prepared by -...

PRE-FEASIBILITY REPORT

ON

INSTALLATION OF GT DRIVEN PAC-IV & HRSG AT RCF THAL UNDER ENERGY REDUCTION SCHEME

FOR

ENVIRONMENTAL CLEARANCE

(VIDE MOEF GUIDELINES NO. J-11013/41/2006-IA.II(I) DATED 30TH

DECEMBER 2010)

AT

THAL UNIT

OF

RASHTRIYA CHEMICALS & FERTILIZER LIMITED

Prepared By

PROJECTS & DEVELOPMENT INDIA LIMITED

(A Govt. of India Undertaking) PO: Sindri - 828122, Dist: Dhanbad (Jharkhand)

QCI - NABET ACCREDITATION NO. 120 AS ON 10TH APRIL 2017

MAY 2017

CONTENTS

CHAPTER DESCRIPTION Page No.

0.0 Executive Summary 1 – 5

1.0 Introduction 6 – 9

2.0 Scope of Study 10 -10

3.0 Base case Steam and Power System 11 - 12

4.0 Steam and Power System after PAC-IV 13 – 16

5.0 Environment Impact Assessment 17 - 19

6.0 Project implementation Plan & Time Schedule 20 - 21

7.0 Benefits and Savings 22 - 23

8.0 Project Cost & Economics 24 - 26

9.0 Conclusion & Recommendation 27 - 27

LIST OF DRAWINGS

Sl. No Title Drawing No. Page No.

1.0 Base Case - Normal Operation FS167-0000-0041 28-28

2.0 Option-1 – Normal Operation FS167-0000-

0041A

29-29

3.0 Option-2 – Normal Operation FS167-0000-

0041B

30-30

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0.0 EXECUTIVE SUMMARY

0.1 RCF Thal complex comprised of two trains of ammonia plant of 1750 MTPD capacity

each i.e. Combined capacity of 3500 MTPD and three trains of urea plant of combined

capacity of 6060 MTPD along with all necessary utilities and infrastructure facilities.

The Thal Complex started its commercial production of urea in 1985. Subsequently,

DMF (Di Methyl Formamide) Group of Chemical Plants was added to the

manufacturing facilities, which made the Thal Unit as an integrated Chemical

Complex. RCF has since gone for de-bottlenecking of Thal I &II and enhanced the urea

capacity from 1.7 million MTPA to about 2 million MTPA. Revamping of Thal

ammonia-urea plants was completed in the year 2012-13. After completion of revamp,

the daily average ammonia and urea specific energies are ranging between 8.15 to 8.20

and 5.76 to 5.79 Gcal/MT respectively.

To reduce the energy consumption in Ammonia and Urea plant, a scheme of Gas Turbo

Generators (GTG) with Heat Recovery Steam Generator (HRSG) and replacement of

steam turbines of various equipment with motors in Ammonia plant and Revamping of

three Urea compressors & turbines of Urea plant is in implementation stage. After

implementation of above schemes, daily specific energy consumption of Ammonia and

Urea will be 7.70 Gcal/MT and 5.33 Gcal/MT respectively.

RCF intends to further reduce the energy consumption in Ammonia and Urea plant at

Thal for which provision of new Process Air Compressor (PAC-IV) with GT as drive

and HRSG is proposed.

For this purpose, PDIL has been retained as Consultant by RCF for carrying out an in-

depth study and preparation of Techno-Economic Feasibility Report (TEFR) for

installation of GT driven Process Air compressor and HRSG at Thal for reducing the

specific energy consumption of ammonia and urea plants.

0.2 The basic objective of the study is to reduce the specific energy consumption of

ammonia-urea plants of RCF, Thal complex by installing a new GT (Gas Turbine)

driven Process Air compressor and HRSG (Heat Recovery Steam Generator) of

optimum capacity.

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0.3 For the production of ammonia and urea, the major energy consumption centre is feed

and fuel to ammonia plant and minor energy through steam and power consumed in the

plant complex.

0.4 The Complex is currently undergoing steam power conversion project (GTG-HRSG

installation and Steam Turbine replacement by Electrical motors). Presently Process

Air Compressors used in Ammonia Plants are driven by Steam Turbines. Out of three

PACs, one compressor (PAC-I and PAC-II) are dedicated for respective Ammonia

Plant. However, one Compressor is incapable of supplying total Air requirement. Third

Compressor, PAC-III supplies differential air requirement to both the Ammonia trains

simultaneously. Due to continuous operation, efficiency of PAC-III has come down. It

is proposed to stop this inefficient machine. Further, after ongoing modification, one of

the existing boilers, located in SGP shall remain under operation. These SGP Boilers

are of old vintage and prone to continuous maintenance and inefficiency, In order to

improve energy consumption within the complex further, it is proposed to install one

high capacity PAC-IV driven by Gas Turbine and installation of HRSG unit along with

this GT.

0.5 The impact of proposed changeover scheme on land, air, water, noise and socio-

economic environment has been studied and it is concluded that as such there will be

no adverse impact on the environment due to proposed scheme.

0.6 The total implementation of the proposed Project is envisaged as below:

a) PAC, GT & HRSG on LSTK basis.

b) Other- Piping and pipe support etc. on EPCM basis.

The ordering and procurement of equipment shall be done in-house by M/s. RCF with

the necessary help of PDIL who will also be responsible for engineering and

expediting. For commissioning, consultant’s experts shall be deputed to site as and

when required.

