INDIAN DOMESTIC COAL INDIAN DOMESTIC COAL TRANSPORT LOGISITCS AND TECHNOLOGY TRANSPORT LOGISITCS AND TECHNOLOGY

byby

Sid SridharSid SridharSeabulk Systems Inc.Seabulk Systems Inc.

Richmond, British Columbia, CanadaRichmond, British Columbia, Canada

&&

S. K. GroverS. K. Grover

Geological Coal Resources – India (as on 31.3.2012)Geological Coal Resources – India (as on 31.3.2012)

11

Existing Domestic Coal Transport: Obstacles Existing Domestic Coal Transport: Obstacles

Conveying overland a practical solution for power plants Conveying overland a practical solution for power plants adjacent to the coalfield, say distances on the order of about adjacent to the coalfield, say distances on the order of about 50 km. MGR ideal for handling 5 million tes/an & above.50 km. MGR ideal for handling 5 million tes/an & above.

Trucking requires road upgrades and vehicle fleets and could Trucking requires road upgrades and vehicle fleets and could be a transport solution for distances up to 200 km, but is be a transport solution for distances up to 200 km, but is likely inefficient & costly for longer haul transport. Also a likely inefficient & costly for longer haul transport. Also a pollution hazard.pollution hazard.

Railways require upgrade including new trackage and rolling Railways require upgrade including new trackage and rolling stock and supporting infrastructure and would be a transport stock and supporting infrastructure and would be a transport solution for distances up to 2000 km. solution for distances up to 2000 km.

Railway gearing up to meet the challenge.Railway gearing up to meet the challenge.

22

Test Case For Transport LogistiTest Case For Transport Logistics cs

• Ideal case study – North Karanpura Coalfield (NK)Ideal case study – North Karanpura Coalfield (NK)• Expected Coal Resource over 12.5 billion tesExpected Coal Resource over 12.5 billion tes• Production Capabilities > 250 million tes/anProduction Capabilities > 250 million tes/an• Need for Multi-modal Transport Logistic such as Need for Multi-modal Transport Logistic such as Conveyor/Road/MGR/Rail may still be a challenge for Coal Conveyor/Road/MGR/Rail may still be a challenge for Coal evacuation from NKevacuation from NK• Innovative Solution – Slurry Pipeline TransportInnovative Solution – Slurry Pipeline Transport

a)a) For Plants 200 km or so with more than 5 million tes/an For Plants 200 km or so with more than 5 million tes/an requirementrequirement

b)b) For Plants > 200 km with Higher tonnage over longer For Plants > 200 km with Higher tonnage over longer distance – supplement Indian Railway System specially distance – supplement Indian Railway System specially on Dedicated Freight Corridor (DFC). At an appropriate on Dedicated Freight Corridor (DFC). At an appropriate location 30 to 40 million tes/an of coal may be loaded in location 30 to 40 million tes/an of coal may be loaded in DFC. We can have such concepts on DFC in future DFC. We can have such concepts on DFC in future from this & other coalfields like IB, Talcher, Mand from this & other coalfields like IB, Talcher, Mand Raigarh, Hasdeo etc.Raigarh, Hasdeo etc.

33

In consideration of the noted transportation obstacles , slurry In consideration of the noted transportation obstacles , slurry pipelines are proposed as an alternative/supplement approach pipelines are proposed as an alternative/supplement approach for Indian domestic coal transport. Slurry pipeline systems for Indian domestic coal transport. Slurry pipeline systems have some distinct advantages over existing transport have some distinct advantages over existing transport infrastructures, including:infrastructures, including:

• Practical for long haul distances of 200 km or longerPractical for long haul distances of 200 km or longer• Secure enclosed transport isolated from the environmentSecure enclosed transport isolated from the environment• Extensive technology exists to create slurry pipeline Extensive technology exists to create slurry pipeline systemssystems• Water can be recycledWater can be recycled• Integrates coal beneficiation such as marginal ash Integrates coal beneficiation such as marginal ash reduction specially clayreduction specially clay• Spontaneous combustion risks mitigatedSpontaneous combustion risks mitigated• Storage typically in tanks Storage typically in tanks • Dewatered coal may be briquetted enabling trans-loading Dewatered coal may be briquetted enabling trans-loading by rail by rail

