Pre-Feasibility Report...Executive Summary 1.1. Introduction About ADANI Group The Adani Group is...

Pre-Feasibility Report on

Coal to Polygeneration(CTP) Project Products:

- 4 MMSCMD Substitute Natural Gas (SNG)

- 5000 TPD Methanol

- 4000 BPD FT Diesel/Naphtha

Adani Synenergy Limited (ASL)

Mundra

Gujarat

July, 2014

Confidential Pre-Feasibility Report

1 Coal to Polygeneration (CTP)

TABLE OF CONTENTS i) ABBREVIATIONS…………………………………………………………………………..………………………..04

CHAPTER 1 – EXECUTIVE SUMMARY………………………………………….…………….…………. 06-15

1.1 Introduction………………………………………………………………………………………..…………………... 06

1.2 Brief Description………….………………………………..……………………………………………..…….…….. 07

1.3 Market Outlook………………………….………………………..…………………………………….…………….. 08

1.4 Process Description………………………………………………………………….……………………………..… 09

1.4.1 Process Units of CTL Complex……….…………..…………………………………............. 09

1.4.2 Raw Materials……………………………………………………..…………………………............ 10

1.4.3 Water and Power Management…………………………..…………………………………….. 10

1.5 Site Analysis……………………………………………………………………………………..……………............ 11

1.6 Proposed Infrastructure………………………………………………………..………………………............ 12

1.6.1 Social Infrastructure………………………………………………..………………………........... 12

1.6.2 Industrial Waste Management……………………………………………………..…........... 13

1.7 R & R Plan……………………………………………………………………........................................... 15

1.8 Project Schedule & Cost Estimates……………………………………………………….………….......... 15

CHAPTER 2 – INTRODUCTION OF THE PROJECT…………………………………..…………………… 16-27

2.1 Identification of the Project…………………………………………………………………….……….......... 16

2.2 Brief Description…………………………………………………………………………………………….….………. 16

2.3 Need for the Project and its Importance………………………………………..…………………..…….. 18

2.3.1 Energy Self-Sufficiency…………………………………………………………………………..….… 18

2.3.2 Price Volatility…………………………………………………………………………………….….…... 19

2.3.3 Clean Technology………………………………………………………………………….…………….. 19

2.3.4 Socio- Economic Empowerment of the Region…………………………………………… 19

2.4 Demand - Supply Outlook…………………………………………………………………………….……......... 20

2.5 Employment Generation………………………………………………………………………………………..….. 27



CHAPTER 3 – PROCESS DESCRIPTION…………………………………………………………………… 28-76

3.1 Nature of the Project…………………………………………………………………………..…………………… 28

3.2 Project Location…………………………………………………………………………………..……………....... 29

3.3 Selection of the Land for the Project Site………………………………………………………….……… 31

3.4 Magnitude of Operation………………………………………………………………….………………….…... 35

3.5 Process Description……………………………………………………………………………..………………..... 35

3.5.1 Process Route…………………………………………………………………………………….…..... 36

3.5.2 Air Separation Unit……………………………………………………………….………….………… 36

3.5.3 Coal Preparation………………………………………………………………..…………….…….... 37

3.5.4 Gasifier Feed System…………………………………………………………………….….………… 37

3.5.5 Coal Gasification Process……………………………………………………………….…………. 37

3.5.6 Fines Recovery………………………………………………………………………………….……….. 39

3.5.7 Ash Disposal……………………………………………………………………………………….………. 40

3.5.8 Waste Heat Recovery…………………………………………………………………….………….. 40

3.5.9 Syngas Cleanup………………………………………………………….……………………..……….. 40

3.5.10 Fines Handling………………………………………………………………………………..………… 40

3.5.11 Sour Water Treatment…………………………………………………………………..………… 41

3.5.12 Block Flow Diagram and Mass Balance………………………………………..…………. 42

3.5.13 Gas Adjustment and Cleanup…………………………………………………….…..………… 43

3.5.14 SNG Block……………………………………………………………………………………….………… 46

3.5.15 SNG Process Block Flow Diagram…………………………………………………….……… 49

3.5.16 Methanol Block……………………………………………………………………………..………… 50

3.5.17 Methanol Process Block Flow Diagram…………………………………………..………. 55

3.5.18 FT & Product Up-gradation/Refining Section………………….……….…………….. 56

3.5.19 FT & Upgrading Process Block Flow Diagram……………………………..………….. 58

3.5.20 Block Flow Diagram All Units………………………………………………………..…………. 59

3.6 Raw Materials…………………………………………………………………………………………………...…….. 60

3.7 Utilities, Power Requirement & Offsite Units…………………………………..……………..………. 60

3.8 Automation, Control & Business Systems………………………………………..……………..…...... 69



3.8.1 Distributed Control Systems………………................................................. 69

3.8.2 Safety Instrumented Systems……………………………………………..………….………. 70

3.8.3 Fire & Gas Detection Systems…………………………………………….…………………... 71

3.8.4 Business Information Systems…………………………………………..………….………... 71

3.9 Health, Safety & Environment (HSE)…………………………………………………..………….………. 71

3.9.1 Environmental Issues…………………………………………………………..……….…………. 72

3.9.2 Health & Safety…………………………………………………………………..………..…………. 75

CHAPTER 4 - SITE ANALYSIS……………………………………………………………………………… 77-79

4.1 Connectivity……………………………………………………………………………………….………………..... 77

4.2 Land Form, Use & Ownership………………………………………………………..………………………. 77

4.3 Topography……………........................................................................................ 77

4.4 Existing Infrastructure……………………………………………………………………………………………. 78

4.5 Soil Classification………………………………………………………………………………….………..……… 78

4.6 Climatic Data…………………………………………………………………………………………….……..…... 79

CHAPTER 5- PLANNING BRIEF…………………………………………………………………..…….. 80-87

5.1 Planning Concept…………………………………………………………………………………………..………. 80

5.2 Land Justification of CTP Complex………………………………………………………………..………. 80

5.3 Land Use Plan………………………………………………………………………………………………....…….. 82

5.4 CTL Infrastructure Requirements…………………………………………………….……………..……… 82

CHAPTER 6 – PROPOSED INFRASTRUCTURE……………………………………………………… 88-98

6.1 Industrial Area…………………………………………………………………………………..……….…………. 88

6.2 Green Belt………………………………………………………………………………….……………….………… 90

6.3 Social Infrastructure…………………………………………………………………………………….………. 90

6.4 Connectivity……………………………………………………………………………..………………….………. 92

6.5 Drinking Water management………………………………………..……………………………….…... 94

6.6 Sewerage System……………………………………………………………………..…………………………. 95



6.7 Industrial Waste Management………………………………………..………………….….………….. 95

6.8 Solid Waste Management…………………………………………………….………………..…………… 97

6.9 Power Requirement & Supply…………………………………………….…………………..…..……... 98

CHAPTER 7- R & R PLAN……………………………………………………..…………………………… 99-99

CHAPTER 8 – PROJECT SCHEDULE & COST ESTIMATES…………………………………….... 100-112

8.1 General……………………………………………………………………………………………………………..…… 100

8.2 Project Execution Philosophy……………………………………………………………………………….. 102

8.3 Project Implementation Plan………………………………………………………………….……….……. 103

8.4 Typical Project Phases for Integrated CTP Project……………………………….……….…….. 104

8.5 CTP Project Phases (Concept to Commissioning) Execution…………….…………....…… 104

8.6 Project Implementation Schedule…………………………………………………………………...….. 105

8.7 Financial Analysis……………………………………………………………………………………..……..…… 106

CHAPTER 9 – FINAL RECCOMONDATIONS…………………………………………………… 113-116



List of Abbreviations:

Ac. Acres AEL Adani Enterprises Limited AGRU Acid Gas Removal Unit APL Adani Power Limited APSEZL Adani Ports & Special Economic Zone Limited ASU Air Separation Unit ASL Adani Synenergy Limited ATR Auto Thermal Reformer bbl Barrels bpd Barrels per day BFD Block Flow Diagram CPP Captive Power Plant CRF Capital recovery factor CTL Coal-to-Liquid CTP Coal-to-Polygeneration EPCM Engineering Procurement and Construction Management FT Fischer-Tropsch FY Financial Year GDP Gross Domestic Product HDK Hydro Cracking Unit INR Indian Rupees IPP Independent Power Plant IRR Internal Rate of Return ISBL In Side Battery Limit MMTPA Million Tons Per Annum MUPL MPSEZ Utilities Pvt. Ltd. ppm parts per million PSA Pressure Swing Adsorption SNG Substitute Natural Gas SRU Sulphur Recovery Unit TPD Tons Per Day TPH Tons Per Hour USD/US $ United States Dollar ZLD Zero Liquid Discharge



CHAPTER – 1 Executive Summary

1.1. Introduction

About ADANI Group

The Adani Group is one of India’s leading business houses with revenue of about $9.4

billion for financial year 2014. Adani is a global integrated infrastructure player with

businesses spanning coal trading, coal mining, oil & gas exploration, ports, multi-modal

logistics, power generation & transmission and gas distribution. With success

responsibility also comes, so we take care to reinvest in protecting and developing the

communities within which we operate.

Since Adani was founded in 1988, its revenue, assets and market capitalisation have

increased exponentially. After creating its mark in India, Adani has expanded its

operation in Indonesia and Australia by acquiring coal mines and ports.

The holding company of the Group is Adani Enterprises Ltd. It was ranked among the

top 50 Asian companies by Forbes Asia in 2009. Adani Enterprises is quoted on the

Indian stock exchange, together with its two subsidiary companies - Adani Ports & SEZ

and Adani Power.

Adani Synenergy Limited (ASL), a 100% subsidiary company of Adani Enterprises

Limited (AEL), would implement the Coal to Poly-generation Project at Mundra, Gujarat.



1.2. Brief Description:

The project cost estimated to be around US $ 4.0 billion (Rs. 24, 000 crore) includes Coal

Preparation Plant, Coal to SNG, Coal to Methanol and Coal to Liquid (FT Fuels) Plant. The

project would be located in Mundra, Gujarat will produce 4 MMSCMD SNG, 5000 TPD

Methanol, 4000 BPD FT Fuels, 2.4 MMSCMD additional SNG from Methanol and FT Plant

using environment friendly coal gasification technology.

Plant Configuration:

1. Coal Preparation Plant – 16.0 MMTPA (Conveyance, Size Reduction, Storage

Facility & Preparation)

2. Coal to SNG Plant – 4 MMSCMD

3. Coal to Methanol – 5000 TPD (1.6 MMTPA)

4. Coal to FT Diesel/Naphtha – 4000 BPD

5. Steam Turbine from internal Process Steam – 320 MW



Mass Balance of CTP Plant

The main products of the CTP plant are Methane rich SNG, ultrapure Methanol and ultra

clean FT Fuels with saleable solid Sulphur as by-product. There are many applications of

SNG viz. fuel purposes such as cooking gas, transportation fuels as CNG/PNG etc., good

chemical feedstock for Natural Gas based Fertilizer/Chemicals/Petrochemicals Plant.

Methanol is a very good feedstock for Petrochemical/Specialty -Chemicals downstream.

Methanol can also be used as fuel blend (20%) with petrol, which is already been

practiced in China in large scale. Methanol blending with petrol is yet to be notified in

India. FT diesel is used for transport sector whereas FT naphtha is a good feedstock for

Naphtha Cracker.

1.3. Market Outlook:

Strong economic growth (at 7-8% GDP growth in the long run) will continue to drive

energy consumption in India. Gas will continue to be a key component of energy

requirement of about 20% of total in 2030, increasing from 11% in 2010. Currently India

is importing LNG on long term contract basis from different countries like Qatar, Middle

East etc. In future, India may import LNG from US (Shale Gas) and Australia.

India is currently producing @ 0.5 MMTPA Methanol against the demand @ 1.5

MMTPA. Since no major capacity addition has been announced due to non-availability

of cheap NG, India would remain to supply deficit for Methanol.

In Western India there is already well developed gas infrastructure. The SNG produced

from ASL’s CTP Complex would reach the market place easily using the national gas grid

through upcoming NG pipeline which is passing through Bhuj.

The advanced cutting edge, state-of-the-art technology of the CTP project will give

superior product quality, which will provide easy market penetration of the product in

India. ASL’s CTP Products can be expected to be absorbed in the context of Natural Gas



and Methanol requirements by 2020. Growing Indian market is also key driver of the

CTP project. Location of the proposed CTP plant near the Mundra Port would have

significant logistic advantages, through which coal (main feed stock) would be imported.

Oil will continue to be a key component of energy requirement of about 29% of total in

2030, though declining from 32% in 2010. Currently India is self-sufficient in refinery

capacity, with about 40% of production being exported.

The advanced cutting edge, state-of-the-art technology of the FT Fuels will give superior

product quality, which will provide easy market penetration of the product in India.

Major equipment of CTP complex would be transported through sea and would be

unloaded in Mundra Port.

1.4. Process Description:

The coal is converted to Raw Syngas in the Gasification Section. The Raw Syngas

produced out of the Gasifier would be cleaned to produce pure Syngas. The treated

syngas is used in Methanator to produce SNG, in Methanol Reactor to produce

Methanol and in FT reactor to produce FT Fuels.

1.4.1. Process Units of CTP Complex:

The process route that CTP plant would be following is mention below:

ASU (Air Separation Unit)

Coal Preparation and Coal Handling

Coal Gasification and Scrubbing

Gas Conditioning and Cleanup

SNG Process

Methanol Process

FT and Refining



1.4.2. Raw Materials:

Total coal required for the proposed CTP plant would be around 16.0 Million Tonnes Per

Annum (MTPA) and the entire coal would be sourced from Indonesia/Australia. Some

amount of petcoke would be blended along with the coal. The coal characteristics (ash

percentage, size distribution) are key factors to determine the annual tonnage required.

