the highest carbon content that ranges between 86-98
per cent and has a heat value of nearly 15,000 BTUs (British Thermal Units) per pound. The
bituminous variety is used primary to generate electricity and to make coke for the steel industry.
It has a carbon content of between 45-86 per cent and a heat value of 10,500-15,500 BTUs per
pound. Sub-bituminous comes next it has 35-45 per cent carbon content and a heat value of
8,300-13,000 BTUs per pound. However, despite its lower heat value, sub-bituminous coal also
has lower sulphur content compared to other 'ranks' which makes it attractive for use because it
is much cleaner to burn.

Lignite, the indigenous 'rank' found in Pakistan is a comparatively young coal geologically
speaking and has the lowest carbon content of just 25-35 per cent and also the lowest heat value
of only 4,000-8,300 BTUs per pound. However, lignite which is called 'brown coal' at times is
mainly used for electric power generation.

Having defined the various coal 'ranks' show that the vast deposits of indigenous lignite could be
used in Pakistan for power generation to help lessen dependence on expensive oil imports which
despite reduction, due primary to shifting of power plants to gas, still costs billions to the
national economy annually.

It's time to explore coal and develop coal-fired power plants to not only lessen dependence on
imported fuel but also to cut the cost of power production for the benefit of the industries, trade
and individual consumers.