Alternative Coal Transport: Slurry PipelinesAlternative Coal Transport: Slurry Pipelines

44

Slurry Pipeline SystemsSlurry Pipeline Systems

Slurry pipelines convey many commodities world wide including coal.Slurry pipelines convey many commodities world wide including coal.55

Process integration at certain stages of coal transportation Process integration at certain stages of coal transportation improves overall delivery economics by enabling:improves overall delivery economics by enabling:

reduction of ash and impurities at the minereduction of ash and impurities at the mine pumping a fine coal slurry through an overland pipelinepumping a fine coal slurry through an overland pipeline coal storage in slurry tanks at the power plant or trans-coal storage in slurry tanks at the power plant or trans-load after briquettingload after briquetting dewatering by centrifuge and hyperbaric filters yields dewatering by centrifuge and hyperbaric filters yields over 99% recovery of coal from the slurryover 99% recovery of coal from the slurry

Steam atmosphere drying and briquetting can enable re-Steam atmosphere drying and briquetting can enable re-handling as a dry bulk commodity. Briquettes are stable handling as a dry bulk commodity. Briquettes are stable and not susceptible to spontaneous combustion.and not susceptible to spontaneous combustion.

Water is recyclable within the system and is not discharged Water is recyclable within the system and is not discharged to the environment. to the environment.

Coal : Slurry Pipeline ProcessCoal : Slurry Pipeline Process

66

Coal Slurry Production: SizingCoal Slurry Production: Sizing

Coal sizing, cage Coal sizing, cage impactionimpaction

example shown.example shown.

2 mm minus crushed coal 2 mm minus crushed coal sample.sample.77

Coal Slurry Production: Ash ReductionCoal Slurry Production: Ash Reduction

Cyclones are an example Cyclones are an example of technology that may of technology that may

be used to separate clay be used to separate clay from fine coalfrom fine coal..

88

Pipeline Terminus: Slurry StoragePipeline Terminus: Slurry Storage

Tank storage of slurry coal depicted at a thermal power Tank storage of slurry coal depicted at a thermal power plant plant Highlights:Highlights: hydraulic reclaim avoids the need for tank agitationhydraulic reclaim avoids the need for tank agitation tank storage is more contained than open stockpilestank storage is more contained than open stockpiles rain and wind dispersion of the product is avoidedrain and wind dispersion of the product is avoided slurry storage avoids spontaneous combustion riskslurry storage avoids spontaneous combustion risk

99

Dewatering and Drying: Coal Moisture Dewatering and Drying: Coal Moisture

Coal moisture and conventional dewatering and drying of fine Coal moisture and conventional dewatering and drying of fine coal.coal.

1010

1.1.Dried hot filter cake is at risk of spontaneous combustion if Dried hot filter cake is at risk of spontaneous combustion if stored for long but this can usually be avoided by briquetting stored for long but this can usually be avoided by briquetting which stabilizes the agglomeration.which stabilizes the agglomeration.

2.2.The agglomeration of fine coal filter cake into briquettes The agglomeration of fine coal filter cake into briquettes enables it to be handled and transported as a dry bulk enables it to be handled and transported as a dry bulk material by conventional means or dried coal is not fed material by conventional means or dried coal is not fed immediately.immediately.

3.3.Briquettes are compacted at high pressure and therefore Briquettes are compacted at high pressure and therefore potentially denser than loose fine coal, this makes for more potentially denser than loose fine coal, this makes for more efficient transportation.efficient transportation.

4.4.Briquettes mitigate the creation and propagation of coal Briquettes mitigate the creation and propagation of coal dust.dust.

Coal Briquetting: RationaleCoal Briquetting: Rationale

1111

Objective - Binderless Briquetting:Objective - Binderless Briquetting:

1.1.Binderless briquetting avoids the cost of expensive binders. Binderless briquetting avoids the cost of expensive binders.