Oxygen consumption would be to the tune of 18000 TPD (750 TPH) at purity level of

99.6% would be required. The raw material required and its source along with the

estimated quantity is given below in the table:

Raw material Quantity Source

Coal 16 MMTPA (1971 TPH) Coal from Indonesia/Australia and Petcoke

from refinery (for blending with coal)

1.4.3. Water and Power Management - Source & Requirements:

Water Requirement:

The Requirement of RO Water for the plant has been estimated as 1500 M3/hr. Sea

water from Gulf of Kutch has been chosen as the reliable source for the CTP complex

which is adjacent to the selected CTP site. Around 5000 M3/h Sea water would be fed to

Desalination Unit and around 3500 M3/h RO rejects would be discharged to Sea through

Outfall channel/pipe. This RO water would be utilized to meet the DM water and

Plant/Utility water requirement of CTP Complex. The water system, after RO system, is

highly integrated and is designed for Zero Liquid Discharge (ZLD).

Since the proposed CTP Complex is very close to Sea, Once through Sea Water for

Cooling Sweet Water in closed Circulation through Plate type Heat Exchangers has been

proposed for this project. Around 85,000 M3/h Sea water (based on 7 oC ∆T) would be



required in once through cooling process and almost same amount would be discharged

to Sea through pipeline. The pipeline specification details would be covered during the

modeling study.

There would be sea water intake point and sea water out fall as well. Delta T (∆T) of

the discharged water (from Cooling Exchanger to sea) would be maintained as per the

GSPCB/CPCB/MoEF Guidelines.

Total estimated power requirement of the CTP project:

The total estimated power requirement for CTP Plant is 600 MW out of which 320 MW

would be generated from internal process steam and balance 280 MW power would be

sourced from Grid/MPSEZ Utility Pvt. Limited (discom).

1.5. Site Analysis:

Detailed Soil Investigation has not been carried out in the area. However, based on

available information from the nearby and adjacent power plant project, foundation

system has been envisaged as follows:

The subsoil is expected to be generally of good quality. The sub soil is basically residual

in nature with underlying rock layer. The soil in the adjacent area is medium dense silty

fine to medium sand under the top layer followed by dense to very dense silty fine to

medium sand in the lower layer. At some isolated places, stiff to hard silty clay or clayey

silt may be found. The underlying rock layer is highly weathered rock in the upper layer

to moderately weathered rock in layers below.



1.6. Proposed Infrastructure:

The proposed CTP Complex including Coal Preparation Plant of Adani Synenergy Limited

would require a total land area of 440 Acres (178 Hectares). This area is based on a plot

plan of CTP complex as Annexure IV which has been developed taking into account the

CTP facility process, the site infrastructure requirement and external interfaces. These

areas will be firmed up with ongoing engineering studies to suit the facility’s operating

conditions, construction and maintenance philosophies and storage requirements.

CTP Plant area of around 202 Acres of land would comprise of facilities for Gasification

Island, ASU/Shift Converter/AGR/SRU, SNG Methanator, Methanol Synthesis, Waste

Water Treatment Unit, Steam Turbine (320 MW) etc.

The CTP Infrastructure would require around 53 Acres of land which includes facilities

like Pipelines, Road/Drainage, Pipe Racks/Trenches & Cable Trays, Buffer Zone, Non

Plant Buildings, Laboratories, Fabrication Yard, Dispatch Section, General stores/

Warehouse, Fire & Safety Department, Maintenance Workshop, Occupational Health

Center etc.

An additional area of around 40 acres of land will be required for Coal Preparation, Coal

Receiving & Storage.

Therefore, the land considered for the CTP Industrial Area (Processing Units) is around

295 Acres.

Around 145 Ac (33% of total CTP Complex area) has been kept for greenbelt

development as per prevailing statutory guidelines from GSPCB/CPCB/MOE & F.

1.6.1. Social Infrastructure:

ASL believes that an effective growth policy must also take into account the fulfillment

of basic needs of the masses, especially of those living in rural areas.



ASL has one of the best social infrastructure proposals which are based on the

implementation already done by Adani Group at Mundra, in the core area of Health,

Education, Sustainable livelihood options & women empowerment, Community

infrastructure, Youth sport & cultural activities, Calamity management. ASL is strictly

committed and is going to implement the proposal to uplift the social infrastructure

surroundings the CTP area.

1.6.2. Industrial Waste Management:

There will not be any significant gaseous emissions from the Gasification Island during

normal operation. Overall, the plant design minimizes the emissions by process

integration and waste heat management.

The Industrial Wastes that could be generated from CTP Complex are Ash, Process

Waste Water and Acid Gases. ASL adopts ZLD system for Process Waste Water. Besides,

the gaseous emissions would be suitably treated with latest environment technologies

before discharging in to the atmosphere.

The main solid waste from the Plant is the Ash from the Gasification Island. The total

amount of Ash generated from the Gasification Island is about 2300 TPD. The

Gasification Island Ash is non-hazardous and easily passes the regulatory limits for

metals and organics and standard waste characteristic tests for toxicity, reactivity,

ignitibility, and corrosiveness. Utilization of Gasifier Ash in the area of

Road/Embankment Making, Structural Filling, Land Development etc. would be

explored.

The site philosophy is to minimize the import of RO water by maximizing the re-use of

wastewater within the CTP facility. Zero Liquid Discharge (ZLD) systems would be

adopted for CTP Complex with Bio-Effluent Treatment Plant and Recycling.



The generated sewage waste water would be treated in Sewage Treatment Plant and

the treated water would be utilized for Horticulture purposes.

The CTP facility would be well equipped to deal with air pollutant regulations. Under the

reducing environment inside the gasifier majority of the Sulphur and Nitrogen in the

coal is converted into H2S and NH3, which are absorbed in the Gas Clean-Up Section. So,

the quantity of SOx & NOx in the flue gas from the CTP Complex would be very less.

Moreover, these emissions would be reduced with the latest environmental

technologies and are well within the permissive levels of emission, as stipulated by

Central/State Pollution Control Boards, Ministry of Environment & forest (MOE&F) &

World Bank Standards, before discharge into the atmosphere.

The following steps would be taken to reduce air emissions with examples of abatement

technologies:

1. Sulphur Dioxide (SO2): A Sulphur Recovery Unit for the recovery of saleable

Sulphur.

2. Particulate Matter: Wet Scrubbers, Cyclones, Electrostatic precipitators, Fabric

Filters.

3. VOC Emissions: Dual Mechanical Seals on pumps, closed vent systems, closed

loop sampling etc.

Materials expected to generate fugitive dust handing such as transportation of sand, soil

etc. will be transported in wet condition with covered truck to ensure that no dust is

generated during construction. Coal will be transported through totally enclosed

Conveyors for ensuring complete dust suppression, including provision for Mechanized

De-dusting systems.



1.7. Rehabilitation and Resettlement (R&R) Plan:

Since the entire land is vacant, hence no displacement and rehabilitation of local

population is envisaged.

1.8. Project Schedule & Cost Estimates:

Implementation schedule for CTP complex: 48 Months

The project cost has been estimated on the basis of identified scope, engineering details

for cost estimation, licensor’s information and cost data for Engineering, Procurement

and Construction management (EPCM) mode of execution. A reasonable contingency

factor has been applied to take care of the unforeseen items.

The total estimated project Cost of the CTP project is around 4.0 Billion USD (24,000

Cr.).

IRR (Post-tax) for the CTP Project is coming around 14 %, calculated on the basis of 20

years of life.

Around 1500 people would be directly employed during operation of the plant. Around

5000 people would be required during construction phase of the project.



CHAPTER – 2 Introduction of the Project

2.1. Identification of Project:

India imports more than 80% of its crude oil requirements. There is a big

Supply/Demand gap of Natural Gas and Methanol in India and India is going to remain

supply deficit on above products unless new capacities are announced. Adani Group has

acquired coal block in Indonesia which is currently operating. The Indonesian coal is

being transported through sea route and unloaded at Mundra port, which is owned and

operated by Adani Group. Presently the coal is being utilized for power production at

Mundra. Adani Group wants to monetize the coal and utilize the chemical value of the

coal to make various petrochemical products instead of making only power. Provision

for blending Indonesian coal with Australian coal and refinery petcoke is also there.

Adani Synenergy Limited, 100% subsidiary company of Adani Enterprises Limited, has

been created to implement the Coal to Polygeneration (CTP) project at Mundra, Gujarat.

2.2. Brief description:

The project cost estimated to be around US $ 4.0 billion (Rs. 24, 000 crore) includes Coal

to SNG, Coal to Methanol and Coal to FT Liquid plant. The Project site is located at

Mundra which is located near Tunda village, Taluka Mundra, District Kutch in the state

of Gujarat. and about 5.5 km from Mundra West Port, Gujarat, longitude 69°31’37” E

and latitude 22°48’0.74” N.

The project will produce 4 MMSCMD SNG, 5000 TPD Methanol and 4000 BPD FT Fuels

using environment friendly Coal Gasification Technology.



A land measuring around 440 acres will accommodate the proposed CTP project. The

proposed site is adjacent to CGPL’s existing Power Plant and 2 km away from APL’s

existing Power Plant.

The main products of the CTP plant are SNG, Methanol and FT Fuels with valuable by-

product such as elemental Sulfur. SNG has the similar characteristics as Natural Gas and

can be used wherever NG is being used. SNG can be used as Town Gas (cooking gas) to

replace LPG, as transportation Fuels (CNG) to replace Petrol. Methanol is used for

making downstream Petrochemicals/Specialty Chemicals. Methanol can be used as

Petrol blend (upto 20%), which is already widely being used in China in a massive way. In

India the blending of Methanol with Petrol is yet to be notified. Diesel is mainly used in

transport sector as automotive fuel and in industry for power generation. Naphtha is

mainly used as a feedstock for cracker units in Petrochemical industries.



2.3. Need for the project and its Importance:

Figure: Importance of CTP project

2.3.1. Energy self-sufficiency

Energy self-sufficiency being of strategic importance to government of India, it becomes

a unique selling proposition to set up a CTP venture in India. Setting up a CTP plant in

Western region of India can fully utilize the Port facility to import feed coal whereas

SNG, Methanol and FT Fuels can be transported to market place effortlessly because of

existing good infrastructure facilities. SNG can be transported through the National Gas

Grid to any Part of the India.

CTP

Stable Coal Price

Volatility of oil and

Gas prices

Very little Domestic Gas & Oil Reserves Increasing Gas & Oil Demand

Clean Fuels



2.3.2. Price volatility:

The background to interest in making SNG is the uncertainties that surround the long

term supply of Gas/Oil and its increasing price volatility. Using imported coal or

accessing the relatively stable coal market, can allow India to minimize their exposure to

gas and oil price volatility, while providing the Gas, Methanol and Oil needed for

economic growth.

2.3.3. Clean technology:

CTP technology not only offers the potential for increased energy security, it also helps

address the drive for ultra clean fuels with premium grade. During the whole CTP

process the entire sulphur and nitrogen, which is present in the coal, would be

converted to elemental Sulphur (final product) and Ammonia (final product) instead of

Sox and NOx. Substitute Natural Gas (SNG) is free of sulphur/heavy hydro carbons. Use

of SNG in domestic cooking purposes is safer than use of LPG since SNG is lighter than

LPG. If there is any leakage, SNG would be evacuated from the kitchen room through

ventilator easily, whereas LPG would be dispersed on the floor level due to heavier than

air. Methanol is also a very good feedstock for Chemical/Fertilizer Industries. FT fuels

burn more completely, exhaust emissions are significantly lower, reduced engine wear

and engine noise, improved lubricant life and engine cleanliness, higher biodegradability

hence making it a premium quality ultra clean fuel of Euro-VI (S<1 ppm) equivalent as

compared to the Euro- III/IV equivalent fuels produced from conventional crude

refineries.

2.3.4. Socio economic empowerment of the region:

This CTP project has the potential to generate 6,000 jobs both directly and indirectly.

Over 30 years of the project life, this project will generate substantial amount of Tax

Revenue. In addition to the above benefits this project will strengthen the overall socio-

economic status of the people especially from Mundra and overall Gujarat.



2.4. Demand - Supply Outlook

An overview of Chinese Coal based Synfuels development

The defined shift of Chinese coal derived chemicals and Synfuels is well known and

which is a clear drive to offset growing dependence on Oil and Gas import. China is on

track to significantly increase its Coal to SNG, Chemicals and Fuel production when the

Coal to Liquid (CTL) production is said to a target at 12.0 MMTPA by 2015. Besides more

than 55 MMSCMD of Substitute Natural Gas (SNG) from coal shall be in the pipeline in

China by 2015. The Chinese Government as a part of its 5 year plan is in a huge drive to

the shift towards the coal based products.

An overview of Natural Gas in India

I. It is observed from below figure that the share of Coal is expected to decrease from

53 % (2010) to 50% (2025) in total energy mix. This coal is mainly for Thermal Power

Generation by employing subcritical or supercritical P.C. Rankine cycle operation.

The NG share is expected to increase from 11% to 20%. The Domestic NG production

was 130 MMSCMD (2010). However, the domestic NG production has been dipped

to 101 MMSCMD (2012-13) resulting from RIL’s surprising production shortfall of

around 35 MMSCMD.

II. Further the total supply of Domestic NG and Import LNG at present appears to be

rather discouraging, when the total supply was at around 146 MMSCMD (101

MMSCMD Indigenous production + 45 MMSCMD LNG Import) against the demand

of 242 MMSCMD (source PNGRB). It is also observed that there is alarming gap of

Demand/Supply at around (+) 200% by 2016-17. GOI have planned to meet the gap

by LNG import, which is uncertain and subject to price volatility. Thus our energy is



in considerable risk besides a large Foreign Exchange flow which can adversely affect

our Foreign Exchange Revenue.

III. The demand and price sensitivity is studied by Government of India (GoI) (MoPNG).

Government of India (GoI) has also drawn an elaborate plan for import of LNG to

meet the immediate demand. The average price of NG in the forcible future (2015

onwards) is expected at $ 16 / MMBTU. It is realized that SNG from Imported

Indo/Aus Coal can be produced lower than $ 16 / MMBTU and can be competitive to

RLNG.

Energy Mix



Demand Supply Balance of Natural Gas from 2012-13 to 2029-30 (source – PNGRB)

Methanol Market Outlook

Production/Demand in India

There are five producers of methanol in India with a total capacity of 465,810 TPA.

Much of this capacity (88%) is in the western region, with less than 5% in the northern

region and 7% in the eastern region.

Gujarat Narmada Fertiliser Company (GNFC) in Bharuch (Gujarat) is the biggest player

with 51% of the total capacity, followed by Deepak Fertilisers & Petrochemicals Ltd.

