A Maharatna Company

CORPORATE PLANNING

Energy Scan Vol. 2 2020-21

ES
Issue 43

A House e-Journal of Corporate Planning, NTPC Limited

INSIDE THIS ISSUE SCAN SPEAK

Strategies for Op miza on ofCoal
Cost to Reduce ECR ................ 2
Carbon Capture and
U lisa on...............7
Coal is a low-cost fuel for power genera on in India today. It will remain the residual source of
power given that hydropower faces socio-economic challenges to growth, India lacks cheap
natural gas and nuclear power growth is likely to be limited. However, due to overcapacity in
supply and increased compe on from renewables, there is an imposing threat to India’s coal
power plants. Power generators like NTPC with a dominant coal presence have come up with
new strategies and means to reduce the energy charges (ECR) of their coal sta ons so that
they are dispatched and remain in compe on. PPAs for coal plants in India have separate
capacity charges (fixed costs) and energy charges (variable costs), while RE PPAs have only a
single charge. With these strategies in place leading to reduc on of ECR of NTPC’s coal
sta ons, the marginal contractual cost of calling an addi onal unit of thermal power will be
lower than cost of calling an addi onal unit of RE.

Global warming and climate change concerns have triggered global efforts to reduce the
concentra on of atmospheric carbon dioxide. Carbon dioxide capture and storage (CCS) is
considered a crucial strategy for mee ng CO2 emission reduc on targets. The concept of CCS
was introduced in 1977, when it was suggested that CO2 could be captured from the coal
power plant and injected into suitable geological forma ons. The Interna onal Energy
Agency has claimed that this technology has the capability to reduce 17% of global
CO2 emission by 2050. The selec on of specific CO2 capture technology heavily depends on
the type of CO2 genera ng plant and fuel used. Among the CO2 separa on processes,
adsorp on is the most mature and commonly adopted due to its higher efficiency and lower
cost. For transporta on of CO2, Pipeline is considered the most viable solu on for large
volume of CO2. Although technologies regarding the capture and storage of CO2 exist, the
overall cost of using current CCS procedures is s ll high and must be substan ally reduced
before it can be widely deployed.

Against the above backdrop, in the present issue of Energy Scan we bring you two ar cles:
first, “Strategies for Op miza on of coal cost to reduce ECR “and second, “Carbon Capture and
U lisa on” ‘to evoke your interests in the topics covered.

The items and the views expressed herein do not purport to be the ofcial news/views of NTPC Management. This magazine is for internal circulation only.
Anything being reproduced or quoted from this magazine will require prior approval of its Editorial Group. 1
Energy Scan is also available online at NTPC CC Intranet g Departments g Corporate Planning g Energy Scan
A Maharatna Company

STRATEGIES FOR OPTIMIZATION OF COAL COST TO REDUCE ECR

• M. Prasanna Kumar, Execu ve Director (CC-FM), EOC Noida, Email: prasannakumar@ntpc.co.in
Pankaj Kumar Mi al DGM (CC-FM), EOC Noida, Email: pankajmi al@ntpc.co.in

Abstract:
In the present dynamic and compe ve power genera on scenario, coal based sta ons face array of issues across the
supply chain right from sourcing to logis cs management, bulk handling, coal yard management and quality
management. Effec ve fuel management can go a long way in op mizing resources and reducing cost of genera on.
This paper focusses on the various steps followed for op miza on of coal cost and puts forward the strategies for coal
source selec on, quan ty and quality management issues for NTPC sta ons to reduce ECR and maximize genera on.

INTRODUCTION:
Coal is an important fuel in the global energy mix and contributes to over one third of global electricity genera on.
Various scenarios show that with growing energy demand around the world, coal con nues to play an important role in
global energy mix for the years to come. In India, coal contributed for about 54 % of the installed capacity and 80% power
genera on during the year 2019-20. There are around 1055 billion tonnes of proven coal reserves worldwide. With ~
9.6% of world’s proven coal reserves, India will remain a coal based energy supplier for a long period.
However, with increased penetra on of renewable energy in the grid and compe on from renewable power
genera on, bringing down the genera on cost of coal-based power sta ons has become impera ve. Fuel cons tutes a
major component of power genera on economics and hence the Power sta ons with high landed fuel cost bear the risk
of not being scheduled.
To op mize coal cost at power sta ons, various ini a ves like Ra onaliza on of coal sources, maximizing coal supplies
to pithead sta ons, third party coal sampling etc. have been taken by NTPC. However, due to various constraints like
limited availability of domes c coal and transporta on logis c issues, Sta ons are facing issues like genera on loss, fixed
cost under recovery and very low genera on schedule.