2.2.Important variablImportant variabl1313es for binderless briquetting of coal are: es for binderless briquetting of coal are: Moisture contentMoisture content TemperatureTemperature Compaction pressureCompaction pressure Particle size distributionParticle size distribution Coal propertiesCoal properties

3.3.The system proposed herein pushes the moisture content, The system proposed herein pushes the moisture content, temperature and compaction pressure variables all in a temperature and compaction pressure variables all in a direction favourable for briquette production.direction favourable for briquette production.

Coal Briquetting: BindersCoal Briquetting: Binders

1212

Variables Influencing Binderless Briquetting:Variables Influencing Binderless Briquetting:

1.1.Moisture Content: Moisture Content: Surface moisture and some inherent Surface moisture and some inherent moisture is vaporized from the fine coal as it passes through moisture is vaporized from the fine coal as it passes through the steam atmosphere of the fluidized bed drier. the steam atmosphere of the fluidized bed drier.

2.2.Temperature: Temperature: Steam atmosphere drying occurs above the Steam atmosphere drying occurs above the boiling point of water, typically at about 120boiling point of water, typically at about 120°° C, so the fine C, so the fine coal is rapidly heated. The dried fine coal is briquetted before coal is rapidly heated. The dried fine coal is briquetted before it cools significantly so compaction takes place at an elevated it cools significantly so compaction takes place at an elevated temperature.temperature.

3.3.Compaction Pressure: Compaction Pressure: Pressure is high and maintained by Pressure is high and maintained by roll compaction briquetting presses specially designed for hot roll compaction briquetting presses specially designed for hot product.product.

Coal Briquetting: VariablesCoal Briquetting: Variables

1313

Particle Size Distribution:Particle Size Distribution:

1.1.The PSD that is optimal for conveyance of coal by The PSD that is optimal for conveyance of coal by slurry may not be exactly the same as the PSD that is slurry may not be exactly the same as the PSD that is optimal for briquette production.optimal for briquette production.

2.2.PSD at 2 mm minus for coal slurry enables the material PSD at 2 mm minus for coal slurry enables the material to be easily suspended in turbulent pipeline flow. to be easily suspended in turbulent pipeline flow. Briquetting specialists estimate that this PSD is a Briquetting specialists estimate that this PSD is a possible for binderless briquette production, however, possible for binderless briquette production, however, testing would be required to confirm.testing would be required to confirm.

Coal Briquetting: VariablesCoal Briquetting: Variables

1414

Coal Briquetting: ProductionCoal Briquetting: Production

A number of firms specialize in coal briquette production and A number of firms specialize in coal briquette production and have roll compaction presses designed for the purpose. have roll compaction presses designed for the purpose.

Double Roll Press Briquette Machine Double Roll Press Briquette Machine

(Koppern Photo)(Koppern Photo)

1515

Quality Factors:Quality Factors:

1.1.Briquettes are typically pillow shaped and the size can Briquettes are typically pillow shaped and the size can be specified. Typical dimensions are 40 mm square be specified. Typical dimensions are 40 mm square pillow briquettes.pillow briquettes.

2.2.A multitude of tests are available to assess the A multitude of tests are available to assess the robustness of briquettes for handling as a conventional robustness of briquettes for handling as a conventional dry bulk material.dry bulk material.

3.3.Briquettes should avoid breakage during handling and Briquettes should avoid breakage during handling and storage and resist absorption of moisture. storage and resist absorption of moisture.

Coal Briquetting: QualityCoal Briquetting: Quality

1616

Why Slurry Pipelines?Why Slurry Pipelines?

1. 1. EconomicsEconomics

Slurry pipelines have attractive economics for Slurry pipelines have attractive economics for longer haul distances and large tonnage.longer haul distances and large tonnage. 2. 2. ScalabilityScalability

Slurry pipeline systems can be scaled with single Slurry pipeline systems can be scaled with single pipes handling about 10 Mtpa of commodity.pipes handling about 10 Mtpa of commodity.

3. 3. ImplementableImplementable

The technology required to implement slurry The technology required to implement slurry pipeline systems exists and is with well established pipeline systems exists and is with well established companies and with proven installations worldwide. companies and with proven installations worldwide.

1717

Why Slurry Pipelines?Why Slurry Pipelines?