For the proposed scheme, there shall be two types of activities. The major activities

shall be related to installation of PAC, GT and HRSG which is completely new set of

facilities to be executed adjacent to the existing compressor house area. The other

installations are related to in-plant modifications. The new set of facilities, especially

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related to piping, valves and associated supports shall be installed separately by

following the appropriate procedure. These new pipings and associated support system

shall be modified/added for the new duty.

It is envisaged that major time shall be required in execution of PAC, GT and HRSG

without affecting the operation of ammonia and urea. The total time schedule for

completion of project, especially PAC, GT and HRSG would be about 24 months after

receipt of approval from concerned authorities. The zero date will commence after

completion of all the pre-project activities.

0.7 The natural gas consumption for base case, after implementation and saving has been

presented in the table below:

The NCV (Net Calorific Value) of natural has been considered as 8700.16 kcal/Sm3.

Sl.No. Particulars

Base

case PAC/GT/HRSG Savings

Natural Gas Consumption

in (Sm3/hr)

1 SGP 17967 0 17967

2 GTG (under implementation) 12988 12548 440

3 HRSG (under implementation) 4888 7334 -2446

4 GT drive of PAC-IV 0 4690 -4690

5 HRSG of GT- PAC-IV 0 4359 -4359

6 Total Consumption 35843 28931 6912

7 Net Reduction/saving 6912

The reduction in make-up water due to the proposed facility is given below:

Sl. No. Item Quantity (m3/hr)

1. Due to reduction in steam 18.30

2. Due to reduction in CW Circulation 126.88

Total reduction in make-up water 145.18

0.8 The energy reduction due to implementation of proposed PAC-IV/GT/HRSG has been

worked out. It is assumed that all the energy reduction shall be through ammonia. The

energy reduction for ammonia is 0.3749 Gcal/MT and for urea it is 0.2167 Gcal/MT.

0.9 The project cost estimate for the facilities to be installed for the proposed changeover

scheme has been worked out to Rs. 346.88Crores.An approximate break-up of the

project cost estimates is given in Table-0.1.

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Table – 0.1

Project Cost Estimates

(Rs Lakhs)

Sl. No. Particulars / Items FC IC Total

A Supplies

1.0 Process Air Compressor with GT 13242 0 13242

2.0 HRSG (1×100 MTPH) 230 3506 3736

3.0 Other miscellaneous Equipment 0 1750 1750

4.0 Pipes, valves & Fittings 0 508 508

5.0 Electrical & Instrumentation 0 750 750

6.0 Spares (2 years) 1350 225 1575

Total Supplies 14822 6739 21561

B Taxes & Duties on (A) 0 5783 5783

C Services 0 4263 4263

D Contingency (5%) 741 839 1580

E Interest during Construction 0 1501 1501

Total Cost 15563 19126 34688

The Pay Back Period and IRR of change over scheme are estimated as 4.50 years and

19.39% respectively.

Sensitivity analysis has been done with respect to change in project capital cost and

Energy (NG) price.

0.10 Considering the financial results of the study, wherein pay back and IRR are attractive

with NG price of US$ 6.687/MMBtu, PDIL strongly recommends for early

implementation of the proposed modifications. The project is also having positive

impact on the environment.

0.11 Conclusion & Recommendation

Conclusion

The proposed project is limited only to installation of GT driven PAC & HRSG to

get self-reliance to meet process air requirement without any change in the

production rate of final product Urea & Ammonia.

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The EIA notification of 14th September 2006 related to the proposed project is silent

on the accords of EC for modernisation without change in the rate of

product/product mix. As per Clause 7 (II), the project requires a critical review and

due diligence to fix the methodology of EIA study.

Recommendation

The proposed project fulfils the aims & objectives of EIA by reducing energy

consumption, waste generation and exploitation of natural resources. The adoption

of the proposed project is essential keeping in view the survival of industries and

implementation of new techno-economical feasible process of production.

Considering the status of environment around Thal and results of financial study, it

is strongly recommended that the proposed modifications may be implemented at

the earliest in the interest of nation as well as RCF.

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1.0 INTRODUCTION

1.1 Rashtriya Chemicals & Fertilizers limited (RCF) is a public sector undertaking

involved in the manufacture and marketing of nitrogenous, phosphatic and potassic

fertilizers as well as a variety of industrial chemical products. The company was carved

out of the erstwhile Fertilizer Corporation of India Ltd. at the time of the reorganisation

in 1978. The company has presently two manufacturing units, one at Trombay and the

other at Thal, both located in the state of Maharashtra.

1.2 Thal unit is one of the first Fertilizer Complex established to utilise the Bombay High

Off-shore Natural Gas. The Thal complex of RCF is spread over an area of about 850

acres of industrial land provided by government of Maharashtra. RCF Thal complex

comprised of two trains of ammonia plant of 1750 MTPD capacity each i.e. Combined

capacity of 3500 MTPD and three trains of urea plant of combined capacity of 6060

MTPD along with all necessary utilities and infrastructure facilities. The Thal Complex

started its commercial production of urea in 1985. Subsequently, DMF Group of

Chemical Plants was added to the manufacturing facilities, which made the Thal Unit

as an integrated Chemical Complex. RCF has since gone for de-bottlenecking of Thal I

& II and enhanced the urea capacity from 1.7 million MTPA to about 2 million MTPA.