1.0 NTPC’s Exis ng coal based Sta ons:

NTPC and its JVs/ Subsidiaries with 50,790 MW of coal based commercial installed capacity, is the largest consumer of
coal in India. The total coal requirement for above capacity at full load requirement is around 289 MMT (~ 7.9 LMT/ day).
Coal alloca on at various NTPC/ JV sta ons is done at different mes in various mee ngs of SLC (LT) or under GoI’s New
Linkage Policy ‘SHAKTI’. A er securing the coal linkages, NTPC/ JV Sta ons have entered into Fuel Supply Agreements
(FSAs) with CIL and SCCL for present Annual Contracted Quan ty (ACQ) of 203.0 MMT which is sufficient for around
80% PLF requirement. Further, as per CERC guidelines, norma ve coal stock equivalent to 10 days requirement for
pithead sta ons and 20 days for non-pithead sta ons is to be maintained. This translates to around 10.4 MMT for NTPC
and JV Sta ons.

2.0 Major problems being faced by NTPC regarding coal sourcing:

Coal materializa on under FSAs for NTPC Sta ons during FY 2019-20 was around 93% and including JVs, materializa on
was only around 89%. Coal is also being sourced from cap ve mines viz. Pakri Barwadih and Dulanga. To mi gate the
coal shortage from supplies under FSAs or from cap ve mines, coal is also being sourced from mul ple sources like E-
auc ons, MoU (Bilateral/ Bridge Linkage), and Imports etc.

Mines mainly from MCL, ECL and SECL faced various produc on issues during 2019-20. There were issues of frequent
strikes/ disturbances at MCL mines. Produc on from ECL Rajmahal area got affected due to problems in the land
acquisi on at Taljhari & Bansdiah. Produc on from SECL mines was affected due to heavy rains and flooding of Dipka
mine which is the linked mine for Sipat. Further, there are issues in railway logis cs which hampers hamper the coal
availability at sta ons. In FY 19-20, NTPC and JV Sta ons have incurred genera on loss of 7.3 BUs on account of coal
shortage. There are various other issues like coal supplies below declared grades of mines, GCV difference between GCV
at mine end and sta on end, high no. of referee samples derailing the process of third party sampling, transit losses, one
sided issues in FSAs etc.

2
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
 A Maharatna Company

3.0 ECR Reduc on:

NTPC has con nuously been taking various steps to ensure round the clock quality coal supplies for its sta ons at the
best possible rates. Various steps including Implementa on of IMTF (Inter Ministerial Task Force) Recommenda on to
avoid zig zag movement of coal, Ra onalisa on of coal linkage to enhance coal availability at pithead sta ons, reduc on
in MoU, E-Auciton and Import coal, deployment of CIMFR (Central Ins tute of mining and fuel Research) for third party
sampling at both loading and unloading ends to ensure quality coal in line with the payments made for coal, approaching
CCO (Coal Controllers Organisa on) for re-grading of mines based on third party sampling results, implementa on of
policy on ‘Flexible u lisa on of Domes c coal’ .

It may be noted that on comparing actual ECR for NTPC Sta ons with no onal ECR (No onal ECR is the ECR obtained by
assuming that there was no increase in coal price/ Railway transporta on/ taxes etc.), the ECR for NTPC Sta ons would
have gone down due to various measures being taken to reduce ECR.

The key areas/ strategies for Op miza on of coal cost to reduce ECR and maximize genera on are as under:

3.1 Flexible U liza on of domes c coal:

As per the then prevailing scenario, NTPC had signed Sta on specific Fuel Supply Agreements (FSAs) with various CIL
subsidiaries. There was limited flexibility to u lize coal for one NTPC Sta on at another NTPC Sta on. With con nuous
persuasion at different forums for providing flexibility in u liza on of coal amongst various Sta ons, MoP in 2016 issued
policy on “Flexible u liza on of domes c coal to reduce cost of power genera on”. A Supplementary Agreement was
signed with CIL and CIL subsidiaries to implement above policy in 2017. With the singing of Supplementary Agreement,
NTPC/ JV sta ons have got flexibility for u liza on of domes c coal amongst themselves.

For implementa on of flexibility, quarterly coal supply matrix is being prepared for NTPC and JV/ Subsidiary sta ons.
Sta ons’ requirement are arrived based on various factors including the Sta on’s genera on plan, norma ve coal stock
requirements, Annual ACQ, Short fall in supplies in previous period. The matrix is finally approved by CIL. The approved
coal supply matrix may be changed based on the intermi ent changes in the requirement.

The exis ng format of flexible u liza on of domes c coal is limited to subsidiary wise. NTPC is pursuing for
aggrega on of ACQ on CIL level instead of present Subsidiary level basis.

