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POTENTIAL OF CLEAN COAL TECHNOLOGY IN INDIA: AN SME PERSPECTIVE SEPTEMBER 2013

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POTENTIAL OF CLEAN COAL TECHNOLOGY IN INDIA:AN SME PERSPECTIVESeptember 2013

Transcript of A copy of 130614 REP Potential of Clean Coal Technologies in India an SME Perspective Web

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POTENTIAL OF CLEAN COAL TECHNOLOGY IN INDIA: AN SME PERSPECTIVE

September 2013

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POTENTIAL OF CLEAN COAL TECHNOLOGY IN INDIA: AN SME PERSPECTIVE

September 2013

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List of abbreviations and acronyms

AMD Acid Mine Drainage

APGENCO Andhra Pradesh Power Generation Corporation Ltd

BCCL Bharat Coking Coal Limited

BHEL Bharat Heavy Electrical Limited

CCGT Combined Cycle Gas Turbine

CCL Central Coal Fields Limited

CCS Carbon Capture and Storage

CCS-JP Carbon Capture and Storage Joint Programme

CCT Clean Coal Technology

CCUS Carbon Capture Use Storage

CFBC Circulating Fluidised-Bed Combustion

CGPL Coastal Gujarat Power Limited

CIAB Coal Industry Advisory Board

CIL Coal India Limited

CMAL Coal Mines Authority Limited

CMPDIL Central Mine Planning and Design Institute Limited

CO Carbon Monoxide

CO2 Carbon Dioxide

COACH Cooperation Action within CCS China-EU

COS Carbonyl Sulphide

CSLF Carbon Sequestration Leadership Forum

CSR Corporate Social Responsibility

EC European Commission

ECL Eastern Coalfields Limited

EERA European Energy Research Alliance

EII European Industrial Initiative

EOR Enhanced Oil Recovery

ESMP Environmental and Social Mitigation Project

EU European Union

ETS European Union Emission Trading Scheme

FBC Fluidised-Bed Combustion

FP5 Fifth Framework Programme

FP6 Sixth Framework Programme

FP7 Seventh Framework Programme

GHG Green House Gas

GPS Global Positioning System

HM Heavy Media

IEA International Energy Agency

IED Industrial Emissions Directive

IGCC Integrated Gasification Combined cycle

IWT Inland water transportation

kWh Kilowatt hour

JSPL Jindal Steel and Power

LE Life extension

MCL Mahanadi Coalfields Limited

MGR Merry-go-round system

MW Megawatt

NAPCC National Action Plan on Climate Change

NEC North Eastern Coalfields

NCL Northern Coalfields Limited

NGO Non-Governmental Organisation

NOX Nitrous Oxides

NZEC Near Zero Emissions Coal

ONGC Oil and Natural Gas Corporation Limited

OPTIMASH Optimizing Gasification of High-Ash content coals for electricity generation

PC Pulverised Coal

RFID Radio-Frequency Identification

R&D Research & Development

R&M Renovation & Modernisation

ROM Run-Of-Mine

SCCL Singareni Collieries Company Limited

SECL South Eastern Coalfields Limited

SLC Standing Linkage Committee

SME Small and Medium Enterprise

SO2 Sulphur Dioxide

SOE State-Owned Enterprise

SOX Sulphur Oxides

UCG Underground Coal Gasification

UMPP Ultra Mega Power Project

USC Ultra-Super Critical

WCL Western Coalfield Limited

WWF World Wide Fund for Nature

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HM Heavy Media

IEA International Energy Agency

IED Industrial Emissions Directive

IGCC Integrated Gasification Combined cycle

IWT Inland water transportation

kWh Kilowatt hour

JSPL Jindal Steel and Power

LE Life extension

MCL Mahanadi Coalfields Limited

MGR Merry-go-round system

MW Megawatt

NAPCC National Action Plan on Climate Change

NEC North Eastern Coalfields

NCL Northern Coalfields Limited

NGO Non-Governmental Organisation

NOX Nitrous Oxides

NZEC Near Zero Emissions Coal

ONGC Oil and Natural Gas Corporation Limited

OPTIMASH Optimizing Gasification of High-Ash content coals for electricity generation

PC Pulverised Coal

RFID Radio-Frequency Identification

R&D Research & Development

R&M Renovation & Modernisation

ROM Run-Of-Mine

SCCL Singareni Collieries Company Limited

SECL South Eastern Coalfields Limited

SLC Standing Linkage Committee

SME Small and Medium Enterprise

SO2 Sulphur Dioxide

SOE State-Owned Enterprise

SOX Sulphur Oxides

UCG Underground Coal Gasification

UMPP Ultra Mega Power Project

USC Ultra-Super Critical

WCL Western Coalfield Limited

WWF World Wide Fund for Nature

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Acknowledgements

This research report was prepared as 2013 workplan activity of EBTC. The report was researched,drafted and prepared by EBTC partner European Institute for Asian Studies (EIAS) by a team comprising - Miha Hribernik (Research Coordinator), Abu Anwar (Junior Researcher), Alberto Turkstra (Junior Researcher) and Maria Chiara Zannini (Junior Researcher). Review, and guidance contributions from Suman Lahiri (Regional Manager, EBTC), Monish Verma (Environment Sector Specialist, EBTC) Vittalkumar A Dhage (Energy Sector Specialist, EBTC) and Dibyendu Sengupta (Transport Sector Specialist, EBTC).

We would also like to acknowledge all the experts consulted, agencies supported and contributed to this report.

The draft version of this report was presented at the 7th EU-India Clean Coal Working Group Meeting in Brussels on 18 June 2013. The authors appreciate the feedback both from the participants of the Meeting as well as from other experts who commented on the draft document. Many of their suggestions have been incorporated into the final version. Most of all, the authors would like to kindly thank Ms Marion Wilde from the European Commission for organising the Working Group Meeting and for providing feedback and assistance throughout the research and writing process.

Disclaimer

The technical suggestions/recommendations in the report should not be construed as advice of any form. EBTC shall not be liable for any loss, damage, liability or expense incurred or suffered by use of this report, including, without limitation, any fault, error, omission with respect thereto. Neither EBTC/its partners nor EUROCHAMBRES make any warranty, express or implied or assume legal liability or responsibility for accuracy, completeness, or use of any third party information in the report. The report may include text, information, table or data that may be a copyright of a third party. It is assumed that such information has been obtained through prior consent of the owner by the EBTC affiliates/partners. If anyone is found selling the report or commercially acquiring any gain directly or indirectly, it should be immediately brought to the notice of EBTC for further actions.

Trademark Disclaimer:

Any specific name, logo, trademark, sign, and/or design or any other intellectual property referenced herein are merely used for research purpose and are the property of their respective owners. Their reference in this publication does not either implicitly or explicitly constitute a suggestion, warranty, indication or recommendation of the products manufactured, produced, marketed or traded by the respective intellectual property owners/holders.

Copyright ©2013 EBTC/EIAS. Reproduction or retransmission of the materials, in whole or in part in unamended form is allowed provided reference to the valid source is given. Reproduction for commercial aims even with source indication is forbidden. The report is free and available on EBTC website site www.ebtc.eu

EBTC is a European Union initiative managed and implemented by EUROCHAMBRES. This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the EBTC/ EIAS and can under no circumstances be regarded as reflecting the position of the European Union.

Any complains or assertions should be mailed at [email protected]

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Contents

Executive summary.......................................................................................................8

1. Introduction .............................................................................................................9

2. Coal mining............................................................................................................. 122.1 Main coal regions and their characteristics .................................................................... 122.2 Coal mining industries.............................................................................................. 13

2.2.1 State industries........................................................................................................142.2.2 Private enterprises....................................................................................................152.2.3 Small scale coal operations ........................................................................................15

2.3 Coal washing ......................................................................................................... 172.4 Environmental issues with coal mining and washing ........................................................ 182.5 Technological development and potential for sustainable coal mining................................... 202.6 Current scenario, technologies and opportunities for SMEs................................................ 21

3. Coal logistics .......................................................................................................... 233.1 Characteristics of coal logistics ................................................................................... 233.2 Environmental issues with coal logistics........................................................................ 243.3 Technological development and potential for sustainable coal logistics ................................. 253.4 Current scenario, technologies and opportunities for SMEs................................................ 26

4. Coal power plants ................................................................................................... 284.1 Current plant technologies ........................................................................................ 284.2 New developments and innovation in plant technologies................................................... 294.3 Environmental issues and coal power plants .................................................................. 334.4 Current scenario, technologies and opportunities for SMEs................................................ 34

5. An overview of other clean coal technologies, the regulatory environment and funding opportunities ....................................................................................... 375.1 Potential for other clean coal technologies..................................................................... 37

5.1.1. Carbon capture and storage ......................................................................................375.1.2. Coal gasification ......................................................................................................39

5.2 Overview of EU and Indian clean coal legislation and EU funding opportunities....................... 415.2.1 Policy perspective: the EU .........................................................................................415.2.2 Policy perspective: India............................................................................................43

5.3 Successful clean coal cases ....................................................................................... 445.3.1 European Union: Block R, Boxberg Thermal Power Plant.................................................445.3.2 India: Mundra Ultra Mega Power Project ......................................................................45

6. Role of Coal India Limited in the Indian coal sector.................................................. 476.1 Challenges ............................................................................................................ 476.2 Corporate social responsibility, research and development ................................................ 476.3 Opportunities......................................................................................................... 48

7. Conclusion and recommendations............................................................................ 507.1 Roadmap for technology transfer in India ..................................................................... 51

Bibliography ............................................................................................................... 54

Interviews.................................................................................................................. 60

Annex......................................................................................................................... 61

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Executive summary

This study explores business opportunities in the Indian coal based power value chain for European small and medium enterprises (SMEs) that specialise in clean coal technology(CCT), while also providing a general overview of the Indian coal based power value chain and its three ‘pillars’: coal mining, coal logistics and coal power plants. There is significant scope for the reduction of environmental pollution and greenhouse gas (GHG) emission in each of the three.

As a large producer and consumer of coal – that will continue to rely on the fossil fuel as the main source of electricity for decades to come – India undoubtedly represents European companies specialised in CCT with substantial investment opportunities.

Despite the outdated infrastructure prevalent in India’s mines, there is room for the reduction of their environmental impact. European SMEs could find opportunities in the introduction of new coal washing and dry coal sorting.

In coal logistics and transportation opportunities are more limited due to the prevalence of local small transportation associations and the monopoly of Indian Railways. Even so, European SMEs could contribute by collaborating on the production of new low-emissions haul trucks, conveyors, vehicle guiding software and equipment and in introducing new modes of transportation, such as hydro-transport.

The most promising of the three ‘pillars’ is within coal power plants. European expertise in advanced (supercritical, circulating fluidised-bed combustion and integrated gasification combined cycle) boiler technology is perfectly suited for more widespread adoption in Indian power plants where outdated (subcritical) boiler technology is still prevalent. Small and medium enterprises could also participate by providing spares,repairs and maintenance, offering consulting services, enabling biomass co-firing (which is suitable for use in older boilers) and developing power plant operating software.

The paper also provides a brief overview of both EU and Indian CCT-related and environmental legislation. The former serves as an example of good practice which sets the benchmark for such legislation, while the latter needs to be taken into account by any EU company wishing to do business in the Indian coal sector. This section of the paper also examines various EU funding opportunities for CCT, which include the European Commission’s Seventh Framework Programme and various tenders by its Directorate General for Energy, as well as funding available through the Research Fund for Coal and Steel. The section concludes by highlighting two examples of good practice in implementing CCT in the EU and India respectively – Block R of the Boxberg Thermal Power Plant in Germany, and the Mundra Ultra Mega Power Project in India’s Gujarat state.

An overview of the role of Coal India Limited (CIL), the world’s largest coal producing company, concludes the paper. It finds that CIL is well positioned to spearhead global innovation in CCT through both direct research and development of new technologies, as well as indirectly through ripple effects created by investment in areas such as corporate social responsibility.

As one of the goals of the study is to present the range of existing CCT expertise and technology in Europe, a list of 32 SMEs along with their contact details and short descriptions is attached.

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1. Introduction

India is the world’s third largest coal producing country and the fourth largest coal importer. The country continues to significantly rely on coal for electricity generation, and this abundant and affordable fossil fuel accounts for 69 percent of the country’s electricity output.1 As coal will continue to power a large – and possibly even increasing – share of the Indian economy in the foreseeable future, managing the negative side-effects of the coal industry should be seen as a continued priority.

Over the past several decades, advancements in clean coal technology (CCT) have managed to reduce the coal industry’s negative environmental and health impacts across the globe. Despite steadily reducing its own reliance on coal, the European Union (EU) remains the world leader in cutting-edge CCT, and is home to a wide array of companies specialised in reducing the environmental impact of the coal industry. Far from being purely the domain of large multinational companies, many small and medium enterprises (SMEs) from countries such as Germany, Poland and the United Kingdom, offer a range of technological and consulting solutions that could be put to good use in India as the country prepares to curb the negative side-effects of its burgeoning coal sector over the coming years and decades.

The aim of this study is to explore business opportunities for such European SMEs specialised in CCT in the Indian coal based power value chain, with the goal of reducing its environmental impact. This was done both by examining existing literature on the subject, as well as through interviews with experts from academia, EU institutions, the business community and professional associations – 17 individuals were interviewed altogether.

The concept of CCT itself can be seen as an umbrella term, encompassing a wide array of technologies and innovations that can help reduce emissions – of fly ash, particles and gasses such as carbon dioxide (CO2), carbon oxide (CO) and nitrous oxides (NOX), to name a few – in the coal industry. Perhaps owing to the breadth of the term, there is no single agreed-upon definition of CCT. A report by the International Energy Agency (IEA) has “identified four groups of CCTs (coal upgrading, efficiency improvements at existing power plants, advanced technologies and near-zero emission technologies) which can dramatically reduce GHG [greenhouse gas] emissions”.2

This study examines SME business opportunities across the three main ‘pillars’ of the coal based power value chain: mining, logistics and power plants. As with CCT, there is no universally accepted definition of an SME. These can differ between countries and even between various sectors and industries. This report therefore relies on the official EU definition, adopted on 1 January 2005. Within the Union, a company is considered an SME if it has less than 250 employees and an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet not exceeding EUR 43 million.3

1 World Coal Association.(2012). Coal Statistics. Retrieved 10 April 2013 from http://www.worldcoal.org/resources/coal-statistics/.2 International Energy Agency. (2008). Clean Coal Technologies: Accelerating Commercial and Policy Drivers for Deployment. Retrieved 10 April 2013 from http://www.iea.org/ciab/papers/clean_coal_ciab_2008.pdf.3 European Commission. (2005). The new SME definition: User guide and model declaration. Retrieved 10 April 2013 from http://ec.europa.eu/enterprise/policies/sme/files/sme_definition/sme_user_guide_en.pdf.

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This study made every attempt to examine as many business opportunities for EuropeanSMEs in CCT in India as possible. Even so, the scope of the study and the diversity of existing CCT have inevitably led to some aspects receiving more attention than others, with some being omitted for the sake of brevity and due to time constraints. As such, this report serves as a broad overview of EU SME business opportunities in CCT in India, of available funding opportunities and the institutional and regulatory environments in the EU and India. Future research on the topic could follow up with an in-depth focus on specific technologies, specific parts of the coal supply chain, or the business and regulatory environment of various regions or states in India. Apart from the introduction and conclusion, the study consists of five sections, each of which is concluded by an overview of opportunities for SMEs in the specific sector analysed.

Section two examines coal mining in India, and provides an overview of the country’s main coal regions and its state-owned and private coal mining industries. This section also highlights some promising SME business opportunities in CCT, in particular inreserve assessment technology, consulting and coal washing and dry sorting equipment.

Section three focuses on coal logistics, its characteristics in India, environmental issues and possible opportunities for implementing sustainable solutions through European SMEs. Although the least promising of the three ‘pillars’ in terms of CCT, business opportunities present themselves in low-emissions haul trucks, vehicle guidance software and equipment, as well as conveyor belts and, potentially, hydro-transport.

The fourth section highlights the last ‘pillar’ of the value chain by first examining current plant technologies in India, continuing with an overview of new boiler technologies that could see more widespread implementation in India, and the environmental issues connected with coal power plants. This section discovers significant business opportunities for European SMEs in providing new (supercritical) boiler technologies, developing power plant operating software, spare parts and maintenance, consultancy services and enabling biomass co-firing.

Section five begins by briefly addressing two other CCT innovations that are only beginning to be considered in India, but which may see more widespread interest over the long term – carbon capture and storage (CCS) and underground coal gasification –before continuing with an overview of EU and Indian clean coal-related legislation and funding opportunities; former to establish a benchmark for effective environmental and coal legislation; the second as it is relevant for any company interested in doing business in the Indian coal sector. This part of the paper concludes with two examples of good practice in implementing CCT in the EU and India respectively; Block R of the Boxberg Thermal Power Plant in Germany and the Mundra Ultra Mega Power Project (UMPP) in India’s Gujarat state.

The fifth and final section turns its attention to the Coal India Limited (CIL), the country’s largest coal company. Accounting for over 80 percent of India’s coal sector, this state-owned enterprise has the potential to spearhead CCT innovation in India over the coming years with increased investment in research & development and areas such as corporate social responsibility (CSR). As the world’s single largest coal producing company, Coal India also offers European SMEs with substantial opportunities for business collaboration.

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The paper concludes with a comprehensive overview of recommendations for SMEs interested in investing in CCT in India, and is accompanied by a list of 32 such companies, showcasing the spectrum of CCT solutions currently available in Europe.

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2. Coal mining

2.1 Main coal regions and their characteristics

India has very large fossil fuel resources, but there is significant uncertainty in quantifying the precise amount of coal reserves.4 These difficulties are linked to the dependence on the coal industry (and hence to its interests) for the assessment of quantification operations. Furthermore, the estimations often include resources that cannot be reached using current technology,5 since the classification does not take into account the geological complexities of the coal fields. In India, coal can generally be found in two main geological horizons: Gondwana sediments (Permian) and early Tertiary sediments (Eocene). The majority of the deposits belongs to the first category, and are located in the eastern and south-eastern part of the country, specifically in Andhra Pradesh, Assam and Bihar (even though in these two regions only in very small quantities), Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, Sikkim, Uttar Pradesh and West Bengal. The tertiary coalfields are mainly located in Arunachal Pradesh, Assam, Meghalaya, Nagaland and other northeast regions.6 Finally, lignite resources can be found in Tamil Nadu, Gujarat, Rajasthan, Jammu, Kashmir and Pondicherry. Coal resources are categorized according to borehole spacing; they are considered ‘inferred’ when the borehole spacing is greater than two kilometres, and ‘indicated’ when the spacing is between one and two kilometres.

The quality of Indian coal is poor and is worsening since the higher quality resources have already been exploited. Coking coal accounts for around 18-20 percent, of which only a small percentage is of prime coking quality.7 Prime coking coal can be found especially in the Jharia coalfield, the Dhanbad district and Jharkhand state. The rest of Indian coal is characterised by high ash content. This is due to the fact that the majority of coal in India is located in Gondwana sediments, which are characterised by seams intertwined with mineral sediments, and is further increased due to opencast mining production. Indian coal also has particularly high moisture content, while sulphur content and calorific values are low. Coal in India commonly falls into categories D, E and F, which have low calorific value.

