Optimal exploitation of coal resources - Mission...
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Optimal exploitation of coal resources through Coal to Chemicals Industry February 2015 New Delhi
Transcript of Optimal exploitation of coal resources - Mission...
Optimal exploitation of coal resourcesthrough Coal to Chemicals Industry
February 2015
New Delhi
Global context
Indian context
Support from Govt.
Coverage
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Adani Proposal
India has significant shortfall of key chemicals
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Demand of Key chemicals and import dependence
India can leverage coal reserves to meet shortfall in above products
1506 15381682
14001310
1550
2012-13 2013-14 2014-15
44.140.3 39.8
13.2 13.3 14.1
2012-13 2013-14 2014-15
Natural Gas (MT) Methanol (in KT)
30.6 29.831.3
8 7.18.7
2012-13 2013-14 2014-15
Urea (MT)
30% 33% 36% 24%26% 28% 93% 85% 92%
Consumption Imports Imports % of Consumption
Methanol : IDS Market survey for Methanol – Ministry of Chemicals & Fertilizers, DGCI &S-kolkataUrea: 2014 Fertilizer Scenario, Department of FertilizersSNG Source: PNG statistics, GAIL, DGIC& S- Kolkata
Possible Foreign Exchange Savings by Coal to Chemicals
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10460 17508 19182 14389 1627924599
4501758369 60199 65264
36390
100596
181009
259386
344701
0.0
7.7
15.4
23.1
30.8
38.5
46.2
53.9
0
50000
100000
150000
200000
250000
300000
350000
400000
2010 2011 2012 2013 2014
Billio
n U
S $
Fo
reig
n E
xch
an
ge i
n I
NR
Cro
reUrea, Methanol & LNG : Foreign Exchange Outgo In Crores
Urea LNG Methanol Cumulative Outgo
India had spent US $ 53 Billions on imports of Urea, Natural Gas & Methanol in the last 5 years.
Economics support coal-to-chemical conversion
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Coal to Chemical conversion is very attractive use of Indian coalValue addition per ton of coal
Value addition to the coal is defined as the
net value added to the coal in the
manufacturing process.
• Urea adds more value to coal than any
other products
• SNG , Methanol & Methanol derivatives
also seems attractive
Note : Source: Internal estimates
Value addition to Coal through Chemicals seems very attractive
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69
54
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SNG
Urea
Methanol
Power
Value addition in US $ per ton of coal
CTC applications will result in significant benefits
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>10 Bn $Of Foreign exchange savings per
annum by indigenous production
>100000
JobsOver 30 yrs, Potential to create
5-7% Of railway capacity to be freed up1
Supply security for Enhanced Energy
, Fertilizer & Speciality Chemicals
1. Assumes usage of 110 MT coal per annum
5-7% Revenue to the Govt. over the project life
as Taxes, Duties, Coal Royalty etc.
99% Recovery of Sulphur in coal as saleable
Sulphur; CO2 in ready to capture form
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India also has large reserves of coal
8NoteR/P refers to Reserves to production ratio
Data for 2011India’s reserves of coal as brought by GSI is much higher
Source:IEA, BP Stats, KPMG
India has over 100 years of recoverable coal reserves at current consumption rate
236
488
33
190
105
215
541
289
119
78
0
100
200
300
400
500
600
0
50
100
150
200
250
Years
In B
illio
n T
on
es
Reserves R / P
Top 10 coal rich countries in world
Coal is the most dominant source of Energy Most of the coal is used for power generation
Coal-fired power generation accounting for ~3/4 of total coal consumption
Source: Energy statistics 2015 report by MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION, GoI
Coal consumption by sectors in India
Power72%
Steel7%
Cement3%
Sponge Iron3%
Others 15%
Global context
Indian context
Support from Govt.
Coverage
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Adani Proposal
China is a coal-rich country with large production base
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China-Sector-wise Distribution of Coal 2013 (Total 4 Bn Tons)
• Total coal production in China in 2013 is ~4 billion Tons� Out of this 220 million Tons of coal used for coal to chemical production
Source: http://www.en.wison.com
Combustion & Heating
12%
Household4%
Steel15%
Power48%
Building Materials
15%
Coal to Chemicals
5%
Other purposes1%
China is leveraging coal resources to meet Energy and Petrochem needs
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Chinese NRDC plan boosted CTC / CTL production
Product Production in
2015, Mt Exp. production in
2020, Mt
Methanol 34 66
LPG 4* 5
DME 12 20
Olefin 12 15
Ethylene glycol
1.7 n/a
Oil products 2.4 30
Urea 60 n/a
Many Coal to Chemicals projects have been planned in response to the policy
* - Planned in NRDC (National Development Source: BCG ; Research papers and company analysis
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Global context
Indian context
Support from Govt.
Coverage
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Adani Proposal
Adani - Targeted Products
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End ProductsProcessFeedstock
Coal Gasification
Urea
SNG
Methanol
Power
CTP Project Configuration: Jharkhand
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Product Capacity
Urea 2 X 1.3 MMTPA
Methanol 2 X 1.65 MMTPA
SNG 2 X 1 MMTPA
Power Plant (CPP)
4000 MW
Capex 10 Billion USD
MoU with Jharkhand Govt. has been signed on 25th June’15
CTP Project Configuration: Chhattisgarh
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Product Capacity
Urea 2 X 1.3 MMTPA
SNG 1 MMTPA
Power Plant (CPP) 1000 MW
Capex 4 Billion USD
MoU with Chhattisgarh Govt. has been signed on 24th August 2015
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Global context
Indian context
Support from Govt.
Coverage
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Adani Proposal
Support From Govt. that can create enabling conditions for CTP Projects
• Coal allocation to end use sector – Coal to Chemicals
• Need to encourage private participation
• Special Incentives in form of :
– GST/VAT reimbursement
– Capital subsidy
– Land availability at concessional rates
– Electricity duty exemption
– Zero import duty on imported capital goods
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