(DFPCL) with 21% and Assam Petrochemicals Ltd. (APL) with 7 per cent.

The production of methanol in 2012-13 was 255,000 Tonnes indicating a capacity

utilization of 55% due to high feedstock cost. In fact, local production of methanol over



the period of last seven years has been hovering between 350,000 Tonnes to 390,000

Tonnes. During 2008-09, however, production was even lower at 237,000 Tonnes.

Import and Export

Due to the local demand exceeding supply, India has to depend on imports to meet its

requirements. Imports, in fact, constitute around 70% of total consumption. Imports

have grown from 527,000 Tonnes in 2006-07 to 1,442,000 Tonnes in 2012-13,

registering a compounded annual growth rate (CAGR) of 11.45% during the last five

years.

In 2008-09, imports were significantly higher at 1.058 MT, due to lower domestic

production. 95% of the imports are being sourced from three countries: Saudi Arab

(51%), Iran (33%) and Oman (11%).

Future Demand:

Demand for methanol five years hence is projected to grow to >2 Million Tonnes, at an

average growth rate of 6% per annum. The demand does not take into account the

potential demand that may arise from the biodiesel and fuel blending sectors.

In the case of biodiesel, a ‘National Mission’ has been initiated based on jatropha/ non-

food plantations on waste lands and the first crops are expected after 1-2 years. Current

capacities for biodiesel, using Crude Palm Oil (CPO) as the main raw material are small

and the production is slated for exports. The potential demand for methanol from this

sector after about years could be as high as 0.13 MT annually, based on 10% blending.

In the case of gasoline blending with methanol, there is no policy on the horizon, and

the focus is on ethanol blending. However, a potential demand based on blending 20%

of gasoline output with 15% of methanol could be around 0.5 MT annually.



With no new capacities announced, and none expected due to low cost natural gas

based methanol available in the country, India will have to continue depending heavily

on imports.

There is a need for world scale plant-based on low cost natural gas availability, or on

alternate low value hydrocarbons such as Coal/Pet-coke gasification.

From the above market outlook of Methanol, it is clear that methanol @1.5 MMTPA can

be easily absorbed in the Indian market.



FT Fuels:

Among the petroleum products, Diesel consumption has been growing steadily in India.

There is a strong Diesel demand in road transportation (both commercial and passenger

vehicles) which is expected to show a robust growth of 7-8% p.a. and is expected to

reach 96 MTPA in 2020.

By 2020-30 India has to meet up the global Diesel standards of Euro VI. The Euro VI

standards will favor the Ultra Clean CTL Diesel for blending with conventional diesel. The

CTL Diesel is Ultra Clean (S<1 ppm) and higher Cetane No (>70), which would be treated

as premium products.

Table 2: Diesel Demand-Supply forecast, India.

year Demand (MTPA) Supply (MTPA) (+)Surplus/(-)Deficit (MTPA)

2010 51 70 +19 2015 67 103 +36 2020 96 131 +35 2025 121 160 +39 2030 156 197 +41

Since the Coal price is almost stable, the price of Diesel would not depend on

international crude oil price fluctuation.

Naphtha:

Naphtha is a key refinery product and is used in petrochemicals as a feed to Cracker

units, also as a Fuel grade source in Fertilizer & power plants.

Fuel grade demand has been declining and is expected to be eliminated by 2015 as

power and fertilizer plants switch to Natural Gas with gas availability, access through

pipelines and better economics. CTL Naphtha contain low aromatics, high paraffins and

gives higher yield of polyolefin, hence it can command a premium in the petrochemical



markets as a feedstock. The Demand & Supply for Naphtha in India as a feedstock to

Petrochemical Cracker units is shown in the table enclosed below.

Table 4: Cracker Grade Naphtha Demand-Supply forecast, India.

year Demand (MTPA) Supply (MTPA) (+)Surplus (MTPA)

2010 10.6 17.8 +7.2

2020 22.7 25.2 +2.5

Conclusion:

Based on the above facts and figures, it can be concluded that marketing of 4 MMSCMD

SNG, 5000 TPD Methanol and 4000 BPD won’t be a problem. The quantity can be

absorbed in the domestic market.

2.5. Employment generation:

During normal operation of the CTP Plant around 1500 people would be employed

directly and around 4500 people indirectly.

During construction period of the project around 5,000 workers would be required.



CHAPTER – 3 Process Description

3.1. Nature of Project:

The proposed CTP Project produces 4 MMSCMD SNG, 5000 TPD Methanol and 4000 BPD FT

Fuels based on the Coal Gasification route. CTP project comprises of various units such as Coal

Handling and Preparation, Gasification Unit, Gas Purification, Methanation Unit, FT

Synthesis/Product Upgrading, Methanol Synthesis Unit, Air Separation Unit (ASU). In addition to

this a Steam Turbine of 320 MW has been proposed to generate power from internal process

steam which would partially cater the power requirement of the CTP project. Balance power

requirement @280 MW would be sourced from Grid/MPSEZ Utilities Pvt. Ltd (Discom).

Business Plan:



3.2. Project Location:

The Project site is located at Mundra which is located near Tunda village, Taluka

Mundra, District Kutch in the state of Gujarat. and about 5.5 km from Mundra West

Port, Gujarat, longitude 69°31’37” E and latitude 22°48’0.74” N.

Location map of the plant is shown in Annexure - 1



Composite lay-out Diagram of CTP Project (Satellite Image):



The site is well connected by the National / State Highways, broad gauge rail link and is

5.5 km away from the Mundra West Port. The nearest airport is Bhuj Airport located at a

distance of 65 kms from the project site. The nearest railway station is

Adipur/Gandhidham, which is about 63 kms from project site and nearest town is

Mundra which is about 20 kms from the project site. The national highway NH-8A is

passing at about 12 kms away from the site. Distance from State Highway SH-6 is 4 kms.

The site is well connected with Ahmedabad city located at about 460 kms.

3.3. Selection of Land for the Project site:

Three locations were identified and analysed to select the most suitable location for

development of proposed Coal to Polygeneration facility.

Location of alternative sites on the Google imagery is as shown in Figure as shown

below.



The following alternative location/site were considered and analysed.

Alternative Site 1: West side of Intake Channel, Village Tunda

Alternative Site 2: North side of Aljstorm Bharat forge, Village Siracha - Navinal

Alternative Site 3: North side of APL road near Mundra Dhuo, Village Navinal – Zarpara



Criteria for Site Evaluation

As all the options are part of notified SEZ land of APSEZ, following factors will be

considered for site evaluation:

Away from environmentally sensitive areas

Suitability of land from topography and geological aspects

Better Connectivity in terms of road and rail

Site slope and drainage pattern

Evaluation of Alternative Sites

The alternative sites considered were evaluated and the details are given in Table below



Table: Alternative Site Analysis

Attribute Alternative site 1 Alternative site 2 Alternative site 3 Location Near village Tunda Near village Siracha Near Village Zarpara Latitude - Longitude 22°48'0.74"N

69°31'37.14"E 22°49'38.32"N 69°34'37.73"E

22°48'52.61"N 69°36'41.20"E

Land availability Notified land of APSEZ Partly Notified land of APSEZ and partly Private land

Notified land of APSEZ

Connectivity Road: NH8A – 7 Km Rail: At West Port

Road NH8A – 0.4 Km Rail: At West Port

Road NH8A – 1.1 Km Rail: At West Port

River / Streams / Nallahs

1.05 km NE Khari river Navinal river passing parallel through plot from North to South Daneshwari river on west side alignment of land

Nagvanti river on East side alignment of land

Social and R & R issues

Not applicable Not Applicable Not Applicable

Forest 2.64 Km NE Siracha Reserve Forest on west side alignment of land

Navinal Reserve Forest on South - West side alignment of land

Mangroves Not applicable Not applicable Not applicable Fish landing centres Not applicable Not applicable Not applicable Erosion prone areas No No No Coal linkage West Port 5.4 Km for

required conveyer belt for coal transport

West Port 8 Km for required conveyer belt for coal transport

West Port 8.4 Km for required conveyer belt for coal transport

Intake of sea water Adjacent 4.5 Km NE 7 Km E Recommendations Suitable Not preferable Not preferable Based on the above analysis, alternative site no.1 near Intake channel is found most suitable.



3.4. Size/magnitude of operation:

The capacity of the CTP plant is 4 MMSCMD SNG, 5000 TPD Methanol and 4000 BPD FT

Fuels.

3.5. Process Description:

The coal is converted to Raw Syngas in the Gasification Section. The Raw Syngas produced

out of the Gasifier would be shifted (water gas shift) to adjust required H2/CO ratio and

would be cleaned to produce pure Syngas (CO+H2+CH4). The treated syngas is used in

Methanator to produce SNG, in Methanol Synthesis block to produce Methanol and in FT

block to produce FT Diesel/Naphtha.



3.5.1. Process Route:

ASU (Air Separation Unit)

Coal Preparation

Coal Gasification

Gas Conditioning and Cleanup

SNG Process

Methanol Process

FT Synthesis/Refining

3.5.2. ASU (Air Separation Unit)

The Gasification Process of the Plant will use pure oxygen to limit inert gases (argon and

nitrogen) in the product syngas. Oxygen is provided to the Gasifiers battery limit by a

cryogenic air separation unit (ASU) supplied by a suitable process licensor. To maintain

reasonable size and energy consumption of the ASU, oxygen purity of about 99.8 mol% is

selected. The ASU also supplies high pressure (HP) and low pressure (LP) gaseous nitrogen

for use within the gasification facility. Typically, the nitrogen requirement for the

Gasification Island can be easily met by the ASU with no additional capital investment

because nitrogen is a by-product from the Facility.

Air

Air Separation Unit

Oxygen to CGP

Oxygen to ATR

Nitrogen

Oxygen to SRU



3.5.3. Coal Drying and Preparation

Coal drying unit has been considered to bring down the moisture content of the Indonesian

coal contains from 50% to 20% before feeding into the coal preparation Unit.

The coal preparation is designed to prepare the coal feed to the required standard for the

gasification plant. The coal from the storage area is conveyed to a crusher. The crusher is

typically a hammer mill type. Fine grinding of the coal is not required because fines are

typically associated with carbon loss in the gasifier. Typical size distribution is 88% between

0.15mm and 6 mm. The milled coal is screened to size and oversize is recycled to the

crusher. The sized coal is conveyed to a kiln type dryer that contacts the coal with heated

air. A bucket conveyor lifts dried coal to the top of the coal hoppers.

3.5.4. Gasifier Feed System

The gasifier feed system consists of weight bins, conveyors, and lock hopper systems that

supply the gasifier with coal at pressure. Carbon Dioxide from the Acid Gas Removal system

(AGR) is used as transport gas to improve the syngas yield. The coal feed is pressurized in a

lock hopper system and metered into the gasifier using a rotary or screw feeder.

Steam and Oxygen are injected at the bottom of the gasifier, beneath the grid. Together

they provide the energy to fluidize the gasification mixture.

3.5.5. Coal Gasification

Coal gasification is the process of reacting coal with oxygen and steam to form a product

gas containing Hydrogen (H2) and Carbon Monoxide (CO). The resulting gas mixture is called

Synthesis gas or Syngas and is itself a fuel. Gasification is essentially incomplete combustion.

From a processing point of view the main operating difference between Combustion &

Gasification is that Gasification consumes heat evolved during combustion. Under the



reducing environment of gasification the sulfur in the coal is released as hydrogen sulfide

rather than sulfur dioxide and the coal’s nitrogen is converted mostly to ammonia rather

than nitrogen oxides.

These reduced forms of sulfur and nitrogen are easily isolated, captured, and utilized, and

thus gasification is a clean coal technology with better environmental performance than

coal combustion.

The various reactions that take place in the Gasifier are shown in the below:

Within the reaction bed, the coal reacts with steam and oxygen. The process accomplishes

four important functions; it decakes, devolatilizes, and gasifies the feedstock and if

necessary, agglomerates and separates ash from the reacting coal. At the specified

operating conditions, coal is gasified rapidly to produce a synthesis gas product consisting

of hydrogen, carbon monoxide, water vapor, and methane.

Additionally the gas contains small amounts of ammonia, hydrogen sulfide, and other

impurities. The syngas exits the top of the gasifier through a refractory lined to the inlet of

the primary cyclone.



3.5.6. Fines Recovery

The primary fines recovery and recycle system consists of two cyclones in series, the

primary and secondary cyclones. The cyclones collect most of the fines from the gas stream

leaving the gasifier. The primary cyclone is refractory lined due to the temperature. Syngas

from the primary cyclone enters the secondary cyclone which is similarly refractory lined.

The fines collected in the cyclones are returned to the fluidized bed of the gasifier by

means of a dip-leg.

Coal Gasifier



3.5.7. Ash Disposal

Coarse ash is removed from the bottom of the gasifier, cooled, and discharged through a

lock hopper system. Ash is conveyed by water cooled screw conveyors for further cooling

and discharged to an ash storage silo in dry state. Ash from the silo is mixed with water in a

pug mill before loading on a truck for disposal.

3.5.8. Waste Heat Recovery

The heat recovery steam generator (HRSG) increases the plant’s efficiency by generating

steam from the hot syngas leaving the secondary cyclone. The HRSG is a natural circulation

boiler which has a single drum and steel structure. The syngas flows sequentially through

the steam generator section, the superheater, and the economizer before leaving the

bottom of the HRSG. Steam produced by the HRSG is used as feed to the gasifier and

produced in excess for use in steam turbines for production of power.

3.5.9. Syngas Clean-up

The cool syngas from heat recovery passes to a third high efficiency cyclone and then to a

ceramic/metal filter for further dust removal. The collected fines are recycled to the

gasifier through the fines management system. The syngas is then washed in counter

current scrubber to remove the residual solids. Evaporation of water in the scrubber cools

the gas and concentrates the water so a continuous blow-down is required. After removal

of fines from the raw syngas, it goes to Gas Adjustment and Purification Section.

3.5.10. Fines Handling

Dry fines collected from syngas clean-up are routed to a fines silo through a lock hopper

system. They are collected in the silo and returned to the gasifier. The system is referred to

as the Fines Management System and is included to maximize the carbon conversion.

Normally all fines are recycled to the gasifier where they agglomerate and are discharged

with coarse ash.



