Doing
more with
Less
Coal Efficiency and GHG Intensity enhancement
potential for the Steel Sector in India
Institutional Mentor / Partner
Lead Researchers: Dr. Amit Garg, Vivek Gilani
Co-Researchers: Gyan Prakash, Saumya Aggarwal, Bhaskar Govindrajan, Udit Bansal
Facts from India Coal Market Watch – August 2011
 Domestic coal production target for 2011-12 is
554 mt
 India adds 1660 MW generation capacity in July
(all Thermal Power)
 Indian plants exceed power generation target in
July 2011
 Coal India Ltd (CIL) reported a 64.06% rise in
profit after tax (PAT) during the first quarter
(April-June) of 2011-12
So far so good……………..
Facts from India Coal Market Watch Out! – August 2011
 India’s coal import in 2011-12 likely at 137.03 mt
 The import of coking coal through Paradip port on the eastern coast of
India surged by almost 4,10,095 tons in July 2011 to 6,68,574 tons as
compared to 2,58,479 tons in June 2011
 Imports of PCI coal through Vizag port in July 2011 stood at 1,13,467
tons, which was higher by 86,764 tons than 26,703 tons imported in
June 2011
 The imports of Low Ash Metallurgical (LAM) coke through Paradip port
in the month of July 2011 rose sharply to 60,590 tons compared with
6000 tons in June 2011
 171 coal mining proposals involving 28,862 hectares of forest land are
awaiting forestry clearance as on June 30, 2011
 44 projects of Coal India Ltd (CIL) stuck under Comprehensive
Environment Pollution India (CEPI) norms introduced by MoEF
Question?
Can the most efficient users of coal in India’s
Steel Sector help increase India’s Energy Self-Sufficiency,
meet it’s Climate Change Commitments,
and also save some Forests in the bargain?
Trends - GHG Intensity of Production in Sample Steel Companies
Indian Steel Sector - GHG Emissions Sources (2010)
Combined Others
5%
Grid Electricity
12%
Non-Coking Coal
2%
Coking Coal
40%
Coke
3%
Steam Turbines
12%
Coal
26%
Trends - GHG Intensity of Production in Sample Steel Companies
Coal Efficiency & GHG Intensity Enhancement in Steel Companies
Sr. No. Parameter
2008
2009
2010
SAMPLE Companies
1
Total Production - SAMPLE Companies (mt Steel)
68.4
66.1
77.5
2
Sample: Universe Ratio
81%
82%
82%
3
Coal Use (Direct + Indirect) - SAMPLE Companies (mt Coal)
34.7
42.4
43.7
4
GHG Emissions (Total Production) - SAMPLE Companies (mt CO2e)
91.7
106.4
112.5
5
Potential Coal Savings w. BPT Replication - SAMPLE Companies (mt Coal)
25.3
29.8
29.4
6
Potential GHG Mitigation w. BPT Replication - SAMPLE Companies (mt CO2e)
72.0
82.0
84.5
7
% Coal Intensity Improvement- Steel Sec.
73%
70%
67%
8
% GHG Intensity Improvement- Steel Sec.
79%
77%
75%
ENTIRE Steel Sector (Liquid Steel Production)
9
Total Production - Steel Sec. (mt Steel)
84.6
80.6
94.4
10
Coal Use (Direct + Indirect) - Steel Sec. (mt Coal)
42.9
51.7
53.3
11
GHG Emissions (Total Production) - Steel Sec. (mt CO2e)
113.5
129.6
137.1
12
Potential Annual Coal Savings through BPT Replication (mt Coal)
31.3
36.3
35.8
13
Potential Annual GHG Mitigation through BPT Replication - mt CO2e
89.1
100.0
102.9
14
% Target of Annual GHG Emissions Mitigation (COP15 commitment)
139.3%
156.2%
160.8%
Steel Sector Coal Savings, GHG Intensity Reduction and COP15 Commitment Opportunities 2008-2010
150
130
170%
110
150%
90
130%
70
110%
50
90%
30
70%
10
50%
2008
2009
2010
Year
Coal Savings
GHG Mitigation
COP-15 Committment
COP-15 Committment %
Coal Savings and GHG Mitigation (million tons)
190%
Source: Mckinsey – Environment and energy sustainability: An approach for India
Energy Efficiency measures
 Process efficiency – sinter plant heat recovery, coal moisture control
 Optimized energy use - pulverized coal injection, coke dry quenching
and recovering waste heat
Fuel Shift
 Substituting coke used in BF/BOF furnaces with fuel based on
biomass (charcoal)
 Replacing 10% of coke as the primary blast furnace tool
Technology Changes
 Direct smelting
 remove need for coking plants
 Challenge – Issues with technologies need to be resolved
 Scrap based steel making
 1/3 energy required by standard blast furnace
 Challenge – if 10% of the total production moved to this system
70% of India’s steel would need to be recycled which involves a
economic cost
 Gas based direct reduced iron
 Challenge: Availability of gas to steel plants
 Cogeneration – gas from the BOF/BF process is recovered, cleaned
and used for power generation
Energy Self-Sufficiency and Indian Steel Sector
 Coking coal prices at $225 a ton for the second quarter beginning
July 2010 compared with $129 a ton level in 2009-10
 Very high dependency on Australia for coking coal
 Energy Self-Sufficiency: India would need 2.4 billion tonnes of
steel/yr by 2030 which would assume India would need to import
40% of its coal needs
Learnings and Way Forward
 Best practice gap in terms of GHG Intensity of Production from Coal for
Cement Industry: increased from ratio of 13.4 to 15.7 in 3 years.
 Best Practice Technology (BPT) replication achievable realistically using offthe-shelf technologies in India
 BPT replication in Steel Industry alone can yield 36 million tons of coal saving
and reduce India’s imports dramatically
 BPT replication from merely this sector can help India achieve more than
100% of its GHG Emissions commitment to COP15 (reducing GHG intensity of
the GDP by 20%-25% by 2020)
 Thus, despite being a proactive environmental research and outreach body –
not anti-coal as a fuel – but a rational promoter of the roadmap to do more
with the lessening coal we have in India and globally.
 Need of the hour – process optimisation technology sharing amongst
the Steel Industry and active promotion and incentivisation of efficient
users of coal and low-GHG intensity steel on platforms such as
coaljunction and metaljunction.