44. . BeneficiationBeneficiationThe use of slurry systems and the use of fine coal The use of slurry systems and the use of fine coal

integrates with existing beneficiation technologies. integrates with existing beneficiation technologies.

5. 5. High RecoveryHigh RecoveryThe system utilizes fine coal which means more coal recovery The system utilizes fine coal which means more coal recovery from the mine. from the mine.

6. 6. Ash MitigationAsh MitigationAsh is marginally reduced at the mine.Ash is marginally reduced at the mine.

7. 7. Isolation From the Environment Isolation From the Environment The slurry system is fully enclosed from the The slurry system is fully enclosed from the

environment, securely buried beneath the overland transport environment, securely buried beneath the overland transport route and process water is recycled within the system without route and process water is recycled within the system without discharge to the environment.discharge to the environment.

1818

Why Slurry Pipelines?Why Slurry Pipelines?

8. 8. Spontaneous Combustion MitigationSpontaneous Combustion Mitigation

Transport of coal as slurry and production of coal Transport of coal as slurry and production of coal briquettes after drying avoids spontaneous combustion briquettes after drying avoids spontaneous combustion risk.risk.

9. 9. Power Plant FeedPower Plant Feed

Dewatered and dried slurry filter cake can also be Dewatered and dried slurry filter cake can also be fed directly into the power plant.fed directly into the power plant.

10. 10. Trans-loadable CommodityTrans-loadable Commodity

Briquettes are a stable beneficiated dry bulk fuel Briquettes are a stable beneficiated dry bulk fuel that can be trans-loaded by rail for example. that can be trans-loaded by rail for example.

1919

Example Transport System: Costs and FinancialExample Transport System: Costs and Financial

1.1. Key assumptions:Key assumptions:• Annual transport of 6 Mtpa briquettes at 25% TMAnnual transport of 6 Mtpa briquettes at 25% TM• Coal sizing and scrubbing at the mineCoal sizing and scrubbing at the mine• Overland transport by 220 km long slurry pipelineOverland transport by 220 km long slurry pipeline• Positive displacement pumpingPositive displacement pumping• Coal slurry at 48% weight concentrationCoal slurry at 48% weight concentration• Slurry and return water pipe diameter 610 mmSlurry and return water pipe diameter 610 mm• Storage, reclaim, dewatering, drying, briquetting, Storage, reclaim, dewatering, drying, briquetting, stockpilingstockpiling

2. 2. Static financial calculation and cost assumptions:Static financial calculation and cost assumptions:• Costs million $USDCosts million $USD• Interest rate 7%Interest rate 7%• Period 25 yearsPeriod 25 years• Fixed Asset IRR 12%Fixed Asset IRR 12%• Depreciating Asset IRR 20%Depreciating Asset IRR 20%• All estimates are exclusive of import duties, brokerage or All estimates are exclusive of import duties, brokerage or taxestaxes

2020

Example Slurry System: Costs and FinancialExample Slurry System: Costs and Financial

* to exclude when no briquetting* to exclude when no briquetting

For plants about 200km away from coal source cost/te For plants about 200km away from coal source cost/te would be about USD 9.79 i.e. Rs. 525 without briquetting would be about USD 9.79 i.e. Rs. 525 without briquetting etc. & with briquetting the cost/te would be about USD etc. & with briquetting the cost/te would be about USD 13.50 i.e. Rs. 725. Longer the distance, higher the tonnage 13.50 i.e. Rs. 725. Longer the distance, higher the tonnage more cost effective since terminal costs are high.more cost effective since terminal costs are high.

Subsystem Description CAPEX (M $USD)

OPEX (M $USD)

Annual Cost (M $USD/ yr)

Delivery Rate($USD/tonne)

Coal Sizing and Slurry Production $14 $5 $6 $1Coal Scrubbing $28 $5 $8 $1Mine Water System $3 $1 $1 $0PD Pump Station $52 $5 $9 $2Scrubbings Disposal $1 $0 $0 $0Pipeline Corridor Development $41 $0 $4 $1Slurry Pipe Supply & Install $93 $2 $10 $2Slurry Storage and Reclaim $27 $2 $4 $1Dewatering Plant $22 $3 $5 $1Drying Plant $35 $3 $6 $1Briquetting Plant * $81 $5 $12 $2Power & Control Systems * $3 $0 $0 $0Terminus Water System * $2 $0 $1 $0Birquette Stockpiling * $13 $1 $2 $0Stockpile Reclaim * $12 $5 $6 $1Integrated Total Costs $427 $37 $74 $14