3.5.11. Sour Water Treatment

The blow-down water from the syngas scrubber is saturated with hydrogen sulfide that is

produced in the gasifier from sulfur in the coal. The blow-down is stripped in packed

column and the overhead gas sent to the sulfur recover unit. The stripped bottoms is

cooled and treated by a clarifier to settle the ash. The solids containing underflow is used

to wet the dry ash in the pug mill during loading. Clarified overflow is reused in the process

after treatment.



3.5.12. Block Flow Diagram and Mass Balance



3.5.13. Gas Adjustment and Cleanup

The process units in gas conditioning and purification are:

SHIFT CONVERTOR:

The purpose of the Shift Converter Unit is to meet the H2: CO ratio 3:1 for SNG Methanator

and 2:1 for Methanol and FT Synthesis. The CO will be converted to H2 through reaction

with steam at a temperature around 260 ºC. Heat from reaction will be recovered by HRSGs

to produce low pressure steam. Before entering the shift unit, the gas will be pre-heated to

desired process temperature.

Water Gas Shift Reaction:

CO + H2O CO2 + H2

ACID GAS REMOVAL UNIT (AGRU):

The duty of the AGRU is to remove contaminants (e.g. H2S, CO2, COS, HCN) from the raw

sour synthesis gas produced in the coal gasification island to meet the feedstock

specification of the downstream Units. Rectisol offers one of the efficient ways of removing

Acid gases from syngas.

RECTISOL:

Rectisol uses refrigerated methanol as the solvent for physical absorption of Acid gases & other

impurities present in Raw Syngas. Raw Syngas from the Shift Converter Unit, which is at 430 C is

cooled down to 70C by using spiral wound heat exchanger. Syngas containing impurities (trace

amount of NH3 & HCN), H2S and CO2 is fed to the Absorber Column. Rectisol unit removes H2S

Raw Sour Syngas

Methanol Make-up

Stripping Nitrogen

Acid Gas Removal Unit

Clean Syngas

CO2 product

Acid Gas

Waste Water



and CO2 in one single absorption process and produces ultra-pure Syngas (total sulfur <0.1

ppm(vol), CO2 <2 ppm(vol)).

ABSORBER COLUMN

The Absorber Column has three section namely pre wash section, H2S absorption section and

CO2 absorption section.

The gas is then fed into the pre wash section of ABSORBER where trace components like NH3

and HCN are absorbed with a small stream of the sub cooled laden methanol coming from H2S

Absorber.

The gas is then routed via chimney into the H2S absorption section where H2S and COS are

scrubbed out with CO2 saturated methanol coming from the CO2 Absorption section. In this

section H2S is absorbed at around (-) 26 to (-) 38 0C. Desulfurized Syngas then enters the lower

part of the CO2 Absorption section.

In the CO2 Absorption section the gas is wash with pure methanol (hot regenerated methanol +

makeup methanol) at around (-) 44 to (-) 47 0C, pure methanol being fed to the top of the

Absorber.

Part of the methanol from CO2 absorber is routed to the top of the H2S Absorbing section while

the balance flows to the CO2 regenerator where it is flashed at the medium pressure removing

CO2.

The laden methanol from H2S Absorption section flows to the H2S Regenerator and the

recovered H2S will be further treated in the downstream Oxy-Claus Unit to recover elemental

Sulfur with purity over 99 %. This elemental sulfur would be sold in the market for various

downstream product applications like Sulfuric Acid Plant, Fertilizer industries etc. CO2 and H2S

free methanol, from the H2S & CO2 Regenerator, is sent to the hot Regenerator for

regeneration to obtain pure methanol.



The clean Syngas after Rectisol Unit will be fed into downstream Unit for producing SNG,

Methanol and FT Diesel.

The Block Flow Diagram of Rectisol Unit is shown in the below:

SRU (Oxy-Claus Process):

The duty of the SRU is to recover sulphur from the H2S recovered in Rectisol (AGRU).The

sulphur recovered through Oxy-Claus method is 99% pure.

Acid Gas

Oxygen

Sulphur Recovery Unit

Sulphur

Sour Water



3.5.14. SNG Process

The Methanation step converts Low BTU Gas (3000 Kcal/Nm3) by the following overall

chemical reaction to High BTU (8500 Kcal/Nm3) Gas:

CO + 3H2 CH4 + H2O CO2 + 4H2 CH4 + 2H2O A typical schematic Process Diagram below presents process / plant configuration.

Methane is synthesized from hydrogen, carbon monoxide and carbon dioxide in the

presence of a highly selective nickel based catalyst.

The above Methanation Reactions are highly exothermic and heat released is utilised to

heat the incoming feed gas as well as for steam generation in waste heat boilers. Hot feed

gas, after indirect exchange with the product gas, is passed through a Sulfur Guard Reactor

to remove last traces of impurities before entering the Methanation synthesis loop. The

synthesis loop consists of a Methanator, waste heat boilers and a recycle compressor. Feed

gas composition to the Methanator will be set by combining the fresh feed gas stream with

the gas stream circulated by the recycle compressor. Reaction heat from the Methanator is

removed in the high and low pressure waste heat boilers where HP and MP Steam is

generated. Product gas from synthesis loop is cooled in a feed/recycle product heat

exchanger and further cooled in a final product cooler to achieve ambient temperature.

Condensed water is removed in a product condensate separator. The process condensate is

further treated/polished and recycled in the plant as make-up water.

The syngas from Gasification following preliminary cleaning and heat recovery by steam

generation is divided in two streams. When a post stream (around 2/3rd) is routed to the

Water Gas Shift Reactor (Isothermal High Temp Reactor) and the other part is by-passed

around the Shift reactor. The above configuration is adopted to adjust H2:CO ratio at 3:1

following CO2 removal at the Acid Gas removal (AGR) unit. The mixed stream ex-water gas



shift is routed to AGR in order to remove the Carbon Dioxide and also to remove the

condensed water formed at the Water Gas Shift (WGS) reaction section.

Generally, the Sweet Syngas after Acid Gas (H2S + CO2) removal is split into (3) streams. The

first stream is fed to the 1st Methanation Reactor together with part of the outlet stream

from this (1st) Reactor. The recycling of the Gas is achieved by using a compressor. Further,

the part of the methanated gas (Non Recycled) is further mixed with the 2nd Fresh Feed

Syngas Stream and routed to the Second Methanation reactor. In the similar way, the outlet

from the 2nd Methanation Reactor (part stream) is sent to the third Methanation Reactor

along with 3rd fresh syngas stream.

Finally, the exit from the 3rd Methanation Reactor is sent to the Cooling Section and then to

a Carbon Dioxide (CO2) Removal unit. The SNG produced is further dried.

Process Flow Diagram:

Process Flow Diagram of Methanation Block



PRODUCT (SNG) GAS COMPRESSION AND DRYING

The product SNG from the methanation section is further compressed by steam driven

centrifugal compressor from around 60 Bar to around 70-80 Bar depending upon on the Gas

SNG pipeline pressure. Depending on the product SNG Gas condition and composition; the

SNG can be subjected for a dehydration step involving Molecular Sieve Adsorption/Drying.

This step may be suitably incorporated depending on the overall balance based on specific

technology/licensor.



3.5.15. SNG PROCESS BLOCK FLOW DIAGRAM:



3.5.16. METHANOL PROCESS

Methanol Synthesis:

Methanol is synthesized from hydrogen, carbon monoxide and carbon dioxide in the

presence of a highly selective copper based catalyst. The principal synthesis reactions are as

follows:

CO + 2H2 CH3 OH

CO2 + 3H2 CH3OH + H2O

These reactions are highly exothermic and the heat of reaction must be promptly removed

from its source. This is accomplished most effectively in the two stage methanol synthesis,

which consists of a water- cooled and a gas- cooled methanol reactor system.

Preheated recycle gas and synthesis gas are mixed and routed to the gas cooled methanol

reactor. Passing the tube side, the feed gas is further heated up to the inlet temperature of

the water cooled methanol reactors, where the synthesis reactions take place in the

catalyst filled tubes.

The heat of reaction instantly is removed from the catalyst by partial evaporation of boiler

feed water, circulating between the reactor shell and the top mounted steam drum,

simultaneously generating steam.

The efficient heat removal from the reaction zone permits operation of the plant with a

very low recycle gas rate and still processing of high CO yields in the gas. A quasi-isothermal

condition is maintained in the system which ensures a high conversion rate, eliminating the

danger of catalyst overheating and keeping the formation of byproducts at an extremely

low level. This results in a very long service time of the methanol catalyst.



The relationship at saturation conditions of the steam / water mixture defines the boiling

water temperature by pressure control at the steam drum and maintains by this the exact

and constant temperature control in the catalyst filled tubes.

The medium pressure steam produced will be exported into the steam system of the overall

plant, to be used for process, heating or turbine drivers after superheating.

Apart from methanol and water vapour produced, the reactor outlet gas contains non-

reacted H2, CO and CO2, inerts like CH4 and N2 and some traces (ppm) of reaction by-

products. This gas needs to be cooled down in order to separate CH3OH and H2O.

The hot outlet gas partly is used for preheating MP Boiler Feed Water and for preheating

the recycled gas. Further on it is cooled down in an air cooler and in the water cooled final

cooler.

Separation of crude methanol from the two-phase reaction mixture takes place in the

methanol separator. The liquid fraction is released to the distillation unit. The gaseous

fraction is routed back to the recycle gas compressor to be re-compressed and recycled. A

small amount of un-reacted gas is purged from the synthesis loop in order to avoid the

accumulation of inert gases. The purge gas with a considerable heating value shall be fed

into the fuel gas system. Alternatively the purge gas can be used for production of hydrogen

in a hydrogen recovery unit.



Methanol Synthesis Flow Scheme:

METHANOL DISTILLATION:

The crude methanol produced in the synthesis unit contains water, dissolved gases and small

quantities of undesirable but unavoidable by-products - partly higher and partly lower boiling

than methanol. These impurities will be removed in the distillation unit in order to achieve the

pure methanol product specification required.

Removal of the light ends and remaining dissolved gases is carried out in the pre-run column.

Afterwards the methanol is separated from the high boilers in the pure methanol columns.

Dissolved gases are flashed out by simply expanding the crude methanol from the methanol

separator into the low pressure expansion gas vessel. The dissolved gases escape and are

released by pressure control into the expansion gas line to the fuel gas system.

In case of short-time methanol flow fluctuations, the level in the expansion vessel will be

maintained by a level controller. Surplus of crude methanol from this vessel is discharged into

the crude methanol tank, while a deficiency could be made up from the same tank.

Crude methanol is fed from the expansion vessel to the pre-run column, where the low boiling

byproducts are removed. The light ends are taken overhead with a large volume of methanol



vapours. The overheads are passed to a condenser and the condensate is pumped back to the

column reflux system thereby recovering residual methanol.

The pre-run column is heated by re-boilers, using low pressure steam. The bottoms product,

stabilized methanol, is fed to the pure methanol columns, first to the pressure pure methanol

column. Water and other high ends are removed. Pure methanol is discharged overhead in

both columns.

The overhead vapours of the pressure column are condensed in the reboiler/condenser and are

utilized for re-boiling the bottoms of the atmospheric column. Methanol condensate is

collected in the reflux vessels, fed back as reflux to the column top and for the other part

further cooled down as product and routed to the pure methanol inter-mediate tanks. The

reboiler heat for the pressure column is provided by low pressure steam.

The bottoms product of the Pressure Column containing the high ends is fed to the atmospheric

pure methanol column. Pure methanol is discharged overhead, condensed in an air cooler and

further cooled down. From the reflux vessel the product stream is routed to the pure methanol

intermediate tanks and the reflux pumped to the column top.

In order to reduce the contamination in the process water at the bottom of the atmospheric

column, the installation of a liquid side draw in the lower part of the atmospheric column can

be provided. The drawn liquid, mainly containing methanol and high ends, can be vaporized

and burnt together with fuel.

Low point drainage in the distillation is connected to the slop system. In case of repairs, the

relevant equipment can also be emptied into the slop vessel. The methanol from the slop vessel

is pumped to the crude methanol tank.



Methanol Distillation Flow Scheme:



3.5.17. METHANOL PROCESS BLOCK FLOW DIAGRAM:



3.5.18. FT/REFINING PROCESS:

The FT Process operates in the temperature range of 200–250°C & at a pressure of 30

atmospheres with Cobalt as catalyst in the slurry Bubble Column reactor and produces a liquid

product with a high proportion of high molecular weight linear waxes, which maximizes the

production of Diesel.

In the FT process one mole of CO reacts with almost two moles of H2 to give a hydrocarbon

chain extension (-CH2-).

The main chemical reaction involved is:

nCO + 2nH2 (- CH2 -) n+ H2O

The reaction affords mainly aliphatic straight chain hydrocarbons (CxHy), containing a lower

fraction of olefins and of oxygenates (organic acids and ketones). The FT chain-growth process

is similar to a polymerization process resulting in a normal distribution of chain-lengths of the

products, whose spanning carbon numbers are approximately from C2 up to C90. This chemical

reaction is highly exothermic.

The outputs of the FT reactor are Liquid Condensates, Waxes, and FT Tail gas, as well as FT

Water. The FT Tail gas is sent to the ATR reformer to produce additional Syngas. A part of the

produced Syngas is sent to PSA for producing pure hydrogen which is used in the Hydro cracker

unit of Product Up-gradation/Refining section) .The remaining Syngas is recycled to the FT inlet.

The Liquid Condensates are sent to a Condensate Stabilizer, in order to remove the C4-

components (including dissolved CO2) from the Condensates. The Stabilized Condensates are

mixed with the Waxes and sent to a Hydro treating Unit, in order to treat the light olefins.

The Hydro treated mixture is mixed with a residue recycle from final fractionation, and sent to

the Hydrocracking Unit (HDK), where the FT products will be cracked and isomerizes in order to

obtain the final products of the CTP Complex. The HDK outlet products are first stripped in

order to eliminate the C4- components, and then sent to the Fractionation Section. Naphtha



and Diesel final products are recovered from the Main Fractionator and sent to Storage while

the Bottom Residue is recycled back to Hydrocracking Unit to add more Naphtha and Diesel.

