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Economic expediency determines one side, political - the other, scientific - the third, environmental - the fourth, and so on ad infinitum. Compromise and optimization will resolve all disagreements if there are no hidden intentions and goals. Coal is the most concentrated form of solar energy in our carbon-hydrogen world. If we cannot use it correctly, this does not mean that we must abandon it. There are already many safe technologies for generating energy from carbon, which are not used due to all kinds of commercial interests. It is necessary to use any technology only when there are methods for the complete disposal of waste using this technology. The same cannot be said about nuclear power. And coal allows humanity to be with energy for hundreds and hundreds of years. And do not forget that CO2 is the source of life on our planet. Cleaning of coal from any impurities (coal enrichment) is always more economically profitable than any types of production of energy raw materials in terms of kW of energy. You just need to use it correctly.
Author: Olexandre Yugerov, President, Coal Preparation Society of Ukraine.

Note on government action after doing away with the requirement of washing of coal

Since 2019, the government has been working on coal sector reforms and has after considerable lapse of time commercial mining of coal. Surprisingly MoEFCC suddenly issued a notification on 21st May 2020 without extensive consultation, doing away with the use of washed coal with ash content < 34% by power plants located more than 500 KM from the coal supply source. This action of the government attracted wide-scale criticism from many renowned energy experts and various others who are having extensive knowledge of the fact that high ash content in Indian coal has many adverse impacts on the performance of coal-fired power plants and on the environment in general.

While trying understand the reason and circumstances that possibly compelled the government to do away with use of washed coal by thermal power stations, it has transpired that one particular power plant of a PSU which was getting ‘washed’ coal from a CIL owned washery, was paying almost 30-35% more but coal it was receiving was not of expected quality e. i. having less than 34% ash As a result, the electricity generated was costing some 35 paise per unit more to the power company. The power company recommended that use of washed is adding to the cost of generation and it should be done away with. Government, without taking into account the experience of other power plants which are receiving washed coal, hurriedly issued the notification of 21st May 2020, doing away with the requirement of coal washing.

After a lapse of about three and a half months the government felt that it was necessary to analyse quantification of the benefits that would have accrued to the power companies as a result of the aforesaid notification. The Power Ministry therefore directed the Central Electricity Authority (CEA) to undertake a ‘field level analysis’ of the impact of the decision of doing away with the requirement of use of washed coal by the power plants. In compliance of the ministry’s directive, CEA constituted a committee of representatives of power utilities that were using washed coal in their plants to undertake the study. It is learnt that the committee has since completed its task and submitted its report. All power utilities, other than one (who was reportedly paying much higher price for ‘washed’ coal to CIL) are reported to have submitted figures showing that in terms of ‘million kilo calories’, the delivered cost of washed coal is less compared to unwashed coal and in all cases, cost of electricity generation is lower and the power plants are the net gainers.

The findings of the ‘field level analysis’ carried out by the CEA committee are reported to be positively in favour of use of washed coal, as per reliable sources. The Ministry of Power has avoided making the report public and is now unable to take appropriate steps to rectify the retrograde stand taken without adequate understanding. The Ministry in all earnestness should have the humility to advise MOEF&CC to initiate a process of consultation and arrive at a more acceptable solution which is beneficial to the coal based thermal power plants.

This may be recalled that in order to ascertain the factual position about the benefits accruing to the thermal power plants by using washed coal, Coal Preparation Society of India (CPSI) – a non-government professional industry body had constituted an Expert Group comprising highly experienced and knowledgeable subject experts. The report of the Expert Group had explicitly brought out the benefits of use of washed coal accruing to the power plants in quantified terms. This report was submitted to the Hon’ble Prime Minister and other concerned ministries. While, officially there has been no response to CPSI’s report submitted to the PM and other ministries the present critical examination by CEA seems to have some connection.

Another fact has emerged that after the requirement of washing was done away with and that is that the power stations are now required to draw coal directly from the CIL mines with the result they are neither getting enough coal to meet their full requirement nor the quality of coal they get is satisfactory. In the earlier scenario, when they were getting the coal washed and the washery operator was able to procure full allocation of coal and supplying the same to the power plant. This issue was also highlighted by the power companies who submitted representations to the committee of CEA mentioned above.

It is now to be seen as to how the government moves forward? Government just can’t ignore the fact that in 2030 the coal-fired electricity will still be 56% of the total electricity generated in the country. Therefore, use of washed coal will be an imperative if emissions from coal-based power plants have to be capped within acceptable limits to meet the GHG targets committed at the Paris climate treaty.

Impact of Covid19 on coal industry...

From the coal perspective, power demand contracted due to total or partial stoppage of industrial activity. Even today, though more than six months have elapsed since the first lockdown was imposed, many industries including a very major chunk of MSMEs are still in corona virus forced hibernation. The net result is that the economy suffered biggest downturn in the history. On the thermal power front, barring NTPC and few more power utilities, PLF of coal fired plants came down to a dismal figure of 44-45% due to contraction in demand for electricity. This situation has brought a virtual doom in coal fired power sector. However, thanks to the Hon’ble Prime Minister’s bold and very timely call of Atam Nirbhatra in coal for raising domestic coal production, including one billion tonne target assigned to Coal India Ltd. The opening of coal sector to private investors has brought fairly successful results in the first tranche of coal block auction for commercial mining will surely prove to be a shot-in-arm of domestic coal industry.

However, there is a very disappointing part of the coal story. This is about the notification issued on 21st May 2020, by the Ministry of Environment, Forest and Climate Change (MoEFCC), doing away with the mandate of supply / use of washed coal in power plants located beyond 500 Km from supply sources and also to those located in urban and ecologically sensitive locations. This is a totally retrograde step taken by the government without consulting the stakeholders and subject experts.

After its protest letters and petitions addressed to PMO, MoEFCC and other concerned ministries including the NITI Aayog didn’t receive response, CPSI took the initiative of setting up an expert group comprising of very senior and renowned subject experts to evaluate all aspects of coal washing and use of washed coal in coal-fired power plants in their entirety. The report of the expert group titled ‘Washing of thermal coals is vital for India’ was submitted to the Hon’ble Prime Minister and also circulated to the ministries of coal, power, moefcc and the NITI Aayog.

Almost two months have already passed, we have not got any response except from the NITI Aayog which has sent a rather surprising reply stating the ‘it has not drawn its own conclusions but it is based on inputs from Ministry of Power’. It further goes on to say that ‘The Report on Coal Washing was prepared based on the consultations and input received from the Ministry of Power, NTPC, and Rajasthan Vidyut Utpadan Nigam Ltd’.

On further checking the facts, it was informally learnt that one of the large power utilities had submitted to MoP stating that by use of washed coal the cost of electricity was increasing by 30-35 paise per KWhr. On this basis the MoEFCC is reported to have issued the notification doing away with the requirement of washing of coal for certain power plants. Having done that government seems to have realised the fact that, after doing away with the mandatory requirement of using washed, the power utilities should be reporting a saving of 30 – 35 paise /KWhr savings.

It is learnt that the Central Electricity Authority (CEA) is presently engaged in a study to work out exact situation with regard to the impact of washed coal on cost of generation etc, and find out about the saving of 30-35 Paise per KWhr as was claimed by the concerned power utilities.

Last word from CPSI: Even a naive and non technical person can understand that coal with higher ash content can in no way help in reducing the cost of generation of electricity.

It is rather unfortunate that coal fired power plants are being misinformed with regard to the benefits of using washed coal.