Revamping of Thal ammonia-urea plants was completed in the year 2012-13. After

completion of revamp, the daily average ammonia and urea specific energies are

ranging between 8.15 to 8.20 and 5.76 to 5.79 Gcal/MT respectively.

1.3 There is a wide variation in energy consumption across various urea fertilizer

manufacturing units on account of technology, feed stock, plant size and vintage etc.

The energy is main contributor in the cost of production. Therefore, survival of the

industry depends on improvement in energy efficiency. RCF has recently finalised and

executing the energy reduction scheme in the Thal by way of replacing some of the

steam turbine driven equipments of ammonia plants with motor driven along with

modification of the existing steam and power system.

1.4 The present requirement of power before implementation of GTG and HRSG for the

complex is about 28 MW which is met through Steam Turbine Generator (STG) of 30

(2×15) MW capacity. The required steam for this STG is supplied from the existing gas

fired steam generation plant. This steam and power system is also inefficient with

respect to energy which ultimately is loaded on ammonia and urea plants.

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1.5 To reduce the energy consumption in Ammonia and Urea plant, a scheme of Gas Turbo

Generators (GTG) with Heat Recovery Steam Generator (HRSG) and replacement of

steam turbines of various equipment with motors in Ammonia plant and Revamping of

three Urea compressors & turbines of Urea plant is in implementation stage. After

implementation of above schemes, daily specific energy consumption of Ammonia and

Urea will be 7.70 Gcal/MT and 5.33 Gcal/MT respectively.

1.6 RCF intends to further reduce the energy consumption in Ammonia and Urea plant at

Thal for which provision of new Process Air Compressor (PAC-IV) with GT as drive

and HRSG is proposed.

1.7 Projects & Development India Limited (PDIL), a premier consultancy and

engineering organization in India, had been retained as Consultant by RCF for carrying

out an in-depth study and preparation of Techno-Economic Feasibility Report (TEFR)

for installation of GT driven Process Air compressor and HRSG at Thal for reducing

the specific energy consumption of ammonia and urea plants.

1.8 With the above background, PDIL team of engineers visited the Thal unit of RCF and

examined the related existing facilities. The team also discussed with the RCF’s

operating personnel and collected requisite information for developing base line data

for analysis and working out techno economic feasibility.

1.9 The present report has been prepared on the above background and details of techno-

financial results are presented in the subsequent chapters of the report.

1.10 Estimated Cost of Project

The estimated cost for the facilities installed for the proposed scheme has been

worked out to Rs. 346.88 Crore.

1.11 Project Implementation Schedule

The total time schedule for completion of project would be about 24 months after

receipt of approval from concerned authorities & statutory body.

1.12 Need & Justification

The need and justification of the proposed project is summarized as under:

It will reduce overall energy consumption leading to a substantial reduction in

pollution load.

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It will reduce the consumption of natural resource like water which in turn will

have positive impact on environment

It will reduce the subsidy burden of Government of India

(GoI).

It will maintain the profitability of RCF.

It will maintain stability in indigenous / domestic market for Urea.

It will check the import possibility of fertilizers to some extent and yield

national savings

There will be temporary employment generation during construction period.

1.13 Projects & Development India Limited (PDIL), a premier consultancy

engineering and NABET accredited EIA consultancy organization (Sl. No.120 as on

10.04.2017), have been retained as Consultant by RCF for preparation of Pre-

Feasibility Report (PFR), online submission of Form-I and obtaining environmental

clearance from MoEF&CC for installation of GT Driven - PAC and HRSG at RCF

Thal.

1.14 Conclusion & Recommendation

Conclusion

The proposed project is limited only to installation of GT driven PAC & HRSG to

get self-reliance to meet process air requirement without any change in the

production rate of final product Urea & Ammonia.

The EIA notification of 14th September 2006 related to the proposed project is silent

on the accords of EC for modernisation without change in the rate of

product/product mix. As per Clause 7 (II), the project requires a critical review and

due diligence to fix the methodology of EIA study.

Recommendation

The proposed project fulfils the aims & objectives of EIA by reducing energy

consumption, waste generation and exploitation of natural resources. The adoption

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of the proposed project is essential keeping in view the survival of industries and

implementation of new techno-economical feasible process of production.

Considering the status of environment around Thal and results of financial study, it

is strongly recommended that the proposed modifications may be implemented at the

earliest in the interest of nation as well as RCF.

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2.0 SCOPE OF STUDY

The basic objective of the study is to reduce the specific energy consumption of ammonia-

urea plants of RCF, Thal complex by installing a new GT (Gas Turbine) drive Process Air

compressor and HRSG (Heat Recovery Steam Generator) of optimum capacity. To meet the

objective of the study, PDIL was awarded the job to carry out in-depth study and prepare

Techno Economic Feasibility Report for installation of GT drive PAC and HRSG. More

specifically, to cover the following areas.

Review of Air availability and consumption pattern and suggest capacity for the New GT

Driven PAC (i.e. PAC-IV) along with HRSG.

Review of performance of existing Process Air Compressors.

Suggest suitable combination for Normal operation for different scenarios like:

a) Keep PAC-III Stopped (preferable).

b) Keep PAC-I & PAC-IV in line or PAC-II & PAC-IV in line.

c) PAC-I or II will not be scrapped and are expected to be kept ready for taking in line

in case of problem in the other PACs.

