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Proposal To Make Washing Of All Coal By Coal India Mandatory

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Today Only 4% Of Indias Coal Is Washed

Most of the Indian coal shipped to the power stations is not washed and contains 30-50% ash

Coal washing removes most of this unwanted ash

Today only coal transported over 1000 km is required to have less than 34% ash, enforcement

is unclear

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Coal washing only marginally increases the cost of electricity while the environmental benefits

and the benefits to the power companies are substantial

China washes nearly all of its coal with comparable ash content India is far behind China

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Washing Coal Is A Massive Win-Win For All

Power companies benefit from better efficiency, less coal consumption, lower transportation

costs, lower maintenance costs, better thermal efficiency, higher plant availability and less

waste disposal costs

India benefits from greater electricity supply and economic growth

Environmental benefits - less CO ash and better air ualit

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Reduced load on constrained transportation system rail and roads - giving more coal supply

for India

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Strong Environmental Case For Coal Washing

According to a study from U.S. Department of Energy, the use of washed coal reduces CO2

emissions by as much as 11%*

Use of washed coal can increase generation from existing plants by at least 10% which

effectively reduces CO2 emissions*

India is likely to be one of the most impacted countries from climate change

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According to the IFPRI, India will face the highest number of climate change-related

casualties

With the implementation of carbon credits, companies using washed coal would benefit from

lower emissions and higher profits

Washing will lower particulate air pollution- as India industrializes this will become a major

problem

* Source: case study presented on coal beneficiation and utilization of rejects by C. Zamuda Ph.D. and M. Sharpe, PE, Ranchi India August 2007

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Mandatory Washing Of All Coal

Today it is only mandatory to wash coal transported above 1000 km- enforcement is unclear

100% coal washing should be mandatory within 5-7 years in a phased manner

India has been slower than other countries in implementing washed coal due to a lack of emissionstandards and a misleading perception that coal washing adds to the cost of electricity generation

Unwashed coal encourages power companies to operate inefficient and highly polluting power plants

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Washed coal encourages the use of efficient super critical power plants which are better for the

environment and for Indias goal of more electricity production

Coal India needs to commit to firm annual targets in order to establish washeries for 100% of coal

mined otherwise full implementation will not occur

A working group should be formed with the Ministries of Coal, Environment and Power as well as CIL

to regulate making all coal washing mandatory

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Only 25% Of Total Power Consumption ComesFrom Indian Households

A 50% Price Increase From Washing All CoalWill Increase The Cost Of Power By Only 8%

Industrial53%

Agriculture21%

Indian Power Consumption

Real Price Impact Of Washed Coal Is Limited

FSA coal price discount to washed coal 50%

Price hike for washed coal 80%

Reduction coal consumption 20%Adjusted price hike 44%

Reduction in operating costs 5%

Reduction transport costs 5%

Reduction waste 1%

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Transport

2%

Residential24%

Source: * TCI estimates and company input ** case study presented on coal beneficiation, reduction in auxiliary power consumption 1.5% and 3% improvement in boiler efficiency*** Credit Suisse

Effective price hike 33%

Coal cost % of delivered power 40%

Domestic coal % of total power generation 59%

Impact on average price of power 8%

Number of years to adjust 4

Electricity price hike per annum 2%

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Case Study by the US Department of Energy

Satpura Thermal Power Station, NTPC*

The National Thermal Power Corporation performed a study as its Satpura TPS using washed coal of 34% ash in

one 210 MW unit.

The results include:

PLF increased from 73% to 96%

Coal consumption reduced 29% (from 0.77 to 0.55 kg/kwh)

Reduction in auxiliar ower consum tion 1.5%

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Significant Benefits For Power Companies From Washed Coal

* Source: case study presented on coal beneficiation and utilization of rejects by C. Zamuda Ph.D. and M. Sharpe, PE, Ranchi India August 2007

Reduction in down time of mills

No fuel oil support

Boiler efficiency improvement 3%

Coal mill power consumption (kwh) reduced by 48% reduction

Savings by using washed coal of $1.04 million (Rs 42.6 million) per year or $0.0006 per kW (Rs 0.024/kW)

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