4 Official sources report that proved coal reserves reach 99 billion tonnes. See: Ministry of Coal. (2013a). Coal Reserves. Retrieved 23 May 2013 from http://www.coal.nic.in/reserve2.htm. According to NRG Expert, a UK-based energy research and intelligence company, India’s reserves are 56.8 billion tonnes (the world’s fifth largest). See: NRG Expert. (2011). Coal and Clean Coal Report. Retrieved 21 May 2013 from http://www.nrgexpert.com/energy-market-research/coal-and-clean-coal-report/.5 Chikkatur, A.P. (2008). A Resource and Technology Assessment of Coal Utilization in India. Retrieved 21 May 2013 from http://www.c2es.org/docUploads/india-coal-technology.pdf.6 Ministry of Coal, Coal Reserves.7 Ministry of Coal, Coal Reserves; NRG Expert, Coal and Clean Coal Report.

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Table 1: Classification of Indian coal with calorific, ash and moisture values8

GradeCalorific value

range (in kcal/kg)

Ash and moisture content

(in percent)

A Exceeding 6200 Not exceeding 19.5

B 5600 to 6200 19.6 to 23.8

C 4940 to 5600 23.9 to 28.6

D 4200 to 4940 28.7 to 34.0

E 3360 to 4200 34.1 to 40.0

F 2400 to 3360 40.1 to 47.0

G 1300 to 2400 47.1 to 55.0

2.2 Coal mining industries

Coal mining in India dates back to the end of the 18th century, and was started by the East India Company in the Raniganj Coalfield in West Bengal. It developed rather slowly over one century, until the introduction of steam locomotives; later on a further stimulus for increased productivity came from World War I. In 1956, in order to further develop the potentialities of the mining sector, steps towards planned development were taken with the nationalisation of the Singareni Collieries Company Ltd and the set-up of the National Coal Development Corporation.9

In 1972, the Coking Coal Mines Nationalisation Act10 was promulgated, as the Indian government officially took over the management of all Indian coking mines. In 1973, with the Coal Mines Ordinance (Taking over of Management),11 non-coking mines were also nationalised and put under the management of Coal Mines Authority Limited (CMAL). Coal India Ltd was then formed in November 1975 to manage both the companies.12 The nationalisation was aimed at better coordination and more efficient scientific development of the coal sector. In 1993, the Coal Mines Nationalisation Act was amended, designating the only two groups eligible to carry out coaling operations: either state-owned companies or “a person to whom a sublease has been granted by the above mentioned government company or corporation having a coal mining lease, subject to the conditions that the coal reserves covered by the sublease are in isolated small pockets or are not sufficient for scientific and economic development in a coordinated manner and that the coal produced by the sub-lessee will not be required to be

8 Compiled from: Productivity Portal India. (year unknown). 1.3 Properties of Coal. Retrieved 13 June 2013 from http://www.productivity.in/knowledgebase/Energy%20Management/c.%20Thermal%20Energy%20systems/4.1%20Fuels%20and%20Combustion/4.1.3%20Properties%20of%20Coals.pdf; Coal India Limited. (2013b). Grades. Retrieved 13 June 2013 from http://www.coal.nic.in/point4.html.9 Ministry of Coal.(2013b). Coal Mining in India. Retrieved 23 May 2013 from http://www.coal.nic.in/abtcoal.htm.10 The Coking Coal Mines Nationalisation Act, 1972. Entered into force on 1 May 1972.Retrieved 24 May 2013 from http://www.coal.nic.in/ca4.pdf.11 The Coal Mines (Taking Over of Management) Act, 1973. Entered into force on 30 January 1973.Retrieved 24 May 2013 from http://www.coal.nic.in/ca7.pdf.12 Coal India Limited. (2013). Company. Retrieved 24 May 2013 from http://www.coalindia.in/Company.aspx?tab=3.

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transported by rail”.13 In 2000, another amendment allowed state governments or undertakings to mine from smaller sites, provided that CIL certifies that it has no intention to use those coal resources.14

The influence of the government on coal is not limited to the mining only, but covers every aspect, from the assessment of resources (through the Geological Survey of India), to planning of distribution and transportation.

2.2.1 State industries

Coal India Ltd, founded in 1975, is the largest coal mining company in India, and the largest coal producer globally. The company is active in eight states and produces around 81.1 percent of the country’s overall coal production, covering nearly 74 percent of the national coal market.15 It has seven subsidiaries and one mine planning and consultancy company (Central Mine Planning and Design Institute Limited (CMPDIL) in Ranchi, Jharkhand). Coal India operates open cast mines, mixed and underground mines, as well as coal beneficiation facilities. Furthermore, CIL owns Coal India Africana Limitada in Mozambique and other establishments such as workshops, training institutes and centres and hospitals.

The eight producing companies wholly owned by CILI

• Eastern Coalfields Limited (ECL), Sanctoria, West Bengal. Characterised by a low ash content and high calorific value coal. The company operates some of India’s oldest underground mines, utilising very old technology. It has 105 mines (88 underground, 17 opencast).

• Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand. It is the largest producer of coking coal, and it supplies mainly iron and steel industries. The mines are underground and operated with little mechanisation. The ash content is very high and requires extensive processing, but most of the coal washing plants are outdated and in poor condition.

• Central Coalfields Limited (CCL), Ranchi, Jharkhand. It produces low quality coking coal and steam coal from mainly opencast mines.

• South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh. For the most part, it operates opencast mines, as well as some underground and mixed mines. Among CIL’s subsidiaries it is the largest, due to the favourable geological conditions of the area. The company uses more innovative technologies (thick seam extraction with cable bolting, depillaring of contiguous seams with floor pinning, and powered support longwall technology).

• Western Coalfields Limited (WCL), Nagpur, Maharashtra. It operates both underground and opencast mines. The area presents groundwater-bearing layers above the coal seams, making the mining operations difficult.

• Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh. It operates opencast mines only, producing low-quality coking and steam coal. This subsidiary does not perform coal washing.

• Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa. Same as NCL: prevalence of opencast mining, low-quality coking and steam coal.

• North Eastern Coalfields (NEC), a small coal producing unit operating in Margherita, Assam.

I Coal India Limited, Company.

13 Ministry of Coal.(2013c). Eligibility to Coal Mining. Retrieved 24 May 2013 from http://coal.nic.in/eligibility_to_coal_mining.htm.14 Lahiri-Dutt, K. (2007). Illegal Coal Mining in Eastern India: Rethinking Legitimacy and Limits of Justice, Economic and Political Weekly, 42 (49), pp. 57-66.15 Coal India Limited, Company.

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The second largest Indian coal producer is Singareni Collieries Company Ltd (SCCL), a company jointly owned by the Government of Andhra Pradesh and Government of India (51:49 equity basis). It operates over four districts of Andhra Pradesh, on 13 opencast and 42 underground mines. Its extraction operations amount to about eight percent of Indian coal.16 The company operates mainly through long wall mining and mechanised room-and-pillar method.

Neyveli Lignite Corporation Ltd is also state-owned, but a six percent share of the ownership is private. It mines lignite in Tamil Nadu, using bucket-wheel excavators, conveyors and spreaders, and serves mainly thermal power plants. The extraction of lignite is made difficult by the high moisture content caused by the closeness of the sea and the annual monsoon.17

2.2.2 Private enterprises

In 2000, a modification to the law was introduced (Coal Mines Nationalisation Amendment Bill)18 in order to open the coal sector to private actors. The decision was motivated by the shortage of coal provision that characterizes the Indian market. Despite the liberalisation, the government still maintains control over the distribution of coal and over its import and related taxes. Private investment is permitted to supply particular consumers, and foreign investment is also allowed on a case-by-case basis.19

The Indian government, though, encourages collaborative agreements for technology transfer, a sector in which European SMEs could also be involved.

Jindal Steel and Power (JSPL) is a private company with a significant presence in sectors like mining, power generation and infrastructure. It is considered to be the second largest player in the coal market after CIL. It operates the largest coal-based sponge iron plant in the world at Raigarh, in Chhattisgarh.20

Tata Iron Steel Company Ltd is also present in the Indian coal sector. The company is India’s largest private sector steel company, and owns underground and opencast coal mines in Jharia, Bihar and West Bokaro.21

2.2.3 Small scale coal operations

When estimating the figures about coal in India, it is advisable to take into consideration the existence of a ‘non official’ coal market, as the numbers involved are far from irrelevant: according to Lahiri-Dutt, the black market produces around 70-80 million tonnes of coal per year.22 This is a phenomenon that affects all of the coal regions, but is especially relevant in the northeast and east area of the country.23 Illegal mining can take three main forms: small shallow-dug village mines on private land (also known as

16 Singareni Collieries Company Ltd. (2013). Singareni at a Glance. Retrieved 27 May 2013 from http://scclmines.com/home.asp.17 NRG Expert, Coal and Clean Coal Report, p. 279.18 Coal Mines Nationalisation Amendment Bill, 2000. Entered into force on 8 December 2000.Retrieved 24 May 2013 from http://www.prsindia.org/uploads/media/1190950856/1190950856_coal_mines.pdf.19 NRG Expert, Coal and Clean Coal Report, p. 282.20 Jindal Steel and Power. (2013). Corporate Profile. Retrieved 31 May 2013 from http://www.jindalsteelpower.com/about-us/corporate-profile.aspx.21 NRG Expert, Coal and Clean Coal Report, p. 279.22 Lahiri-Dutt, Illegal Coal Mining in Eastern India: Rethinking Legitimacy and Limits of Justice, p. 58.23 West Bengal, Jharia, North Karanpura , Jharkhand and Meghalaya.

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‘rat hole mining’), mining on re-opened abandoned or orphaned government mines, and scavenging on the leasehold land of official operating mines.24 It is also important to keep in mind that not all of the coal involved in the black market is actually illegally mined; there is also a broad phenomenon of smuggling legally mined coal. Illegal coal is usually sold to small consumers that are left out from the official distribution, which is mostly aimed at big users, such as power plants. The distribution of this illegal coal is often carried out by the so-called ‘cyclewallahs’, itinerant sellers on bikes, carrying sacks of coal that can weigh up to hundreds of kilos. The cyclewallahs, especially common in the Raniganj region, reach consumers such as local brick kilns and even individual homes. Illegal mining derives from the broader issue of unclear legislation on mineral resources and land ownership, and the dubious classification concerning mines and minerals.25 According to Lahiri-Dutt, the “lack of clarity and transparency” would make it “dangerous to invite either foreign investment or open up the coal sector to private investment”.26

The situation in Meghalaya27 provides a clear example of these kind of problems connected with illegal mining and unclear legislation. Due to the ambiguity of the law, and “With a striking absence of state regulations, the discovery of significant mineral resource deposits (…) meant these new local powers could gain unrestricted access to all the resources, cashing in on the mining boom (…) show[ing] little regard for nationwide regulations, employing unsafe and environmentally irresponsible mining practices”.28 The most commonly used of these practices is ‘rat hole mining’, which requires a total clearing of the land of all vegetation, in order to dig pits to expose coal seams (the pits are not really deep, from five to a hundred metres), then miners enter these holes and with rudimental tools extract chunks of coal.29 Apart from the obvious dangers for the miners, this kind of mining practice is highly harmful for the environment. Furthermore, illegal mining creates large influxes of poor immigrants, willing to work in this business, leading to social imbalances, and the development of a coal-related mafia.30

Nevertheless, it would be problematic to suddenly end illegal mining, since the economic and social organisation of these areas has developed upon these kinds of activities. At the end of 2012, the Deputy Chief Minister in-charge of Mining and Geology, Bindo M Lanong – after holding meetings with stakeholders including miners, exporters and environmentalists – launched a new policy that would allow the government to regulate mining activities in Meghalaya. The regulation is intended to be very gradual and itsmain objective is to “minimise the adverse effect of mineral development on environment and ecology by adopting appropriate preventive measures and ensuring that mining operations is [sic] done considering the safety and health of all concerns

24 Lahiri-Dutt, Illegal Coal Mining in Eastern India: Rethinking Legitimacy and Limits of Justice, p. 62.25 For further details see part 2.1, Main coal regions and their characteristics.26 Lahiri-Dutt, Illegal Coal Mining in Eastern India: Rethinking Legitimacy and Limits of Justice, pp. 64-65.27 Meghalaya is a small state in the northeast part of India, bordering on Assam, Bihar and Bangladesh. It is characterised by a vivid biodiversity, and by the presence of autochthon tribes. Meghalaya is part of the Sixth Schedule areas defined by the Constitution; therefore tribals do not need any permission for mining. They tend to oppose state-run projects and are suspicious of foreign presence.28 Das, D. (2007). Cultural Politics, Identity Crisis and Private Capitalism in Coal Mines of Meghalaya, Northeast India. Retrieved 17 May 2013 from http://www.asmasiapacific.org/uploads/100.pdf.29 IANS. (2012). M'laya government finally gives nod to mining policy. Retrieved 27 August 2013 from http://www.sentinelassam.com/meghalaya/story.php?sec=2&subsec=8&id=134425&dtP=2013-03-19&ppr=1.30 Rai, T. (2007). Meghalaya: no bowing to coal mafia, mining policy on way. Retrieved 27 August 2013 from http://www.indianexpress.com/news/meghalaya-no-bowing-to-coal-mafia-mining-policy-on-way/248002/.

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[sic]”.31 Consultancy in security training, legislation and regulation might be the only field in which European SMEs could eventually have a role in these small scale coal operations.

2.3 Coal washing

Coal washing is a process of separation which uses the difference in specific gravity of coal and the impurities that are extracted along with it, such as shale, sand and stones. The purpose of coal washing is to get a relatively pure marketable coal, with a higher calorific value since non-combustible material is separated from useful combustible material.32 Due to the high ash content, this process is particularly appropriate for Indian coal, and it started to be adopted in the 1950s. Traditional Indian coal washeries mainly use (outdated) European technology, but the need for coal washing is increasing and calls for an improvement of the technologies and a broadening of beneficiation. Coal washing allows the lowering of production costs through improved thermal efficiency and availability, and also reduces the amount of material to be transported, hence cutting emissions in transportation. Furthermore, coal washing increases the calorific value of the coal, lowers ash disposal, operation and maintenance costs, reducing the need for imports of higher quality coal. Coal washing also reduces land requirements, and has a social impact as well, decreasing settlement costs and effects on cultivation in the impact zone, and improving health and living conditions.

In 1997, the Ministry of Environment and Forest decreed that all thermal plants located at a distance of a thousand kilometres33 or more from the mine (or located in very polluted urban areas) must use coal not exceeding 34 percent ash content. This law does not apply to plants situated near mining sites, which can burn coal without beneficiating it.34 The regulation was meant to be operative since 2001, but has not been implemented on a large scale. In India there are currently 17 coking coal and 32 thermal coal washeries, with a total installed capacity of 130 million tonnes a year. However, the real effective utilisation is rather low.35 The actual washing is preceded by crushing, in order to reduce the size of raw coal. While the smaller pieces are not washed, the bigger ones are beneficiated by jig, heavy medium bath or heavy medium cyclone. In some washeries inefficient barrel washers and spirals are used, and sometimes the cleaning of coal is limited to rock removal by hand picking. However, these methods are clearly not efficient.36

31 The Hindu Business Line. (2012). Meghalaya announces mining policy; accepts rat-hole mining. Retrieved 17 May 2013 from http://www.thehindubusinessline.com/news/states/meghalaya-announces-mining-policy-accepts-rathole-mining/article3969297.ece.32 METSO. (2013). ESPL tests Metso’s Coal Washing Technology. Retrieved 27 May 2013 from http://www.metso.com/in/india_articles.nsf/WebWID/WTB-110606-22577-512AD.33 Revised to 500 km in 2012.34 Zamuda, C. D., and Sharpe, M. A. (2007). A Case for Enhanced Use of Clean Coal in India: An Essential Step towards Energy Security and Environmental Protection. Paper presented between 22-24 August 2007 at the Workshop on Coal Beneficiation and Utilization of Rejects in Ranchi. Retrieved 27 May 2013 from http://www.fossil.energy.gov/international/Publications/Coal_Beneficiation_Workshop/coal_beneficiation_paper_zamuda.pdf.35 Sachdev, R.K. (2012). Coal production and preparation in India. Presentation presented on 16 June at the 3rd

CCPUE and China Coal Preparation Development Forum in Beijing. Retrieved 27 April 2013 from http://www.cpsi.org.in/documents/Presentation%20for%20China-16%20June%202012.pdf.36 Zamuda and Sharpe, A Case for Enhanced Use of Clean Coal in India: An Essential Step towards Energy Security and Environmental Protection, p. 4.

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Although the government’s support and Coal India’s recent investments in coal washing, obstacles for implementation and improvement of this kind of coal beneficiation continue to persist. There is widespread perception that improving coal washing would add to the cost of supplied coal, but this would be true from a very short term perspective only. In fact, in the longer term, improving these techniques would have major economic benefits.37

The hurdles are not technical, but primarily political. One of the main issues in achieving a satisfying development of coal beneficiation is the need for effective coordination between the different governmental departments dealing with coal (such as the Ministry of Coal, the Ministry of Transportation and the Ministry of Railways); from extraction, to preparation, transportation, distribution and use. Furthermore, the coal pricing system should also be addressed, including the quality of coal as a factor influencing in the cost, so that there would be a further incentive to the production of quality coal.

Until 2012, coal supplied by Coal India – the country’s largest single supplier, was priced based on quality, grade and the amount of heat generated from a particular type of coal. This method was revised in January 2012, and made the price depend on the coal’s gross calorific value, which led to an increase in prices. In April 2013 Coal India and NTPC Limited, a large state-owned power generation company, agreed on a new pricing system; the price of coal will now be calculated based on the amount of heat that can be generated by burning a particular amount of coal, with coal sampling done by a third party.38

2.4 Environmental issues with coal mining and washing

Coal mining has severe impacts on the environment that go well beyond the problem of production of CO2 generally associated with the use of coal. Mining deeply affects air, water and land resources. Due to mining, dust and methane, sulphur dioxide (SO2), oxides of nitrogen, CO and other gases are spread in the air,39 thus affecting water and land resources, as well as human health. These are consequences of underground mining and, even more, of opencast operations.40 Another source of damage related to mining are fires in the mines, which are frequent and have severe consequences not only for the environment and the safety of the workers, but also for the production itself.

The impact of mining and associated activities on water resources is also difficult. Mining requires large amounts of water, diminishing the quantity available for other purposes. Furthermore, both underground and opencast mining disturbs aquifers and water table.

37 “(1) fewer tons of coal handled reducing the transportation costs; (2) less abrasive coal product used in power plant; (3) increase in mill capacity; (4) reduction in ash deposit formation; (6) increased plant efficiencies; (7) higher unit availability and capability (8) reduction in tube failures; (9) lower maintenance costs; (10) reduction in auxiliary power consumption; (11) improved ESP performance; (12) less particulate emissions; (13) lower sulphur emissions; and (14) less ash to dispose”. See: Zamuda and Sharpe, A Case for Enhanced Use of Clean Coal in India: An Essential Step towards Energy Security and Environmental Protection,p. 14.38 Moneycontrol.(2013a). Coal India, NTPC end year-old scuffle on coal pricing. Retrieved 13 June 2013 from http://www.moneycontrol.com/news/business/coal-india-ntpc-end-year-old-scufflecoal-pricing_850922.html.39 Especially through operations such as drilling, blasting, hauling, loading, transporting and crushing. See: Singh, G. (2006). Environmental Issues with Best Management Practice of Coal Mining in India. Retrieved 15 May 2013 from http://www.teriin.org/events/docs/gurdeep.pdf.40 For more information about coal mining-related dust fall and its environmental consequences, see: Pandey, S.K., Tripathi, B.D. and Mishra, V.D. (2008). Dust deposition in a sub-tropical opencast coalmine area, India. Journal of Environmental Management, 86 (1), pp. 132-138.