Review the overall steam balance of ammonia plants and other requirements in the Factory for

suitable capacity of the HRSG.

To indicate the impact on the specific energy consumption of ammonia. Energy calculation

for the existing and change over system.

Configuration of Air Compressor, Gas Turbines and HRSG for achieving minimum specific

energy consumption.

Finalize the capacity of PAC, GT and HRSG required.

Adequacy checking for import/export high pressure steam line from SGP to Ammonia.

Finalizing the location for new PAC+GT+HRSG in ammonia plant.

Reliability of the proposed system.

Estimated investment for the proposed installation of PAC, GT and HRSG.

Economics of the new system i.e. saving in energy vs. investment. Pay back and IRR analysis

with different gas prices.

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3.0 BASE CASE STEAM & POWER SYSTEM

3.1 RCF Thal urea manufacturing complex has Two Streams of Ammonia and Three Streams of

Urea Plants having capacities of 1750 MTPD and 2020 MTPD each respectively. To serve the

main plants, capacity of offsite & utility facilities are adequate. While installing these

facilities, at Thal, technology adopted for the manufacture of ammonia and urea were latest at

that time based on Natural Gas feedstock.

3.2 Subsequently, as per guidelines of GOI, in order to reduce Energy Consumption, RCF is

revamping, presently, Thal Unit on LSTK basis for changeover of Steam Power Generation

from Boiler - Steam Turbo Generator (STG) to Gas Turbine – Heat Recovery Steam

Generation (GT-HRSG) System. As an extension of present endeavour, RCF has entrusted

PDIL to conduct a study of the Thal Complex with an intention to reduce energy consumption

further by installing one high capacity Process Air Compressor (PAC-IV, Gas Turbine

Driven). After installation of new PAC-IV, existing inefficient PAC-III will be stopped. Only

one of the two PAC-I or PAC-II will be taken in line at a time along with new PAC-IV to

cater Process Air Requirement of both Ammonia Trains. Operating Boiler in SGP shall be

stopped. Capacity of main plants shall remain unchanged.

3.3 Steam Generation/Consumption in the Complex

In RCF, Thal complex (Base Case operation), steam is produced from three different sources.

One source is from waste heat Boilers of Ammonia plant, second source is from Gas Fired

Boilers in Steam Generation plant (SGP) and third source is from HRSGs (yet to be installed).

Details of total steam generation / consumption are as follows:

Sl.

No. Item

Capacity

(MT/hr)

Generation/ Consumption

(MT/hr)

A Steam generation at 101 ata, 5000C

1a. Ammonia Plant RG Boiler / CG Boiler 2x235 470.0

1b. Ammonia Plant Synthesis Loop Boiler 2x79 158.0

2. HRSG 2x100 121.0

3. SGP Boiler-1 - 228.0

Sub-total (A) 977.0

B Steam Consumption at 101 ata,

5000C

1. Ammonia Plant - 640.0

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Sl.

No. Item

Capacity

(MT/hr)

Generation/ Consumption

(MT/hr)

2. Urea Plant 270.0

3. Steam Generation Plant - 67.0

Sub-Total (B) 977.0

3.4 Power Generation/Consumption in the Complex

Two Gas Turbine Generators (GTGs) shall be used to generate electricity in existing complex.

No Power shall be imported from State Grid. Break-up of source of power generation and

expected power consumption are given below:

Sl. No. Item Capacity

(MW)

Generation/

Consumption (KW)

A Power Generation

1. From GTG-1 / 2 2×32 MW

(ISO)

45713.0

2. Power Import from State Grid - -

Sub-total (A) 45713.0

B Power Consumption

1. Ammonia Plant - 25886.0

2. Urea Plant - 12500.0

3. Chemical Group of Plants - 4237.0

4. Bagging, ETP etc. - 300.0

5. HRSG - 290.0

6. Steam Generation Plant - 2500.0

Sub-Total (B) 45713.0

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4.0 STEAM & POWER SYSTEM AFTER PAC-IV

4.1 The existing steam and power system of RCF, Thal urea manufacturing complex has already

been delineated in the Chapter-3 of the report. In the production of Ammonia and urea, the

main thrust is to optimise the configuration of the plant complex in such a way that the overall

energy consumption shall be minimum. With the time, technological advancement with

respect to main plants as well as utilities has always attracted the attention of urea

manufacturers. Various studies are also being conducted to find out the economics of energy

saving vis-a-vis capital investment. In India, most of the ammonia and urea production plants

have improved their energy efficiency over the years. The improvement in energy efficiency

is as a result of concerted efforts of the industry by implementing various energy saving

schemes.

RCF, Thal also is not behind and has implemented various schemes which has reduced the

energy. When energy prices are in the lower segment, capital investment is most likely not

justified. It is to be mentioned here that past is gone, now it is expected that energy price,

especially of natural gas, may surge and hence introspective action is required. It is likely that,

with the spiralling NG price, the economics of saving in energy vis-a-vis investment will give

a flip to the present proposal.

In existing Complex, steam and power generation is based on Natural Gas. 3 number gas fired

boilers are present in the complex, out of which one shall be operating and two shall be

standby after ongoing revamp implementation. Though, on technical front, continuing the

ongoing revamp steam and power generation system do not have any problem but, on energy

front, prima-facie it appears that further improvement is possible. In this regard, RCF

internally has also examined. Based on their internal assessment, RCF is in a unique position

to think about the long-term implications of present day decisions to change over the steam

and power generation system.