The Block Flow Diagram of Fischer-Tropsch & Product Up-gradation/Refining Section is shown

in below:



3.5.19. FT AND UPGRADING PROCESS BLOCK FLOW DIAGRAM:



3.5.20. BLOCK FLOW DIAGRAM OF ALL UNITS



3.6. Raw Materials:

The raw material required and its source along with the estimated quantity is given below in

the table:

Raw material Quantity Source

Coal 1971 TPH Coal from Indonesia/Australia and Petcoke

from refinery (for blending with coal)

3.7. Utilities, Power Requirement & Offsite Units

Oxygen

Oxygen @ 18105 TPD (754 TPH) at a purity level of 99% would be required. The normal

operating condition of oxygen is 45 bar gauge pressure and ambient temperature.

Steam:

Steam generated will be used for internal consumption and surplus Steam will be used for

captive power production. This contains H.P Superheated, H.P Saturated, M.P as well as L.P

steam. The details steam balance is furnished below in Table:

Steam Balance (Unit in TPH) SHP (120/60 bar) HP (40 bar) MP (16 bar) LP (4 bar)

SNG 675 0 -23 64 MEOH 422 249 -26 -9 FT 144 17 132 25 Total 1241 266 83 80



Plant / Instrument Air and Nitrogen:

The Plant / Instrument Air and Nitrogen System receives air and nitrogen from the Air

Separation Unit (ASU), and distributes these services to users, maintains an instrument air

reserve, and provides a back-up air supply to enable start-up of the ASU.

Total estimated power requirement of the CTP project:

The capacity of the Steam Turbine would be 320 MW. The By-product SHP, HP & MP Steam

which is produced from various process units of CTP plant would be used for the power

generation.

The detail of Power Requirement Break-up is furnished in a tabular form in below Table:

Power (MW) CHP ASU CG Shift Rectisol Conversion Plant O&U Total

SNG 3 147 14 11 24 7 28 234

MEOH 3 166 16 13 27 10 35 270

FT Liquids 3 57 6 4 9 5 12 96

Total 6 370 36 28 60 22 79 600

Total Power Required : 600 MW

Power Generation from Process Steam : 320 MW

Net import power : 280 MW

Water Requirement:

The plant will have to depend upon sea water to meet both consumptive and cooling water

requirement due to non-availability of sweet water either from surface water sources or

underground sources on sustained basis. The consumptive fresh water requirement for the

potable water system, service water, feed water to the DM plant and other sources will be

met by the Desalination plant.



Once through Sea Water for Cooling Sweet Water in closed Circulation through Plate type

Heat Exchangers has been proposed for this CTP Project.

The circulating cooling sweet water would be utilized for condenser cooling as well as

auxiliary water cooling.

The Sea water will be sourced from the common integrated facility developed by APSEZL

with intake channel capacity of 10 Lac M3/Hr which is passing through the adjoining area of

proposed CTP Complex. The intake channel is connected to sea near Kotdi creek, which is

located at a distance of about 3 kms from the project site.

Estimated total water intake requirement is about 90,000 m³/hr Sea Water. Out of this

around 85,000 M3/h (based on 7 oC ∆T) would be utilized in once through plate type heat

exchanger and would be discharged in Gulf of Kutch through outfall channel/pipeline.

Around 5000 M3/h Sea water would be fed to Desalination Unit to produce @1500 M3/hr

RO water which would meet the DM water and Plant utility water requirement for CTP

Complex. The above quantity of water includes makeup water for the closed loop sweet

water cooling (to compensate for water loss on account of evaporation, drift and blow

down). RO reject @ 3500 M3/h would be discharged to Gulf of Kutch through Outfall

channel/Pipeline. The pipeline specification details would be covered during the modeling

study.

Hence the ultimate Intake for the CTP will be 90,000 m3/hr and outfall 88,500 m3/hr, which

will be sourced through the Common Integrated facility developed by the APSEZL, for which

ASL would sign MoU with the APSEZL.



Break-up of RO Water Requirement:

RO Water Balance (M3/h) BFW/DM (M3/h) Plant Water(M3/h) Total(M3/h)

SNG 450 100 550 MEOH 550 100 650 FT 200 100 300 Total 1200 300 1500

The Block Flow Diagram showing Water Balance of the CTP Complex is furnished below:



Water Balance Diagram:



Waste Water Treatment Plant and Zero Liquid Discharge (ZLD):



Offsite Units:

Below table lists the typical Offsite Units for the CTP Facility.

Ash Pond:

The Ash from the Gasifiers will be disposed of in the Ash Storage/Pond area, as the

operation progresses and efforts will be made to find alternate use of the gasification

Ash in the fields like Pavement or Road building, land fill etc.

Sulphur Handling Unit:

The Sulphur Handling Unit will cool, solidify and package the hot liquid Sulphur from the

Sulphur Recovery Unit.

1 Coal Preparation, Handling and Storage

2 Ash Storage/Pond

3 Catalyst Handling

4 Sulphur Handling

5 Intermediate Storage

6 Utilities

7 Flare System

8 Fire Protection System

9 Product Storage and Distribution System

10 Chemical Storage



Intermediate Storage:

The Intermediate storage unit will:

• Act as a storage buffer for intermediate streams requiring rework within the plant

• Increase the availability and reliability of the facility

Utilities:

Soft Water, Cooling Water will be required for control of process as well as dissipation

of utilized heat. De-Mineralized Water will be required to generate Steam.

Plant Air & Instrument air after removal of moisture & passing through Dryer will be

used for various Process requirements. Nitrogen will be required in Coal feeder and for

purging also.

Flare System:

The CTP facility will be provided with a flare system in order to dispose of unrecoverable

hydrocarbon or contaminated gas streams from the process. Three individual flare

services are anticipated for the plant. A syngas flare to handle releases from the syngas

purification systems, a sour gas flare - servicing mainly low pressure vapor releases

containing H2S and NH3, and an NH3 flare to handle emergency releases from the

Refrigeration system. These gas streams may originate from pressure control and relief

systems used to prevent overpressure situations during normal operation, pressure

control during start-up and shutdown scenarios and also for the safe disposal of relief

gasses that may be vented during abnormal conditions, e.g. plant trips.



Fire Protection System:

The CTP facility will be provided with a fire protection system to cater for any potential

firefighting requirements. The primary supply of fire water will be stored onsite. A

secondary supply of fire water is usually obtained from offsite.

Final Storage and Product Distribution System:

The final product Storage and Distribution System's duty is to store and distribute the

primary products from the CTP facility as well as the by-products from gasification.

Chemical Storage:

The CTP process uses a number of catalysts and chemicals during operation. These

catalysts and chemicals can be broken down into several different groups as follows:

Catalysts that promote a desired chemical reaction, such as product

hydro treating

Regenerable adsorption beds, such as ion exchange resins

Non-regenerable adsorption beds, such as activated carbon

Pre-coat and filter aid for filtration

Continuous use reagents, such as sodium hydroxide (NaOH) chemicals

Intermittent use reagents, such as ion exchange resin regeneration

reagents

The Chemical Storage area houses any spare or standby catalyst and

chemicals



3.8. Automation, Control and Business Systems:

3.8.1. Distributed Control System

The Distributed Control System (DCS) will provide process control and monitoring

for the CTP Facility. At the process control level it will perform basic regulatory and

sequential control, non-safety related interlocks, process monitoring, alarm

management, data archiving, reporting, etc. The DCS will be capable of performing

higher level functions such as advanced control, equipment health monitoring,

process optimization, interface to company network, advanced alarm

management, etc.

The DCS will provide the primary operating window to the operating plant and will

be interfaced with other major instrument subsystems such as Fire & Gas, Safety

Instrumented System (SIS), package control systems, etc. Basic functionality will

include but not be limited to:

Plant monitoring and control for start-up, normal operation, and shutdown

operations

Functions for instrument set-up, diagnostics and testing for the DCS, SIS and

Fire and Gas Detection System (FGS)

Alarm Management: The DCS will have alarm logging and management

capabilities.

Trending in both real-tune and historical

The DCS will provide reports to support operational, maintenance and

management needs. These will be available on demand or printed

automatically at specific intervals.

Historisation of selected variables

Communication to new and existing facilities as required.

On-line diagnostics of the control system hardware

Ability to communicate with field devices



Workstation(s) for engineer level access to configuration and programming

functions of the DCS system.

Asset Management Systems

Integration with the company's information network for reel-time historical

data access

3.8.2. Safety Instrumented Systems

The CTP Facility will be provided with a dedicated SIS. The SIS system solves logic based

on input-upset conditions and shuts down specific equipment or areas of the plant in a

safe and predetermined manner. The SIS system hardware will be separate from all

other control systems and will not require the correct operation of any other system to

fulfill its own shutdown functions.

The SIS system will be designed in accordance with an industry standard (ISA S84.01 or

equivalent). Safety Integrity assessments will be performed to assign Safety Integrity

Levels (SILs) to shutdown loops.

The SIS will contain the following functions:

• All manual Emergency Shutdown (ESD) pushbuttons for entire plant, units and

individual equipment

• All safety related and equipment protection shutdown functions, as well as

environmental protection functions, rated SIL 1-3

• Shutdown functions with SIL 4 or higher ratings e.g. High Integrity Protection

Systems (HIPS) will be evaluated on an individual basis

The operator interface to the SIS system will be the DCS operator consoles. All alarms

and status indications will be displayed on the DCS screens. On a case-by-case basis

selected alarms may be annunciated on a local or remote annunciator panel. Manual

shutdown buttons shall be provided on panels within each operator console and in the

field.



The status of all inputs and outputs of the SIS system shall be monitored by a Sequence

of Events Recorder (SER). It shall record all changes in status with sufficient resolution to

allow determination of the first-out event.

3.8.3. Fire and Gas Detection System:

The overall facilities and associated buildings will be provided with FGS to provide early

warning of a fire or gas leak situation. The FGS shall be separate from all other control

systems, and shall not require the correct operation of any other system to fulfill its own

functions.

3.8.4. Business Information Systems:

A management information System (MIS) and an Enterprise Resource Planning system

(ERP) will be seamlessly integrated into the plant control network to ensure effective

business processes and appropriate management reporting.

3.9. Health, Safety and Environment:

The following section provides a summary of EHS issues associated with coal processing

projects, along with recommendations for their management. The CTP facility will strive

for ISO (international organization for standardization) 14001 and OHSAS (occupational

health & safety management system) 18001 certification. The ISO 14001 standard is an

internationally accepted standard for the development and implementation of

environmental management systems, while OHSAS 18001 is an international

occupational health and safety management system.



3.9.1. Environmental issues

Potential environmental issues associated with coal processing projects include:

Air emissions

Waste Water

Solid waste management.

Noise

There will not be any significant gaseous emissions from the CTP Complex during normal

operation. Overall, the plant design minimizes the emissions by process integration and

waste heat management. The Industrial Wastes that could be generated from CTP

Complex are Slag/Ash, Process Waste Water and Acid Gases. ASL adopts ZLD system for

Process Waste Water. Besides, the gaseous emissions would be suitably treated with

latest environment technologies before discharging in to the atmosphere. The Waste

generated from the CTP complex is given in the below Table.

Waste Generated from CTP Complex:

Industrial Waste Quantity generated

Ash/Slag 2300 TPD

Liquid waste Zero Liquid Discharge (ZLD) for Main Process Plant (excluding RO rejects). Total 88,500 M3/h sea water would be discharged to Sea, out of which 85,000 M3/h would be discharged through once through plate heat exchanger and @3500 M3/h would be discharged as RO rejects.



Air Emissions:


reducing environment inside the gasifier majority of the sulphur and Nitrogen in the

coal is converted into H2S and NH3, which are absorbed in the Gas Clean-Up Section. So,

the quantity of SOx, NOx and particulate matter in the flue gas from the CTP Complex

would be very less. Moreover, these emissions would be reduced with the latest

environmental technology and are well within the permissive levels of emission, as

stipulated by Central/State Pollution Control Boards, Ministry of Environment & forest

(MOE&F) & World Bank Standards, before discharge into the atmosphere.


technologies:

1. Sulphur Dioxide (SO2): A Sulphur Recovery Unit for the recovery of saleable

Sulphur.

2. Particulate Matter: Wet Scrubbers, Cyclones, Electrostatic Precipitators, Fabric

Filters.

3. VOC Emissions: Dual Mechanical Seals on pumps, closed vent systems, closed

loop sampling etc.

The final gaseous emissions from the CTP Complex would be well within the Permissible

Limits as prescribed by GSPCB/CPCB/MOE&F.



Waste Water Management:

The CTP waste water treatment system consists of:

ETP/Process Waste Water Treatment Plant.

General Waste Water Treatment Plant.

Sewage Treatment Plant

The Process Waste Water generated from Gasification, SNG, Methanol and FT Unit is

treated necessarily in Bio-Effluent Treatment Plant and then recycled for reuse within Plant

Battery Limit.

The site philosophy is to minimize the import of sea water by maximizing the re-use of

wastewater within the CTP facility. The waste water system is highly integrated and is

designed for Zero Liquid Discharge (ZLD).

The generated sewage waste water would be treated in Sewage Treatment Plant and the

treated water would be utilized for Horticulture purposes.

Solid Waste Management:


amount of Ash generated from the Gasification Island is about 2300 TPD. Ash generated out

of Gasification Island is non-hazardous and easily passes the regulatory limits for metals and

organics and standard waste characteristic tests for toxicity, reactivity, ignitibility, and

corrosiveness.

ASL would seriously look into to maximize the utilization of coal in the following areas:

1. Road/ Embankment Making

2. Land development



For the initial years of CTP plant operation till sustained Ash Utilization/Management in

the above application areas are developed, as well as for emergency purpose, an Ash

storage pond of 20 Acres would be made for intermediate storage of coal Ash in CTP

Complex. Provision would be made to reclaim the disposed Ash from Ash pond at a later

stage for various utilization ventures.

Noise:

The principal sources of noise in coal processing facilities include the physical processing

of coal (e.g. crushing, sizing and sorting), as well as large rotating machines(e.g.,

compressors, turbines, pumps, electric motors, air coolers, and fired heaters). During

emergency depressurization, high noise levels can be generated due to release of high-

pressure gases to flare and / or steam release into the atmosphere. General

recommendations for noise management are provided in the General EHS Guidelines.