2121

Implementation and OperationImplementation and Operation

The slurry pipeline proposal shown here has multiple The slurry pipeline proposal shown here has multiple systems to implement and operate, these include: systems to implement and operate, these include:

1.1. Coal sizing, slurry production and scrubbing Coal sizing, slurry production and scrubbing 2.2. Overland slurry pipelineOverland slurry pipeline3.3. Coal slurry storage and reclaimCoal slurry storage and reclaim4.4. Coal slurry dewatering and dryingCoal slurry dewatering and drying5.5. Coal filter cake briquettingCoal filter cake briquetting6.6. Briquette stockpiling and reclaim & loading into Briquette stockpiling and reclaim & loading into

Railway SystemRailway System

2222

Implementation: ManagementImplementation: Management

The scale and complexity of the type of integrated The scale and complexity of the type of integrated transportation system proposed is fairly significant. transportation system proposed is fairly significant. Successful implementation requires the management of a Successful implementation requires the management of a design/ build contractor or a joint venture team comprised design/ build contractor or a joint venture team comprised of specialist firms in these key areas:of specialist firms in these key areas:

1.1. Coal preparationCoal preparation2.2. Slurry pipelineSlurry pipeline3.3. Dewatering and drying filter cakes upto 200/250 Dewatering and drying filter cakes upto 200/250

kms.kms.4.4. * Briquetting* Briquetting5.5. * Materials handling and loading into railway wagons* Materials handling and loading into railway wagons

* * for various end users situated at long distance from Coal for various end users situated at long distance from Coal SourceSource

2323

Implementation: BankabilityImplementation: Bankability

1.1.A novel approach that integrates existing technologies.A novel approach that integrates existing technologies.

2.2.Major technology suppliers are qualified companies Major technology suppliers are qualified companies with proven capability in their fields.with proven capability in their fields.

3.3.Studies and tests are required to refine the system Studies and tests are required to refine the system design and assess issues and risks.design and assess issues and risks.

4.4.A tonnage guarantee would be required.A tonnage guarantee would be required.

5.5.Implementation under the control of a design-build-Implementation under the control of a design-build-operate contract for commodity transport from the mine operate contract for commodity transport from the mine to end users would enable a ‘take or pay’ contract model to end users would enable a ‘take or pay’ contract model to be implemented – totally bankable.to be implemented – totally bankable.

2424

Implementation: Business PlanImplementation: Business Plan

1.1.Tonnage guarantee required to support financial plan.Tonnage guarantee required to support financial plan.

2.2.Coal handled on a rate per tonne basis.Coal handled on a rate per tonne basis.

3.3.Take or pay form of contract if project implemented as a Take or pay form of contract if project implemented as a single design-build-operate venture.single design-build-operate venture.

4.4.Operation subcontracted to regional firms.Operation subcontracted to regional firms.

2525

ConclusionsConclusions

Slurry pipelines used to transport Indian domestic coal:Slurry pipelines used to transport Indian domestic coal:

1.1.Avoid the issues and bottlenecks existing transport Avoid the issues and bottlenecks existing transport systems facesystems face2.2.Have high utilization of mine output as it uses fine coalHave high utilization of mine output as it uses fine coal3.3.Transport a beneficiated coal productTransport a beneficiated coal product4.4.Isolate the coal transport from the environmentIsolate the coal transport from the environment5.5.Offer a competitive capital and operating cost in Offer a competitive capital and operating cost in comparison to the alternativescomparison to the alternatives6.6.Can be implementable as a design-build-operate Can be implementable as a design-build-operate venture venture 7.7.Can be set up contractually to be bankableCan be set up contractually to be bankable8.8.Studies including coal testing is required to affirm Studies including coal testing is required to affirm feasibility and economics feasibility and economics

2626

Thank youThank you

Questions?Questions?