Apparently, it is felt that, further modification in the ongoing revamp system of steam and

power generation may be beneficial in the long run. With a view to reduce the overall energy

of the complex, it is proposed that steam and power system shall be further modified in such a

way that both steam and power shall be adequate to run the main plants and auxiliaries un-

interrupted. On this subject, PDIL has conducted the detailed study with operating Thal

complex as well as ongoing revamp parameters (which are expected to be achieved after

implementation of ongoing steam - power revamp) at full load.

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4.2 The proposed modifications

The Complex is currently undergoing steam power conversion project (GTG-HRSG

installation and Steam Turbine replacement by Electrical motors). Presently Process Air

Compressors used in Ammonia Plants are driven by Steam Turbines. Out of three PACs, one

compressor (PAC-I and PAC-II) are dedicated for respective Ammonia Plant. However, one

Compressor is incapable of supplying total Air requirement. Third Compressor, PAC-III

supplies differential air requirement to both the Ammonia trains simultaneously.

As per operating data of PAC-I, II & III supplied by RCF and according to PDIL calculation,

the capacity of PAC-III is lower than those of PAC-I & II, and during normal operation only

PAC-I or II (being of identical and higher capacity) shall be kept in line along with proposed

PAC-IV, PAC-III may be allowed to remain unused in the revamp.

Further, after ongoing modification, one of the existing boilers, located in SGP (Steam

Generation Plant) shall remain under operation. These SGP Boilers are of old vintage and

prone to continuous maintenance and inefficiency, In order to improve energy consumption

within the complex further, it is proposed to install one high capacity PAC-IV driven by Gas

Turbine and installation of one HRSG unit along with this GT. This PAC-IV GT-HRSG

system will be designed such that following advantages will be immediately reflected during

operation:

- Problematic old vintage existing SGP Boilers can be totally stopped.

- As PAC-III is proposed to be stopped, HP Steam generation requirement will come down.

- Extraction steam from SGC (Synthesis Gas Compressor) Turbines will be adjusted in both

the ammonia trains to maintain common condenser load with in limit. By this operating

procedure, replacement of existing common condenser can be avoided.

- Make-up Cooling Water draw will come down due to overall reduction of exhaust steam

load in common condensers.

- Surplus steam generation capacity of HRSGs (under implementation at present) can be

utilised to maximum extent during normal operation also.

Accordingly following changes are envisaged:

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Table-4.1

Details of existing as well as proposed modification

S.

No. Items

Existing

System

Proposed

modification

1.0 Process Air Compressor

1.1 Steam Turbine Driven PAC-I Under operation Shall be operating

(operating option-2)2

1.2 Steam Turbine Driven PAC-II Under operation Shall be operating

(operating option-1)1

1.3 Steam Turbine Driven PAC-

III

Under operation

Shall be Stopped

1.4 Gas Turbine Driven PAC-IV Not present Shall be Installed for

continuous operation

2.0 HP Steam Generation (in

SGP)

2.1 SGP Boilers Under operation

in (1 + 2) mode

Shall be Stopped

2.2 HRSG-I (connected to GTG-

I)3

Shall be under

operation

Shall be under

operation

2.3 HRSG-II (connected to GTG-

II)3

Shall be under

operation

Shall be under

operation

2.4 HRSG-III (connected to GT

of PAC-IV)

Not present Shall be Installed for

continuous operation

As per preliminary assessment, existing piping is adequate except for certain portion, length of

which will depend on interconnection of HRSG-PAC-IV with existing HP steam network.

During detailing proper adequacy check will be done.

Note: The details of steam and power generation and consumption in the complex for

base case and after installation of PAC-/GT and HRSG are given.

1. Operating option-1: PAC-I is under shut down. Live Steam draw in SGC-I and II Turbines

shall be 275 and 310 MT/Hr. respectively. Extraction Steam draw from SGC-I and II

Turbines shall be 194.7 and 244.5 MT/Hr. respectively. Condensing Steam load in

Common Condenser-I and II shall be 91.3 and 135.5 MT/Hr. respectively.

2. Operating option-2: PAC-II is under shut down. Live Steam draw in SGC-I and II

Turbines shall be 310 and 275 MT/hr. respectively. Extraction Steam draw from SGC-I

and II Turbines shall be 244.5 and 194.7 MT/hr. respectively. Condensing Steam load in

Common Condenser-I and II shall be 140.5 and 91.3 MT/Hr. respectively.

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3. HRSG-I & II shall be under operation after implementation of ongoing GTG-HRSG

revamp of Thal Complex.

Following are the new installations required for the proposed modification:

PAC-IV (100000 Nm3/hr discharge Capacity at 38 Kg/Cm2g.) driven by GT

HRSG-III (connected to GT of PAC-IV) (100 TPH)

4.3 Capacity Fixation of PAC-IV, GT & HRSG- III

PDIL has prepared the steam and power balance after installation of GT-PAC-IV/HRSG-III.

After proposed modification also, no power will be drawn from state grid for the complex.

Required power shall be generated in the GTGs, presently under installation. It is expected

that, in both operating options 1 and 2, power generation requirement from the GTG islands

shall remain same and shall be about 22 MW from each GTG during normal operation.