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The main pollutants associated with mining are suspended solids, dissolved salts acidity and iron compounds.41 One of the major problems related to coal mining and water pollution is Acid Mine Drainage (AMD), the outflow of acidic water from coal mines. It contaminates drinking water and endangers the life of vegetation and water species; moreover it also causes the corrosion of mining equipment and structures (barges, bridges, concrete materials).42 This issue is especially associated with opencast mining, as well as with coal washing, making necessary more adequate waste water disposals, in order to prevent the contamination of underground and surface water. Developing technologies for containment or re-use of AMD and other contaminants – such as mercury43 – that result from mining and coal washing, should become a bigger priority in the coming years. Disposing of such rejects in an environmentally-friendly manner is challenging. One option that is already used in India, but could be developed further, is greater use of these rejects in power generation. As some still have carbon content, they can generate power through fluidised-bed combustion (FBC) or circulating fluidised-bed combustion (CFBC) units at the end of the washery.44

The impact of mining activities on land is probably the most evident, with large scale excavations, removal of top soil, dumping of solid wastes, cutting of roads, creation of derelict land, subsidence and so on. Whereas the impact of opencast mining is more noticeable, the one of underground drilling might not be immediate to the eye, but it does affect the land on a large scale. Finally, noise and vibration generated by mining and related operations, such as blasting and crushing, not only affect the quality of life and work of the people working or living in the mining area, but also have an impact on the environment, as they disturb the local fauna, causing it to move elsewhere, hence misbalancing the eco-system.

The Indian government has issued legislation concerning environmental protection, with the aim of addressing these kinds of problems.45 The Ministry of the Environment and Forests has also started to reject some projects for new coalfields due to their environmental impact, whenever it determines that they would result in further deforestation and water pollution.46 Nevertheless, these measures have not had the expected outcome, as the focus on mining as a priority is still very strong, hence implementation of laws and regulations is still rather weak.

Following some comments from civil society and non-governmental organisations (NGOs), Coal India has tried to mitigate the effects of coal mining, introducing air, water and land pollution control measures with the Environmental and Social Mitigation Project (ESMP). This project was implemented in 25 selected opencast mines, was funded by the World Bank from 1996 to 2002 and tackled both environmental and social problems.47

Nevertheless, reports on CIL environmental practices found that in some cases overburden is not stocked safely, plantation density is below expectation, topsoil is not 41 Tiwary, R.K. and Dhar, B.B. (1994). Environmental pollution from coal mining activities in Damodar River basin, India, Mine Water and the Environment, 13, pp.1-10. 42 Fennel, P., and Wilson, D. (2006).Coal Mining in India. Retrieved 27 April 2013 from www2.mccombs.utexas.edu/faculty/david.spence/2006coalindia.ppt.43 Feedback on draft version of the report.44 Singh, V.K. (2005). Coal Washing & Power Generation from Washery Rejects. Presentation delivered in November at the 2nd Indo-US Coal Working Group Meetingin Washington, DC. Retrieved 27 August 2013 from http://www.fossil.energy.gov/international/Publications/cwg_nov05_singh_washery.pdf.45 For a review of Indian legislation on the topic, see: Fennel and Wilson, Coal Mining in India.46 Information obtained through interview.47 Singh, Environmental Issues with Best Management Practice of Coal Mining in India, p. 4.

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properly restored and effluent, sewage treatment is often inadequate and, in general, some mines operate without appropriate environmental systems certification. Furthermore, problems of compliance have been pointed out in the field of monitoring of implementation of environment protection performance.48 In general terms, it can be said that clean coal technologies and environmental concerns have to be implemented under strict monitoring and need special care to succeed in India. As new power plants are built, they do incorporate more CCT. There is also a need to renovate the older plants, as the main goal is to keep them running as long as possible, without significant regard for environmental concerns.49

2.5 Technological development and potential for sustainable coal mining

As previously remarked, domestic coal production is not able to meet the increasing demand. To face this supply-demand discrepancy without heavily relying on imports, it is necessary for India to further develop its mining sector. India’s reliance mainly on opencast mining and the geological properties of its coal, make it necessary for the country to resort to coal washing and other methods of beneficiation, in order to meet the energy need. At present, Coal India is working to build new washing capacity, with the setting up new washeries at coal mines and with the identification of new sites for additional ones, opening big opportunities in investment for both Indian and foreign investors.

Main coal washing technologies currently in use in IndiaII

Coking coal• Heavy media (HM) cyclones• Deshaling jigs, HM bath, batac jig and froth flotation• Deshaling jig, HM cyclone and flotation• HM washer, cyclone and flotation• Jig (coarse coal), jig (small coal) and froth flotation• Jig and heavy media

Thermal coal• Rotary breaker and barrel washer• HM washer, baum jig and flotation• Run-of-mine (ROM) jigs, batac jigs• HM washer, HM cyclone• HM cyclone, hydro cyclone and spiral

Some new technologies are being introduced. For example: fine coal washing and washing of low volatile medium coking coal for enhancement of domestic met coal supply; and washery flow sheet simulation and IT applications for improved recovery and better quality control. Furthermore, dry beneficiation is also in the demonstration stage. Other new technologies could also be considered for more widespread implementation. One example is dry sorting through the use of X-ray machines, which is an affordable alternative to coal washing, which has the added benefit of not consuming (often scarce) water resources. X-ray sorting does, however, require highly-skilled personnel to operate effectively.III

II Sachdev, Coal production and preparation in India.III Information obtained through interview.

48 Sreenivas, A. and Bhosale, K. (2013). Black and Dirty: the real challenges facing India’s coal sector.Retrieved 24 April 2013 from http://www.indiaenvironmentportal.org.in/files/file/The%20real%20challenges%20facing%20India%E2%80%99s%20coal%20sector.pdf.49 Information obtained through interview.

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In order to improve its coal production, both in terms of quality, quantity and environmental impact, India is trying to switch from opencast to underground mining as a main source of coal. Nevertheless, this objective is not always accessible with Indian know-how, technologies and resources only. Innovations and development in technologies for coal mining and beneficiation come also from the collaboration with external actors. A good example of this cooperation is the European Commission’s (EC) call for tenders “Introduction of a new underground mining technology at North-East Coalfields in Assam, India”. The project aims at introducing underground mining technology in this area where the traditional ‘long wall’ and ‘room and pillar’ methods have been impossible to use, due to the thickness and the inclination of the seams, using Spanish experience in similar mining conditions.50

The US is also active in the field of mine-related cooperation with India. The Department of Energy’s Coal Working Group and the Department of State’s Asia-Pacific Partnership on Clean Development and Climate’s Coal Mining Task Force sponsor several activities to promote the improvement of processed coal in India. These initiatives include technical exchange visits, workshops and transfer of information and technology on coal beneficiation, as well as coal preparation demonstration projects.51

2.6 Current scenario, technologies and opportunities for SMEs

The examples mentioned in the previous paragraph show how India’s strong need for energy represents a great potential for cooperation and foreign investors. Currently in India, coal projects have been halted and/or delayed due to issues in regulation, the current explorations of coal reserves are not efficient, and mining technologies have proven to be inadequate or outdated to face the challenges of Indian high-ash content coal. In addition, beneficiation equipment is also scarce and existing equipment is not efficient. The pricing system does not incentivise innovation, and coal-related regulation does not facilitate improvements.

A 2012 report from the Indian Chamber of Commerce52 emphasises the involvement of the Indian government in facing these challenges. It mentions some proposed reforms in particular, such as the creation of a Single Window Agency at state and central level for all coal-related matters, in order to achieve more coordination and efficiency and the drafting of a sustainable development framework for mining areas. Furthermore, the government is also considering to start auctioning coal licences via competitive bids, and public-private partnerships (both for domestic and foreign actors) are being encouraged. These openings and the need for change are good opportunities for European SMEs to help introduce CCT and other technologies that can help address the environmental impact of Indian coal mining and limit greenhouse gas emissions.

50 Call for Tenders No ENER/A3/2013-453-1: Study on introduction of a new underground mining technology at North-East Coalfields at Assam, India. Retrieved 3 June 2013 from http://ec.europa.eu/dgs/energy/tenders/doc/2013/2013s_089_150442_specifications.pdf; Fuentes-Cantillana, J.L. (2012). Steep Seam Mining in Spain. Presentation delivered on 11 July at the 7th EU-India Coal Working Group Workshop in Leeds.51 Zamuda and Sharpe, A Case for Enhanced Use of Clean Coal in India: An Essential Step towards Energy Security and Environmental Protection, pp. 15-16.52 Indian Chamber of Commerce. (2012). The Indian coal sector: Challenges and future outlook. Retrieved 05 May 2013 from http://www.pwc.in/en_IN/in/assets/pdfs/industries/power-mining/icc-coal-report.pdf.

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Opportunities for SMEs in coal mining

• Technology for reserve assessment

• Upgrading of existing coal mines (both chance for consultation and supply of

technology)

• Construction of new mines, with a special focus on underground mining

• Introduction of X-ray-assisted dry coal sorting

• Upgrading of coal washeries (SMEs could sell new and old machineries)

• Setting up of new coal washeries based on coal specific and cost effective flow-sheets

• Consultancy and technology supply to improve environmental protection

• Consultancy for policy improvement

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3. Coal logistics

3.1 Characteristics of coal logistics

Logistics is a key factor in the coal supply chain, as coal transportation can account for up to 70 percent of the delivered cost of coal.53 Logistical considerations begin at the coal mine proper and include the use of appropriate and economic mining and material handling equipment and the transportation of coal to stock yards and waste dump sites. On-site transportation is most commonly either discontinuous (principally by large haul trucks) or continuous (such as belt conveyors or mobile conveyor bridges).54

The transfer of coal from the point of extraction to the final consumer (power plants or industry) can be done through various modes of transport. In India, the supply of coal to consumers is determined by the Standing Linkage Committee (SLC). The SLC establishes linkages between supply points, core consumers (power, cement and steel industries) as well as non-core consumers (other industries).55 Some 56 percent of coal transport from the mines to consumers is based on railways, with the rest transported by road (approximately 19 percent), merry-go-round (MGR) systems for the increasing number of power plants located near pitheads (approximately 18 percent) and other.56 The share of domestic inland water transportation (IWT) is negligible, but the growing amount of coal being imported to cover India’s energy needs principally reaches the country by ship. Most of India’s major coal ports – such as Mundra, Dahej, Magdalla, Sikka and others – are located in Gujarat on the west coast, although new ports are being built in the south and east of the country to accommodate the increasing imports.57 Within the ports, coal is unloaded, handled and stored mainly by conveyors before it is transported further either by road or railway.58

Even though transport by road offers flexibility, fuel, tyre, labour and maintenance costs make the usage of trucks costly and inefficient. As a result, large companies such as state-owned Coal India Ltd, principally utilise trucks for carrying coal from pitheads to the nearest railheads.59 Coal transportation by road is handled by a variety of private companies and large truck owners’ associations. The share of coal transported by railway is on the rise, and India is currently planning to complete three major railway lines – in Jharkhand, Chattisgarh and Odisha – by 2017 in order to reach its goal of producing 615

53 World Coal Institute. (2009). The Coal Resource: A Comprehensive Overview of Coal. Retrieved 24 May 2013 from http://www.worldcoal.org/bin/pdf/original_pdf_file/coal_resource_overview_of_coal_report(03_06_2009).pdf.54 Lieberwirth, H. (2012). Cost efficient mining, transport and dumping operation in large scale surface mines.Presentation delivered on 10 July at the 7th EU-India Coal Working Group meeting in Leeds.55 For more on the role of the SLC, please see: Chikkatur, A. P., and Sagar, A. D. (2007). Cleaner Power in India: Towards a Clean-Coal-Technology Roadmap (Discussion Paper 2007-06). Cambridge, Mass.: BelferCenter for Science and International Affairs; Ministry of Coal. (2013d). Present Policy Regarding Coal Linkage. Retrieved 31 May 2013 from http://coal.nic.in/linkage.html.56 Goel, M. (2010). Implementing Clean Coal Technology in India: Barriers and Prospects. In India Infrastructure Report 2010: Infrastructure in a Low Carbon Economy (pp. 208-221). Oxford: Oxford UniversityPress; Sharma, E. K. (2013). High and dry. Retrieved 27 May 2013 from http://businesstoday.intoday.in/story/poor-railway-network-coal-iron-power-stations/1/192680.html.57 Reuters. (2010). FACTBOX-India coal ports, vessels and monsoon effects. Retrieved 30 May 2013 from http://in.reuters.com/article/2010/03/24/india-coal-ports-factbox-idINLDE62N0CN20100324.58 Information obtained through interview.59 Sanyal, S. (2012). Moving, not producing, coal is the key: CIL chief. Retrieved 30 May 2013 from http://www.thehindubusinessline.com/industry-and-economy/logistics/moving-not-producing-coal-is-the-key-cil-chief/article4203829.ece.

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million tonnes of coal in 2016/17.60 Transportation by railway is handled by state-owned Indian Railways.

3.2 Environmental issues with coal logistics

The on-site discontinuous transport method consumes a considerable amount of energy and has an unfavourable carbon footprint due to emissions from large haul trucks. In contrast, continuous mining systems rely on electricity and their lower carbon emissions will likely increase the appeal of these systems in the future.61

The same applies to transportation from mines to the final consumers. A study of the Indian transport sector by Ramachandra and Shwetmala62 shows that shipping accounts for the smallest amount of CO2 and CO emissions, followed by railways, aviation and road transport.

Table 2: Transport emissions (as percent of all annual emissions) in India per type of transport63

Type of transport CO2 emissions CO emissions

Shipping 0.6% N/A

Railway 2.0% 1.2%

Aviation 2.9% 45.1%

Road 94.5% 53.3%

As stated earlier, coal in India is mined at a limited number of locations – primarily in the east of the country, with major coalfields including Jharia, East Bakara and West Bakara64 – which are often located far away from factories and power plants. This makes coal transport an important factor that leaves some scope for a reduction in emissions.

Even though power plants are increasingly being built nearer to coal mines – enabling transport through electricity-powered systems such as MGR and conveyors – the scope for greater investment in such systems in India remains limited. Given the country’s extensive railway network and the costs involved with building, operating and maintaining conveyors, these systems will likely remain feasible only for distances of some 10 kilometres, replacing transportation by truck to a limited degree.65

As coal in India contains a large amount of ash – frequently between 40 and 50 percent – the transportation of such high amounts of inert material over long distances increasesemissions in transportation. Effective coal washing can significantly reduce the amount

60 Reuters. (2013). India hopes to complete three key coal rail links in 2017 – minister. Retrieved 24 May 2013 from http://in.reuters.com/article/2013/03/19/india-coal-rail-idINDEE92I0B820130319.61 Lieberwirth, Cost efficient mining, transport and dumping operation in large scale surface mines.62 Ramachandra, T. V., and Shwetmala. (2009). Emissions from India’s transport sector: Statewise synthesis, Atmospheric Environment, 43(34), pp. 1-8.63 Calculated by Ramachandra and Shwetmala.64 Chikkatur and Sagar, Cleaner Power in India: Towards a Clean-Coal-Technology Roadmap (Discussion Paper 2007-06), p. 89.65 Information obtained through interview.

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of matter that needs to be transported. Since 2002, the Indian Ministry of Environment and Forest requires that coal shipped more than 1,000 kilometres (revised to 500 in 2012) from the mine should be washed and have less than 34 percent ash.66 An analysis of one facility, the Dadri Power Plant, estimates that the use of coal washing in that plant alone reduced CO2 emissions from transportation and combustion by over 600,000 tonnes per year.67 Another recent study discovered a significant reduction in emissions after dry coal sorting using X-ray sorting equipment; CO2 emissions were reduced by four kilograms when transporting X-ray-sorted coal over a distance of 30 kilometres.68

3.3 Technological development and potential for sustainable coal logistics

The increasing share of railway transportation is making coal logistics in India more sustainable over the long term. The construction of expensive new lines is, however, proceeding slowly and the overburdened railway transport network is causing bottlenecks in the transport of coal.

Although already diminishing, coal transport by road will remain a reality in India for some time to come. As a result, procuring modern vehicles – with lower CO2 emissions and new technology such as electronic-controlled engine management and twin-speed drive axle which increases fuel efficiency – should be encouraged. Such technology is already available in India and has been implemented into haul trucks by companies such as India’s second largest vehicle manufacturer, Ashok Leyland.

In addition, modern information technology, such as advanced vehicle tracking and dispatch systems, can greatly increase efficiency in transportation, save fuel and reduce emissions. As with other vehicle technology, it is already available domestically: One recent example is the implementation of a radio-frequency identification (RFID) vehicle tracking system developed by the Mumbai-based company Essen. The system wasintroduced by the Sundargargh Truck Owners’ Association, which manages a fleet of over 4500 coal transport trucks.69

Beyond improving existing modes of transportation, coal logistics in India could be made more sustainable by adopting new methods. One technological solution that is already widely available – but has yet to be adopted on a large scale in India – is hydro-transport, which is primarily based on coal slurry pipelines. These enable the transportation of crushed coal mixed with water over long distances while integrating coal beneficiation (such as marginal ash reduction), mitigating risks of spontaneous combustion, completely isolating coal transport from the outside environment, and enabling the dewatered coal to be readily converted into briquettes.70 In India, hydro-

66 The World Bank. (2008). Clean Coal Power Generation Technology Review: Worldwide Experience and Implications for India. Retrieved 2 May 2013 from http://www.moef.nic.in/downloads/public-information/LCGIndiaCCTjune2008.pdf.67 Zamuda and Sharpe, A Case for Enhanced Use of Clean Coal in India: An Essential Step towards Energy Security and Environmental Protection, p. 7.68 Information obtained through interview.69 Free Press Journal. (2013). One of India’s Largest Truck Owners’ Association Implements Breakthrough RFID-Based “Vehicle Tracking System” to Ensure Greater Transparency in the Supply Chain. Retrieved 27 May 2013 from http://freepressjournal.in/one-of-indias-largest-truck-owners-association-implements-breakthrough-rfid-based-vehicle-tracking-system-to-ensure-greater-transparency-in-the-supply-chain/.70 Sridhar, S., and Grover, S.K. (2012).Indian Domestic Coal Transport Logistics and Technology. Presentation delivered on 19 November at the 4th Coal Summit in New Delhi. Retrieved 24 May 2013 from http://indiaenergyforum.org/4th-coal-summit/presentations/session3/SK-GROVER.ppt.

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transport would be economically feasible across distances of 10 kilometres or more.71

Even though hydro-transport is seeing increased investment in other coal-abundant countries, such as China, the slow and complex decision-making process in India has so far prevented its widespread adoption.72

3.4 Current scenario, technologies and opportunities for SMEs

In India, SMEs form the backbone of logistics services. The majority of these enterprises consist of individual truck owners, companies operating small fleets of trucks and single office logistics providers.73 Given the large scale of coal transportation and the quantities of transported material involved, SME participation in coal logistics is more limited.

Individual vehicle owners and smaller companies can participate in transportation, primarily by becoming part of truck owners’ associations. Every federal state in India has one such association,74 and each manages a fleet of trucks that numbers in the thousands. The transport sector is firmly in the domain of Indian companies, and the scope for European SME participation is limited. Any such company wishing to directly participate in coal logistics would also likely face substantial pressure from well-established and politically connected local transportation businesses.75 Even so, examples of ways that European SMEs could still contribute to reducing emissions in road-based transportation include new vehicle tracking software and equipment, and participation in the development of hybrid and fuel-efficient trucks.76

As more power plants are now constructed closer to coal mines, MGR and conveyor systems present another opportunity. However, the well-established nature of the technology, coupled with the slow pace of innovation in this mode of transportation,77

mean that European companies would have to contend with local companies which could often provide the same solutions at a more competitive price.

