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After 100 years of harvesting coal, SCCL set to mine rare earths, focus on green energy

27 Jan 2025

 

Hyderabad: Acutely aware that in the next 50 years coal will no longer be the future of power generation, the over 100-year-old coal miner Singareni Collieries Company Limited (SCCL) is all set to take giant steps into the future.
The state-run company will soon set up two companies, one to mine rare earth minerals and another to focus on renewable energy (RE), which includes some unique technologies such as geothermal energy generation.
"SCCL is planning to float SCCL Global and SCCL Renewable Energy soon. Through SCCL Global, the company will focus on rare earth and critical minerals such as lithium, graphite, potash and nickel. Potash and nickel are being used by the defence sector also," SCCL chairman and managing director N Balaram told TOI in an exclusive chat recently. He insists that in the next decade, SCCL will no longer remain just a coal company.
While the company has already made forays into solar energy and geo-thermal energy, it is now gearing up to get into pumped storage energy, wind energy, carbon dioxide (CO2) to methanol and coal gasification in the coming years.

 

In fact, Balram says SCCL may generate more than 6,000 MW only through RE in the next three years. This is in addition to the 1,200 MW thermal power and around 250 MW solar it already generates and another 1600 MW in Odisha and 800MW expansion at its Jaipur (Mancherial) power plants that are underway.
For rare earth exploration, SCCL – a 51:49 joint venture between Telangana govt and the Centre – is trying to venture into Bolivia, Argentina and Chile, known as the lithium triangle.
Balram said state-run players such as Coal India Ltd (CIL) and National Mineral Development Corporation (NMDC) have already started exploring possibilities for mining these rare minerals, paving the way for state public sector undertakings to follow suit.
Officials TOI spoke to said the Centre is insisting that states go for green and renewable energy and is ready to impose penalties on those who lag on this front. Also, by 2070, power will no longer be generated through thermal power plants.
"The coal generated from mines will be used for coal gasification through methane and ammonia, which would be used in fertilisers and explosives," Balram added.
The Centre is also encouraging this and is ready to infuse about Rs 8,500 crore towards this.
"Tenders will be floated for coal gasification soon in Telangana for the abandoned coal mines. While our mining will be only 400 to 500 metres from the earth, gasification will be done beyond that depth," the SCCL CMD said.
Solar is the top priority
SCCL, which already generates about 250 MW of solar energy through ground and floating solar projects, is now expanding to other states such as Rajasthan, Gujarat and Karnataka as well to tap solar power. While it is already working on a 1500 MW solar park in Rajasthan, it has also engaged consultants for setting up solar parks in Gujarat and Karnataka as well.
At home in Telangana, the SCCL already has a 5 MW floating solar project at its Singareni Thermal Power Plant (STPP) at Jaipur (Mancherial) and is now working to set up 800 MW of floating solar at lower Manair dam and Mallannasagar.
The Mallannasagar reservoir was constructed as part of Kaleshwaram Lift Irrigation Scheme (KLIS). It is also planning to instal a 1MWh battery energy storage system (BESS) as a pilot project for optimum utilisation of solar energy units and cost benefit. In the abandoned mines such as Medipally near Ramagundam, SCCL has plans to generate 500 MW of power by using solar power during the day.
"We are aiming to achieve Net Zero very soon. SCCL's annual energy consumption is around 715 million units (MU). While we generate around 450 MU through our 250 MW solar projects, we plan to develop another 232 MW solar plants in phases over the next few months that will help us generate another 350 MU and achieve our Net Zero target," Balaram said.
On the wind energy front, the public sector unit is planning to float tenders to generate 100 MW-200 MW in the state. According to the National Institute of Wind Energy, Telangana has the potential to generate about 5,000 MW of wind energy in areas such as Vikarabad, Narayanpet, erstwhile Mahabubnagar, and even Adilabad to some extent.
SCCL is already working on the concept of 24x7 power supply to various govt and private agencies by mixing all kinds of power including thermal, wind, solar and other sources of energy and supply through the power grid.