100000 Nm3/hr at 38 kg/cm2g is proposed to be the rated capacity of PAC-IV driven by GT

and shall have its own Heat Recovery and Steam Generation (HRSG) unit supported with

auxiliary firing. It is envisaged that there shall be requirement of supplementary air to

augment further steam generation capacity in the HRSG. Accordingly, PDIL has

recommended rated capacity of HRSG as 100 MT/hr of Superheated HP Steam.

The proposed PAC-IV with GT drive system is highly reliable because of present day

reliability of new equipment, machinery and instrumentation & control associated with the

proposed new add-on system.

4.4 Space required for proposed Installation

During site visit, PDIL along with RCF has identified the area near the existing compressor

house of the ammonia plant and measured as 39 meters x 22 meters. It has also been discussed

with the supplier of the GT/ PAC-IV/ HRSG and confirmed the same.

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5.0 ENVIRONMENT IMPACT ASSESSMENT

5.1 Identification and prediction of impacts

5.1.1 Land Environment

The proposed project is limited to installation of Process Air compressor with gas turbine as

driver to PAC and HRSG for steam generation and minor piping system modification in the

complex. Due to this scheme, no additional land is required and activity shall be confined to

the existing plant area. No major levelling and grading activities are anticipated. Hence, due to

proposed project, no change in land use pattern is envisaged.

The proposed scheme will generate marginal construction waste like civil debris, metal scrap,

lube oil etc. The solid waste generated due to construction/demolition activities with respect to

civil debris will be used for filling low lying areas. Metal scraps and lube oil shall be stored at

one place and sold to outside agencies. As such there will be no adverse impact on the land

environment due to proposed scheme.

During operation phase, nature and quantity of solid waste shall remain same rather less than

that in the existing system which shall be handled, stored and disposed off as per existing rule.

It is, therefore, concluded that proposed scheme will have no impact on land environment.

5.1.2 Air Environment

Sources of Air Pollution due to proposed Scheme

Construction Phase

During construction phase, there will be minor generation of dust due to minor excavation

work. But it will be for a limited period only. Dust generation will be suppressed by spraying

water.

Operation Phase

The sources of air pollution in the proposed project will not increase rather it will decrease

because the objective of the proposed scheme is to reduce the energy consumed in steam

production/generation. The details are given as follows:

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In the proposed scheme, there is absolutely no change in urea production quantity. The

production quantity will remain same. The quality and quantity of inputs required for urea

production are unchanged. In ammonia production process, there are modifications in moving

machineries. The changes to be made in the supply of process air to ammonia plant. In

ammonia plant, there are three compressors driven by steam turbine. Out of three, one

compressor (PAC-III) will be permanently stopped. Out of other two (PAC-I & PAC-II), one

of them shall be in operation and second will be standby to either. The designed capacity of

PAC-IV will be such that it will suffice the balance requirement process to ammonia plant in

combination of either PAC-I or PAC-II. The PAC-IV compressor shall be driven by Gas

turbine. The flue gas emitted from new GT shall be used to generate HP steam in new HRSG.

The design capacity of HRSG shall be according to the HP steam requirement of the complex.

With the implementation of proposed scheme, HP steam generation in SGP will be stopped

and NG used for steam generation in SGP plant shall be diverted to proposed GT and HRSG.

For the base scheme steam is generated by direct firing of natural gas in Steam Generation

Plant and further this steam is used in Urea plant. After proposed scheme, steam shall be

generated through HRSG from the flue gas from GT with additional gas firing. Due to use of

GT drive for PAC-IV, it is likely that consumption of steam will be substantially reduced

thereby reducing the consumption of natural gas. Hence reduction of liquid as well as gaseous

effluents.

5.1.3 Water Environment

With the implementation of proposed scheme, water requirement for the plant shall be

reduced by 3484 m3/day due to reduction of steam and cooling water circulation requirement.

Total quantity of effluent generation after implementation of proposed scheme shall also be

reduced. So, no additional treatment facility is required.

5.1.4 Noise environment

Sources of Noise due to proposed scheme

No major installation of moving machineries is envisaged in the proposed scheme. Exiting

Steam Turbine driven PAC-III shall be replaced with Gas Turbine driven PAC-IV. Though

new HRSG will be installed and kept running but SGP boiler will be stopped. However, all

necessary precautions shall be taken itself from design stage so that noise level inside the plant

as well as to factory boundary remains well within the permissible limit.

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5.1.5 Socio-Economic Environment

In the existing complex, total number of officers and workers are 485 and 1060 respectively.

As no major change in process activity/facility is proposed, the existing manpower is

sufficient to cater the requirement of the proposed changeover scheme.

During construction phase, around 100-200 temporary labourers shall be required. This

manpower shall be available from the surrounding area. Hence, there will be no influx of job

seekers from outside and impact on demographic profile is ruled out. But there will be

temporary positive socio-economic impact.

5.2 As per MoEF&CC procedure and guidelines, any investment for a project in India, whether it

is modernisation or expansion of existing project, a detailed project Report covering

Environment Impact Assessment (EIA) aspect shall be submitted to MoEF&CC as per

approved TOR.

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6.0 PROJECT IMPLEMENTATION PLAN AND TIME SCHEDULE

6.1 The total implementation of the proposed Project is envisaged as below:

a) PAC, GT & HRSG on LSTK basis.

b) Other- Piping and pipe support etc. on EPCM basis.