Lastly, should new modes of coal transportation, such as hydro-transport, gain more widespread adoption in India over the coming years, European SMEs specialised in equipment such as coal slurry pipelines, hose-diaphragm pumps and sludge dewatering will be well positioned to enter a sector with limited domestic competition.

71 Information obtained through interview.72 Information obtained through interview.73 For a general overview of the role of SMEs in the Indian logistics sector, please see: Deloitte. (2009). Conference paper on SMEs in logistics: Bringing value to the changing Indian landscape. Retrieved 24 May 2013 from http://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/aSME%20logistics%20report.pdf.74 Information obtained through interview.75 Information obtained through interview.76 Information obtained through interview.77 Information obtained through interview.

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SME opportunities in logistics • Software companies specialising in RFID and Global Positioning (GPS) tracking systems

could sell their products to logistics companies and truck owners' associations

• As Indian transport companies continue to upgrade and modernise their truck fleets with more cost- and fuel-efficient vehicles, highly specialised SMEs that contribute spefic components to such trucks could play a role

• If new modes of transportation, such as hydro-transport, become widely adopted in India, opportunities will arise for specialised European SMEs

• Indirect contribution to reducing emissions in transportation: Contributing to coal washing and dry (X-ray) coal sorting, which both greatly help reduce emissions in transportation

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4. Coal power plants and their environmental impact

4. Coal power plants

4.1 Current plant technologies

Indian coal power plants heavily rely on one technology for converting coal to electricity:subcritical pulverised coal boiler with steam based electrical power production. This process involves breaking down coal, burning it in a boiler’s burners and using the resulting heat to boil water in a closed water/ steam circuit and boiling it up to the saturation point of water.

Bharat Heavy Electricals Ltd (BHEL) is the leading provider of India's total power generating utility sets. The company is involved in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services in the power plant field. They are also involved in research and development of improving performance and efficiency of current technologies and developing new products. Currently, subcritical power plants remain prevalent in India, with the best power plant equipped with 500 megawatt (MW) subcritical units operating with a net efficiency of around 33 percent.78 As previously mentioned, Indian coal has a high-ash content which hinders the effectiveness of energy generated. With relation to power plants, the high ash content increases coal consumption and reduce the plants’efficiency. It is important to note that subcritical pulverised coal fails to meet the demand of India's future ambitions, so alternatives which use supercritical and ultra-supercritical steam parameters should be invested into.79

The NTPC is India's largest power company, set up in 1975; its primary aim was to accelerate power development in India. It has an installed capacity of 41,184 MW,making it the largest power generation company in any country.80 The SOE integrates many environmentally friendly technologies, with a primary focus on restricting the damage on the environment. This report suggests that cooperation between European SMEs and NTPC may be possible in fields of mutual interests.

With regard to restricting the impact made on the environment by Indian coal-based power plants, there is a variety of technology currently being used. This involves removing chemical impurities prior to combustion, during combustion or post-combustion. Removing chemical impurities prior to combustion is when coal is chemically washed of minerals and impurities. During combustion, the use of scrubber technology filters the exhaust air in smoke stacks. When burning coal, carbon dioxide is not the only harmful chemical which is emitted into the atmosphere; sulphur is another common element found in coal. When burnt, sulphur oxide is released into the atmosphere and contributes heavily to acid rain. Other pollutants emitted from coal fired power plants include nitrogen oxides and mercury. Scrubbers help to remove most of the sulphur oxide from the smoke stack exhausts of a power plant. The smoke from the burning coal

78 Chikkatur, A Resource and Technology Assessment of Coal Utilization in India, pp. 1-2.79 Chikkatur, A Resource and Technology Assessment of Coal Utilization in India, p. 32.80 NTPC.(2013). About Us. Retrieved 13 June 2013 from http://www.ntpc.co.in/index.php?option=com_content&view=article&id=28&Itemid=41&lang=en.

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first goes through a particulate filter to remove soot and ash. Then the smoke enters a scrubber which pulls out sulphur from the smoke. Flue-gas separation is another alternative which removes carbon dioxide with a solvent, strips off the carbon dioxide with steam and condenses the steam into concentrated steam. These two processes can then contribute to the capture of CO2, in order to prevent it from escaping into the atmosphere. Carbon capture and storage involves separating the CO2 from flue gas, transporting it to a storage location and injecting it into suitable underground geological formations, including depleted oil and gas fields, un-mineable coal seams and saline water-bearing reservoir rocks.81The harming emitted gases are secured in containers which can be stored geologically or in the ocean – even though the latter option may not gain widespread acceptance due to environmental concerns. Projections estimate that the transport of captured CO2 by pipelines will become the most widely used method, and is already being employed to an extent.82

All forms of CCS require careful preparation and monitoring to avoid environmental damage. The use of CCS is an emerging technology within Europe but not widespread in India. It requires a large initial investment and is not seen as attractive because it is still in the early phases. Moreover, the use of carbon capture and storage will increase the energy generation cost.83 Once developed it can definitely be an asset for India's campaign to reduce harmful emissions from their coal-based power plants.

India's clean coal technology in power plants is in its early stages. The emission clean up technology can be improved to prevent harmful emissions entering into the atmosphere.To this end, more control devices which reduce emissions of mercury and nitrogen oxides will likely begin to appear in Indian power plants, presenting EU SMEs with another opportunity for participation.84In general, these SMEs have a unique advantage because they are in a position to provide modern technologies as solutions, consult and create long lasting relationships which are of mutual benefit.

4.2 New developments and innovation in plant technologies

It is transparent that India will need to expand its current technologies in the coal-based power plant sector to adapt to the current and upcoming challenges. These challenges include: overcoming the high ash content, creating more efficient plants and finally, reducing the impact made on the environment. A great opportunity can be created for European SMEs to share their knowledge and work together with Indian business to overcome these obstacles collectively. Besides renovation and modernisation (R&M) of existing PC-based power plants, there are four feasible and effective developments and innovations, which Indian power plants can explore:

a) Supercritical boilersb) Circulating fluidised-bed boilersc) Oxy-fuel combustiond) Integrated gasification combined cycle

81 Kapila, R.V., and Gibbins, J. (2010). Getting India ready for Carbon Capture & Storage, Energy Manager,July-Sept 2010, pp. 10-13.82 Feedback on draft version of the report.83 World Coal Institute, The Coal Resource: A Comprehensive Overview of Coal, pp. 34-36.84 Feedback on draft version of the report.

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a) Supercritical boilers

Supercritical boilers can be a good upgrade for Indian power plants in case of new builds, as they require supercritical turbines that can accept the same high temperature and pressure as supplied by the boiler.85 Supercritical boilers operate at a higher temperature compared to subcritical boilers thus allowing less fuel to be used and less greenhouse gasses being produced. This increase of efficiency can contribute to the reduction of harmful emissions in the long term.

Currently, supercritical boilers remain in the minority in India, but are seeing increased implementation in newer power plants. The state-owned NTPC Limited has provided substantial funding for the development of supercritical boilers,86 and BHEL has installed one at the Barh Thermal Power Project Stage-II, located about 75 kilometres from Patna in Bihar. This power plant is now projected to produce 50 percent of the energy needs of Bihar.87 This successful case of a supercritical boiler being used to meet the energy needs of Bihar can be a good example to the Indian power sector, although an initial investment will be required to upgrade boilers; the long-term increase of energy, the efficiency savings generated and reduced impact on the environment are great incentives. Aware of the technology’s potential, Indian companies are already investing increasing efforts into developing new materials for supercritical and ultra-supercritical boilers.88 For example, a memorandum of understanding has been signed between multiple stakeholders – including NTPC, BHEL, the Indian Council of Scientific and Industrial Research, Fraunhofer IFF and the University of Oxford – who will jointly pursue research on materials facing temperatures up to 700 degrees centigrade.89

It is important to state that although subcritical pulverised coal (PC) boilers will be continued to be built to meet the short term demand, investments have begun to take place and should continue to do so to increase the total number of supercritical boilers.90

b) Circulating fluidised-bed combustion

Circulating fluidised-bed combustion is when alternations are made to the bottom of the furnace which allows power plants greater flexibility in burning a wide range of coal and other fuels (for example, biomass or waste); all of this without compromising efficiency and reducing pollution rates. Although the conversion results in strongly increased efficiency, the process is not straightforward and needs to be carried out by experts.Such boilers rely on various fluidised bed techniques, working under atmospheric pressure or under pressure. These include ‘bubbling’ and ‘circulating’ fluidised beds. This brings the efficiency of CFBC up to 45 percent, if operated in supercritical conditions.91

85 Feedback on draft version of the report.86 Feedback on draft version of the report.87 The Times of India.(2013). Bihar likely to get additional 330 MW of power by October. Retrieved 22 May 2013 from http://articles.timesofindia.indiatimes.com/2013-03-25/patna/38009056_1_bihar-state-power-first-unit-523mw.88 Feedback on draft version of the report.89 Feedback on draft version of the report.90 Feedback on draft version of the report.91 International Energy Agency. (2013). Fluidized Bed Conversion. Retrieved 30 August 2013 from http://www.iea.org/techno/iaresults.asp?id_ia=18.

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Given the high ash content of Indian coal, the use of CFBC technology in India is already on the rise – in 2007, 8 units were in use, with a further 18 on order92 – and one may expect this to increase in the future. This technology is generally associated with lignite, middlings from coal washeries and other waste coal.

This report suggests that CFBC is a technology that India could begin to implement on a wider scale. Due to the inefficiency of older subcritical PC boilers, alternatives are needed to meet the increased demands being placed on coal-based power plants. This technology allows fuel flexibility, as it is compatible with a variety of fuels, is reliable and has good combustion efficiency. The flexibility neutralises the high-ash nature of Indian coal; moreover, it has been developing since the 1970s thus allowing it to be a 'safe' option. If SO2 regulations are implemented in the future, CFBC would be a natural candidate to be used more. It is a technology which this report recommends and is one which should be taken into consideration when building new coal based power plants.

In addition, to CFBC, bubbling fluidised-bed combustion technology deserves a brief mention due to its wide-spread use in India, despite not representing a new technology solution. It has been supplied in the country by BHEL since the 1970s, and is being used in over 60 plants in India. It is fuel-flexible and many units run on combinations of coal, often with high ash or low calorific-value fuels, such as waste and biomass.93

Major advances in CFBC that have taken place over the recent years mean that Europe is spearheading the technology. Even if India continues to implement CFBC more widely, adopting cutting-edge technology on a larger scale would still likely necessitate cooperation with European partners. A European example of CFBC being used successfully is Birka Energi, an energy utility in Högdalen, Sweden. It can burn coal with forest residues, sawdust, bark and wood pellets. This flexibility and reduced emissions have allowed the energy unit to produce sufficient electricity and are meeting the needs of Högdalen in an environmentally considerate manner.94 Another example of a newer, larger capacity and more efficient unit is the Łagisza Power Station in Poland. This modern plant uses a state-of-the-art 600 MW supercritical boiler, manufactured by Dongfang.95

c) Oxy-fuel combustion

Indian power plants can also engage in oxy-fuel combustion, which is a process wherein the fuel is burnt in pure or enriched oxygen to create a flue gas composed of primarily of carbon dioxide and water. When coal is burnt in oxygen rather than air, it means that the flue gas is mostly CO2 (due to the lack of nitrogen in pure or enriched oxygen) and hence can more readily be captured by amine scrubbing – at about half the cost of capture from conventional plants.

Oxy-fuel combustion can be a good long-term solution for India in their attempt to reduce the harmful emissions from power plants. It can also be an attractive option 92 Feedback on draft version of the report.93 Feedback on draft version of the report.94 European Bioenergy Networks.(2003). Biomass Co-Firing – An Efficient Way to Reduce Greenhouse Gas Emissions. Retrieved 7 June 2013 from http://ec.europa.eu/energy/renewables/studies/doc/bioenergy/2003_cofiring_eu_bionet.pdf.95 Feedback on draft version of the report.

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because it does not have a major impact on the boiler-turbine steam cycle, and with proper design its impact on the boiler fire-side processes and auxiliary equipment can be minimized.96 It is important to note that oxy-fuel combustion techniques require high level of expertise, technical maturity and are attached with a high cost.97

In comparison to the other three options proposed, this report suggests that joint cooperation between European SMEs and Indian counterparts should engage in the fields of research and development of oxy-fuel combustion with the aim to install technologies in power plants. Introducing oxy-fuel combustion into India will be a long-term process, as the technology is still being proven under commercial conditions. Its widespread implementation is also unlikely in the absence of an effective international agreement to reduce CO2 emissions and as long as power shortages in India persist.98 It will only ever be applied in the country if CCS becomes mandated by the Indian government, of which there are no signs at the time of writing.99

d) Integrated gasification combined cycle

The integrated gasification combined cycle (IGCC) plant is a means of using coal and steam to produce hydrogen and carbon monoxide from the coal and these are then burned in a gas turbine with secondary steam turbine (i.e. combined cycle) to produce electricity. If the IGCC gasifier is fed with oxygen rather than air, the flue gas contains highly-concentrated CO2 which can readily be captured post-combustion as above.

The IGCC can be an attractive option for future Indian power plants because the higher temperature produced by gasification process to the steam turbine cycle is used in steam turbines to produce additional electrical power. The efficiency rates are about 45 percent in comparison to pulverised coal plants which operate at efficiencies ranging from about 33-40 percent.100 Plants that utilise IGCC also use considerably less water compared to pulverised plants, thus making it an attractive option for regions where water is a critical issue. Finally, the ash in the IGCC process is easier to handle and store in comparison to fly ash.

India retains some IGCC research experience, owing to work conducted by BHEL. There have been some proposals for IGCC plants in the country, although progress has been very slow thus far.101 India first began working on IGCC in the 1980s, as part of a project run by BHEL. The country had several gasification plants operating Koppers Totzek gasification technology during the 1980s, but these only supplied fertiliser plants.102 A more recent IGCC project was initiated in 2006 in the western Indian state

96 Tigges, K. D., Klauke, F., Bergins, C., Busekrus, K., Niesbach, J., Ehmann, M., Vollmer, B., Buddenberg, T., Wu, S., and Kukoski, A. (year unknown). Oxyfuel Combustion Retrofits for Existing Power Stations. Retrieved 3 June 2013 fromhttp://www.hitachipowersystems.us/supportingdocs/forbus/hpsa/technical_papers/Oxyfuel%20Combustion%20Retrofits%20for%20Existing%20Power%20Stations.pdf.97 Mills, S. J. (2007). Prospects for coal and clean coal technologies in India. London: IEA Clean Coal Centre.98 Feedback on draft version of the report.99 Feedback on draft version of the report.100 Abelo, M., Bonavita, N., and Martini, R. (2007). Advanced process control at an integrated gasification combined cycle plant. Retrieved 3 June 2013 from http://www05.abb.com/global/scot/scot267.nsf/veritydisplay/62cf14177b1a39d2852572fb004b4eb3/$file/ac2%20isab_abb.pdf.101 Feedback on draft version of the report.102 Feedback on draft version of the report.

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of Gujarat as a joint venture between Indian multinational Oil and Natural Gas Corporation Ltd (ONGC) and Gujarat Industries Power Company. However, it has hardly made any progress. To date, one small IGCC plant operates in India – a 52 MW unit operates as part of the Sanghi cement plant. This lignite-fuelled unit is operated by IBIL Energy and uses IGT/Enviropower gasification technology. It started operations in 2002.103

The country's first major coal gasification plant aimed at supplying energy to the grid is currently being built by Jindal Steel and Power Ltd. State-run Rashtriya Chemicals and Fertilizer and Gas Authority of India Ltd are working on the second one. In addition to that, BHEL, the state-owned engineering and manufacturing enterprise, and the Andhra Pradesh Power Generation Corporation Ltd (APGENCO), are setting up a 125 MW demonstration IGCC plant in Andhra Pradesh.104 The project was scheduled to be completed by 2008, with an additional 400 MW commercial plant in 2012. To date, neither unit has been completed.105 A lack of funding appears to be the main reason behind the delay: The Indian government agreed to contribute Rs 300 crore, but has not done so to date, and both BHEL and APGENCO are reluctant to invest more of their own capital.106

There are of course some setbacks which have to be mentioned. The major issue is the high level of complexity – the IGCC plant is more like a chemical plant than a power plant.107 Moreover, higher capital costs are attached to IGCC plants also with oxy-fuel combustion – IGCC will not be adopted on a wider scale as long as there is no effective international agreement to reduce CO2 emissions and as long as the acute power shortage in the country remains.108 European SMEs can play a pivotal role in assisting Indian power plants in dealing with the complex aspect of IGCC plants. By recommending certain materials and assisting in the technical aspects of manufacturing, they can relieve the Indian power plants of some costs.

4.3 Environmental issues and coal power plants

Coal based power plants significantly impact the environment. Direct impacts resulting from construction and ongoing operations include: flue-gas emissions (sulphur dioxide, nitrogen oxides, mercury, particulates/dust); pollution of local streams, rivers and groundwater from effluent discharges; percolation of hazardous materials from the stored fly ash; noise pollution during operation.109 Indirect impacts include degradation and destruction of land, water, forests and habitats; displacement, resettlement and rehabilitation of people affected by mining operations; and the building of power plants and power grids.

103 Feedback on draft version of the report.104 The Energy and Resources Institute (TERI), India CCS Scoping Study: final report.105 Feedback on draft version of the report.106 Ramesh, M. (2013). A symbol of collective apathy. Retrieved 30 August 2013 from http://www.thehindubusinessline.com/opinion/a-symbol-of-collective-apathy/article4591441.ece.107 Chikkatur, A Resource and Technology Assessment of Coal Utilization in India, p. 34.108 Feedback on draft version of the report.109 Vijay, S., and Chikkatur, A.P. (2011). The Role of Technology in Mitigating Greenhouse Gas Emissions from Power Sector in Developing Countries: The Case of China, India, and Mexico. In F. Princiotta (Ed.), Global Climate Change – The Technology Challenge (pp. 345-376). New York: Springer.

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Stricter control of criteria air pollutants (sulphur dioxide, nitrogen oxides, mercury, particulate matter/dust) from coal power is essential. Emission of particulates from power plants is of serious concern, especially in India, because of the high-ash content of coal. The high ash content also leads to problems in ash disposal, as power plants require large tracts of land for storing and land-filling ash. One acre of land is needed for one MW of installed capacity.110 The use of such large areas for ash storage leads to air/water pollution and creates adverse effects to local communities (for example, theland near power plants cannot be used for agricultural production or cattle grazing). Enforcement of environmental regulations is a serious challenge, especially since power supply is in constant demand. Although there are provisions in law that allow power plants to be shut down, the lack of energy prevents this, as a result about a third of thermal plants have failed to meet standards111 and are still operating.

Carbon capture and storage (CCS) is a growing technology in Europe which aims to restrict the emissions of CO2 produced by coal-based power plants. During this process, carbon dioxide is captured and then stored geologically or in the ocean. The aim is to prevent CO2 from being emitted into the atmosphere. In Europe CCS technology is beingexplored; the European Commission has funded projects to research and develop CCS further and power plants have pursued this technology to reduce the harmful impacts made on the environment.112 This report suggests that the Indian government should consider investing into CCS research. Support and partnerships can be made by European business in this field.

It is clear that coal-based power plants can produce harmful pollution which contributes to both acid rain and global warming.113 The various gasses which are the result of combustion also damage local habitation. It is pivotal that India engage in exploring other technologies which can assist in their honest attempt to make their coal cleaner.