3.2 Iden fica on of most effec ve source of coal supply:

With the policy of ‘Flexible u liza on of domes c coal’ in place, the focus remains on prepara on of op mum
distribu on of available coal to maximize genera on as well as reduce cost of power. But many mes, this op miza on
process gets affected due to availability of coal and transporta on logis c constraints which are dominant in the current
scenario. With seamless coal availability and transporta on logis cs, the coal supply op miza on process can further
be accentuated which will further reduce the cost of genera on.

Iden fica on of most cost effec ve source of coal supply is vital in present compe ve environment. This is done by
comparing the total delivered cost of coal per 1000 Kcal from different sources and is derived by taking into
considera on coal cost, transporta on cost, quality of coal, grade slippages and other indirect cost like quality and
quan ty losses. Based on the demand-supply situa on, the sta ons need to be supplied coal from most cost effec ve
source to reduce ECR. Sta ons need to develop the flexibility to use coal of varying grades and quality and take
advantage of emerging opportuni es.

The mely diversions under above policy has helped NTPC to cater to the requirement of its cri cal sta ons resul ng in
reduc on of genera on loss on account of coal and Annual Fixed Cost (AFC) under recoveries. AFC under recovery on
account of coal for NTPC Sta ons has come down to INR 65 Crore during 2019-20 from INR 181 Crore in 2018-19. AFC
under recovery was INR 724 Crore in 2017-18.

With conceptualiza on of declara on of compe ve ECR with cheaper coal sourcing, Sta ons like Kudgi, Solapur,
Khargone and Gadarwara which were under reserve shut down since long have started ge ng genera on schedule.
3
A Maharatna Company

3.3 Maximizing Supply of coal through MGR for Pithead Sta ons:

In the present SCED (Security Constrained Economic Dispatch) regime, pithead sta ons are ge ng full genera on
schedules. It has been seen that there is a shi of genera on loss on account of coal shortage from non-pithead sta ons
to pithead sta ons due to SCED. Thus, more efforts need to be made to ensure seamless coal supplies for these sta ons.
This will help to reduce ECR in the interest of common public and will also increase the overall power genera on.

To the extent possible, supplies at MGR Sta ons need to be only through MGR system to reduce cost of power
genera on. It has been observed that coal companies divert coal from linked mines of MGR Sta ons to other u li es
using Railway rakes. The issue is being highlighted and needs to be further pursued at various levels so that in the present
SCED regime, surplus coal can be supplied to other sta ons only a er mee ng full load coal requirement of pithead
sta ons. Further, both pithead and non-pithead sta ons should focus on reducing the cycle me for the rakes received at
Sta ons. Railway allots more rakes to the sta ons with faster unloading and low cycle me.

3.4 Minimizing use of costlier e-auc on/MOU/ Import Coal:

All efforts need to be made to minimize use of costly e-auc on/ MoU coal and replacing the same with FSA coal at
no fied price so as to reduce cost of electricity genera on. Steps for restric on on supply of washed and washery grade
coal from coal companies especially from BCCL and CCL are also to be taken to reduce ECR. Further, steps need to be
taken to minimize use of import coal.

Coal companies have con nuously been persuaded to supply MoU coal at no fied price to NTPC sta ons. Finally, MoU
with SCCL for FY 20-21 has been signed at no fied price in place of 20% premium on power/ non-power coal earlier. This
will help in reduc on of ECR from SCCL coal significantly.

There is a need for enhancement of Annual Contracted Quan ty of coal under FSAs with coal companies for NTPC/JV
Sta ons especially for Pithead Sta ons to a minimum of 92% PLF. This will facilitate cheaper power from pithead sta ons
by avoiding usage of imported/MoU/E-Auc on coal. A er con nuous persuasion, Standing Linkage Commi ee (SLC)
has decided to give op on to power plants to increase ACQs, which were restricted to 90% of norma ve quan ty. This is
expected to reduce Performance Incen ve on coal price for NTPC.

3.5 Op mum u liza on of Cap ve Mine coal:

Pakri Barwadih coal mine being basket cap ve mine of NTPC, coal can be u lized at any of NTPC/ JV Sta on. Pakri
Barwadih coal needs to be used in most op mum fashion and based on the transporta on logis cs, priority needs to be
given to the sta ons under cri cal condi ons to avoid genera on loss/ AFC under Recovery. At present, the above is
being taken care of and distribu on of Pakri Barwadih Rakes is finalized on dynamic basis based on coal requirement of
various sta ons. Efforts are being made for proper evacua on of coal from Dulanga and Talaipalli mine.