6.2 The ordering and procurement of equipment shall be done in-house by M/s. RCF with the

necessary help of PDIL who will be also responsible for engineering and expediting. For

commissioning, consultant’s experts shall be deputed to site as and when required.

6.3 For the proposed scheme, there shall be two types of activities. The major activities shall be

related to installation of PAC, GT and HRSG which is completely new set of facilities to be

executed adjacent to the existing compressor house area. The other installations are related to

in-plant modifications. The new set of facilities, especially related to piping, valves and

associated supports shall be installed separately by following the appropriate procedure. These

new pipings and associated support system shall be modified/added for the new duty.

6.4 Pre-project Activities

The pre-project activities to be completed before physical execution of the project are briefly

enumerated below:

Approval of the project by the company Board of Directors.

Submission of application for environmental clearance to the State and Central Pollution

Control Boards.

Appointment of owner’s Project Management team.

Appointment of Indian Engineering Consultant.

Firming up of division list for procurement.

All the pre-project activities mentioned above shall be completed before the zero date of the

project.

6.5 Physical Execution of the Project

Based on above philosophy, RCF shall implement the proposed scheme by entering into

agreement with PDIL, who has expertise of implementation of similar type of projects. The

services to be rendered by PDIL shall cover the following:

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Selection of LSTK Contractor for PAC, GT and HRSG

Preparation of DFR

PMC Services for LSTK Contract in respect of PAC, GT and HRSG.

Detail engineering and procurement services in respect of piping pipe support and

electrical distribution systems etc. on EPCM basis.

Inspection and expediting services by posting necessary specialist at the

vendors/Fabrication shops.

Scheduling and monitoring services.

Construction supervision

Commissioning supervision

Procurement assistance to Owner

Assistance to owner for selection of civil & construction contractors.

Supervision services for carrying out GTR.

6.6 It is envisaged that major time shall be required in execution of PAC, GT and HRSG without

affecting the operation of ammonia and urea. The total time schedule for completion of

project, especially PAC, GT and HRSG would be about 24 months after receipt of approval

from concerned statutory authorities. The zero date will commence after completion of all the

pre-project activities.

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7.0 BENEFITS & SAVINGS

7.1 After installation /implementation of proposed scheme in the existing RCF Thal complex, the

savings on various counts are as follows:

7.2 Natural Gas

After installation of PAC-IV, GT driven PAC-IV & HRSG, natural gas will be consumed in

ammonia plant as feed and fuel to reformer, GTG for power generation, HRSG for

supplementary firing and drive turbine of PAC-IV and supplementary firing in new HRSG for

additional steam generation. After implementation of proposed scheme i.e. GT driven PAC-IV

& HRSG, HP steam generation from SGP shall be stopped and the natural gas which is used

for steam generation through SGP shall be diverted to new GT driven PAC-IV & HRSG.

Natural gas consumption in ammonia plant as feed and fuel to reformer shall be unchanged,

however, for steam and power generation, it may be reduced from the base case. The steam,

power and natural gas balance diagram for the base case and after installation of GT driven

PAC-IV & HRSG has been attached with the report. The saving in natural gas has also been

worked out. Based on the diagram, the natural gas consumption for base case, after

implementation and saving has been presented in the table below:

The NCV of natural has been considered as 8700.16 kcal/Sm3.

Sl.No. Particulars

Base

case GT driven PAC-IV

& HRSG Savings

Natural Gas

Consumption in (Sm3/hr)

1 SGP 17967 0 17967

2 GTG (under implantation) 12988 12548 440

3

HRSG (under

implantation) 4888 7334 -2446

4 GT drive of PAC-IV 0 4690 -4690

5 HRSG of PAC-IV GT 0 4359 -4359

6 Total Consumption 35843 28931 6912

7 Net Reduction/saving 6912

From above, it shows that there is substantial saving in consumption of natural gas after

implementation of proposed scheme i.e. 6912 Sm3/hr.

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7.3 Process Water

It is evident from the study that with the implementation of proposed scheme, there is less

consumption of steam compared to base case. The lower the steam generation, more is the

saving in water consumption. At the same time, due to less production of steam, there is

reduction in cooling water circulation to the extent reduction of steam going through

condensing type steam turbine. The reduction in cooling water circulation will certainly

decrease the make-up water requirement of cooling water circulation in the complex.

The reduction in make-up water due to above is given below:

Sl. No. Item Quantity (m3/hr)

1. Due to reduction in steam 18.30

2. Due to reduction in CW Circulation 126.88

Total reduction in make-up water 145.18

7.4 Other benefit against redundant assets can also be considered while evaluating the economics

of proposed scheme. These redundant assets either can gainfully be utilized somewhere else or

sold as scrap items.

However these savings have not been considered while calculating the financial benefits given

at financial statement.

7.5 Energy Reduction in Ammonia & Urea after Proposed scheme

The energy reduction due to implementation of proposed GT driven PAC-IV & HRSG has

been worked out. It is assumed that all the energy reduction shall be through ammonia. The

energy reduction for ammonia is 0.3749 Gcal/MT with production of ammonia as 3850

MTPD and for urea it is 0.2167 Gcal/MT with production of urea as 6060 MTPD.

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8.0 PROJECT COST & ECONOMICS

8.1 Project Cost

The project cost estimates for the facilities installed as described in chapter-4.0 for the

proposed modification scheme has been worked out to Rs.346.88 Crores. An approximate

break-up of the project cost estimates is given in Table-8.1.