4.4 Current scenario, technologies and opportunities for SMEs

Sub-critical pulverised coal power plants are the most common coal-based power plants in India. With the projected economic growth in India, however, they will not be able to adequately support the concurrent demand in energy – which is already significantly exceeding supply. This looming energy crisis will have implications on both business and civilian population. Developments have been taking place and will continue to do so to ensure energy security does not create economic problems. It is crucial that environmental considerations are taken into account when dealing with coal-based power plants – the biggest threat to the environment when dealing with the whole cycle.

Electrostatic precipitator (ESP) technology is already widely used in Indian power plants, but there is scope for improving the efficiency. The ESP is an effective method for removing particles flowing from gas. It is highly efficient and fairly affordable in comparison to other clean up technologies. The use of scrubbers in power plants should also be continued and invested into more. It is an efficient system which not only allows the regulation of harmful emissions, but also cheap in comparison to fitting new boilers.

110 Chikkatur, A Resource and Technology Assessment of Coal Utilization in India, p. 31.111 Chikkatur, A Resource and Technology Assessment of Coal Utilization in India, p. 29.112 Information obtained through interview.113 World Coal Institute, The Coal Resource: A Comprehensive Overview of Coal, pp. 34-36.

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An opportunity which European SMEs can get involved with is the area of biomass burning. It can accompany a circulating fluidised-bed boiler which is able to burn both coal and biomass simultaneously. Even though it reduces boiler efficiency,114 biomass co-firing can help reduce emissions and is already being used in India. Most biomass in the country comes in the form of sugar cane waste, rice husk waste and dry parts of cotton, however, there is no centralised authority or a company which is involved in the distribution, which presents more opportunities for European SMEs.115

European SMEs can also share research, expertise and parts for the aforementioned boiler technologies. Supercritical boilers, for example, are a technological solution which India has already started investing into. This example reflects opportunities for European SMEs as they can sell specific parts for the boiler, recommend improvements to increase efficiency and they can offer to collaborate in fields of research.

Software companies specialising in power plant operating systems may contribute operating systems for more effective and streamlined power plant operations.116

The plant auxiliary equipment like energy efficient pumps and motors may also provide opportunities for EU SMEs. The recent thrust toward energy efficiency by the government and subsequent legislation calls for usage of more energy efficient equipment. Smart technologies for monitoring and controlling energy consumption will also be welcomed by the Indian power sector.

European SMEs do not necessarily have to remain limited to the provision of equipment or software. Consultancies can, for example, play an important role by consulting their Indian counterparts through assessment studies.117 By initially taking a consultancy angle, mutual trust can be established and Indian power plants may be able to incorporate European expertise. This can contribute to a long term relationship being established which could lead to further cooperation in developments of boiler and power plant technologies.118

In addition to and as a result of consultancy, there is the opportunity that EU SMEs and EU training institutes provide education and training, both classroom and type as well as on-the-job type, to operating level employees of Indian power plants.

As previously mentioned, the majority of coal-based power plants in India are PC subcritical plants. The way forward to address energy needs of India should focus not only on creating new sustainable, efficient and environmentally friendly power plants, but also on renovation and modernization of the old power plants. With regard to plant renovation or boiler modernisation programmes, activities are already in place. Since the 1980s, government- and private-sponsored renovation and modernisation (R&M) and life extension (LE) projects in India have been fairly effective in increasing plant efficiency and availability, and reducing emissions. Such projects have, however, primarily targeted small units, limiting the overall effect of R&M and LE efforts. Many large plants remain obsolete and inefficient, and are unlikely to close for the foreseeable future due 114 Feedback on draft version of the report.115 Information obtained through interview.116 Information obtained through interview.117 Information obtained through interview.118 Information obtained through interview.

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to the country’s energy shortage. It is a fact that these existing subcritical PC power plants are presently the essential backbone of the Indian power industry. Most of these plants have R&M programmes in place, which will help to decrease the amount of the fuel used, increase the plants’ efficiency and reduce the carbon footprint significantly. As R&M and LE projects continue, EU SMEs may find some opportunities to participate.119

Finally, European SMEs can offer supplying services and provide spare parts for power plants, although competing with the price level of established Indian companies is usually a significant hurdle.120

The Indian government can play a pivotal role to ensure that power plants expand their use of clean technologies by creating incentives or changing the frame-work as a whole. The next section shall explore the ways in which this is possible and compare it to the European context from a technology and policy perspective.

SME opportunities in power plants• Share research and expertise with Indian partners

• As India continues to invest in more supercritical boilers, more opportunities for

European SMEs with relevant expertise and technology will arise over the coming years

o Sell boilers (supercritical, IGCC, CFBC) or specific parts

o Recommend improvements for increased efficiency

o Collaborate in research

• Develop supply services and spare parts for both the most widespread (subcritical) and

modern boilers

• Participate in R&M and LE projects

• Biomass co-firing; already used in India, easily adapted to older (subcritical) boilers

prevalent in India

• Renovation &modernisation of older subcritical PC-fired boilers in the modules:

Fuelpreparation /fuel blending; combustion technology (efficiency increase, lifetime

extension); turbine efficiency; cooling systems;emission control and cleaning

• Software for operating power plants

• Control devices for emissions of nitrogen and mercury oxides

• Consulting services

o Example: assessment studies

o Consulting can serve as an effective starting point for entry into the Indian coal

sector

o Traning in operation and maintenance

119 Feedback on draft version of the report.120 Information obtained through interview.

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5. An overview of other clean coal technologies, the regulatory environment and funding opportunities

5.1 Potential for other clean coal technologies

According to the International Energy Agency (IEA), India, with its rapidly growing population and increasing energy demand, is expected to become one of the top three emitters of greenhouse gases by 2030.121 Fossil fuel-based power resources will remain a major part of India’s energy mix in the foreseeable future, with coal playing a predominant role in electricity generation until at least the middle of the century. This section will cover three technologies – CCS, IGCC and combined cycle gas turbines (CCGT) – with great potential to reduce CO2 emissions from fossil-fired power plants with a view to mitigate the risks associated with climate change. They have great potential for the future, and IGCC and CCGT are already commercially viable, whereas CCS is still largely in the demonstration phase.

5.1.1. Carbon capture and storage

As mentioned earlier in the paper, CCS involves separating the CO2 from flue gas,transporting it to a storage location and injecting it into suitable underground geological formations, which includes depleted oil and gas fields, un-mineable coal seams and saline water-bearing reservoir rocks.122

Carbon capture and storage is currently not seen as an immediate priority for the Indian government, although it has shown interest in being involved in research & development (R&D) activities on CCS in order to access global knowledge sharing and technology transfer processes. India is, for instance, actively involved with the Carbon Sequestration Leadership Forum (CSLF), an initiative of the US Department of Energy which started in 2003.123 In addition, one of the key outcomes of the International Workshop on India’s Clean Coal Future held in New Delhi in 2012 was the Delhi Declaration on Clean Coal, which supports “efforts to strengthen all carbon technologies, including renewable energy, Carbon Capture Storage (CCS) and Carbon Capture Use Storage (CCUS) technologies worldwide”.124

According to an expert stakeholder survey which analysed the prospects and suitability of CCS in India, respondents expected CCS to become important only in the long-term.125 More specifically, respondents expected the Indian government to prioritise nuclear and solar technologies instead of CCS. On the other hand, stakeholders thought that the private sector industry in India will give more priority to CCS than the government, and that by 2050 it could potentially become the top investment priority. 121 International Energy Agency. (2007). World Energy Outlook: China and India insights. Paris: IEA.122 Kapila and Gibbins, Getting India ready for Carbon Capture & Storage.123 Kapila and Gibbins, Getting India ready for Carbon Capture & Storage.124 Four institutions participated in the International Workshop on India’s Clean Coal Future: the Energy and Resources Institute (India), the Atlantic Council (US), the Global CCS Institute (Australia) and the European Centre for Energy and Resource Security (EUCERS) at King’s College London. They met in Delhi from 31 October to 1 November 2012. The full text of the Declaration is available here: http://cdn.globalccsinstitute.com/sites/default/files/publications/54176/thedelhideclarationoncleancoal-12112012.pdf. 125 Kapila, R.V., Chalmers, H., Haszeldine, S., and Leach, M. (2011). CCS prospects in India: results from an expert stakeholder survey, Energy Procedia, vol. 4, pp. 6280-6287.

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One respondent noted that “CCS will remain at the end of the technology spectrum, as it reduces the energy efficiency of the plant, in an already energy deficit country”.126 There is indeed a consensus in India and throughout the developing world that CCS is to be considered a ‘frontier technology’ that needs to be established in developed countries first to bring down the cost through R&D and large-scale deployment. Demonstration plants utilising CCS should be constructed and operated in developed countries to reduce the uncertainties regarding costs and energy efficiency implications of CCS, before any commercial-scale CCS projects in India can be considered.

Several questions remain regarding the technical feasibility and viability of CCS in India. New technologies like CCS need to be “carefully monitored to assess the suitability and cost effectiveness of this technology for Indian conditions”.127 It is thought that the low efficiency of old plants in India makes them unsuitable for CCS. Hence, although CCS projects will likely be cost competitive in the long run, investing in CCS is only feasible if highly efficient power plants are built or if existing plants can be retrofitted.

The high cost of electricity and reduced net electricity generation supposes an additional barrier, as well as the potential energy penalties CCS imposes: to produce the same output, about 30 percent more energy is consumed to run a typical CCS plant.128

Another significant challenge identified by respondents was how CCS would cope with the loss of efficiency associated with the high ash content of Indian coal. For this reason, the technologies being developed in Europe might not be a viable option for India.129Another obstacle is that CCS projects, which are necessarily large scale, are harder to implement than many other renewable technologies such as wind and solar, which can start out small and gradually upscale with time.130

The total CO2 storage capacity in Indian oil and gas reservoirs to be limited, insufficiently large to store the lifetime emissions of India’s planned UMPPs.131 Furthermore, there is no accurate assessment of geological storage site data. Preliminary studies indicate that potential CO2 storage sites in India are located in the plains of the Ganges, Brahmaputra and Indus rivers, as well as immediate offshore regions in India’s Southwest coast and the Bay of Bengal. There is also likely to be considerable saline aquifer CO2 storage potential in the shallow offshore zone around the margins of peninsular India and in the states of Gujarat, Rajasthan and Assam.132

One of the options that have been advanced for CO2 storage is enhanced oil recovery (EOR). One of the advantages of EOR is that the cost of storing the CO2 is offset by the revenues accrued by the additional oil that can be recovered from quasi-depleted oil

126 Kapila et al, CCS prospects in India: results from an expert stakeholder survey, p. 6283.127 Government of India Planning Commission. (2011). Faster, sustainable and more inclusive growth: an approach to the Twelfth Five Year Plan. Retrieved 4 June 2013 from http://planningcommission.gov.in/plans/planrel/12appdrft/appraoch_12plan.pdf.128 McKinsey & Company. (2009). Environmental and energy sustainability: an approach for India. Mumbai: McKinsey & Company. 129 Kapila et al, CCS prospects in India: results from an expert stakeholder survey.130 Geological Survey of Belgium. (2012). Clean Coal Technologies and Carbon Capture and Storage in Kazakhstan: reflections and ACCESS project results. Brussels: Royal Belgian Institute of Natural Sciences, Geological Survey of Belgium. 131 Kapila and Gibbins, Getting India ready for Carbon Capture & Storage.132 IEA Greenhouse Gas R&D Programme (IEA GHG). (2008). A regional assessment of the potential for CO2 storage in the Indian subcontinent, Technical Study 2008/2.Retrieved 3 June 2013 from http://www.ieaghg.org/docs/General_Docs/Reports/2008-02.pdf.

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fields through this procedure. In India, however, it has been stated that there are few oil fields which are sufficiently depleted to require EOR presently.133

Data on the cost of CCS is rare and largely inaccurate, in particular considering that no commercial-sized power plants equipped with the technology have been built yet. Cost estimates for CCS vary widely, depending on whether CCS technology is equipped in new power plants or whether existing plants are retrofitted. Costs will also vary depending on the type of CO2 transport (pipelines or other methods), type of storage (for instance, un-mineable coal seams or depleted oil and gas reservoirs), the type of power plant (supercritical or IGCC plant, for example) and the stage at which carbon is captured.134

Significant differences in the methods employed to estimate the cost of CCS systems for fossil fuel power plants have also contributed to a lack of accurate CCS cost estimates. The global CCS Institute published a White Paper in March 2013, acknowledging that there are significant differences and inconsistencies in the way CCS costs are currently calculated and reported by various organizations and called for an urgent and timely effort to “improve and systematize the estimation and communication of CCS costs”.135

To sum up, challenges to implementing CCS include, but are not limited to, technology readiness, construction and running costs, safety of carbon dioxide capture and geological storage processes, financing mechanisms and limited geological storage. Hence, given India’s current energy mix and the uncertainties surrounding, CCS will only become a viable option in the medium-to-long term.136

5.1.2. Coal gasification

The introduction of IGCC is an alternative for a less energy consuming and more complete separation of CO2 for newly built coal-fired power plants compared to retrofitting existing plants. This technology is a combination of two leading technologies: coal gasification, that is, combining coal, oxygen and steam to produce synthesis gas (a mixture of carbon monoxide and hydrogen), and combined-cycle, which re-uses waste heat to produce more electricity, and is hence one of the most efficient methods of electricity production.

Coal gasification can either occur at surface level– separately from or integrated in the process of energy production – or underground. Combining CCGT with underground coal gasification (UCG) can have significant advantages over conventional coal-based power generation systems and surface gasification: The use of gasification technology allows generally better carbon capture; power plants utilising UCG-CCGT are environmentally efficient; they produce much lower emissions of carbon dioxide compared to conventional power plants.

133 The Energy and Resources Institute (TERI). (2013). India CCS Scoping Study: final report. Retrieved 5 June 2013 from http://cdn.globalccsinstitute.com/sites/default/files/publications/88981/india-ccs-scoping-study-final-report.pdf.134 Nelder, C. (2013). Why carbon capture and storage will never pay off. Retrieved 11 June 2013 from http://www.smartplanet.com/blog/take/why-carbon-capture-and-storage-will-never-pay-off/534.135 Global CCS Institute. (2013). Toward a common method of cost estimation for CO2 capture and storage at fossil fuel power plants. Canberra: Global CCS Institute.136 Information obtained through interview.

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Approximately 30 percent less NOx is generated during the UCG process compared to conventional coal burning. Furthermore, there is no emission of other pollutants like mercury and other solid wastes such as fly ash or slags as almost all of the contaminated residues remain underground. Plants that have introduced UCG-CCGT are cost competitive. Under suitable conditions a considerable part of the generated CO2 can be stored underground, reducing the costs related to the storage and transportation of CO2, no surface gasifiers or ash management facilities are required. This reduces the size and the operational complexity of the plants. It has been noted, however, that many types of coal found in India cannot use the most common of gasification processes (slagging entrained flow) without further preparation, such as coal washing and/or admixture of low ash feed-stocks, such as pet-coke, due to the high ash content and high ash fusion temperatures of Indian coal.137 This reflects the importance of coal gasification. Research undertaken by BHEL suggests that air-blown pressurised fluidised bed gasifier (PFBG) is the optimal way of gasifying Indian coal.138

Despite significant advantages of UCG, several drawbacks also exist: the necessary technology remains unproven to a certain extent and is limited to coal as the only available feedstock; the gasification process is difficult to control; the resulting syngas contains tar, which requires the use of additional cleaning procedures; the process carries with it a risk of unintended subsurface smouldering fire; the relatively low heating value of the created gas makes transporting it over long distances uneconomical; and environmental impacts – such as possible ground water contamination, ground subsidence and gas leakage – of the UCG process should be kept in mind.139

Coal gasification plants are successfully operating in a number of countries, including in South Africa, Australia, Uzbekistan and China. In comparison, India’s experience in this field is relatively short, although there is plenty of potential: according to calculations by the Coal Ministry, if only five percent of India’s un-mineable coal reserves are successfully exploited for gasification, it could yield the equivalent of three billion cubic metres.140

In March 2013, India’s Coal Ministry identified five lignite blocks and two coal blocks for syngas production, with estimated reserves of 950 million tonnes, which would be offered to private investors to undertake UCG projects.141 At the same time, India has sought to collaborate with the South African government in underground coal gasification technologies and to develop projects in India through suitable joint ventures with private investors.142 The allocation of the seven blocks for gasification projects is subject to the announcement of a comprehensive policy encompassing all aspects of coal gasification,

137 Roy, R.K. (2012). Underground coal gasification: potential and prospects in India. Presentation delivered on 28 August 2012 at the Inaugural Australian Syngas Association Conference in Brisbane, Australia. Retrieved 30 May from http://asaconference.com.au/files/2012/08/9-Raj-Kumar-ASA-UCG-Presentation-Potential-Prospects-in-India-23082012.pdf.138 Feedback on draft version of the report.139 Feedback on draft version of the report.140 Das, A.K. (2013a). India identifies new coal blocks for gasification projects. Retrieved 29 May 2013 from http://www.miningweekly.com/article/india-identifies-new-coal-blocks-for-gasification-projects-2013-03-13.141 Das, India identifies new coal blocks for gasification projects.142 Das, A.K. (2013b). India seeks collaboration with SA on coal gasification technology. Retrieved 29 May 2013 from: http://www.miningweekly.com/article/india-seeks-collaboration-with-sa-on-coal-gasification-technology-2013-03-08.

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which is expected shortly. In particular, amendments will need to be made to the Mines and Minerals (Development and Regulation) Act of 1957 to enable these blocks to be offered to private investor, and more generally to open the private sector to the exploration and exploitation of minerals. Currently, under Indian coal mining legislation, coal mining is the exclusive domain of the government or government-owned mining companies.

5.2 Overview of EU and Indian clean coal legislation and EU fundingopportunities

This section aims to provide a brief overview of the state of clean coal legislation in both the EU and India, funding opportunities available in the EU for research on clean coal and in particular CCS technologies. Furthermore, it sheds light on available funding for clean coal pilot projects and bilateral initiatives between the EU and key partners (China, India) for increased experience sharing and the promotion of clean coal technologies.

5.2.1 Policy perspective: the EU

1. Directive 2009/31/EC of the European Parliament and of the Council, on the geological storage of carbon dioxide. With a view of making sure that CO2 is safely and permanently stored in CCS projects across Europe, the Directive establishes a comprehensive regulatory framework for the geological storage of CO2; transport and capture are considered to be sufficiently covered by existing legislation. The Directive applies to both offshore and onshore geological storage of CO2.143 From 2013 onwards, the environmentally safe capture, transport and geological storage of CO2 will also be covered by the European Union Emission Trading Scheme (ETS).144

2. Directive 2010/75/EU of the European Parliament and of the Council on industrial emissions. The so-called Industrial emissions directive (IED) is the successor of the IPPC Directive and aims to minimise pollution from various industrial sources throughout the EU.145 The IED tightens further the emission limit values for SOx. According to the IED, by 2014, operators must declare future plans for each fossil fuel plant and from 2016 emissions from the plant must have been brought into line – by fitting emissions reduction technology, for example – or the plants will be opted out via a limited-hours derogation or a peak-plant derogation.146

3. The European Energy Research Alliance (EERA) launched the CCS Joint Programme (CCS-JP) in 2010, involving over 49 participants and associates from 19 member states. The CCS-JP is dedicated to reaching necessary pre-conditions for the large-scale deployment of CCS, including cost competitive and energy efficient CO2 capture methods and processes, and extending the application of subsurface CO2 storage technologies.