The produc on from various other cap ve mines of NTPC has not started and is delayed. This is resul ng in difficul es in
arranging coal for the linked sta ons which have been commissioned or commercialized. As per GoI policy, ‘Bridge
Linkage' coal is given to specified end-use plants of Central and State Public Sector Undertakings which have been
allo ed coal mines under specific schedules for a period of 3 years from the date of allotment of coal mine/block.
However, Bridge Linkage MOU coal is at 10% addi onal price over the no fied price for “G5” to G17” grade coal. Further,
there are issues of less materializa on under bridge linkages. Arranging coal from alternate sources results in increase in
ECR for these sta ons. All efforts need to be made to start coal produc on from various cap ve blocks on mely basis.
Further, on policy front, efforts need to be made to link Bridge Linkage with actual produc on from allocated mines
rather than with the meline as per the exis ng policy.

3.6 Op mum coal storage and u liza on:

As on date, NTPC and JV sta ons are having around 14.5 MMT of coal stock which is worth Rs. 3500 crore approximately.
Coal is stacked in open yards at Sta ons and is exposed. Thus there is degenera on in quality of coal over a period, if the
process of preserva on as per LMI and FIFO principle are not followed strictly.

4
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
 A Maharatna Company

Preserving the coal stock as per above principle becomes more important at sta ons with full stockyard. With the
degrada on of coal quality, specific coal consump on increases affec ng ECR resul ng into loss in marginal contribu on
and finally affec ng the bo om line of the company.
Although there has been improvement in usage of coal based on FIFO principle at various NTPC Sta ons, there is s ll a
lot of scope for improvement. There should be strict compliance of FIFO principle for coal stocked in the yard for a period
of up to 3 Months except the Sta ons facing issue of reserve shut down for long. Based on the many studies by Research
Organiza ons/Ins tu ons, quality deteriora on during storage can be avoided by proper compac on, quality
monitoring and management of stockpiles. To avoid subjec vity in ensuring proper compac on, scien fic process of
tes ng by Dynamic Cone Penetrometer can be used. Following steps need to be taken to prevent degrada on in GCV of
coal stacked in yards:
- Usage of coal strictly as per FIFO process
- Proper compac on of coal in designed profile to avoid oxida on and internal combus on ensuring compac on
index in the range of 2.5-3.0
- Monthly GCV Profiling of Stock Piles
- Display of monitered parameters (Pile Age, GCV, Compac on Index, CO level) in CHP Control Rooms for be er
monitoring
- Monitoring of Dozers for compac on of Coal piles by providing GPS on Dozers
- Extra precau ons during summer season like:
o Early Detec on of Spontaneous Combus on in Stacks through frequent Pile thermographic monitoring /
Thermovision Camera /IR Temperature gun
o Pro Ac ve fire quenching opera ons for hot Spot with temperature more than 70 degree

3.7 Ensuring quality coal at Power Sta ons:

As per the terms of Fuel Supply Agreement, the tle and risk of coal stands transferred to the Purchaser at the loading
end. Coal billing is done as per the ‘declared grade’ of the mine. In case of grade, difference between declared grade of
mine and grade analyzed at mine end, credit/ the coal company issues debit notes. Thus, proper sampling and tes ng of
coal at loading end is of utmost importance. Difference between GCV grade billed by Coal Company and GCV grade
received at sta on end has always been a major issue of concern for Power U li es. NTPC has raised its strong concerns
me and again for fair quality determina on. Subsequently, CIMFR has been appointed by NTPC and CIL jointly for
sampling and analysis of coal at loading end. Further, NTPC has appointed CIMFR for third party sampling at unloading
end also. CIMFR has already started sampling at almost all the loading and unloading ends for NTPC/ JV Sta ons.
The ini a ve of sampling by CIMFR will ensure that the coal billing is done by coal companies for the quality of coal
actually supplied to the power u li es. This ini a ve will also ensure coal companies to improve quality of coal and will
benefit en re power sector by ensuring reduc on in the cost of genera on for the benefit of ul mate consumer of the
society.
However, there are various issues in third party sampling like varia on between declared grades of mines and the grade
analyzed at loading end by CIMFR, wide varia on in grades analyzed at loading and unloading end, delay in submission
of analysis result, high no. of Referee samples by coal companies, absence of enabling condi ons at loading end by coal
subsidiaries. These issues need to be resolved to reap the maximum benefit of third party sampling. Ma er needs to be
pursued with coal companies and CCO in case of GCV difference between billed grade and grade analyzed by CIMFR at
loading end. CCO to be approached for re-grading of mines based on the results of CIMFR at loading end. Further,
CIMFR to be pursued con nuously to ensure varia on in GCV at loading and unloading within permissible limits and for
submission of analysis results within s pulated me frame as delay in submission of results by CIMFR is adversely
affec ng the reconcilia on ac vi es with the coal companies. Further, the issue of high referee samples by coal
companies need to be resolved as the same is derailing the process of third party sampling. There is requirement of
proper enabling condi ons for third party sampling at loading end and coal companies need to be pursued for providing
the same. Further, ma er regarding boulders/ extraneous ma er need to be taken up with coal companies on priority
basis.
With the above improvements in the ongoing process of third party sampling, quality coal can be made available to the
Sta ons. This will help in reducing of ECR in a big way.