Table - 8.1

Project Cost Estimates

Sl. No. Particulars / Items FC IC Total

A Supplies

1.0 Process Air Compressor with GT

drive

13242 0 13242

2.0 HRSG (1×100 MTPH) 230 3506 3736

3.0 Other miscellaneous Equipment 0 1750 1750

4.0 Pipes, valves & Fittings 0 508 508

5.0 Electrical & Instrumentation 0 750 750

6.0 Spares (2 years) 1350 225 1575

Total Supplies 14822 6739 21561

B Taxes & Duties on (A) 0 5783 5783

C Services 0 4263 4263

D Contingency (5%) 741 839 1580

E Interest during Construction 0 1501 1501

Total Cost 15563 19126 34688

8.2 Basis of Estimation

The basis of estimates is as below:

8.2.1 Equipment Cost

For cost of GT driven PAC & HRSG, PDIL has obtained budgetary cost from reputed supplier

of the equipment/machinery. Costs of pipes and associated accessories have been estimated

based on the requirement for the new facilities as described in Chapter-4.

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8.2.2 Taxes & Duties

The taxes & duties have been estimated based on the following rates:

Excise Duty with Education cess 12.5%

CST 2%

VAT 13.5%

Basic Custom duty 7.5%

CVD 12.5%

Customs Edu. Cess 3%

Special Duty 4%

8.2.3 Construction Cost

The civil construction cost and erection charges have been estimated based on facilities

considered in the modification.

8.2.4 Contingencies

A contingency provision of 5% has also been considered to cover the unforeseen expenses

during project execution.

8.2.5 Interest during Construction

The interest charges during construction (24 months period) have been estimated on the basis

of the anticipated schedule of expenditure. The total project cost is financed by long-term loan

and equity in the ratio of 70:30. The rate of interest on long-term borrowing has been taken as

9.5%. It has been assumed that entire equity portion shall be exhausted before resorting to

long-term loan.

8.3 Project Economics

8.3.1 Annual Savings

As mentioned in Chapter 7, the total annual savings, likely to be achieved after

implementation of proposed changeover scheme, is expected to be around Rs. 89.65 crores.

Considering gas price @ US$ 6.687/MMbtu and water price @ Rs. 42.7/m3, annual savings

has been worked to Rs. 8474 lakhs for saving in natural gas (assuming exchange rate 1 US$ =

Rs. 67) and Rs. 491 Lakhs for saving in Water against total investment of Rs. 346.88 Crores.

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8.3.2 Pay Back Period

The additional capital investment will be paid back in about 4.5 years by annual cash accruals

including depreciation at nominal rated capacity of operation.

8.3.3 Internal Rate of Return (IRR)

The IRR is a discount rate at which the present worth of benefits and costs are equal. The IRR

calculations take into account 24 months of construction period and 15 years of operating

period of the project. For IRR calculation, benefits after income tax have been considered.

Income tax (@ 34.61% on taxable income) calculation has been done on basis of IT

depreciation @ 40% for 15 years. Also interest on long Term loan have been calculated based

on the repayment in 8 equal installment in 8 years after moratorium period of 2 years. On the

basis of above, the post-tax IRR of change over scheme is estimated as 19.39%.

8.4 Sensitivity Analysis

To have an idea of weaknesses and strengths of the project proposal, sensitivity analysis has

been done. The economics of the project is based on the differential savings/benefits in energy

as natural gas after proposed modification over base case. The sensitivity analysis has been

worked out with respect to change in project capital cost and Natural Gas price.

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9.0 CONCLUSION AND RECOMMENDATION

9.1 Conclusion

For the production of Ammonia and urea, over the years, significant improvements in energy

efficiency have been introduced. Improvement in energy efficiency is a result of concerted

efforts of the industry by implementing various energy saving schemes. The declining trend in

energy consumption for ammonia and urea production is the testimony of hard work imparted

by ammonia urea manufacturers.

This present study focuses on the energy efficiency in utilization of natural gas for generation

of steam which are being used in the RCF Thal complex for the manufacture of ammonia and

urea. In the preceding chapters, the details of base case scheme and proposed scheme and its

techno-financial results have been analysed and finally, based on the results, it is concluded

that the proposal is technically and economically feasible. The IRR and pay back periods are

attractive. Though the existing facilities have no technical problem in operation but on energy

front, it is consuming more energy than proposed one. Various sensitivity analyses have also

been conducted. Even with pessimistic approach, attractive financial results are seen. Though

the investment pertaining to proposed scheme is substantial but benefit and savings are more

attractive for the company to take the decision in favor of implementation.

9.2 Recommendation

The proposed project is limited only to installation of GT driven PAC & HRSG to get self-

reliance to meet process air requirement without any change in the production rate of final

product Urea & Ammonia.

The proposed project fulfills the aims & objectives of EIA by reducing energy consumption,

waste generation and exploitation of natural resources. The adoption of the proposed project

is essential keeping in view the survival of industries and implementation of new techno-

economical feasible process of production.

The results of study also indicates that IRR and pay back are attractive with NG price of US$

6.687/MMBtu.

Considering the above positive impact on environment and results of financial study, it is

strongly recommended that the proposed modifications may be implemented at the earliest in

the interest of nation as well as RCF.

prepared by -...

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