143 Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide.Entered into force on 5 June 2009.Retrieved 5 June 2013 from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0114:0135:EN:PDF.144 Geological Survey of Belgium, Clean Coal Technologies and Carbon Capture and Storage in Kazakhstan: reflections and ACCESS project results.145 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control). Entered into force on 17 December 2010.Retrieved 5 June 2013 from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:334:0017:0119:en:PDF.146 Hitchin, P. (2011). Is Europe ready for the IED and willing?, PEI Magazine, November 2011, pp. 40-45.

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The programme is structured in two sub-programmes corresponding to two of the main steps in the CCS chain: CO2 capture and CO2 storage.147

4. The European Industrial Initiative (EII) on CCS was launched in 2010. It is a multi-stakeholder initiative and serves as a model for collaboration between industry, EU member states, the European Commission and research institutes. The CCS EII has two key objectives: ensure the cost competitive deployment of CCS in the medium-to-long-term and its further development to allow its application to all carbon intensive industrial sectors. It builds on the comparative strength of each stakeholder. The responsibility of industry is to manage technology and market risk. Member states provide a clear regulatory framework at the national level and ensure regulatory compliance, as well as guarantee financial support. The European Commission provides guidance in relation to regulatory frameworks, provides clarity over applicable EU law and policy and how these may affect business decisions, and provides financial support through EEPR (European Energy Programme for Recovery).148

5. The Research Fund for Coal and Steel has a budget allocation of EUR 50 million to fund research and pilot projects undertaken by universities, research centres and private companies to enhance the safety and efficiency of the EU coal industry.149

6. The EU has been actively funding and supporting research, development and demonstration of clean coal and CCS technologies. Under the Fifth and Sixth Framework Programmes (FP5 & FP6), approximately EUR 86 million were spent on CCS and clean coal. Under the Seventh Framework Programme (FP7), the amount earmarked for CCS and clean coal has increased to approximately EUR 250 million until 2013.150 Under FP7, research and demonstration activities in the field of clean coal technologies and CCS include, among others, advanced capture techniques, qualification of deep saline aquifers, storage safety, gas turbines in IGCC power plants, oxy-fuel fluidised bed combustion, efficiency increases in pulverized coal power plants and support for regulatory activities for CCS.

The current Framework Programme considers CCS a priority area. One example of a project funded under FP7 is entitled Technology Options for Coupled Underground Coal Gasification and CO2 Capture and Storage. The project has been allocated just under EUR three million, and represents a collaborative effort between 16 institutions from 12 different countries in Europe, North America, Asia and Oceania.151In addition, the EC has earmarked EUR 60 million for cooperation on cleaner coal technologies and CCS withemerging economies. As part of FP7, several projects have been initiated under the heading Optimizing gasification of high-ash content coals for electricity generation(OPTIMASH).

147 European Energy Research Alliance. (2013). Informative flyer on CCS-JP. Retrieved 4 June 2013 from http://www.eera-set.eu/lw_resource/datapool/_items/item_740/eera-flyera4_-carboncapture32013rz.pdf.148 Zero Emissions Platform. (2010). CCS EII implementation plan 2010-2012.Retrieved 4 June 2013 fromsetis.ec.europa.eu/system/files/CCS_EII_Implementation_Plan_final.pdf. 149 Research Fund for Coal and Steel. (2012). European Coal & Steel Research: Progress to Innovation.Retrieved 5 June 2013 from ftp://ftp.cordis.europa.eu/pub/coal-steel-rtd/docs/rfcs-activities_en.pdf.150 Wilde, M. (2012). European Union funding of clean coal and CCS technologies. Presentation delivered in Moscow on 10 December 2012. Retrieved 28 May 2013 from http://www.iea.org/media/workshops/MarionWilde2.pdf.151 Feedback on draft version of the report.

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7. The 2009 Communication from the European Commission entitled Demonstrating CCS in emerging countries – financing the EU-China Near Zero Emissions Coal (NZEC) Plant project is a prime example of experience sharing. Following the EU-China Partnership on Climate change, agreed in 2005, this Communication sets out the plan of the EC to establish an investment scheme to co-finance the construction and operation of a power plant to demonstrate CCS technology in China.152 One of the initiatives that is being funded under FP6 is the COACH (Cooperation Action within CCS China-EU) project which will prepare the ground for implementation in China of large-scale poly generation energy facilities with options for coal based electric power generation, as well as production of hydrogen and synthetic fuels. Project COACH addresses the following issues: coal gasification for appropriate poly-generation schemes with CO2 capture and storage and the identification of reliable geological storage capabilities of CO2 in China.153This project could also serve as a model for other technology cooperation activities between the EU and developing countries and key partners, such as India and South Africa.

8. A Joint Declaration for enhanced cooperation on energy between the EU and the government of India was signed at the 12th EU-India Summit which took place in New Delhi in February 2012. Both sides agreed to increase cooperation in the field of energy security and sustainability. Both sides agreed that joint efforts should focus on the development and the deployment of strategies for clean energy production, among which clean coal technologies and advanced coal mining, and that business to business cooperation (with a specific focus on SMEs) should be promoted to enhance cooperation in the energy sector.154

5.2.2 Policy perspective: India

1. A clean energy tax on imported and domestic coal (set at INR 50 per tonne) was introduced in 2010. Funds raised from this tax go into a National Clean Energy Fund and are invested in the research, development and deployment of clean and renewable energy projects, in particular solar power projects.155

2. In 2012, the Indian government announced plans to expand its domestic action plan to cut greenhouse gas emissions (the National Action Plan on Climate Change – NAPCC –launched in 2008) by adding a new mission plan on clean coal and clean carbon technology to minimise the large volumes of CO2 emissions from coal-fired power plants.156 Initiatives in the mission plan include developing next generation coal-fired power plants using advanced supercritical boilers and integrated gasification combined cycle technologies.

152 Communication from the Commission to the European Parliament and the Council of 25 June 2009: Demonstrating Carbon Capture and Geological Storage (CCS) in emerging developing countries: financing the EU-China Near Zero Emissions Coal Plant project. Retrieved 7 June 2013 from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2009:0814:FIN:EN:PDF.153 European Commission. (2010). China-EU Near Zero Emission Goal. Retrieved 10 June 2013 from http://ec.europa.eu/clima/dossiers/nzec/index_en.htm.154 Joint Declaration for enhanced cooperation on energy between the European Union and the Government of India, 12th EU-India Summit, New Delhi, 10 February 2012.Retrieved 5 June 2013 from http://ec.europa.eu/research/iscp/pdf/joint-declaration.pdf.155 Khanna, A.A. (2012). Quest for green coal.Retrieved 5 June 2013 from http://www.financialexpress.com/news/quest-for-green-coal/897383/0.156 The NAPCC has eight missions: on solar power, energy efficiency, water, sustainable habitat, Himalayas, deforestation, agriculture and strategic knowledge.

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3. In order to significantly reduce India’s energy shortages in the future, the Ministry of Power launched in 2005-06 an initiative to facilitate the development of UMPPs, each having a capacity of approximately 4000 MW. All UMPPS are required to be developed using supercritical technology with higher thermal efficiencies and less CO2 emissions. Moreover, all planned UMPPs are required to prepare and submit an environmental impact assessment to the Ministry of Environment and Forests in order to receive environmental clearance. In the case of Mundra project (explored in more detail in sub-section 5.3.2 below), one of the four UMPPS awarded by the government so far, Coastal Gujarat Power Limited (CGPL), Mundra’s operator, established a Corporate Environment and Safety Group responsible for the implementation of an environmental monitoring and evaluation program during the construction and operation phases of the power plant.157

4. India’s Twelfth Five Year Plan (2012-2017) highlights the need to invest in R&D of ultra-supercritical (USC) units. It notes that 50 percent of the Twelfth Plan target and the coal-based capacity addition in the Thirteenth Five Year Plan would be through super-critical units. The plan highlights coal bed methane as another promoting technology. It notes the difficulties with implementing coal gasification because of the high ash content of Indian coal; hence the efficiency gains would be minimal. Furthermore, it points to the importance of UCG technology as it will enable utilisation of deep coal deposits in the medium term. For that reason, it encourages pilot projects to be undertaken in this field.158

5.3 Successful clean coal cases

This section of the report examines cases of good practice in CCT from the EU and India. It consists of one case study of successful CCT implementation in lignite power plant projects, which are traditionally large producers of greenhouse gas emissions.

5.3.1 European Union: Block R, Boxberg Thermal Power Plant

Within recent years, the utilisation of various state-of-the-art CCT solutions to coal power plants has noticeably reduced their emissions. One example is Block R of the Boxberg Thermal Power Plant, located in the German state of Saxony. The facility is operated by Vattenfall, a Swedish state-owned enterprise (SOE) and one of Europe’s largest energy companies.

The Boxberg power plant was upgraded in 2012 by the addition of Block R, a new ultra-supercritical 675 MW facility – priced at EUR one billion159 – which brought the plant’s total installed capacity up to 2,575 MW. Although due to its size the entire Boxberg plant remains a sizeable source of CO2 emissions in Germany, Block R represents an example of how emissions can be reduced even in large lignite plants, which are conventionally a source of substantial greenhouse emissions. Vattenfall estimates that the use of the latest materials, boilers and turbine technology will lower Boxberg’s annual consumption 157 Asian Development Bank. (2013). Mundra Ultra Mega Power Project: project data sheet. Retrieved 6 June 2013 from http://www.adb.org/projects/41946-014/main.158 Government of India Planning Commission. (2013). Twelfth Five Year Plan (2012-2017): Faster, more inclusive and sustainable growth, vol. 1. New Delhi: SAGE Publications.159 Ingenieur.(2012). Investionsbedinungen für GuD-Anlagen derzeit ungünstig. Retrieved 3 June 2013 from http://www.ingenieur.de/Branchen/Energiewirtschaft/Investionsbedingungen-fuer-GuD-Anlagen-derzeit-unguenstig.

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by 30 percent when compared with the global average. According to official company data, the addition of Block R plant’s efficiency rate was increased by two percentage points and brought up to 44 percent, leading to a sharp drop in emissions.160

The plant was designed to have specific CO2 emissions of 924 grams per kilowatt-hour (kWh), compared to the average of 980-1230 grams per kWh at Germany’s other lignite plants. Boxberg uses pulverised coal combustion, emits only very low levels of flue gas emissions and is built in compliance with both the existing EU Directive on Industrial Emissions 2010/75/EU (explained in more detail in sub-section 5.2.1) and upcoming tighter restrictions.161 Prior to construction of Block R, Boxberg was heavily criticised by various environmental organisation, including the World Wildlife Fund (WWF).162 Despitethe improvement in efficiency, Boxberg continues to attract criticism from some environmental groups. One estimate puts Block R’s annual CO2 emissions at 5,130,000 tonnes.163 Vattenfall argues that emissions have been greatly reduced; the company estimates that its increasingly widespread adoption of CCT has reduced the emissions of Vattenfall installations in Europe – NOx emissions to 15 percent below the legal limit, sulphur dioxide levels down by 45 percent and dust by 50 percent.164

5.3.2 India: Mundra Ultra Mega Power Project

Although CCT is yet to be adopted in India on a large scale, several major operations have already adopted CCT solutions to a considerable degree. One recent example is the USD 4.1 billion Mundra Ultra Mega Power Project, located in Gujarat state. The plant is India’s first UMPP and part of the government’s 2005 ‘Power for All by 2012’ initiative, aimed at reducing future power shortages in the country. Currently, some 16 UMPPs are planned in India’s various states, including Andhra Pradesh, Chhattisgarh and Jharkhand.165

Ordered in 2007 by the Coastal Gujarat Power Limited subsidiary of India’s largestprivate power company, Tata Power Ltd, Mundra is the country’s first coal power plant containing an 800 MW supercritical boiler. The plant has an output of 4000 MW (five boilers of 800 MW each).166 These boilers, provided by Doosan Heavy Industries & Construction Co Ltd, Korea, are based upon EU technology. Boiler technology from UK-based manufacturer Doosan Babcock is also being used for the supply of many other of India’s new supercritical plants currently being installed, including the seven units at Kudgi, Lara and Raipur.167 The Mundra project was completed in March 2013, after six years and ahead of schedule. One interviewed expert argued that until relatively

160 Vattenfall. (2012). Boxberg. Retrieved 3 June 2013 from http://powerplants.vattenfall.com/node/291.161 Information obtained through interview.162 World Wildlife Fund. (2007). Dirty Thirty – Ranking of the most polluting power stations in Europe.Retrieved 3 June 2013 from http://awsassets.panda.org/downloads/european_dirty_thirty_may_2007.pdf.163 Ekopolitan. (2013). A list with all of Vattenfall’s fossil-fuelled CO2 emitting power plants 2010, 2011, 2012.Retrieved 5 June 2013 from http://www.ekopolitan.com/climate/vattenfalls-fossil-fuelled-co2-emitting-power-plants.164 Vattenfall. (2013). Emissionen durch Vattenfalls Braunkohlekraftwerke gering. Retrieved 3 June 2013 from http://corporate.vattenfall.de/de/pressemitteilungen-detailseite.htm?newsid=C915BD4CBF74478999648589AF67CD5F.165 Tata Power. (2012). Mundra Ultra Mega Power Project: Towards a cleaner and greener future. Retrieved 3 June 2013 from http://www.tatapower.com/cgpl-mundra/pdf/umpp-greener-future121015.pdf.166 Tata Power. (2007). Tata Power signs Contract for Boiler Island Scope on EPC basis with Doosan for first 4000 MW Mundra Ultra Mega Power Project. Retrieved 3 June 2013 from http://www.tatapower.com/media-corner/presslease/07may16.aspx.167 Information obtained through interview.

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recently, such a project could not have been completed in less than a decade. Cooperating with a private company, coupled with recent changes in Indian business legislation, allows such large and modern projects that incorporate CCT to progress faster. Even so, the same expert called the rapid and ahead-of-schedule development of the Mundra UMPP as “truly amazing”.168

The plant’s location near the major Mundra coal port allows it to rely primarily on coal imported from Indonesia. Although more expensive than domestic coal, its lower levels of sulphur and ash mean reduced emissions and less space that needs to be allocated for ash disposal facilities. The plant’s emissions of greenhouse gases is estimated at 750 grams of CO2 per kWh, compared with the national average of 1,259 grams per kWh for coal based power plants. Other CCT solutions in Mundra include electro static precipitators to control particulate matter emissions, low NOx burners which reduce NOx

emissions by some 35 percent, dust control and dust suppression systems and a coal ash storage pond.169 The Mundra project is currently likely the most modern and energy-efficient coal-based power plant in India. By Tata Power’s own calculations, its more efficient supercritical boilers enable the plant to burn some 1.7 million tonnes of coal less annually than if it were equipped with older subcritical boilers, which are prevalent in the country.170 Despite these estimates, the Mundra UMPP has come under some criticism by various NGOs, which argue that the plant does not conform to all environmental norms.171

168 Information obtained through interview.169 Tata Power, Mundra Ultra Mega Power Project: Towards a cleaner and greener future.170 Moneycontrol. (2013b). Tata Power synchronises third 800 MW unit at Mundra UMPP. Retrieved 3 June 2013 from http://www.moneycontrol.com/news/business/tata-power-synchronises-third-800-mw-unit-at-mundra-umpp_766254.html.171 The Economic Times. (2013). Vested interests, foreign NGOs spreading falsehood in Gujarat, says Tata Power. Retrieved 3 June 2013 from http://articles.economictimes.indiatimes.com/2013-01-13/news/36311430_1_mundra-umpp-mundra-project-largest-private-power-producer.

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6. Role of Coal India Limited in the Indian coal sector

Coal India Limited remains the most important player in the Indian coal industry by a wide margin. Even though its role was explored in detail earlier in the study, this section provides an overview not only of challenges, but unique opportunities to develop collaboration with CIL in pioneering high-tech innovations for India’s coal sector as a whole. As the largest coal company in the world, Coal India has the potential to spearhead the world’s clean coal development by focusing on cutting edge technological initiatives, which will in the process also reduce India’s carbon footprint and the country’s environmental degradation.

6.1 Challenges

As mentioned in detail earlier in the study, CIL has tried to mitigate the effects of coal mining by introducing air, water and land pollution control measures within its ESMP.172Despite the efforts, India’s primary concern is still to produce enough energy to meet the demands of the agricultural and industrial sectors and the population. Therefore, issues such as protecting the environment from harmful emissions, or health and safety procedures are not high on the agenda.173 However, this does not mean that CIL is not interested in moving in this direction through new partnerships and cooperation. Therefore, enhanced collaboration between CIL and European SMEs on clean coal and environmental technology, including R&D, will provide opportunities for great improvement of the clean coal industry in India.

In India, current challenges include technical issues such as coal transport by trucks, as vehicles must in some cases travel thousands of kilometres to get from the mines to the power plants and brick kilns; health and safety issues; and failings in the implementation of current mining legislation. Other challenges which CIL must overcome are in the areas of coal smuggling and illegal mining. The implications affect different aspects, from environmental degradation to safety issues and social instability with the creation of a broad mafia network as a result. Measures are being taken to tackle coal smuggling and illegal mining, but more needs to be done.

The quality of technology used in mining operations is still quite low in areas such as reserve assessment, extraction, transport and beneficiation. Due to the problematic nature of Indian coal, in order to achieve higher levels of productivity, more advancedtechnologies are required. Furthermore, in comparison to the European Union, where very rigorous health and safety procedures are in place, India's implementation of these procedures is not yet as strict.

6.2 Corporate social responsibility, research and development

To date, CIL has engaged in a broad spectrum of activities under its corporate social responsibility (CSR) programme. Infrastructure support is a keystone of CIL’sachievements. The construction of community buildings, roads and culverts; repair; and supply of furniture for educational institutions are part of the broad project. Another example can be the generation of employment. This has been achieved through the

172 For further information see section 2.4 Environmental issues with coal mining and washing.173 Information obtained through interview.

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setting up of cooperative societies and construction of shopping complexes. Moreover, social empowerment initiatives have also been implemented through training and development in different fields. For this same purpose, CIL has also provided financial assistance to NGOs.174

Research and development is part of CSR, but not yet acknowledged as such. If CSR was included within R&D, it would result in improved products as well as improved production design, which would be more compliant with environmental and safety issues. This would also lead to enhanced productivity and business competitiveness.

As CSR implementation is quite new for Indian public sector companies, there is an urgent need to professionalise CSR policies and primarily focus these policies on issues,which are specific to their own industrial sector. There are still many challenges to overcome in relation to environmental standards, labour conditions and safety issues.Furthermore, as these public sector companies are some of the biggest in their respective industrial sectors in India, they already have the expertise, know-how and skills available to address these areas of concern. Through the combining of R&D and CSR, the relevant public sector companies through their sheer size, will have a much greater impact in their fields. If they invest within their own company, they will reap much greater rewards than if they invest in outside domains in which they have little experience and which they are forced to outsource to external partners and experts.

It would be to the advantage of Coal India to allocate a greater proportion of their budgets to internal CSR policies in order to professionalise them at all levels. By making CSR an integral part of R&D, Coal India can not only improve its clean coal technology but also educate its workforce and their families, and provide them with better health care, and address the environmental, labour and safety issues outlined above. Finally, it is imperative that CIL develops its capacity building at the management level, as the managers will be responsible for ensuring that all CSR policies are properly implemented by all levels of staff.

If Coal India dedicates the necessary resources and attention to CSR, positive impacts would be seen in a variety of fields, including improved business competitiveness, development of innovative clean coal technology, greater protection of the environmentand a much more motivated workforce. These results would positively affect the efforts of CIL to achieve its goal of becoming a leading Indian environmentally conscious company and a global leader in clean coal development. Furthermore, CIL wouldindirectly improve the welfare of the local community and satisfy its stakeholders.