5
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
A Maharatna Company

3.8 Quantity control and tracking:

Measurement of coal done at loading end is used for billing purpose by coal companies and Railways. Thus, proper
weighment to assess actual weight is very importance affec ng total economics of power genera on. Mostly in-mo on
weigh bridges are used for weighment of coal loaded into trains for transporta on. Proper calibra on of weigh bridges
at mine end/ loading end need to be ensured. Utmost priority is to be given for monitoring the condi on of weighbridge,
its proper upkeep by OEM, suitable loca on as per RDSO (Research Design and Standards Organisa on) guidelines. Any
loss of coal beyond norma ve loss permi ed by CERC, directly affects cost economics of power genera on. Sta ons
need to ensure proper weighment at Sta on end for all coal rakes and the same needs to be compared with the
weighment at loading end. Any devia on in the weight at loading and unloading end should be analysed and the issue
needs to be taken up with coal companies promptly if devia ons are high.

For proper weighment at unloading end, Sta ons need to ensure six monthly calibra on of weigh bridges at Unloading
end, Compliance to RDSO Standards, Age of Weigh Bridges (8 Years for Electronic type and 15 Years for Mechanical
type) etc. Further, ensuring complete emptying of coal wagons/trucks a er unloading would help in recovering the
coal. During monsoon season wagons are not unloaded fully due to coal s cking at the bo om and par cularly a er
wagon ppling. Necessary arrangement is to be made to empty the wagons fully without leaving any coal in empty
wagons.

Further, as per prac ce, Railways considers the stenciled tare weight (weight of empty wagon) of wagons instead of
weighing the emp es, in-mo on. It has been observed based on weighment of emp es at power sta on end that
around 1% loss of coal is actually a ributable to the above methodology. There for the coal quan ty received at power
sta on end is less than that computed at loading end based on stenciled weight a er loaded rake weighment by in-
mo on weighment. Ma er needs to be pursued for implementa on of weighment of actual tare weight of
wagons/rakes at loading end to ensure correct measurement of coal quan ty loaded in wagons. This will help in
reduc on of the technical transit loss of coal and reduce cost of power genera on.

Con nuous efforts need to be made to avoid loading of stones/ boulders by coal companies and for reduc on of Puni ve
Overloading (POL) Charges and Idle Freight Charges being taken by Coal Companies.

3.9 Review of the Fuel Supply Agreements (FSA)

Present FSAs have many terms and condi ons in favour of supplier. These terms and condi ons add to the cost of coal.
The issue of review of FSAs is long pending with CIL. Further, based on the direc ons from MoP, a dra CSC (Coal Supply
Contract) with the provisions as desired by Power u li es has been submi ed to MoP.

To ensure quality and quan ty commensurate to the payments made to coal companies, it is proposed that present
system of coal quan ty and quality measurement at loading end needs to be shi ed to the unloading end for all
commercial purpose. As per CERC regula ons, now it is mandatory for the power u lity to carry out third party sampling
at the power sta on end. Measurement of coal quality at mul ple places only adds to the cost of coal. As CIMFR has
been appointed jointly by power u li es and coal companies, sampling at sta on end can be ensured in a transparent
manner. With Coal Quality and Quan ty measurement at Power sta on end for billing, root cause (lack of enabling
condi ons provided by the coal companies to CIMFR for sampling and sample prepara on at loading end affects results
in many cases) of the disputes between Coal Company and the power u li es will be eliminated.

4.0 CONCLUSION:

In view of the emerging compe on which coal based sta ons are facing from renewables, all efforts need to be focused
on reduc on in ECR for coal based genera on. With the various steps as enumerated in the paper , Power Producers can
ensure quality coal at Power Sta ons with reduced costs to generate adequate and affordable power for the end
customers. Further, Govt. support on policy front is required for coal based Power Producers to make coal based
genera on viable.