3.9.2 Health and safety:

Occupational Hygiene:

Workplace Exposure Standards relating to personnel exposure (Occupational- Health

Standards with specific reference to Workplace Exposure Levels / Threshold Limit Values

- Time Weighted Average Exposure Levels (TLV-TWA)) determine the quality of air that

personnel are allowed to inhale during working hours to minimize the adverse impact

on health. The air quality in the operations environment will be impacted by a

combination of fugitive emissions and point source emissions. During the operational

phase of a project the plant will have an occupational/industrial hygiene worker

exposure monitoring program/system in place to determine worker's exposure and

therefore if any reduction in point emissions or fugitive emissions is required. These

programs are risk based and only implemented once a final health risk assessment of

the new plant is conducted.



Fugitive emissions will be governed by a leak Detection and Repair (LDAR) program. An

LDAR program provides regular monitoring and detection of leaks on pipes, equipment,

valve stems, rotating equipment etc. It specifies when leaks should be repaired, the use

of specific equipment to minimize leaks or specified work practices. In addition the

nature of the chemical as per occupational hygiene and inherent safety requirements

will also determine the extent of modifications required to a piece of equipment. The

CTP facility will develop a LDAR program according to the US EPA standards.

Community Health

The guiding principle of Pollution Prevention is that a precautionary, rather than a

curative, approach should be followed i.e. "prevention is better than the cure". The HSE

design philosophies focuses on the manner in which design facilities will be designed

considering the protection of human health, safety and the environment. The ASL HSE

and Sustainable Development strategy aims to support ASL's right to sell its products

and to operate its plants and to build new facilities. Sustainable Development at ASL will

be carried out on the framework of its Values, Code of Ethics and HSE Policy.



CHAPTER – 4 Site Analysis

4.1. CONNECTIVITY:

The proposed project will be located adjacent to existing Coastal Gujarat Power Plant, 2

km away from existing APL’s Power Plant , 25 Km distance from Mundra town and 5.5

Km from West Port. Plant site is located in Tunda village in Kutch district (latitude 220

48’ 0.74” N and longitude 690 31’37” E). The village is accessible by road from NH-8A

with extension between Gandhidham and Mandvi towns. An approach road of around

5.7 Kms is already exits from the highway to Power Plant site.

Nearest airport is at Bhuj which is around 60 Km from the site. Kandla Airport is around

65 km away from the proposed site. The nearest railway station is Adipur/Gandhidham,

which is 63 km from site.

4.2. Land Form/land Use Pattern, Use & Ownership:

The area earmarked for proposed CTP complex is owned by APSEZL and free from any

human activities. There is no issue of Rehabilitation & Resettlement need. Around 440

Ac. land would be required for entire CTP complex including its Greenbelt (33% of total

land). The identified land is not an agricultural land but already designated/recorded as

industrial land. Land for different corridors (Power/Road/Coal Conveyor) would be

additional.

4.3. Topography :

The project site is located within the APSEZL land. Hence, there is no significant

vegetation or habitation in the project site. One third of the impact area consists of

marine body.



The nearest significant feature from the project site are 4000 MW Coastal Gujarat

Power Plant -Tata Power (northern side of project area), 4620 MW Adani Power

Limited (North – East direction from the project) and West Port of APSEZL (South – East

direction from project). The villages which are in close proximity to the project site are

Kandagara Mota, Vandh and Tunda.

The Southern side is entirely sea water body (ranging from South West to South East).

From South West to North East majority of area is of APSEZL where west port is also

located. This area also includes some forest land. The North East side includes Vandh

village, Adani Power Limited and Siracha village. The North side consists of Tata Power

and Tunda Village. The west side includes marshy land and outfall channel of Tata

power.

Detailed Land Use / Land cover study will also be carried out as part of study.

4.4. Existing Infrastructure:

Distance from Mundra Town – 25 KM Distance from Mundra West Port – 5.5 KM Distance from State Highway-6 – 4 KM (Gandhidham-Mundra-Mandvi) Distance from NH8A – 12 KM Distance from Railway line – 3.2 KM (APL Gate no-4) Distance from Adani Airstrip – 25 KM Distance from Commercial Airport (Bhuj) – 60 KM Distance from Commercial Airport (Kandla) – 65 KM Water source (Sea) – Adjacent APL’s Power Plant to Proposed CTP – 3 KM Adjacent to Tata Power Plant Distance from Adani Township – 30 KM

4.5. Soil Classification:

Detailed Soil Investigation has not been carried out in the area. However, based on

available information from the nearby and adjacent power plant project, foundation

system has been envisaged as follows:



The subsoil is expected to be generally of good quality. The sub soil is basically residual

in nature with underlying rock layer. The soil in the adjacent area is medium dense silty

fine to medium sand under the top layer followed by dense to very dense silty fine to

medium sand in the lower layer. At some isolated places, stiff to hard silty clay or

clayey silt may be found. The underlying rock layer is highly weathered rock in the

upper layer to moderately weathered rock in layers below.

With the above subsoil features, the subsoil is found to be of good quality and

expected to provide good bearing capacity at a depth of about 3 to 4m. In most of the

locations open foundation should be adequate to transfer the load. The subsoil is

expected not to be chemically aggressive also. Pile foundation is not expected and if

required, it will be in a very limited way.

4.6. Climatic Data:

As per Indian Meteorological department, Govt. of India, Highest monthly mean of

daily maximum temperature is 36⁰C and max. Dry bulb temperature is 47.8⁰C,

considering max Humidity 95%.

The wind is predominantly from the south- west as well as from west to some extent.

The basic wind speed is 50 m/sec and maximum wind velocity is 65 kmph. The

proposed site is located in Seismic Zone – V as per relevant IS: 1893-2002.

Meteorological Data enclosed as Annexure - II



CHAPTER – 5 Planning Brief

5.1. Planning Concept

The proposed CTP Complex of Adani Synenergy Limited (ASL) would require a total land

area of 440 Acres (1.78 km2 or 178 Hectares). The detail Break-up of land required for

various facilities of CTP complex is enclosed as Annexure-III

The CTP Complex will require above area for CTP plant & related facilities, Green Belt Area

as well as common infrastructure requirement to support the World Class CTP complex.

Land required for corridors for Power/Road/Coal Conveyor not included in the above area.

Annexure-IV shows Plot Plan of the typical CTP Complex and associated facilities. This Area

is based on a preliminary plot plan which has been developed taking into account the CTP

facility process, the site infrastructure requirements and external interfaces. The unit block

sizes and spacing on this Plot Plan are based on previously developed and engineered plant

layouts.

5.2. Land Justification of CTP Complex:

CTP Plant:

CTP Plant would comprise of Land for following Units:-

Coal Preparation, Coal Receiving & Storage/Handling

Gasification Island

ASU/Shift Converter/AGRU/SRU

SNG Methanator and SNG Distribution



Methanol Synthesis

FT/Refining

Ash handling and Emergency Ash Storage

RO System/DM Water

Waste Water Treatment Unit

Product/Intermediate product storage

The above facilities would require land around 242 Acres.

CTP Infrastructure:-

Based on preliminary estimates, the CTP Infrastructure would require an additional 53

Acres of land which includes facilities like

Pipelines/ Pipe Racks/ Trenches, Cable Trays

Road/Drainage

Logistical area requirements, e.g. Truck loading and unloading area, Dispatch

Section and corridors for coal and product transportation.

Non-Plant Building (Workshop, Laboratories, Admin Buildings, Training Block,

Security Room, Site Offices, Canteens OHC etc.)

General Stores/Warehouses

Bridges

Construction lay down Area

Buffer Zone

Fabrication Yards

Gate House/ Time Office

Fire & Safety Department etc.



CTP Township:-

No separate Township has been planned for CTP Complex. The house for O&M

personnel would be provided at Adani’s existing township by augmenting the

township, which is around 30 km away from the proposed CTP Complex.

GREEN BELT:-

Out of the entire area of proposed CTP complex, 33% of total CTP complex area which is

around 145 Acres of land is reserved for Green Belt development as per prevailing

guidelines from GSPCB/CPCB/MOE & F.

5.3. Land Use Plan:

The CTP Complex will require plot areas for the CTP and related common facilities. The

proposed CTP Complex of Adani Synenergy Ltd. would require a total land area of 440

Acres (1.78 km2 or 178 Hectares). Also, the detailed Land Break-up of entire CTP

Complex is attached as Annexure-IV.

The area earmarked for proposed CTP complex is owned by APSEZL and free from any

human activities. The proposed area is non-CRZ land.

5.4. CTP Infrastructure Requirements:

The analysis of infrastructure needs is an important step in any project. The CTP venture

operates in a complex environment and needs reliable access to critical infrastructure

resources like Power, Water as well as infrastructure linkages like Road, Rail, Port and

Air connectivity. These key infrastructure requirements are elaborated below based on

various studies done by venture so far.



Physical Infrastructure needs:

Water:

Due to proximity to the sea and non-availability of sweet water source to meet the plant

water requirements, it is proposed to use sea water. In view of the latest common

integrated facility intake channel developed by APSEZL, it is proposed to source the sea

water from the same facility through open channel, for which ASL would sign MoU with

the APSEZL. The approx. distance from the Main common channel is about 50 meters

(adjacent) from the plant site.

Water would be sourced from Gulf of Kutch through existing common sea water intake

channel, which is adjacent to the proposed site. The total net water consumption for

CTP is about 1500 M3/hr.

Estimated total water intake requirement is about 90,000 m³/hr Sea Water. Out of this

around 85,000 M3/h (based on 7 oC ∆T) would be utilized in once through plate type

heat exchanger and same amount would be discharged in sea through out-fall

channel/pipe. Around 5000 M3/h Sea water would be fed to Desalination Unit to

produce @1500 M3/hr RO water which would meet the DM water and Plant utility

water requirement for CTP Complex. The above quantity of water includes makeup

water for the closed loop sweet water cooling (to compensate for water loss on account

of evaporation, drift and blow down). RO reject @ 3500 M3/h would be discharged to

Sea through Outfall channel/Pipe.

An integrated water system is proposed where effluent from the process units is treated

and reused to reduce water demand.

Water demand is made up of the following:

• Make-up losses for BFW preparation

• Steam losses from the steam and power systems



• Steam consumed directly in the process (e.g. steam used in the gasification

process)

• Evaporation & drift losses from the cooling Exchangers/Circuits.

Power

Steam Turbine of capacity 320 MW is envisaged which will partially meet power

requirements of CTP facility, balance power requirement @280 MW would be sourced

from Grid/MPSEZ Utilities Pvt. Ltd. (discom). Power is distributed within the plant at 3

phase, 11 kV and 50 Hz via a number of unit substations. The APL’s power plant is

around 2 kms away from the proposed CTP site.

The construction power need of around 5 MW would be sourced from the Grid/MPSEZ

Utilities Pvt. Ltd. (discom).

Road Linkage

The project site is located about 12 km from National Highway – 8A and 4 km from State

Highway SH-6 and 63 km from the Adipur / Gandhidham railway station. Hence,

transportation of materials to the project site will not be a major constraint.

Further studies are planned on these specific connections and access routes to

determine the impact of increased traffic volumes.

Rail Linkage

The nearest railway stations to the proposed site are Adipur/Gandhidham which is 63

KM away from the CTP Complex.

The distance from existing railway line of APL’s Gate NO-4 to proposed CTP Complex is

around 3.2 km.



Port Connectivity

The Port of Mundra is India’s biggest private port. Located in the Kutch district of the

state of Gujarat, Mundra lies on the north shores of the Gulf of Kutch about 50

kilometers south of Anjar and 44 kilometers east the Port of Mandvi.

The Port of Mundra is not only a private port, but it is also a special economic zone.

Incorporated in 1998 as Gujarat Adani Port Limited (GAPL), the company began

operating in 2001. The Mundra Special Economic Zone was incorporated in 2003 and

was merged with GAPL in 2006. The combined company was renamed “Mundra Port

and Special Economic Zone Limited” and now is Adani Ports & Special Economic Zone

Limited (APSEZL). It is India’s first multi-product port-based special economic zone (SEZ).

The Port of Mundra and SEZ hopes to be a global player and preferred partner that

pursues innovation in business, technological, and commercial areas. It strives to add

value to partners’ activities and efforts while also reducing its impact on the

environment. The Port of Mundra and SEZ is responsible for acquiring, developing, and

managing knowledge to become experts in the field and to apply that knowledge across

their range of business interests. As a private port, the Port of Mundra also seeks to

ensure tangible and intangible profits.

The Port of Mundra offers 21 closed dockside warehouses (go-downs) with capacity for

137 thousand square meters to store wheat, sugar, rice, fertilizer and fertilizer raw

materials, and deoiled cakes. The port offers 880 thousand square meters of open

storage for steel sheets, coils, plate, clinker, scrap, salt, coke, bentonite, and coal. An

additional 26 thousand square meters of open storage is available alongside the railway.

The port also offers a wheat-cleaning facility with capacity to handle 1200 metric tons

per day and a rice-sorting and –grading facility that can handle 500 metric tons per day.

The Port of Mundra is planning several additions and improvements. A new terminal site

is proposed to be located about ten nautical miles west of the current terminals at the



Port of Mundra. The terminal will eventually contain three deep-water offshore berths

and two sets of stackyards for coal, iron ore, and other dry bulk cargo.

The town’s showpiece is the Port of Mundra, which has transformed the local economy

and atmosphere. The Port of Mundra was the place in addition to Abadasa and Lakhpat

talukas in Kutch which were not seriously damaged in the 2001 Gujarat earthquake that

devastated rest of the district.

The current capacity of port to handle 2.5 m TEU's is to be expanded to 5 m TEU by

2015, making it india's second largest container port.

The coal would be imported through West Port which is around 5.5 km away from the

proposed CTP site.

Air Connectivity

The proposed Mundra site is 60 km away from Bhuj Airport, 65 KM away from Kandla

Airport and 460 km away from the nearest commercial airport, Ahmedabad. Adani

Groups own Airstrip is around 25 km away from the proposed site.

Social Infrastructure needs:

Development of physical infrastructure cannot usher in overall development at the

desired level if the social infrastructure is not simultaneously developed. Education,

Health, Social security, public entertainment etc. has to be developed to ensure proper

social infrastructure.

