Since electricity generation is largely dependent on coal in many countries including India, Government has laid thrust on Clean Coal Technology(CCT) which seeks to reduce harsh environmental effects by using multiple technologies to clean coal and contain its emissions.

Broadly CCTs include washing of coal, Coal Bed Methane/Coal Mine Methane extraction, Underground Coal Gasification, Coal Liquefaction or Coal to Liquids (CTL) etc.

Coal Beneficiation/Washing

Following the Ministry of Environment and Forests directive, restricting use of coal of not more than 34% ash content at thermal power stations located far away from pit heads and load centers and critically polluted areas, usage of washed coal has assumed significance. This has also contributed to improvement in economics of operations of such power stations. The washed coal supplies increased from a level of 17 million tonnes in the beginning of the Tenth Plan to about 55 million tonnes by the end of the Tenth Plan. The requirement of washed coal for thermal power generation is projected to be around 250 million tonnes by the end of the Eleventh Plan.

The present capacity of thermal coal washeries of about 108 million tonnes is envisaged to increase to 250 million tonnes during this period which is mostly from private sector. In addition, Coal India Ltd. has also decided to supply washed coal from their mines by constructing 20 washeries for a total capacity of 111 million tonnes on build own maintain basis. These new washeries are expected to be operational by the end of the Eleventh Plan period.

CBM & CMM

Extraction of methane from virgin coal seams is known as Coal Bed Methane (CBM) and that from working mines is known as Coal Mine Methane (CMM).

Development of Coal Bed Methane/Coal Mine Methane was given a fillip through a policy of the Government in 1997 according to which the Ministry of Coal and Ministry of Petroleum & Natural Gas are working together. The Government has offered 26 blocks in three rounds of global bidding for CBM covering 13600 sq. km of area with an estimated reserves of 1374 billion cubic meters of gas. One block in Raniganj coalfield has commenced commercial production in 2007 and two blocks are in advance stage of commencing production. Director General of Hydrocarbons (DGH) under Ministry of Petroleum & Natural Gas is the regulator for CBM activities in the country. Ten more blocks have been put on offer under CBM-IV by DGH.

One demonstration project of Coal Mine Methane through underground boreholes in Bharat Coking Coal Ltd. has been implemented in association with UNDP/Global Environmental Facility. Coal Bed Methane obtained through vertical bore well in this project is producing 500KW of power and is being supplied to BCCL colony.

Recently CBM/CMM clearance house has been established in CMPDIL, Ranchi in collaboration with United States Environment Protection Agency (USEPA) which will provide information for development of Coal Bed Methane/Coal Mine Methane in India.

Underground Coal Gasification (UCG)

Underground Coal Gasification is a method of converting unworked coal into a combustible gas which can be used for industrial heating, power generation or the manufacture of hydrogen, synthetic natural gas or diesel fuel. Underground Coal Gasification has the potential to exploit the coal resources regarded as either uneconomic to work by conventional underground coal extraction or inaccessible due to depth, geology or other mining and safety considerations.

Keeping in view the importance of developing Underground Coal Gasification, and following the recommendations of Report of Integrated Energy Policy Committee of the Planning Commission, and TL Shanker Committee on Road Map for Coal Sector Reforms, the Government has notified coal gasification including surface and Underground Coal Gasification activity as one of the end uses under captive mining policy to facilitate allotment of coal blocks to potential entrepreneurs.

Coal India Limited has identified two sites for developing UCG with Joint Venture Partners at Kaitha Block in Ramgarh coalfield under CCL command area and Thesgora block in Pench coalfield under Western Coal Fields Ltd. command area. Expression of interest is to be floated shortly in this regard for selecting the JV partners.

In addition to this, 5 Lignite blocks and 2 Coal blocks have been identified for offer to prospective entrepreneurs for developing UCG.

Under Coal S&T programme, the Government has approved a UCG project for implementation by NLC in Rajasthan. NLC is yet to finalise the consultants for this project.

Coal To Liquid (CTL)

A policy decision has been taken to promote coal liquefaction in the country from the energy security point of view. A gazette notification has been issued notifying coal liquefaction as one of the specified end uses for the purpose of allotment of captive coal/lignite blocks to the entrepreneurs. Based on the recommendations of an Inter-Ministerial Group, Ministry of Coal has allotted two coal blocks in Talcher coalfields, one each to M/s Strategic Energy Technology Systems Ltd. (SETL) and M/s Jindal Steel & Power Ltd. (JSPL). The names of the coal blocks allotted are North of Arkhapal-Srirampur Block to M/s SETL and Ramchandi to M/s JSPL. The proposed production capacity of each project is about 80,000 barrels of oil per day. The proposed oil production is expected to commence seven years hence. #