6
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
 A Maharatna Company

CARBON CAPTURE AND UTILISATION

Sandeep Kumar, Manager (EMD), NTPC Korba, sandeepkumar07@ntpc.co.in
Gnyanankur Sonowal, Manager (EMD), NTPC Korba, gsonowal@ntpc.co.in
Ashutosh Kumar, Manager (CHP-O), NTPC Korba, ashutoshkumar02@ntpc.co.in

Before the industrial revolu on, levels of atmospheric CO2 was around 280ppm. By 2013, that level had breached the
400 ppm mark for the first me. It stood at 416.39 ppm in June 2020. The Interna onal Energy Agency (IEA) states that
Carbon Capture and Storage (CCS) could reduce global CO2 emissions by 19% and figh ng climate change could cost 70%
more without CCS. This Dossier is an a empt to provide insights to CCS and u liza on of CO2 beyond storage.

INTRODUCTION
Greenhouse gases like water vapour, carbon dioxide, and methane generated by the combus on of fossil fuels capture
the heat radiated by earth’s surface back to the atmosphere leading to global warming. Plants absorb CO2, but due to
de-foresta on, situa on has become very acute. It is es mated that by year 2100, on a worldwide average, earth’s
temperature would rise by 1-3.5 C and global Mean Sea Level by 15-95 cm. This would lead to loss of habitat in low-lying
areas, extreme weather condi ons like hot or cold temperature spells, wet or dry spells of rainfall, cyclones or floods etc.
We know that rapid urbaniza on and industrializa on has increased the carbon emissions, but the most worrisome part
is the rate of increase.
This is best seen in the drama c shortening of the me taken for 400 billion tonnes of CO₂ to enter the atmosphere:
· First period: 217 years (1751 to 1967)
· Second period: 23 years (1968 to 1990)
· Third period: 16 years (1991 to 2006)
· Fourth period: 11 years (2007 to 2018)
In order to be a decarbonised economy by 2050, we have to bend the (emissions) curve by 2020.
The elimina on of carbon dioxide from industrial effluents and other energy related sources is of utmost importance
for which CCS technology might prove to be a boon.
The first demonstra on of carbon dioxide capture and underground storage was at the North Sea's Sleipner gas field.
Since 1996, Statoil, Norway's energy company has been removing excess carbon dioxide from the natural gas they
extract and injec ng it into a 3km deep well. That was followed by Canada's Weyburn-Midale CO2 Project in
Saskatchewan in 2000. The capture and storage of CO2 underground is one of the key components of the
Intergovernmental Panel on Climate Change's (IPCC) report on how to keep global warming to less than 2°C above pre-
industrial levels by 2100.
CARBON CAPTURE AND STORAGE (CCS)
Typical Carbon Capture and Storage system components include the following:
Capture: The separa on of CO2 from an effluent stream and its compression to a liquid or supercri cal state. In most
cases today, the resul ng CO2 concentra on is >99%, though lower concentra ons may be acceptable.
Transport: Transpor ng large quan es of CO2 from its source to the storage reservoir is most economically achieved
with a pipeline.
Injec on: Deposi ng CO2 into the storage reservoir. The storage reservoirs under considera on today are geological
forma on, Deep Ocean, ocean sediments, or mineraliza on (conversion of CO2 to minerals).
Monitoring: Once CO2 is captured and transported, it must be monitored. Since CO2 is neither toxic nor flammable, it
poses only a minimal environmental, health and safety risk. The main purpose of monitoring is to make sure that the
sequestra on opera on is effec ve, meaning that almost all the CO2 stays out of the atmosphere for centuries or longer.

By far the largest poten al source of CO2 today is fossil-fuelled power plants. Power plants are responsible for more
than one-third of the CO2 emissions worldwide. A 1000 MW pulverized-coal-fired power plant emits 6-8 Mt/year of
CO2, while a 1000 MW natural gas combined-cycle power plant will emit about half that amount. Coal-fired power
plants represent by far the largest set of CO2 sources that are compa ble with CCS.

7
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
A Maharatna Company

The carbon dioxide capture process during power genera on falls into three general categories: post-combus on, oxy-
combus on and pre-combus on capture. The first two categories are compa ble with the exis ng pulverized coal
power plant infrastructure that relies on combus on of fossil fuels. The last category is generally specific to an integrated
gasifica on combined-cycle power plant.

Post-combus on: The post-combus on separa on method involves separa on of CO2 from the flue gas emi ed from
thermal power plants. It involves chemical adsorp on of the gas in a solvent. For instance, certain amines such as
monoethanolamine or ammonia (using the chilled ammonia process) can be used as solvent. Flue gas is passed through
the solvent at rela vely low temperatures of about 40–50°C and then CO2 is obtained by regenera on of the solvent at
temperatures of more than 100°C.