Educational Initiatives:

Infrastructural Development in the form of school building, teaching &

learning equipment and furniture & Fixtures etc.

Quality Teacher support



Scholarship for Education Excellence

Promotion of Girl Child Education

Incorporation of Extra Curricular activities

Health:

ASL would take care of all the medical requirements of the CTP complex by establishing

a hospital with quality doctors. In addition different awareness programs would be

conducted as furnished below.

Addressing the Mother & Child Health

Support to the Nutritional Program of Mother, Child & School goers.

Support the District Health administration in the community health

activities

Improvement of town Sanitation through Solid- Liquid Waste Management.

Knowledge Enhancement on Preventive Health Care.

Confidential In-house Pre-Feasibility Report


CHAPTER – 6 Proposed Infrastructure

6.1. Industrial Area (Processing Area):

The proposed CTP Complex including Coal Preparation Plant of Adani Synenergy Limited

would require a total land area of 440 Acres (1.78 km2 or 178 Hectares). This area is

based on a plot plan of CTP complex as Annexure V which has been developed taking

into account the CTP facility process, the site infrastructure requirement and external

interfaces. These areas will be firmed up with ongoing engineering studies to suit the

facility’s operating conditions, construction and maintenance philosophies and storage

requirements.

CTP Plant area of around 202 Acres of land would comprise of facilities for Gasification

Island, ASU/Shift Converter/AGR/SRU, SNG Methanator, Methanol Synthesis,

FT/Refinery, Emergency Ash Pond, Waste Water Treatment Unit, Steam Turbine (320

MW), Sea Water Exchanger and Filtration, Product/Intermediate Product Storage etc.

The CTP Infrastructure would require around 53 Acres of land which includes facilities

like Pipelines, Loading/Unloading, Road/Drainage, Pipe Racks/Trenches & Cable Trays,

Buffer Zone, Non Plant Buildings, Laboratories, Fabrication Yard, Dispatch Section,

General stores/ Warehouse, Fire & Safety Department, Maintenance Workshop,

Occupational Health Center etc.

An additional area of around 40 acres of land will be required for Coal Preparation, Coal

Receiving & Storage.

Therefore, the land considered for the CTP Industrial Area (Processing Units) is around

295 Acres.



The Land Break-up of Industrial Area (Processing Area) is tabulated in below Table:

Land Break up of Industrial Area (Processing Units):

Sr. No. Item Area

1 Coal Preparation, Storage & Handling 40

2 CTP Plant 202 A Coal Gasification Section 25 B Air Separation Unit 20 C Gas Adjustment and Gas Cleaning 15 D Sulphur Recovery Unit 3 E SNG Methanator Block 20 F Methanol Synthesis Block 20 G FT/Refining 20 H Emergency Ash Storage Yard/Pond 20 I Intake Pump House 2 J RO Unit, DM Water Unit and RO/DM water storage Tank 7 K Guard/Storm Water Pond 5 L Waste Water Treatment Unit 15 M Flare System 7 N Sea Water Plate Exchanger 5 O Intermediate/ Product storage 8 P Steam Turbine and Switchyard 10

3 CTP Infrastructure 20 Q Administration Blocks 2 R Canteen 1 S Central Store 1 T Dispatch Section + Truck Parking 5 U Fire & Safety Buildings 2 V Laboratories 1 W Maintenance Workshops 5 X Occupational Health Center 1 Y Security Room 1 Z Training Block 1 Total (1+2+3) 262

Roads (In-plant & peripheral) + Pipe Racks/Trenches + Cable Trays 33

Total 295



6.2. Green Belt:

Out of the entire area of proposed CTP complex, 33% of total CTP complex area which is

around 145 Acres of land is reserved for Green Belt development as per prevailing

statutory guidelines from GSPCB/CPCB/MOE & F.

The Land Break-up for Non Processing Area is tabulated in Below Table:

Land Break up of Non Processing Units:

Non Processing Area Area (Ac.) AA Green Belt (30% of total Land) 145

Total 145

6.3. Social Infrastructure:

ASL believes that an effective growth policy must also take into account the fulfillment

of basic needs of the masses, especially of those living in rural areas.

ASL has one of the best social infrastructure proposals which are based on the

implementation already done by APSEZ and APL at Mundra, in the core area of Health,

Education, Sustainable livelihood options & women empowerment, Community

infrastructure, Youth sport & cultural activities, Calamity management. ASL is strictly

committed and is going to implement the proposal to uplift the social infrastructure

surroundings the CTP area.

The key highlights of some initiatives & activities to improve social infrastructure that

ASL is going to undertake at Mundra are:



Sustainable livelihood options & Women Empowerment:

Strengthening the Community Based Organizations like Self-Help Groups, Farmer

Federation etc.

Capacity Building of the underprivileged communities on various market driven

skills

Establishment of Forward & Backward Market Linkages through networking

Facilitating the easy reach to the technical institutions for knowledge up gradation.

Promotion of live stock health management

Education Initiatives:

Skill up gradation through establishment of Technical Training Institution

Infrastructural Development in the form of school building, teaching & learning

equipment and furniture & Fixtures etc.

Quality Teacher support

Scholarship for Education Excellence

Promotion of Girl Child Education

Incorporation of Extra Curricular activities

Holistic approach to the education through “Yoga & Art Of Living”

Promotion of Functional Literacy

Health Initiatives:



Control on Blindness, Malaria, T.B., HIV & AIDS, Diarrhea etc.

Support the District Health administration in the community health activities

Improvement of Village Sanitation through Solid- Liquid Waste Management.

Knowledge Enhancement on Preventive Health Care



Community Infrastructure & facilities:

Enhancement of Green Coverage

Protection of Wildlife through awareness generation

Promotion of Renewal Energy

Waste Management through installation of recycling measures

Natural Resource Management:


Ground Water Recharge through Water Harvesting

Protection of Wildlife

Solid & liquid Waste Management

Promotion of use of Renewal Sources of Energy

Youth, sports & culture:

Promotion of brotherhood & fraternity within the village youths

Development of Sports Activities

Nurturing the youth for participation at District, state and National level events.

6.4. Connectivity:

Brief Profile of Kutch District:

Kutch district (also spelled as Kachchh) is a District of Gujarat state in western India.

Covering an area of 45,652 km, it is the largest district of India.

The administrative headquarters is in Bhuj which is geographically in the center of

district. Other main towns are Gandhidham, Rapar, Nakhatrana, Anjar, Mandvi,



Madhapar, Mundra and bhachau. Kutch has 969 villages. Kala Dungar (Black Hill) is the

highest point in Kutch at 458 metres (1,503 ft).

Kutch is virtually an island, as it is surrounded by the Arabian Sea in the West; the Gulf

of Kutch in South and South-East and Rann of Kutch in North and North-East. The border

with Pakistan lies along the Northern edge of the Rann of Kutch, of the disputed Kori

Creek. The Kutch peninsula is an example of active fold and thrust tectonism. In Central

Kutch there are four major east-west hill ranges characterized by fault propagation folds

with steeply dipping northern limbs and gently dipping southern limbs.

According to the 2011 census Kutch District has a population of 2,090,313, roughly equal

to the nation of Macedonia or the US state of New Mexico. This gives it a ranking of

217th in India (out of a total of 640). The district has a population density of 46

inhabitants per square kilometre (120 /sq mi). Its population growth rate over the

decade 2001-2011 was 32.03%. Kutch has a sex ratio of 907 females for every 1000

males, and a literacy rate of 71.58%.

The site is well connected by the National / State Highways, broad gauge rail link and is

5.5 km away from the Mundra West Port. The nearest airport is Bhuj Airport located at a

distance of 60 kms from the project site. The nearest railway station is

Adipur/Gandhidham, which is about 63 kms from project site and nearest town is

Mundra which is about 20 kms from the project site. The national highway NH-8A is

passing at about 12 kms away from the site. Distance from State Highway SH-6 is 4 kms.

The site is well connected with Ahmedabad city located at about 460 kms.



6.5. Drinking Water Management:

Source of Water:

Sea Water would be sourced from Kotdi Creek, Gulf of Kutchh. The Sea water would be

suitably treated through Desalination Unit (RO) to meet the plant Drinking and DM

water requirement.

Scheme of water sourcing and discharge point:



6.6. Sewarage System: The generated sewage water would be treated in Sewage Treatment Plant and the

treated water would be utilized for Horticulture purposes.

6.7. Industrial Waste Management:

There will not be any significant gaseous emissions from the Gasification Island during

normal operation. Overall, the plant design minimizes the emissions by process

integration and waste heat management.



The Industrial Wastes that could be generated from CTP Complex are Ash, Process

Waste Water and Acid Gases. ASL adopts ZLD system for Process Waste Water. Besides,

the gaseous emissions would be suitably treated with latest environment technologies

before discharging in to the atmosphere.

Waste Generated from CTP Complex:

Air Emissions:


reducing environment inside the gasifier majority of the sulphur and Nitrogen in the coal is

converted into H2S and NH3, which are absorbed in the Gas Clean-Up Section. So, the quantity

of SOx, NOx and particulate matter in the flue gas from the CTP Complex would be very less.

Moreover, these emissions would be reduced with the latest environmental technologies and

are well within the permissive levels of emission, as stipulated by Central/State Pollution

Control Boards, Ministry of Environment & forest (MOE&F) & World Bank Standards, before

discharge into the atmosphere.


technologies:

1. Sulphur Dioxide (SO2): A Sulphur Recovery Unit for the recovery of saleable Sulphur;

Wet or Dry Flue gas Desulphurization.

2. Particulate Matter: Wet Scrubbers, Cyclones, Electrostatic Precipitators, Fabric Filters.

Industrial Waste Quantity generated

Ash 2300 TPD

Liquid waste Zero liquid discharge for Process effluents (ZLD) excluding RO rejects.



3. VOC Emissions: Dual Mechanical Seals on pumps, closed vent systems, closed loop

sampling etc.

The final gaseous emissions from the CTP Complex would be well within the Permissible

Limits as prescribed by GSPCB/CPCB/MOE&F.

Waste Water Management:

The CTP waste water treatment system consists of:

ETP/Process Waste Water Treatment Plant.

General Waste Water Treatment Plant.

Sewage Treatment Plant

The Process Waste Water generated from gasification, SNG Block , Methanol Block and FT

Block is treated necessarily in Bio-Effluent Treatment Plant and then recycled for reuse

within Plant Battery Limit.

The site philosophy is to minimize the import of raw water by maximizing the re-use of

wastewater within the CTP facility. The waste water system is highly integrated and is

designed for Zero Liquid Discharge (ZLD).

The generated sewage waste water would be treated in Sewage Treatment Plant and the

treated water would be used for Horticulture purposes.

6.8. Solid Waste Management:


amount of Ash generated from the Gasification Island is about 2300 TPD. Ash generated

out of Gasification Island is non-hazardous and easily passes the regulatory limits for



metals and organics and standard waste characteristic tests for toxicity, reactivity,

ignitibility, and corrosiveness.

Options would be explored to maximize the utilization of coal Ash in the following areas:

1. Road/ Embankment Making

2. Structural filling

3. Land development

For the initial years of CTP plant operation till sustained Ash Utilization/Management in the

above application areas are developed, as well as for emergency purpose, an Ash Storage

Area/Pond of 20 Acres would be made for intermediate/emergency storage of coal Ash.

Provision would be made to reclaim the disposed Ash from Ash pond at a later stage for

various utilization ventures.

6.9. Power Requirement & Supply:

The by-product HP & MP Steam which is produced from various process units of CTP plant

would be used for the power generation

Estimated Power Consumption by CTP Project : - 600 MW

Power generation from process Steam : - 320 MW

Net Import : - 280 MW

The construction power (@5 MW) and CTP operating Power (@280 MW) would be sourced

from the Grid/MPSEZ Utilities Pvt. Ltd. (discom).



CHAPTER – 7 Rehabilitation & Resettlement Plan

The proposed CTP land is vacant, hence no displacement and rehabilitation of local population is envisaged.



CHAPTER – 8 Project Schedule & Cost Estimate

8.1. GENERAL

Successful execution on the Coal to Polygeneration (CTP) Complex calls for well thought out

project execution strategies and an elaborate Project Implementation plan for carrying out

a whole range of critical activities such as:-

Selection of Technology/ Process Licensor Financing (Financial Closure) Pre Project Activities Statutory Approval Project Execution Philosophy and Plan Project Coordination Procedures Project Management, Monitoring, Control & Feedback, System & Services Management of Technology Transfer Basic Engineering / Front End Engineering Detailed Engineering Procurement Monitoring and Expediting of Manufacturing & Fabrication activities Construction Management Inventory and Warehousing Control Quality Assurance and Quality Control Organizing and deployment of skilled labour and Skilled Contractors Training of plant personnel to take over operations on completion of

construction activity Pre-commissioning, commissioning and performance testing of all systems and

putting in operation Maintenance Management

All the above activities can be phased out in such a manner that the project is executed in

the most efficient and optimized economic course with a defined time schedule governed

by overall project schedule & the implementation Bar chart.



For execution of the contemplated Mega Project like CTP it essentially demands for a strong

Project Execution Team with specialist in each of the above identified activities. Besides: the

responsibility and reporting matrix needs to be well defined.

The Project Execution plan (PEP) can be further elaborated in the future when the CTP

project achieves further maturity.



8.2. PROJECT EXECUTION PHILOSOPHY

The enclosed typical Block Matrix sets out to development of project implementation plan

for the Mega Coal to Polygeneration (CTP) project. This implementation model is prepared

to achieve the optimum schedule and most effective project cost.

ASL: Project Mgmt. Team

Project Management Consultant (PMC)

Technology Supplier/ Licensors

Project Management

Basic Engg Pkg (S)

Inspection

Supply Catalysts

Supply Proprietary Equipments

Training, Pre-commissioning, commissioning,

Trouble Shooting & Maintenance

Technical Supervisory service for DE, Erection

& Commissioning

Procurement

Detailed Engg & Utility Offsite Engg

Finalisation of -Site Work-

Mechanical & Civil

Construction Management



8.3. PROJECT IMPLEMENTATION PLAN (PIM)

Generally: The project can be executed in the following manner:

Phase 1: Detailed planning phase including licensor selection basic engineering, detailed engineering Phase 2: Awarding of PMC (Project Management Consultant/LSTK procurement & construction) contract, ordering of long delivery items. Phase 3: Completion of all contracts for realization of the project as elaborated earlier.

