1. Coal to Liquids (CTL) – Opportunities for India
7th Coal Summit & Expo
Can India Grow Sustainably without Green Coal?
5th & 6th September 2018, The Ashok, New Delhi
Coal to Liquids (CTL) – Opportunities for India
Dr A K Balyan, CEO (Oil & Gas) Reliance Group
5th September 2018

2. DISCLAIMER
The views and opinion expressed in this presentation are those of the author and do not necessarily represent official policy or position of the company he represents.

3. Explore other options for value extraction
Coal in India
India has coal reserves of around 315 Bn Tonne
Around 76% of this is low grade coal i.e. ~ 240 Bn Tonne
India produced about 700 Mn Tonnes of coal in
Avg price of low grade coal with calorific value of ~4500 Kcal/Kg is Rs 1500/MT
Coal Comparison
Indian
Coal
Indonesian Coal
South Africa Coal
Australian Coal
Fixed Carbon %
Volatile Matter
Ash
4 - 7
< 15
Total Moisture
< 16
GCV
Kcal/Kg
Explore other options for value extraction

4. Why Coal to Liquid (CTL)
Coal-to-Liquid (CTL) technology converts coal to Liquid Hydrocarbons
CTL process is technically & commercially proven and gaining popularity
With escalating oil prices, lot of interest is being generated in CTL process
Commercially started way back during WW-II in Germany and subsequently in USA owing to rising oil prices in early 1950s
South Africa is producing significant amount of its oil requirement through CTL route since 1955.
China is making massive investments in CTL on its concern about rising dependence on oil imports and its impact on economic growth & national security
Most recently CTL concept has been changed to CTX – where variety of hydrocarbons are produced from a carbon resource like coal
India should not ignore CTX owing to abundance of domestic coal and for Energy security

5. Coal Gasification in India
FCIL had setup Fertilizer plants at Ramagundam, Sindri and Talcher during using coal gasification technology
Failed to achieve commercial success
GOI awarded coal blocks in Orissa to JSPL-Lurgi and Tata-SASOL JV in 2009 for setting up 80,000 bbl per day CTL plant each
Both projects were scrapped due to various reasons including cancellation of the allocated coal blocks
JSPL has setup a coal gasification project at Angul, Orissa for its DRI based Steel plant in 2013
RIL has setup Phase-1 Petcoke-Coal blend to SNG project in 2017 to replace its LNG import, and is about to complete Phase-2 by Q4 FY2019
CIL, GAIL, RCF & FCIL formed JV to setup a new coal gasification based MMTPA Urea Plant at Talcher. Bids are being evaluated
NITI Aayog has setup a Technical Committee to discuss and suggest a roadmap for suitable business model and suitable technology for the development of Surface Coal Gasification (SCG) in Indian conditions.

6. CTX - Technology Options
Two different approaches exist for coal to liquids
Direct Coal Liquefaction (DCL)
No Gasification, direct conversion of coal to raw liquid hydrocarbon using H2, Catalyst & Solvents
Less popular: Only one commercial plant in Shenhua, China
Indirect Coal Liquefaction (ICL)
Coal is Gasified to Syngas; Syngas is further processed with wide product options
Highly popular: Almost all commercial plants across the world are based on ICL
The three generic type of Gasifiers are
Fixed/Moving Bed Gasifiers
Fluidized Bed Gasifiers
Entrained Flow Gasifiers
Very robust and can handle all ranks of coal
Can handle all ranks of coal
Not suitable with high ash coal (Indian coal)
In commercial operation at SASOL with high-ash coal
Commercially proven with few references
Commercially Proven – Most popular among new projects
Tech. Provider - Lurgi & Envirotherm (BGL)
Tech. Provider - KBR, SES, Winkler etc
Tech. Provider - GE, Shell, MHI, CB&I (Egas)

7. Value Added Products from Coal Gasification
Carbon Source
Power & Steam
SNG
Gasification
F-T products
Naptha
Ammonia
& Urea
Waxes
Synthesis Gas H2
Synthetic fuels
Methanol
Acetic Acid
Methyl Acetate
Ethylene
&
Propylene
DME
Acetate
Esters
Ketene
Acetic Anhydride
Oxo Chemicals
Polyolefins
Diketene &
Derivatives

8. Macro Economic Evaluation - 1
Among the vast product range, CTX has three main process routes viz. Methanol, FT-Liquids and Ammonia have been considered for economic evaluation
1 million tonne per annum capacity for each product considered for an equitable and easy comparison
Basic assumptions considered for the evaluation
Typical Indian Coal CV : Kcal/Kg
Typical Indian Coal Cost : Rs/Kg
Gasification Technology : SES U-Gas Fluidized Bed Gasifier
Power Neutral Gasifier Efficiency : 75.9 %
Product
Plant Capacity
Indian Coal
SYNGAS
Production Cost
MM TPA
Mn TPA
mmscfd
US $/MT
Methanol 1
3.05
328
312
Urea
1.62
173
236
FT Liquid (Diesel)
8.13
873
654

9. Macro Economic Evaluation - 2
Comparison with Conventionally Produced Products - Deduced CTL route production costs are loaded with 1.5% to account for the storage and freight
Product
CTL Route
Production Cost
Assumed Storage & Freight 1.5%
Deduced Prod. Cost Net of Taxes
$/MT
S/MT
Methanol
312
4.68
317
Urea
236
3.54
240
FT Liquid (Diesel)
654
9.81
664
Conventional Production Cost* Net of Taxes
$/MT
490
242
719
High upfront investment in processes like Coal to Urea as compared to conventional
Involvement of Coal requires additional handling and safe disposal of ash and coal fines
Coal to Liquid process requires huge water requirement ~ 8 – 10 tons per ton of liquids
Elemental Sulfur / Sulfuric Acid is produced as by-products - gives additional cost advantage.
Production costs are in comparable range
* Source: PPAC, NUP 2015, Methanex

10. Investment Costs Step-1: Coal to Syngas Plant
Capacity : 6.0 mmscmd NG Equivalent
Investment : Mn USD
Syngas Cost : USD/mmbtu
Debt : Equity : 70 : 30
Cost of Debt : 10%
Cost of Equity : 14%
Step-2: Syngas to Product Plant: Investment Cost for 1 MMTPA Capacity
Plant
Syngas Produced
Investment
Coal to Syngas
Syngas to Product
Total Investment
 Coal to
mmscfd
Mn USD
Methanol
328
1031
163
1194
Urea
173
545
411
956
FT Diesel
873
2743
567
3310

11. Way Forward
India must consider development of Coal Based Hydrocarbon Fuels in view of large coal reserves and as an another option to enhance Energy Security
Government to promote CTX through national projects based on PPP model
high investment requirements
technology import requirements
faster implementation
Government to incentivize Coal Gasification based projects through policy changes like lower taxation, obligatory use and soft funding
Government to facilitate by identifying coal mines and obtaining all necessary clearances/approvals for project developers
A Coal to Methanol pilot project based on Niti Aayog’s suggestion to substitute 10% of Crude import by 2030 by Methanol

12. Thank You