Post-combus on technologies are the preferred op on for retrofi ng exis ng power plants. The technology has been
proven at small-scale with CO2 recovery rates of up to 800TPD. However, the major challenge for post-combus on
capture is its large auxiliary power consump on. Since the CO2 level in combus on flue gas is normally quite low (i.e.
7–14% for coal-fired and as low as 4% for gas-fired), the energy penalty (addi onal power needed to drive the CCS
thereby reducing power plant’s net output) and associated costs for the capture unit to reach the concentra on of CO2
(above 95.5%) needed for transport and storage are high.

Figure-1: Post-Combus on Capture

Boxyfuel Separa on: Oxyfuel separa on is the scien fically most advanced way of CO2 capture. Whenever a fuel such
as coal, oil or natural gas is burnt in air, the emi ed CO2 combines with other components of air including nitrogen
whose composi on in air is about 78%. The Oxyfuel separa on method involves filling of the en re combus on
chamber with almost-pure oxygen and hence the emission obtained is almost en rely CO2. This is done using an air
separa on unit (ASU), which works on the cryogenic principle. The energy penalty in this method is due to the ASU.

8
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
 A Maharatna Company

Figure-2: Oxyfuel Separa on

Pre combus on: Pre-combus on separa on involves gasifica on of the fuel such as coal. The fuel is reacted with steam
so as to convert it to carbon monoxide and hydrogen. This mixture is known as synthesis gas (syngas) mixture:
C + H2O → CO + H2
This mixture is then again reacted with steam to form carbon dioxide and hydrogen in a reac on known as the ‘water-gas
shi ’ reac on: CO + H2O → CO2 + H2
Carbon dioxide so formed is captured and the hydrogen obtained in the above two steps is used as a clean fuel.

Figure-3: Pre-Combus on Capture

INDUSTRIAL USAGE OF CARBON DIOXIDE
The carbon dioxide thus captured can be u lised in following ways:.
q Enhance Oil Recovery (EOR): Conven onal oil produc on occurs in three phases: primary, secondary and ter ary.
In the primary phase, natural pressure within the oil drives it towards the produc on wells and with the help of
pumps or other mechanisms, to the surface. Secondary produc on usually consists of injec ng water into an oil

9
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
 A Maharatna Company

reservoir to increase the pressure and again drive the oil towards the produc on wells.Enhanced Oil Recovery3
(EOR) is a ter ary method of oil recovery and can enable significant addi onal quan es of oil to be extracted. A
study by Durham University found that CO2 captured through CCS and used for EOR could lead to £150 billion of oil
recovery from exis ng oil fields in the North Sea that would not otherwise have been possible.
q Enhanced Gas Recovery (EGR): Enhanced Gas Recovery (EGR) can be achieved using carbon dioxide as it is heavier
than natural gas.
q Enhance Coal Bed Methane Recovery (ECBMR): Coal beds (also known as coal seams) can be reservoirs for gases, in
which natural gas, known as coal bed methane (CBM), can be found adsorbed onto the surface. Experiments have
been conducted in the San Juan Basin showing that carbon dioxide injec on does appear to have enhanced CBM
produc on.
q Urea fer lizer produc on, food packaging and processing, fire suppression, water treatment, polymer processing,
concrete curing, algae bio-fixa on, renewable methanol genera on etc.
q Produc on of SOLAR-JET fuel, syngas etc.
Use of captured carbon dioxide in EOR, ECBMR and other industrial processes is already underway but the technology
for produc on of syngas and SOLAR-JET fuel from CO2 is yet to be commercialized. The European Union (EU)-funded
SOLAR-JET project demonstrated the en re produc on path to liquid hydrocarbon fuels from water, CO2 and solar
energy. In April 2014, the project was able to produce a glassful of kerosene in a laboratory set up. Key to the process is a
solar reactor that had previously been developed at ETH Zurich public research university in Switzerland.

PRODUCTION OF SYNGAS AND SOLAR-JET FUEL FROM CO2 AND H2O

The researchers used concentrated sunlight, simulated in the lab to turn CO2 and water into a product called synthesis
gas, or syngas, in a high-temperature solar reactor. A solar reactor containing re culated porous ceramic (RPC) foam
made of pure Ceria (CeO2 used as catalyst) has been experimentally inves gated for CO2 spli ng. The RPC was directly
exposed to concentrated thermal radia on at mean solar flux concentra on ra os of up to 3015 suns. This reversal of
combus on is accomplished via a high-temperature thermo-chemical cycle based on metal oxide redox reac ons
(reduc on-oxida on cyclic process using metal oxide as a catalyst) which takes place in two steps.