The various phases are further briefly elaborate herein is General but essential for execution of a contemplated mega project alike CTP

Phase 1: Detailed Planning phase

This phase of the project covers the following critical activities:

Financial approval of the board following DFR and DPR stages Selection of Technology Supplier Study and planning of transportation of capital & construction equipment Site development planning & selection of contractor Authority approval (various Stages i.e. EIA, EMP etc) Cost optimization Completion of Basic Engineering Package & Review of DPR Completion of detail engineering Negotiation of PMC & Selection

Phase 2:

Awarding of PMC Project Control: Engineering Phase Ordering of Long delivery item etc

Phase 3: Completion of all contracts for realization of project of projects

This phase covers the following activities:

Project Management Project Control: Procurement phase Project Control: Construction phase Project Control: Commissioning phase

Implementation schedule for CTP complex: 48 Months



8.4. Typical Project Phases for Integrated CTP Project Execution:

8.5. CTP :Project Phases : From Concept to Commissioning

The detailed Project Schedule of CTP Plant is furnished below:



8.6. Project Implementation Schedule:



8.7. Financial Analysis:

The project cost has been estimated on the basis of identified scope, engineering details

for cost estimation, licensor’s information and cost data for Engineering, Procurement

and Construction management (EPCM) mode of execution. A reasonable contingency

factor has been applied to take care of the unforeseen items.

The total estimated project Cost of the CTP project is around 4.0 Billion USD (24,000

Cr.). The estimation basis is mentioned below. The cost estimate for the leading

candidate value chains are broken down in the pie chart enclosed below in Figure to

individual unit levels.

ESTIMATE BASIS

ASL has prepared capacity-factored capital cost estimates for the gasification island,

SNG Island, Methanol Island and FT Island. Capital costs cover the engineering,

procurement, and construction (EPC) of a CTP facility.

The estimates are all Class 5 type, with an accuracy range of -15% to +40% (as defined in

the Association for the Advancement of Cost Engineering (AACE) International

Recommended Practice No. 18R-97).

Each estimate case is prepared primarily by capacity factoring reference unit/systems.

Budget estimates from recent Licensor’s project database for Air Separation, Acid Gas

Removal (Rectisol), Sulfur Recovery, Tail-Gas Treatment, Syngas Booster, Power

Generation, and ZLD Wastewater Treating units are adjusted to the required capacity

per train, train count.

Total Installed Plant Cost Package Units from Vendors/Licensors

Total installed plant cost package costs cover certain areas of the gasification facility

that are assumed to be built on a total installed plant basis, where a single firm provides

all of the engineering, material and construction services required to erect that portion



of the plant. For this estimate, the following units are assumed to be built on a total

installed plant basis:

Air Separation Unit

Gasification

Rectisol Acid Gas Removal

Sulfur Recovery Unit

SNG Block

Methanol Synthesis Block

FT/Refining

The plant estimate is primarily based on sizing and scope data from Licensor’s following

key documents:

Overall Block Flow Diagrams

Process sizing Input by Unit

The estimate for each applicable unit/system is based on the Process Engineering

capacity and train count.

Cost Estimate Qualifications and Assumptions:

Capital cost estimate includes the inside battery limits (ISBL) plant only.

All plant facilities are assumed to be located on a Greenfield site adjacent to the balance

of plant facilities.

Modularization impact has not been assessed at this stage of estimate development for

this study phase of the project.

Cost Estimate Exclusions:

The following items are excluded from the total base plant cost estimate:



Piling

Construction Camp and Catering Services

Forward escalation beyond 2nd Quarter 2014

Sales and Use Taxes

Event Driven Contingency

Contractor’s Risk Fee

Impacts of remote construction lay down area(s)

Front End Engineering Design (FEED), including Licensor Process Design Packages

Owner’s costs such as but not limited to:

Land or rights of access to the site

Demolition of existing facilities

Tie-in to existing utilities beyond the battery limits

Tie-ins to sewer systems beyond the battery limits

Byproduct gas pipelines

Electrical transmission

Capital spares

Catalysts and Chemicals – Initial Fill (Included with Operating Costs)

Plant mobile equipment, office furniture, laboratory and shop equipment

Environmental and other permitting (including geotechnical and environmental

remediation)

Permitting offsets

Builder’s All-Risk Insurance

Licensor fees

Removal and proper disposal of hazardous materials such as asbestos,

contaminated soil, etc, and handling of underground obstructions



Site preparation exclusions include demolition, dump fees, removal of

underground obstructions, removal and disposal of hazardous materials, soil

remediation, and site improvements beyond minimal drainage

Owner’s pre-operations management (e.g. operator hiring and training)

Owner’s O&M labor, feedstock and utilities during commissioning and

performance testing

Operating and maintenance spares

The Capex Break-up of CTP is shown in the below Figure.

Figure : CAPEX Break-Up of CTP Project

Working Capital & Margin Money

Working capital requirement is estimated at:

Raw Materials – 0.5 month’s Raw material purchases

Catalysts & Chemicals - 0.5 month’s consumption of catalysts & chemicals

Finished Goods - 0.5 month’s cost of goods sold

Receivables – 0.5 months sales

Creditors – 1 month’s raw materials purchases

CG+Gas Cleaning

21% ASU10%

SNG +MeOH+FT

14%BOP9%

Other19%

Finance chrgs27%

CAPEX BREAK-UP CTP



25% of the current assets (except cash) have been provided as margin money.

Phasing of Expenditure and Commitment

The phasing of expenditure and commitment adopted to compute the financing charges

takes into account the expected spread of the cash flow/commitments over the project

implementation period of 48 months. The drawls will be as under:

I Year : 10%

II Year : 35%

III Year : 40%

IV Year : 15%

Financing Charges:

Share Holding Pattern

Based on the project cost, the Promoter’s contribution is considered as 30% of the total

project cost.

Loan from Institutions, Banks

It is assumed that 70% of the total project cost will be met by borrowings from

Banks/Financial Institutions.

Interest Rates for calculation:

Interest on Term Loans : 12%

Interest on Working Capital Loans : 14%

OPERATIONS:

Capacity Utilization

Capacity Utilization is assumed to be 80% in the first year, 90% in the second year and

100% from the third year onwards.

Sales

The Sales prices of Products are based on prevailing market price of equivalent

Products.

Variable Costs:

Raw Materials Prices

Coal price as a feed to gasifier is based on followings:



Landed price of Indonesian Coal @ 30 $/T (as received)

Landed price of Australian Coal @ 75 $/T (as received)

Utilities Prices are based on in-house data.

Selling Expenses are assumed at 2% of sales, which will provide for dealers

commission, transport, warehousing etc.

Fixed Costs

Fixed costs such as plant maintenance, administration expenses, insurance rates and

taxes have been estimated at approximately 5% of the total installation cost of plant

and machinery.

FINANCIALS:

Depreciation:

SLM Rates as provided for in Schedule XIV of the Companies Act, 1956 has been used for

financial analysis which is as under:

Buildings 3.34%

Plant & Machinery 5.28%

For tax computation, the rate prescribed by the Income Tax Act, 1961 has been adopted

which is given below:

Buildings 10%

Plant & Machinery 15%

Debt Servicing:

Institutional Rupee Loans and Bank Loans: The first quarterly repayment of installment

commences from the 4th year of commissioning. The debt is repaid within 6 years from

the date of commissioning.

Income Tax:

Corporate income tax has been calculated at 34% i.e. on net taxable profit.



Internal Rate of Return (IRR):

IRR (Post-tax) for the CTP Project is coming around 14 %, calculated on the basis of 20

years of life.



CHAPTER – 9 Final Recommendations

The Proposed CTP Project of ASL is a unique Project for the first time in India based on

Coal to Synthetic Energy.

It is evident from the key findings of the Pre-Feasibility Report undertaken by ASL that

the proposed CTP Project is Techno-Commercially Viable.

Based on the various studies, ASL believes that the CTP, project would add significant

value to Indian economy. The project will not only help ensuring energy security for

India but also drive macroeconomic growth through the coal based fuel.

The series of benefits that the Project would reap, may it be Strategic or Socio-Economic

are tabulated below:-

1. Energy Security:

The CTP project provides an excellent opportunity to convert low grade Indonesian coal

into premium quality ultra clean fuels. The SNG process produces ultraclean Natural Gas

which can be used as a replacement of Petrol/Diesel in CNG kit fitted vehicle.

The SNG can also be used as town gas (CGD – City Gas Distribution) to replace LPG in

domestic use.

Methanol is good feed stock for downstream petrochemical and specialty chemicals.

Methanol is also a good solvent for any Refinery/Petrochemical industry. Methanol can

be used as blend in Petrol. Though right now there is no policy in India but china is

already blending 20% Methanol in petrol.

Diesel and Naphtha would reduce the crude oil import burden.

With such CTP project India can enhance Gas and Liquid Energy supply.



2. Benefits to India and State of Gujarat:

ASL has undertaken a cost benefit analysis to ascertain the benefits that would accrue to

the India and Gujarat in particular from its proposed CTP project. The study results show

that the CTP project would create substantial amount of tax revenue for India over 20

years of project life.

The CTP, venture is expected to employ about 6,000 direct and indirect employees.

Adani group have been pioneers in corporate social responsibility and made significant

contributions to improve quality of people's life in all the regions they operate in. In

Gujarat, APSEZL and APL have started key initiatives in support of sustainable

development.

The CSR activity of APSEZL and APL aims at bettering the socio-economic and cultural

status of local people. The key highlights of some initiatives & activities that ASL is going

to undertake at Mundra are:

1. Sustainable livelihood options & Women Empowerment:

Strengthening the Community Based Organizations like Self-Help Groups, Farmer

Federation etc.

Capacity Building of the underprivileged communities on various market driven

skills

Establishment of Forward & Backward Market Linkages through networking

Facilitating the easy reach to the technical institutions for knowledge up

gradation.

Promotion of live stock Health Management



2. Education Initiatives:

Skill up-gradation through establishment of Technical Training Institution

Infrastructural Development in the form of school building, teaching & learning

equipment and furniture & Fixtures etc.

Quality Teacher support.

Scholarship for Education Excellence.

Promotion of Girl Child Education.

Incorporation of Extra Curricular activities.

Holistic approach to the education through “Yoga & Art Of Living”.

Promotion of Functional Literacy.

3. Health Initiatives:



Control on Blindness, Malaria, T.B., HIV & AIDS, Diarrhea etc.

Support the District Health administration in the community health activities

Improvement of Villages Sanitation through Solid- Liquid Waste Management.

Knowledge Enhancement on Preventive Health Care

4. Community Infrastructure & facilities:

Enhancement of Green Coverage.

Protection of Wildlife through awareness generation.

Promotion of Renewal Energy.

Waste Management through installation of recycling measures.



5. Natural Resource Management:


Ground Water Recharge through Water Harvesting

Protection of Wildlife

Promotion of use of Renewal Sources of Energy

6. Youth, sports & culture:

Promotion of brotherhood & fraternity within the village’s youths.

Development of Sports Activities.

Nurturing the youth for participation at District, State and National level events.

Patronization of the local art & culture.

List of Annexures Annexure No Description

I CTP Project Location II Meteorological Data of proposed Site III CTP Complex - Land Break-up IV Plot Plan of CTP Complex V Water Drawal Scheme from Gulf of Kutch to CTP Project Site VI Coal conveyor corridor VII Composite lay out Diagram of CTP Project location

Mundra

TATA Power PlantAdani Power Plant

Proposed CTP Complex

Adani Port for Coal ImportArabian Sea

Sea Intake channel for Power Plant

Sea Out-fall fromTATA Power Plant

Coal Conveyor

Sea Out-fall fromAdani Power Plant

Anexure-I Location Map

Annexure- II Site Meteorological Data

a) Maximum dry bulb temperature : 47.8 ºC

b) Highest monthly mean of daily : 36.0 ºC

Maximum temperature

c) Annual mean relative humidity : 60%

d) Maximum relative humidity : 95%

e) Minimum relative humidity : 20%

f) Average annual rainfall : 350 mm

g) Maximum twenty four(24) hr. rainfall : 470 mm

h) Seismic zone : Zone-V as per IS-1893

i) Maximum Wind speed experienced : 65 Km/hr

j) Basic Wind speed for design : 50 m/ Sec as per IS-875

k) Altitude : 8 M above MSL.

Annexure-III CTP Project at Mundra, Kutch, Gujarat

Sr. No. Item (Non-CRZ Area) Area (Ac.)

1 Coal Preparation, Storage & Handling 40

2 CTP Plant 202 A Coal Gasification Section 25 B Air Separation Unit 20 C Gas Adjustment and Gas cleaning 15 D Sulphur Recovery Unit 3 E SNG Methanator Block 20 F Methanol Synthesis Block 20 G FT/Refining 20 H Emergency Ash Storage Yard/Pond 20 I Intake Pump House 2 J RO Unit, DM Water Unit, RO/DM storage Tank 7 K Storm Water Pond 5 L Waste Water Treatment Unit 15 M Flare System 7 N Cooling Tower/Exchanger 5 O Product/Intermediate Product storage 8 P Steam Turbine and Switchyard 10

3 CTP Infrastructure 20 Q Administration Blocks 2 R Canteen 1 S Central Store 1 T Dispatch Section + Truck Parking 5 U Fire & Safety Buildings 2 V Laboratories 1 W Maintenance Workshops 5 X Occupational Health Center 1 Y Security Room 1 Z Training Block 1 Total (1+2+3) 262

4 Roads (In-plant & peripheral) + Pipe Racks/Trenches + Cable Trays 33 5 Green Belt (33% of Total Land) 145

Total 440

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Adani Port for Coal Import



Coal Conveyor


Sea Water intake for CTP Complex

Sea Water out fall fromCTP Complex through pipeline

Gulf of Kutch

Annexure- V Water Drawal Scheme

Annexure – VI Coal Conveyor from West Basin Port to CTP Site


Adani Port for Coal ImportGulf of Kutch

Existing Coal Conveyorfor power plants

Proposed Coal Conveyorfor CTP Project




Adani Port for Coal Import



Coal Conveyor


Gulf of Kutch

Composite Layout Map: Annexure - VII

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