Hurdle & Expected Solution Energy Generation From THAR COAL

Pakistan

Thar

History• The deposits - 6th largest coal reserves in the world, were discovered in 1992 by usaid team while they were searching water• After that it’s presence was confirmed by 5 international institution• USGS ( United States Geological Survey )• RWE DEA (German Petroleum Corporation)• SCA (Sindh Coal Authority)• GSP (Geological Survey Of Pakistan)• SHENHUA (China Company)

All Studies Confirm Presence Of Huge Coal Reserves

What is “Coal” “Lignite” or “Brown Coal”

Bituminous Coal“soft coal”

“Hard Coal” or “Black Coal”

Sub-Bituminous coal

Initially the peat is converted into lignite or 'brown coal' - these are coal-types with low organic maturity. In comparison to other coals, lignite is quite soft and its color can range from dark black to various shades of brown. Peat

Lignite

Sub-Bituminous

anthracite

1) Total Thar Coal resource is 175 Billion Tons.2) Energy contents of these resources are

more then the energy contents of Saudi Arabia and Iran's joint oil resources.

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Why Thar Coal?

i. Current dependable power supply hovers are around 16,000 MW in winter whereas it increase up 20,000MW in summer.

ii. On the other hand power demand in year 2030 would reach more than 100,000 MW

iii. if half of these resources are exploited properly, it would be sufficient for generating 100,000 MW of electricity for 30 years.

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Neyvelli lignite 7:1Heating value = 5200 lbTotal generation =

2,740 MW

Lignite 6:1Heating Value: 6200 ~ 11,000 lbTotal generation = 0 MW

COMPARISON OF STRIPPING RATIO, HEATING VALUE & GENERATION OF LIGNITE IN OTHER COUNTRIES

IndiaRhineland lignite 4.9:1 Heating value = 4,514 to 11054

lbTotal generation = 10,289 MW

Germany

Hungary lignite 9:1 Heating value = 3,035 lbTotal generation = 1,852

MW

Hungary

THAR COAL

Alarm Bell

Current Installed (MW)

Expected Demand difference(MW)(MW) Year

17897

2010 24,474 6,5772015 36,217 18,3202020 54,359 36,4622025 80,566 62,6692030 1,13,695 95,798 8

The gravity of situation can only be understood by comparing the projected demand figures with the total current firm supply

figures of our country

Source: PEPCO

Prime minister of pakistan(1993-1996

19 January 1995 GOP contract with گوزڈن وو company for energy generation on large scale• FIRST 5 YEAR hard COAL IMPORT FROM CHINA • After 5 year using lignite coal of thar

2002Contract with shen hua

660 MW Scheme: built operate and transfer

• 170 engineers and technicians were came in pakistan

Contracts with companies

13.5

china5.75 cents/kwh 5.34 cents/kwh

0.41After

Feasibility report80 million dollar

Basic Difference

Foreign Conspiracy Against Pakistan With Help Of NGO , bureaucratic leadership, oil

importers

country Institution Contribution CO2 /YEARPOLUTION

South Africa World bank &African

Devlopment bank

75.13 billion dollar + 81.2 billion

25 million

India World bank & Asian Devlopment

bank

850 Million dollar 07.26 ton

PAKISTAN 0 O O

1. 2001Thar Coal Task Force

2. 2008 Thar Coal And Energy Board

1,400,000,000 ton

10,000 megawatt

40 year

200barrelsoil

DR SAMAR MUBARIK2011Introduced under coal gasification in Pakistan

Coal Used In Electricity Generation & Lignite Reserves

%age of electricity generated from coal

Lignite produced 2013

Poland 94 63 MTUSA 49 74 MTchina 77 136 MTAustralia 76 41 MTPAKISTAN 0.1 <5 MT

Technical Problems For Pakistan

• Thar coal project is very far from the power grid stations.• Pakistan have not enough technological experience in developing coal project.• Transportation of coal is also an issue. Both options are available there, train network

and road option but cost of transportation and transportation infrastructure is also a big issue.• If the coal based power plant is installed near the consumers it will affect the

environment and living beings badly. If the mine mouth power plant is installed there will be power transmission infrastructure required, which also needs heavy investment.• There is also an underground water layer above the coal zone.