6.3 Opportunities

In the course of this paper, many challenges which CIL faces have been highlighted, as well as how the company has the potential to overcome them. As mentioned, investment in the R&D field will positively impact CIL performance. With specific reference to CSR, opportunities are visible. The health and safety conditions of many mines throughout India are still below global standards. One way in which CIL can increase their CSR initiatives is by adequately providing workers with safer working equipment and 174 For more information on CIL corporate social responsibility activities – see: Coal India. (2012). Note on CSR policy of the company (CIL). Retrieved 7 June 2013 fromwww.coalindia.in/Documents/CIL_website_final_csr_25092012.pdf.

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conditions and investing in cleaner coal technologies which will allow Coal India to adequately support the local environment and surrounding projects, as was announced by the Government of India.175 Furthermore, these measures will enhance the positive image and perception of the company.

Another opportunity for CIL is to focus its attention on transporting coal from the pithead to railway stations in distances of under ten kilometres. As previously mentioned, by investing in conveyor belts, a technology which is cost-effective, reliable and environmentally friendly, Coal India will be able to comfortably overcome the problemswhich it is currently facing.176Moreover, due to the nature of conveyor belts, it is an economically feasible option as the long-term maintenance costs are lower compared to truck transport.

Coal India should also focus on overcoming the obstacles presented by abandoned mines. According to a Ministry of Coal official, the government has identified between 18 and 20 abandoned coal mines which still have an estimated two billion tonnes of reserves of coal between them. These mines are located in areas controlled by CIL subsidiaries, such as Eastern Coalfields, Bharat Coking Coal and Central Coalfields.177Re-investing efforts into these mines will not only allow local economies to benefit, but willalso assist CIL in their mission to supply India with coal in a cleaner and more efficient way.

175 Press Information Bureau, Government of India. (2012). CSR activities of Coal India.Retrieved 7 June 2013 from http://pib.nic.in/newsite/erelease.aspx?relid=82821.176 For further information see section 3. Coal logistics.177 Mining Weekly. (2013). India attempts to revive abandoned coal mines. Retrieved 7 June 2013 from http://www.miningweekly.com/article/india-attempts-to-revive-abandoned-coal-mines-2013-04-17.

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7. Conclusion and recommendations

The Indian coal based power value chain presents EU SMEs with substantial business opportunities. Although much of the infrastructure remains to be upgraded, the country's continued investment in new coal mines and power plants is increasingly accompanied by investment in CCT.

Although the coal industry is traditionally the domain of large state-owned or multinational companies, SMEs can carve a niche for themselves in each of the three 'pillars' of the Indian coal sector – mining, logistics and power plants. By contributing, for example, consulting services, maintenance, and modern equipment, European SMEs have extensive opportunities to do business in India.

Even so, the business environment in India has several characteristics that need to be taken into account: bureaucratic procedures can be lengthy and complex; market penetration is often possible only with cooperation with an Indian company; newcomers to the coal sector may face pressure from established and well-connected local enterprises; and matching the low prices of domestically produced CCT can be a challenge.

A major coal consumer and importer, and home to the world’s largest coal producing company, CIL, India is in a promising position to become a major player in CCT, once some of the aforementioned obstacles – alongside some others, such as outdated environmental legislation – are overcome. With its major market share, substantial resources and state backing, Coal India is particularly well-placed to spearhead CCT innovation through direct R&D, as well as create positive ripple effects by investing in related areas, such as CSR.

This study aimed to provide a broad overview of the Indian coal based power value chain, to showcase examples of existing practices in the EU and India, to highlight the business environment in India and to explore specific CCT business opportunities for European SMEs. By doing so, it laid the ground-work for future in-depth studies that could explore specific areas and technological solutions, as well as the business environment of individual Indian states.

Final recommendations

• Coal miningo Technology for reserve assessmento Upgrading of existing coal mines (both chance for consultation and supply of

technology)o Construction of new mines, with a special focus on underground miningo Introduction of X-ray-assisted dry coal sortingo Upgrading of coal washeries (SMEs could sell new and old machineries)o Setting up of new coal washeries based on coal specific and cost effective flow-sheetso Consultancy and technology supply to improve environmental protectiono Consultancy for policy improvement

o In the medium term, potential opportunities in underground coal gasification, which will enable the utilisation of deep coal deposits

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• The logistics sector presents limited opportunities due to decreasing share of road transportation and prevalence of domestic companies:o Introducing new RFID or GPS-based vehicle tracking systems and vehicle guiding

softwareo Contributing specialised equipment or parts in hybrid and fuel-efficient truckso If new modes of transportation, such as hydro-transport, become widely adopted in

India, opportunities will arise for specialised European SMEso Indirect contribution to reducing emissions in transportation: Contributing to coal

washing and dry coal sorting, which both greatly help reduce emissions in transportation

• In coal power plantso Biomass co-firingo As India continues to invest in more supercritical boilers, more opportunities for

European SMEs with relevant expertise and technology will arise over the coming years

Sell boilers or specific parts Opportunities in circulating fluidised-bed combustion technologies Opportunities in integrated gasification combined cycle technologies Recommend improvements for increased efficiency Renovation &modernisation of existing plants Collaborate in research

o Develop supply services and spare parts for both existing and cutting-edge boilerso Opportunities in plant auxiliarieso Software for operating power plants

• Financing could be obtained through a variety of EU programmes, grants, and tenderso Seventh Framework Programme (FP7)

OPTIMASHo Calls for tenders by the European Commission's Directorate General for Energyo The European Commission's Horizon 2020 programme which will succeed FP7 in

2014; it contains no provision for CCT at present, negotiations on the final version of the programme are on-going, and this may become an option once the programme is launched in 2014o The Research Fund for Coal and Steel

7.1 Roadmap for technology transfer in India

This section summarises the different types of environmentally-friendly technologies and CCT solutions suggested in this study, and includes an estimate of the likely timeframe for their introduction to India – short-term (immediate or within the next two years), medium-term (five to ten years) or long-term (ten years or more) – along with any constraints the implementation may face.

Technology Timeframe for introduction Constraints Remarks

Biomass co-firing Short term o Lack of an efficient biomass distribution system

Already in use Easy to implement

in outdated boilers

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Technology Timeframe for introduction Constraints Remarks

CCS Long term (2050 or later based on expert

survey)

o Unknown costso Still in

demonstration phase (even in the EU)

o Efficiency penalty (reduced net electricity generation)

o Problematic for use with high-ash coal

o Lack of accurate geological storage site data

CFBC Medium term o As long as PC boilers continue to operate in India on a wide scale, CFBC implementation will take time

Flexible technology, can use a wide range of fuels

Highly efficient and compatible with high ash content

Lower SO2

emissions

Coal washeries (upgrade)

Short term o Concerns about increased costs associated with modern washing technology

o Lack of state interest and incentives

Combustion efficiency

Short term o Mentality of operating a boiler

o Awareness of the operators

o Might require modifications to the boiler

Technologies available with the EU companies can be of great use.

Control devices for emissions of nitrogen and

mercury oxides

Short term

Conveyor belts Short term o Mature technology that can be produced domestically at a low price

o When used over long distances, maintenance costs

Already widely used on many sites in India, but not across long distances

See: MGR

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Technology Timeframe for introduction Constraints Remarks

and security concerns a factor

ESP Short term Already widespread and affordable, but could be upgraded and made more efficient

Hydro-transport Long term o Lack of government investment and interest in the technology

o Considerable use of water

Mature and affordable technology with few unknowns

IGCC Medium term o Need for technical expertise

o High capital costs of IGCC plants

High efficiency rates (45%)

Low consumption of water

MGR Short term o Mature technology that can beproduced domestically at a low price

Already in use, share slowly increasing due to new plants located nearer to mines

See: conveyor belts

Oxy-fuel combustion Long term o High level of expertise; technical maturity

o High costs

No impact on the boiler-turbine-steam cycle

Plant auxiliary equipment (pumps, motors and similar)

Short term Recent changes in legislation openpossibilities for SMEs specialising in auxiliaries

Power plant operating systems

Short term o Widely used, significant innovation and breakthroughs difficult

Already widely used, but improved systems and software could increase efficiency further

RFID Short term o Availability of domestic technology

Already adopted in some truck owners’ associations

See also: Vehicle tracking and dispatch systems

Supercritical boilers Short term o Availability of domestic technology and

Currently represent a minor share of boilers in India, but

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Technology Timeframe for introduction Constraints Remarks

funding by companies such as BHEL and NTPC Limited

are seeing increasing adoption across the country

UCG Medium term o High ash content in coal problematic

o Regulations currently inhibit private investment

A few pilot projects already running in India

Five lignite and two coal blocks will provide approximately 950 million tonnes of coal for syngasproduction

Vehicle tracking and dispatch systems

Short term o Domestic competition

See also: RFID

X-ray sorting machines

Short term o Need for trained operators

Eliminates need for use of water

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Sanyal, S. (2012). Moving, not producing, coal is the key: CIL chief. Retrieved 30 May 2013 from http://www.thehindubusinessline.com/industry-and-economy/logistics/moving-not-producing-coal-is-the-key-cil-chief/article4203829.ece

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Fennel, P., and Wilson, D. (2006). Coal Mining in India. Retrieved 27 April 2013 from www2.mccombs.utexas.edu/faculty/david.spence/2006coalindia.ppt

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Fuentes-Cantillana, J.L. (2012). Steep Seam Mining in Spain.Presentation delivered on 11 July at the 7th

EU-India Coal Working Group Workshop in Leeds

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Roy, R.K. (2012). Underground coal gasification: potential and prospects in India. Presentation delivered on 28 August 2012 at the Inaugural Australian Syngas Association Conference in Brisbane, Australia. Retrieved 30 May from http://asaconference.com.au/files/2012/08/9-Raj-Kumar-ASA-UCG-Presentation-Potential-Prospects-in-India-23082012.pdf

Sachdev, R.K. (2012). Coal production and preparation in India. Presentation delivered on 16 June at the 3rd CCPUE and China Coal Preparation Development Forum in Beijing. Retrieved 27 April 2013 from http://www.cpsi.org.in/documents/Presentation%20for%20China-16%20June%202012.pdf

Singh, V.K. (2005). Coal Washing & Power Generation from Washery Rejects. Presentation delivered in November at the 2nd Indo-US Coal Working Group Meeting in Washington, DC. Retrieved 27 August 2013 from http://www.fossil.energy.gov/international/Publications/cwg_nov05_singh_washery.pdf

Sridhar, S., and Grover, S.K. (2012). Indian Domestic Coal Transport Logistics and Technology. Presentation delivered on 19 November at the 4th Coal Summit in New Delhi. Retrieved 24 May 2013 from http://indiaenergyforum.org/4th-coal-summit/presentations/session3/SK-GROVER.ppt

Wilde, M. (2012). European Union funding of clean coal and CCS technologies. Presentation delivered in Moscow on 10 December 2012. Retrieved 28 May 2013 from http://www.iea.org/media/workshops/MarionWilde2.pdf Legislation

Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide. Entered into force on 5 June 2009. Retrieved 5 June 2013 from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0114:0135:EN:PDF

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Coal Mines Nationalisation Amendment Bill, 2000. Entered into force on 8 December 2000. Retrieved 24 May 2013 from http://www.prsindia.org/uploads/media/1190950856/1190950856_coal_mines.pdf

The Coal Mines (Taking Over of Management) Act, 1973.Entered into force on 30 January 1973. Retrieved 24 May 2013 from http://www.coal.nic.in/ca7.pdf

The Coking Coal Mines Nationalisation Act, 1972.Entered into force on 1 May 1972. Retrieved 24 May 2013 from http://www.coal.nic.in/ca4.pdf Official documents

Communication from the Commission to the European Parliament and the Council of 25 June 2009: Demonstrating Carbon Capture and Geological Storage (CCS) in emerging developing countries: financing the EU-China Near Zero Emissions Coal Plant project. Retrieved 7 June 2013 from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2009:0814:FIN:EN:PDF

Call for Tenders No ENER/A3/2013-453-1: Study on introduction of a new underground mining technology at North-East Coalfields at Assam, India. Retrieved 3 June 2013 from http://ec.europa.eu/dgs/energy/tenders/doc/2013/2013s_089_150442_specifications.pdf

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Asian Development Bank. (2013). Mundra Ultra Mega Power Project: project data sheet. Retrieved 6 June 2013 from http://www.adb.org/projects/41946-014/main

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World Coal Association.(2012). Coal Statistics. Retrieved 10 April 2013 from http://www.worldcoal.org/resources/coal-statistics/

Interviews

Interviews were conducted from 6 May to 7 June 2013. In total, 17 interviews took place. Due to the wishes of several interviewees, when information obtained from interviews is cited in the report, it does not reference the specific person. Several other individuals and organisations were consulted during the research phase; their names have been omitted on request.

The following individuals have been interviewed:

1. Dr Tine Compernolle, University of Hasselt (6 May)2. Dr Christian Niemann-Delius, RTWH Aachen (15 May)3. Alexandr Jevsejenko, European Commission, DG Climate Action (16 May)4. Antongiulio Marin, European Commission, DG Climate Action (16 May)5. Dr Stoyan Gaydardzhiev, University of Liège (21 May)6. Andrew Timms, Doosan Power Systems (22 May)7. Rudolf Gänsl, FELUWA Pumpen GmbH (27 May)8. Klemens Backhaus, A-TEC GmbH (28 May)9. Lothar Schmeier, Tenova TAKRAF (29 May)10. Raj Kumar Sachdev, Coal Preparation Society of India (30 May)11. Wolfgang Dirschauer, Vattenfall (31 May)12. Christopher Robben, TOMRA Sorting (31 May)13. Dr Dermot Roddy, Newcastle University (1 June)14. Sir William O’Brien, Yorkshire Coal Task Force (4 June)15. Marion Wilde, European Commission, DG Energy (4 June)16. Marian Molenda, RAFAKO S.A. (7 June)17. Alexandra Sombsthay, European Commission, DG Energy (7 June)

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Annex

Examples of European SMEs working in clean coal technology

Below is a list of 32 European SMEs working in the coal or coal-related sector, either in Europe, India, or both. The list is by no means exhaustive, but is meant to serve as a brief overview of the types of clean coal technologies and expertise provided by small and medium enterprises in Europe.

1. ACWA

Address: Keighley Road, Skipton, North Yorkshire, BD23 2UE United Kingdom

Contact: Tel: +44 (0) 1756 794794, Fax: +44 (0) 1756 790898, E-mail: [email protected], Website: www.acwa.co.uk

Description: ACWA is a global provider of air pollution control, water and wastewater solutions. Not specifically focused on coal, nevertheless has contributed to coal wastewater projects in coal mines.

2. AITEMIN

Address: Margarita Salas, 14. Parque Leganés Tecnológico, 28918 Leganés (Madrid), Spain

Contact: Tel: +34 91 442 49 55, E-mail: [email protected], Website: www.aitemin.es

Description: AITEMIN is a Spanish technology centre specialised in mining and environmental technologies, with wide experience in mining systems for steep coal seams and in developing monitoring and control systems for underground coal mines.

3. A-TEC Anlagentechnik GmbH

Address: Eurotec – Ring 15, 47445 Moers, Germany

Contact: Tel 1: +49 (0) 28 41 884 3850, Tel 2: + 49 (0) 28 41 884 3855, E-mail through contact form on website, Website: www.atec.de

Description: A-TEC is a small company which specializes in coal mine methane gas degasification and utilization technologies. It operates in Germany, Russia, and Kazakhstan.

4. Advanced Cyclone Systems, S. A.

Address: Centro de Empresas NET Edifício PROMONET: Rua de Salazares, no 842, 4149-002 Porto, Portugal

Contact: Tel/Fax: +351 225 322 097/96, E-mail: [email protected], Website: http://www.acsystems.pt/

Description: Advanced Cyclone Systems is a small Portuguese company specialised in advanced cyclone systems. It is active in Portugal, Spain, France, Scandinavia, Poland and Brazil.

5. Aparatura Pomiarowa KWANT Bogdan Niewczas spółka jawna

Address: ul. Słomiana 17, 30-316 Kraków, Poland

Contact: Tel: + 48 12 2690720, Fax: + 48 12 2690725 E-mail: [email protected], Website:www.kwant-inst.pl

Description: KWANT renders complex services in the field of measuring and monitoring systems, systems for regulation of PF and air flow rate, pylofon and noise reduction at industrial plants.

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6. Bokela Ingenieurgesellschaft für Mechanische Verfahrenstechnik GmbH

Address: Tullastr. 64, 76131 Karlsruhe, Germany

Contact: Tel: +49 721/9 64 56-0, Fax: +49 721/9 64 56-10, E-mail: [email protected], Website:http://www.bokela.com

Description: BOKELA is a medium-sized private company active on international markets and serves users of solid/liquid separation technologies in different industries, such as the minerals processing industry, chemical industry, pharmaceutical industry, electroplating industry and recycling industry. It has a representative office in India.

7. Codel Environmental Monitoring Solutions

Address: Station Building, Station Road, Bakewell, Derbyshire, DE45 1GE, United Kingdom

Contact: Tel: +44 (0) 1629 814351, Fax: +44 (0) 8700 566307, E-mail through contact form on website, Website: http://www.codel.co.uk/index.htm

Description: CODEL International Ltd is a UK company, globally active, specialised in the design and manufacture of high-technology instrumentation for monitoring atmospheric pollutant emissions and combustion processes.

8. CTP ChemischThermischeProzesstechnik GmbH

Address: Schmiedlstrasse 10, 8042 Graz, Austria

Contact: Tel: +43 316 4101-0, Fax: +43 316 4101-80, E-mail: [email protected], Website: http://www.ctp-airpollutioncontrol.com/en/contact/

Description: CTP is a company specialised in air pollution control for industrial applications, it is also involved in the mining sector with regenerative thermal oxidation systems. It is active worldwide, also in Asia, but not in India yet.

9. Dragflow

Adress: Via Pasubio, 40 - 37069 Villafranca (VR), Italy

Contact: Tel: +39 (0) 45 6304521, Fax: +39 (0) 45 6335758, E-mail through contact form on website, Website: http://www.dragflow.it/default.asp

Description: Dragflow is an Italian small company focused on design and manufacturing activities for dredging, mining and industrial sectors. Its distribution network is extended worldwide and it provides consultancy, service and assistance.

10. DrySoTec GmbH

Address: Heinz-Bäcker-Straße 19, 45356 Essen, Germany

Contact: Tel: +49 201 450 95-0, Fax: +49 201 450 95-18, E-mail through contact form on website, Website: www.drysotec.de

Description: DrySoTec specialises in flue gas cleaning, by employing methods such as dry absorption, spray absorption, MKT systems, and wet scrubbing. The company is headed by two technical directors and supported by a team of engineers.

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11. DSD Chemtech GmbH & Co KG

Address: Eupener Straße 150, 50933 Cologne, Germany

Contact: Tel: +49 221 500 1100, Fax: +49 221 500 1200, E-mail: [email protected], Website: www.dsd-chemtech.com

Description: DSD Chemtech is an engineering and sales company specialised in process technology and plants in the fields of chemical industry and manufacturing. The company works in sulphuric acid technology, mist and droplet elimination, scrubbing systems, biofilters and thermal and catalytic incinerators. Their products include mesh pads, mist eliminators and reverse jet scrubbers.

