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Coal with increased ash content, panel gives go ahead for imports

The union environment ministry’s expert appraisal committee (EAC) has recommended doubling the ash content on imported coal to 25 per cent against 12 per cent currently to help domestic thermal power plants which source the fuel from abroad to run their operations.

The recommendation by the EAC comes in the backdrop of recent demand by the coal-fired electricity producers that the environment ministry’s decision in February 2013 to restrain the ash content in imported coal to 12 per cent has triggered problems for the coastal-based projects as they are unable to utilise high grade bituminous steam coal available from Australia, South Africa, Russia, Columbia.

Instead, these thermal power plants are forced to use Indonesian coal which is characterised by very low heat value (GCV of 3400-4000 Kcal/Kg) and high moisture content (34-40 per cent) which results in reduced efficiency and increased coal consumption, the Association of Power Producers (APP) had contended in a recent representation to the environment ministry.

The ash generation by Indonesian coal and Australian, South African, Russian and Columbian coal would be 0.56-0.66 million metric tonne and 0.74 million metric tonne respectively. So, it is imperative to revise the ash content percentage to 25 per cent to help thermal power plants perform efficiently and lower their generation cost.

The EAC in its meeting on September 18 endorsed the contention of the APP that by restricting the ash content up to 12 per cent, the source of coal gets restricted to a particular origin, which may impact its price competitiveness . Besides, this restriction may also run contrary to the objectives of the competitive bidding guidelines and the Electricity Act, 2003, it observed.

Moreover, bulk of the imported coal having ash content lower than 12 per cent are typically of Indonesian origin but they have high moisture content of about 30-40 per cent. Contrary Against this, the other major sources of imported coal like Australia, Russia,

USA, have ash content of about 25 per cent but moisture content of upto 15 per cent.

After detailed deliberations, the Committee recommended that the restriction on maximum ash content of imported coal may be increased upto 25 per cent and environment impact assessment be carried out accordingly,” the EAC recommended.

source: http://indianexpress.com