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KEY REQUIREMENTS FOR DEVELOPMENT OF THAR COAL• Development of Thar region. Presently Thar District

ranks lowest on all socio-economic development• The infrastructure like school, masjids, markets,

grounds, roads, railway line, airport, skill development, health and education etc. will develop in thar area and that will increase the value of thar block.• Power Generation with Gasification Based on latest

coal gasification technologies, coal can be used as a feedstock to produce electricity from gasification.

FUNDS FROM CHINA, DUBAI, TURKEY• “China has consented to invest in six coal power plants, two

projects (will) be constructed by Dubai and one project has been initiated by the government of Pakistan,

Conclusion & Forward WayWhere we are• Three commercial project of pin mining are at take-off stage , struggling for

financial close.• One pilot project of ucg is at execution stage.

What we need• Energy policy-real and effective –based on energy security of the country • Federal government should finance mining & power project• Timely completion of all infrastructure

Potential benefits of success of first project

• Reduction in circular dept through cheap electricity• Devlopment of indigenous mining industry• 4000 direct/indirect jobs creation• Energy security-affordable power• Potential conversion of coal to gas ,oil & other chemical

Status of Projects at Thar Coalfield

Thar Coal Blocks

Status / Timelines

Block-iGlobal Mining Company Of ChinaOpen Cast Mining Of 10 Mtpa 900 MW

Bankable Feasibility By March 2012Coal Mining To Start By 2015Power Generation By 2015-16

Block-iiSindh Engro Coal Mining Company

Open Pit Mine Of 6.5 Mtpa & 1200MW

Bankable Feasibility Completed 31st Aug. 2010Overburden Removal To Begin Jan 2014Project Plans To Reach Coal Seams In 3.5 Year-2017

Block-vUnder Ground Coal Gasification Project

2X50 MW IGCC Power Plant Planned

36 Bore Holes Have Been Drilled.Test Burn Done In Dec. 2011Power Plant Of 8-10 MW Is Being Established.

Block-viOracle Coalfields, PLC (UK)Open Cast Mine Of 5 MtpaMou Signed With KESC For 300MW

Detailed Feasibility Completed Oct. 2011Start Of Mine Development To Begin By Mid 2014

Block VIII,IX,AND X Available For Investment

Metric Tons Per Annum

Challenges for all Blocks

Challenges• Infrastructure must be completed

•Water supply Short Term • Roads Short Term • Railways Mid term• Transmission lines Mid term

• Power line for waste mining and pumping required

• Human Resource development24

Infrastructure Available At Thar

Road Network• 70 Tones Load Carrying Capacity

Metaled Road IsAvailable Up To Coal Field Area.

Communication• Telephone & Internet Communication Through Optical Fiber Cable Is Available

Up To Thar Coalfield Area.

DRINKING WATER• Reverse Osmosis Plants in Thar

Thar LodgeThar Lodge At Islamkot With 20-bedded

AccommodationTo Facilitate Foreign And Local Investors

Has Been Constructed

PROVISION OF HEAVY DUTY ROAD Improvement Of Road Network • From Seaport Karachi To Mithi

Railway Link• PRACS Has Prepared Feasibility For Broad Gauge Rail Link Up To Islamkot.

TRANSMISSION LINEThe NTDC Is Executing Two Schemes For

Power Evacuation From THAR:-• Phase – I: Transmission Line From Thar

Coalfield To Matiari• Phase – II: Transmission Line From

Matiari To Rahim Yar KhanEFFLUENT DISPOSAL• The GOS Is Executing A Scheme Of

Constructing 50 Cusecs Mine Water Drainage Channel From Thar

Coalfield Which Will Be Completed By Dec, 2013.

Infrastructure Planned in Progress at Thar

Thar today

27www.sindhcoal.gos.pk

www.sindhcoal.gos.pk 28

Thar Tomorrow

Thank You