12. DURAG GmbH

Address: Kollaustr. 105, 22453 Hamburg, Germany

Contact: Tel.: +49 40 554218-0, Fax: +49 40 584154, E-mail: [email protected], Website: www.durag.de

Description: DURAG GmbH has more than sixty-five years of experience in developing and manufacturing equipment for environmental monitoring and combustion technology for all sectors of the power production and process industry and includes the companies DURAG, DURAG data systems, VEREWA, DURAG process & systems technology, Hegwein, Smitsvonk, and Durag Siena do Brasil. Internationally the DURAG GROUP operates own Subsidiaries for Sales and Service in Brazil, China, France, India, Italy, Japan, Korea, Russia, UK and USA.13. DURAG data systems GmbH

Address: Kollaustr. 105, 22453 Hamburg, Germany

Contact: Tel: +49 40 554218-0, Fax: +49 40 584154, E-mail: [email protected], Website: www.durag-data.de

Description: DURAG data systems GmbH is dedicated to developing and manufacturing equipment and software solutions for environmental and process data acquisition and handling for all sectors of the industry, including power production and process industry.

14. DURAG process & systems technology GmbH

Address: Kollaustr. 105, 22453 Hamburg, Germany

Contact: Tel: +49 40 554218-0, Fax: +49 40 584154, E-mail: [email protected], Website: www.durag-process.de

Description: DURAG process & systems technology GmbH is dedicated to the development and manufacturing of hardware and software solutions for visualization and thermal analysis (thermography) of combustion processes as a tool for optimisation of the combustion.

15. Hegwein GmbH

Address: Am Boschwerk 7, 70469 Stuttgart, Germany

Contact: Tel: +49 711 135788-0, Fax: +49 711 135788-5, E-mail: [email protected], Website: www.hegwein.de

Description: Hegwein GmbH has more than seventy years of experience in developing and manufacturing gas and oil fired ignition burners, burners and accessories for gas and oil trains, for the power and process industry.

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16. Smitsvonk Holland B.V.

Address: Loodstraat 57, 2718 RV Zoetermeer, Netherlands

Contact: Tel: +31 79 3613533, Fax: +31 79 3611378, E-mail: [email protected], Website: www.smitsvonk.nl

Description: Smitsvonk Holland B.V. has more than seventy years of experience in developing and manufacturing gas fired ignition burners and ignition systems incl. flare ignition systems for the Power and Petrochemical Industry.

17. ERG (Air Pollution Control) Ltd

Address: Enviro Centre, Enterprise House, Foundry Lane, Horsham, West Sussex, RH13 5PX, United Kingdom

Contact: Tel: +44 (0) 1403 221000, Fax: +44 (0) 1403 221001 or +44 (0) 1403 271671, E-mail: [email protected], Website: http://www.ergapc.co.uk/index.htm

Description: ERG (Air Pollution Control) Ltd is a supplier of air pollution control (APC) systems and services. It specialises in areas such as industrial gas cleaning, particulate removal systems, hazardous waste flue gas cleaning and soluble contamination capture and recovery. The company also offers consultancy services. To date, it has built some 600 operational plants across the globe.

18. FELUWA Pumpen GmbH

Address: Beulertweg, 54570 Mürlenbach, Germany

Contact: Tel: +49 (0) 65 94 / 10 - 0, Fax: + 49 (0) 65 94 / 10 - 200, E-mail: [email protected], Website: www.feluwa.de or www.feluwa.com

Description: FELUWA is a medium-sized company which specialises in hose-diaphragm pumps, hose-diaphragm piston pumps, and underground sludge dewatering. FELUWA operates both in Europe and India. The company is part of ARCA Group, which has facilities in Germany, Switzerland, Netherlands, Mexico, India, Korea and China.

19. FLUID S.A.

Address: ul. Spółdzielcza 9, 28-340 Sędziszów, Poland

Contact: Tel: +48 41 381 26 25, Fax: + 48 41 381 2625, E-mail: [email protected] or [email protected] (office), Website:www.fluid.pl

Description: The company's offer includes turnkey construction and sale at home and abroad, Energy Recovery Plant (ZOE), together with a license to manufacture the biocarbon brand FLUID. The Company intends to conduct its own ZOE and based on that offers: the biocarbon brand FLUID, green energy, renewable thermal energy, manure with a long decay and additions to fertilizers (mineralized ash).

20. Haldex S.A.

Address: Pl. Grunwaldzki 8-10, 40-951 Katowice, Poland

Contact: Tel: +48 32 786 95 52, Fax: +48 32 786 95 59, E-mail: [email protected], Website: www.haldex.com.pl

Description: Haldex S.A. has 50 years of experience in the coal industry. The company specialises in: the recovery of coal from coal dumps; coal blending; waste management; coal transport; and offers consulting services.

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21. JVK Filtration Systems GmbH

Address: Postfach 60, ObereLerch 2, 91166 Georgensgmünd, Germany

Contact: Tel: +49 (0) 9172/707-0, Fax: +49 (0) 9172/707-77, E-mail: [email protected], Website: www.jvk.de

Description: JVK deals with filter presses, pressure filters, vacuum tank, filters vacuum, rotary filters, electrolysis and micro filtration, which find application in many sectors, such as waste water/sewage, chemistry, metallurgy and mining. The company is active worldwide, including in India.

22. Laboratorio Oficial Jose María de Madariaga (LOM)

Address: C/Eric Kandel, 1 (Tecnogetafe), 28906 Getafe, Madrid, Spain

Contact: Tel: +34 91 442 13 66, Fax: +34 91 441 99 33, E-mail: [email protected], Website: www.lom.upm.es

Description: LOM is a spin-off of the Polytechnic University of Madrid. Due to its wide international experience in the coal mine industry and with coal-fired power plants, LOM provides technological support related to coal mine methane degasification; methods, techniques and risk assessment in mining; and hazardous area management for coal processes with potentially explosive atmospheres (gas and dust). Through the Polytechnic University of Madrid LOM is participating in one of the European projects (CIUDEN-Spain) for Technology Development for CO2capture, transport and storage. Additionally, LOM has testing facilities that include an accredited laboratory for inflammable substances characterisation. Currently, LOM has a representative office in Asia.

23. Lambion Energy Solutions GmbH

Address: Auf der Walme 1, 34454 Bad Arolsen, Germany

Contact: Tel: +49 5691 807-0, Fax: +49 5691 807-138, E-mail: [email protected], Website: www.lambion.de

Description: Lambion Energy Solutions specialises in biomass, which is presents a potential for a greater share of biomass co-firing in India. Lambion’s range of expertise includes turnkey biomass power plants, heating plants, and CHP cogeneration facilities. The company has completed projects in 72 countries around the world, including in India.

24. MikroPul GmbH

Address: Edmund-Rumpler-Str.2, 51149 Cologne, Germany

Contact: Tel: +49 (0) 2203-93910, E-mail through contact form on website, Website:http://www.mikropul.de/home/home.php

Description: MikroPul has been active in the field of dust collection, air pollution control and product recovery for decades. It operates worldwide as a partner in engineering, plants and systems for filtration and product recovery of (valuable) dusts.

25. OFAMA Sp. z.o.o.

Address: ul. Niemodlińska 87, 45-864 Opole, Poland

Contact: Tel: +48 77 474 50 04, Fax: +48 77 474 50 05, E-mail: [email protected], Website:www.ofama.eu

Description: Ofama offers designing and production of, vibratory screens, vibratory feeders, vibratory conveyors, bucket elevators, vibratory drives, belt conveyors, screw conveyors, valves and flat crushers.

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26. OsmoKaulamo Engineering Oy

Address: Wahlinkatu 6, 78250 Varkaus, Finland

Contact: Tel 1 (OsmoKaulamo): +358 400 674 173, Tel 2 (Aki Kaulamo): +358 40 512 3400, Fax: +358 17 552 6618, E-mail: [email protected], [email protected] or [email protected], Website: www.oke.fi

Description: Osmo Kaulamo Engineering was established in 1989 as a family-owned engineering enterprise. The company specialises in engineering, design and project management of power and boiler plants, and provides energy and engineering consulting services. Their product range includes silencers, soot-blowing and ventilation systems, piping, continuous emission monitoring systems, and valves. The company maintains a presence in India, which includes collaboration for the manufacture of CFBC boilers.

27. PP-EKO Sp. z.o.o.

Address: ul. Agatowa 12, 03-680 Warsaw, Poland

Contact: Tel: +48 22 667 04 56, Fax: +48 22 678 94 90, E-mail: [email protected],[email protected],Website:www.ppeko.com.pl

Description: PP-EKO is a technological company that specializes in wastewater treatment and recovery, and biogas systems for industry and municipalities. Its offer includes proprietary technologies for power plants wastewater, mine wastewater recovery and reuse, water circuit closure, desalination, as well as a wide range of biogas systems. On the market since 1993, the company has completed around 100 projects. PP-EKO operates in Europe and Asia (for example, Japan).

28. PROREM Sp. z.o.o.

Address: ul. Energetyków 7, 44-330 Jastrzębie-Zdrój, Poland

Contact: Tel: +48 32 47 51 409, Fax: +48 32 47 51 410, E-mail: [email protected], Website: www.prorem.pl

Description: Established in 2000, PROREM Sp. z.o.o. offers a wide range of products and services; the latter include design, sizing, turn-key delivery, installation, commissioning and after-sale services. Theequipment on offer by the company includes jigs, filter presses, screens, valves and fittings, coal briquetting and control systems.

29. Sly Filters (Europe) Ltd

Address: 12 Coal Cart Road, Interchange Leicester, Birstall, Leicester, LE4 3BY United Kingdom

Contact: Tel: +44 (0)116 260 8187, Fax: +44 (0)116 264 0543, E-mail: [email protected], Website:http://www.slyfilters.com/index.html

Description: Sly Filters Ltd is a middle-sized company, founded in 1874, dealing with dry filter dust collectors and wet scrubbers dust collectors, including venturi scrubbers.

30. Testchem

Address: ul. Niepodległości 82d, 44-370 Pszów, Poland

Contact: Tel: +48 32 455 88 90Fax: +48 32 455 88 90, E-mail: [email protected], Website:www.testchem.eu

Description: Testchem offers grinders and crushers for preparation of laboratory samples for inspection and testing; devices (samplers) for automatic sampling of bulk materials. Their main advantage is that the process is completely automated eliminating direct operation and risks resulting from it; cooling

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systems for cooling and temperature stabilization of spectrometers, diffractometers, microscopes and other devices; laboratory presses used to prepare samples for X-ray spectrometry, diffractometry and infrared spectrometry for preparing solid samples of bulk materials, crushing and homogenizing biological samples.

31. TOFAMA S.A.

Address: ul. Marii Skłodowskiej-Curie 65, 87-100 Toruń, Poland

Contact: Tel: +48 56 619 5201, Fax: +48 56 619 5272, E-mail: [email protected], Website:www.tofama.eu

Description: At present the company offers state-of-the-art instruments and equipment used in the production, storage and transportation of chemicals and food products including pumps for chemical fluids and food products, industrial valves and metal equipment.

32. ZAKŁAD NAUKOWO - TECHNICZNY "EKO - LAB"

Address: JASIEŃ, ul Sądecka 3, 32-800 Brzesko, Poland

Contact: Tel: +48 14 68 67 523, Fax: +48 14 68 67 522, E-mail: [email protected], Website:www.ekolab.com.pl

Description: Eko-Lab is an experienced Polish producer of laboratory equipment and accessories assigned for quality control needs in mining, power and chemical industry, as well as in research laboratories and in environmental protection. EKO LAB produces, among others, jaw and roll crushers of various sizes; various laboratory mills (vibration, ball, impact); control screens (various size and shape of screen frame); laboratory screen shakers corresponding to the produced screens; and groove dividing heads for dividing samples.

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Other key players in clean coal technology

Below is a list of 11 major companies that are key players in clean coal technology. All of the enterprises on the list are either European or European subsidiaries of a major international company. They possess cutting-edge technology and expertise, and are active on both the European and global level. Small and medium enterprises in the EU could also cooperate with these key players on major projects and in doing business in India.

1. Alstom Group

Address: 3, Avenue André Malraux, 92309 Levallois-Perret Cedex, France

Contact: Tel: +33 (0)1 41 49 20 00, Website: www.alstom.com

Description: Alstom Group is the world leader in integrated power plants for the production of electricity and air quality control systems. Alstom has expertise on a wide range of CCT, including circulating fluidised bed solutions, boilers, turbines designed to cope with ultra-supercritical steam parameters, turbogenerators, air quality control systems and CCS. Alstom Group is currently present in around 100 countries across the globe.

2. Doosan Power Systems Limited

Address: Doosan House, Crawley Business Quarter, Manor Royal, Crawley, West Sussex, RH10 9AD, United Kingdom

Contact: Tel: +44 (0) 1293 612 888, Fax: +44 (0) 1293 584 321, E-mail: [email protected], Website: www.doosanpowersystems.com

Description: Doosan Power System encompasses three subsidiaries of Doosan Global, a multinational corporation based in the Republic of Korea. The three subsidiaries – Doosan Babcock, Doosan Lentjes and Doosan Skoda Power – specialise in boilers, air pollution control and turbo generator manufacturing. In the field of CCT, Doosan Power Systems possesses expertise in supercritical boilers, post-combustion carbon capture, biomass co-firing and carbon reduction by using Doosan’s OxyCoal technology.

3. DMT GmbH & Co. KG

Address: Am Technologiepark 1, 45307 Essen, Germany

Contact: Tel: +49 201 172-1952, Fax: +49 201 172-1971, E-mail: [email protected], Website: www.dmt.de

Description: DMT offers a wide range of services and products of interest to any company specialised in CCT or the coal industry in general. This includes engineering and inspection services in mining, exploration and geo survey, international consulting for mining operations, coke making technology, the construction industry, mechanical and plant engineering, as well as product and structural safety. Their products encompass measurement, testing and monitoring systems, explosion-proof electronics, and technical engineering software, among others.

4. E.ON Group

Address: E.ON-Platz 1, 40479 Düsseldorf, Germany

Contact: Tel: +49 211 4579 0, Fax: +49 211 4579 501, E-mail: [email protected], Website: www.eon.com

Description: E.ON is the world’s most geographically diversified power producer. In relation to CCT, the company’s main focus is on CCS and it is actively involved in the development of all three stages of CCS: pre-combustion capture, post-combustion capture and oxyfuel combustion. Most of its focus is on post-combustion technologies, as they can be most easily retrofitted into existing power plants and are

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the most commercially viable. Currently, E.ON is supporting more than 80 promising R&D projects along the entire CCS value chain.

5. Hitachi Europe Limited

Address: Whitebrook Park, Lower Cookham Road, Maidenhead, Berkshire SL6 8YA, United Kingdom

Contact: Tel: +44 (0) 1628 58 5000, Fax: +44 (0) 1628 58 5373, Website: www.hitachi.eu

Description: Hitachi Europe operates several subsidiaries, some of which specialise in CCT. Hitachi Power Europe GmbH offers utility steam generators, flue gas cleaning systems (capable of precipitating 99.9 percent of dusts from the gas), firing systems and components, as well as turbines. It is able to provide all the prerequisite steps for the construction of a coal-fired power plant. The company has recently also constructed the first mobile CO2 capture pilot plant.

6. Magaldi Industrie S.r.l.

Address: Via Irno 219, 84135 Salerno, Italy

Contact: Tel: +39 089 688 111, Fax: +39 089 481 766, E-mail: [email protected], Website: www.magaldi.com

Description: Magaldi is a supplier of conveying solutions, equipment and services for the global power, cement and metallurgical companies. The company offers ash handling solutions (such as dry bottom ash extraction systems, bottom ash post-combustion systems, ash recycling systems and fluidised bed ash extraction systems), ancillary equipment (such as conveyor skirting, spillage recovery and conveyor belt cleaning systems), conveyors for bulk material handling and fully integrated automation solutions for electrical and control (such as software for ash systems control).

7. RAFAKO S.A.

Address: ul. Lakowa 33, 47-400 Racibórz, Poland

Contact: Tel: +48 032 410 10 00, E-mail: [email protected], Website: www.rafako.com.pl

Description: RAFAKO is the largest boiler manufacturer in Europe. The company offers general contracting within the scope of fossil-fired power generation units. This includes boiler islands, PC boilers for sub- and supercritical steam parameters, CFB boilers, heat recovery steam generators, stoker-fired boilers and flue gas cleaning plants and equipment. It also provides boilers for waste incineration and biomass combustion.

8. Siemens Energy

Address: Freyeslebenstrasse 1, 91058 Erlangen, Germany

Contact: Tel: +49 180 524 70 00, Fax: +49 180 524 24 71, E-mail: [email protected], Website: www.energy.siemens.com

Description: With 86,000 employees, Siemens Energy is one of the largest companies included in this list. It provides a wide array of CCT-related technological solutions. These include gas turbines (with over 60 percent efficiency), power plant control systems, IGCC plants, turnkey coal-fired power plants, CCS solutions and supercritical CFB boilers.

9. STEAG Energy Services GmbH

Address: Rüttenscheider Straße 1-3, D-45128 Essen, Germany

Contact: Tel: +49 201 801-00, Fax: +49 201 801-2737, E-mail: [email protected], Website: www.steag-energyservices.com

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Description: STEAG Energy Services covers a wide range of areas, ranging from engineering services and modernisation of fossil fuel-fired power plants through plant management services to IT systems (energy and operation management systems and communication technologies) that support the planning, operation and maintenance of power plants. The company owns an Indian subsidiary, STEAG Energy Services (India) Pvt. Ltd.

10. ThyssenKrupp AG

Address: ThyssenKrupp Allee 1, P.O. Box, 45063 Essen, Germany

Contact: Tel: +49 201 844 0, Fax: +49 201 844 536000, E-mail: [email protected], Website: www.thyssenkrupp.com

Description: ThyssenKrupp offers innovative solutions across a wide range of sectors and application areas. The company’s major contribution in the field of CCT is its range of fully mobile crushers. These large electrically powered crushers can be employed in open pit mines and can replace hundreds of heavy-duty trucks, with all the accompanying fuel, driver and replacement part costs. In conjunction with a conveyor belt system, such crushers can reduce CO2 emissions up to 350,000 tonnes a year and only require three to four specialists to operate.

11. Vattenfall AB

Address: Evenemangsgatan 13C, 169 56 Solna, Sweden

Contact: Tel: +46 8 739 50 00, Fax: +46 8 17 85 06, E-mail: [email protected], Website: www.vattenfall.com

Description: Vattenfall currently operates 16 coal power plants in Europe, in Denmark, Germany and the Netherlands. The company is currently focusing on two areas; CCS and biomass co-firing. Its long-term CCS research and development project has thus far resulted in a 30 MW pilot plant at the SchwarzePumpe lignite-fired power plant in Germany, and a CCS pilot project at the Willem Alexander power plant in the Netherlands, operated by Vattenfall’s daughter company Nuon.

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This publication has been produced with the assistance of the European Union. The views expressed in this publication are those of the authors and do not necessarily reflect the views of EBTC or the European Union.

The European Business and Technology Centre (EBTC) sup-ports EU companies and researchers on their market entry to India by offering long-term hands-on support with a myriad of services. With offices in India’s metros of New Delhi, Mumbai, Bengaluru and Kolkata, EBTC is well placed to offer complete end-to-end solutions to companies who want to enter and flour-ish in the Indian market.

EBTC’s efforts focus on 4 key sectors – Biotech, Energy, En-vironment and Transport – all of which offer enormous scope for closer EU-India collaboration, be it in business, science or technology. As the connecting platform between business, research, and government, EBTC ensures that EU players are well networked with a solid base from which to develop their venture.

EBTC New Delhi (Head Office)DLTA Complex, South Block, 1st Floor1, Africa Avenue, New Delhi 110 029, INDIATel: +91 11 3352 1500Fax: +91 11 3352 1501E-mail: [email protected]

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