Figure-4: a) Schema c of the solar reactor configura on for spli ng of CO2 into separate streams of CO and O2 b)
Photographs of the solar reactor, showing the front face of the solar reactor with the windowed aperture and its interior
containing the octagonal RPC structure lined with alumina thermal insula on

10
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
A Maharatna Company

In the first step, at 1500°C, a frac on of the oxygen contained in the material is released and leaves the reactor as a
valuable by-product. The second step takes place at a lower temperature, about 1000°C, and H2O and CO2 are
introduced. The ceria wants to uptake the oxygen which it previously held. Since there is no oxygen, it needs to split H2O
and CO2 in order to access its oxygen, so it splits the water and carbon-dioxide into hydrogen, carbon-monoxide and
oxygen to access the oxygen. Now it uptakes the oxygen, and thereby it resumes its ini al state, and the product is syngas
(a mixture of H2 and CO) can be extracted from the reactor.
The syngas is stored and converted into jet fuel via the Fischer-Tropsch process (a series of chemical reac ons that
convert hydrogen and carbon monoxide into liquid hydrocarbons). The end result — synthe c paraffinic kerosene — is
cer fied for use in commercial avia on by blending with conven onal fuel upto 50%. The breakthrough could mean that
carbon dioxide, a greenhouse gas, could become the feedstock for petrol, diesel and the jet fuel kerosene.
This technology is proven but s ll requires some development and its product is more expensive than the current fossil
fuel price, so it is currently too far away from the market.
A Swiss start-up, Synhelion is working on commercializing the produc on of solar jet fuel by 2030 with the help of
Italy’s oil company Eni. Synhelion solar researcher’s team is working on the small scale 200kW Synhelion solar receiver
pilot at German Aerospace Center’s synlight solar research facility. The team had already achieved a record-breaking
solar reactor efficiency (The solar to fuel energy conversion efficiency, defined as the ra o of the calorific value of CO
(fuel) produced to the solar radia ve energy input through the reactor’s aperture) of 5%, from just 1% five years earlier.
Based on the tes ng, they believe that they can reach beyond the 20% reactor efficiency needed to make the jet fuel
reasonably economical. It is planned to scale-up the technology to industrial size in the coming years.
CONCLUSION
IPCC suggests an addi onal electricity cost of $0.01 to 0.05 per unit of energy generated through CCS based power plants
as compared to exis ng power plants. As per the study on cost implica ons of CCS for the coal power plants in India, the
cost of electricity was es mated to increase by ₹2.2-2.6 per unit i.e. by 63-76% of the current value without CCS6. The
present study has been an a empt to combine the exis ng and newly discovered technologies in such a manner that
energy extrac on from CO2 (either u lisa on of syngas in gas turbines for power genera on or SOLAR-JET fuel for
aircra s) for commercial purpose and elimina on of carbon addi on into the atmosphere can be achieved; making the
technology feasible in Indian context.
We recommend that NTPC may use this technology as a pilot project in its older units which have already recovered their
capital cost thereby reducing the burden of higher electricity cost.
NTPC should come forward and become the pioneer in establishing carbon capture and u liza on project in India with
indigenous R&D support from pres gious educa onal and research ins tu ons of the country in line with GOI agenda.

REFERENCES:
1. h ps://www.newcapitalmgmt.com/news/all-the-worlds-carbon-emissions-in-one-chart
2. h ps://www.ccsassocia on.org
3. h ps://www.sciencemag.org/careers/2010/05/examining-carbon-capture-and-storage
4. h ps://www.solarpaces.org/at-synhelion-solar-jet-fuels-get-ready-for-take-off/
5. IPCC Special Report on Carbon Dioxide Capture and Storage, Cambridge University Press, Cambridge, 2005
6. Cost Implica ons of Carbon Capture and Storage for the Coal Power Plants in India

11
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
A Maharatna Company

Used EV batteries for large scale solar energy storage

Relectrify, an Australia-based electronics company, is working with American Electric Power and Nissan to give old
electric car ba eries a new life.

The idea is to use old or second-life lithium-ion ba eries to reduce the number of components needed to build parts of
an industrial energy storage system.

This method could lower overall systems costs by half and extend the life of a lithium-ion ba ery by about a third.

At laboratories in Japan and Australia, the company is currently integra ng old Nissan LEAF ba eries into a larger ba ery
pack. Tradi onally, these packs are limited in capability because they are only as good as their weakest ba ery cell.
However, Relectrify combines ba ery management with inverters to get the most out of each individual cell.

Relectrify's new method is expected to cut the costs for grid storage systems by about $150 per kilowa -hour, according
to Bloomberg. Right now, the average price for similar tech using new ba eries, like Tesla's Power pack, runs about $289
per kilowa -hour.

Source:h ps://www.pv-magazine.com/2020/05/25/used-ev-ba eries-for-large-scale-solar-energy-storage/

12
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited