Sustainable Energy in Asia -2025 by Low Rank Coal up-gradation in Indonesia

-Sanjay Singh

INTRODUCTION:

Energy is a basic requirement for development of any country as well as

people’s quality of life. There are enough resources available around the world
to meet the energy demand but the main challenge is to how to get these
resources techno economically feasible to manage the energy demand with
environment challenges.

For developing country, it is beneficial that developed country transfer

technology and expertise freely without any barrier to reach the balance gap
for R & D efforts as required for techno-economic utilisation of resources.
Indonesia have 61.3billion ton of Coal resources with 19.3 billion ton as Coal
reserve and can play a vital role in the energy mix design module for key
energy consuming market of China, India, Japan & Korea.

Around 70% 0f Indonesian Coal are claimed as Low Rank Coal because of High
moisture content ( 35-50%) and GCV less than 5000 Kcal/kg but having less Ash
% and few slots are defined as High sulphur blocks having TS 3-4% but overall
average TS < 0.5 % . For commercial purpose, GOI treat Lignite to Sub
bituminous C rank Coal having Moisture > 35% with low Calorific Value ( <5100
Kcal/kg ADB) as Low Rank Coal.

The Rank wise coal distribution in Indonesia area as:

Bituminous, Anthracite , 0.5%

14.5% Sub Bituminous,
27%

Lignite,
58%
LOW RANK COAL-

The principal feature in Conversion of Vegetable debris to Peat-Lignite-Sub

Bituminous Coal- Bituminous Coal- Anthracite Coal i.e Coal Ranking up-
gradation is also rapid de-watering because of natural chemical
decomposition, and increase in pressure, temperature as a result tectonic
activity and overburden volume within compacted mass of matters.

Inherent moisture is inside the Coaly matter and mineral matter that is
included in the Coal, In addition of above inherent moisture, Coal is known to
absorb water when exposed in humid atmosphere during mining, stacking,
transportation in open wagon or washing.

In low rank Coal fuel like Sub bituminous and Lignite, the separation of Surface
and Inherent moisture is difficult to do because of high porosity characteristics
and sponge like nature of these materials as compare to Bituminous and
Anthracite Coal.

There are number of negative aspect associated with the use of high moisture
Coal as termed Low rank..

 Low thermal efficiency ( More Coal being used for per unit energy
generation)
 Low stripping ratio work to maintain Mining Cost (Poor recovery of Coal
resources as not feasible to do mining on high SR with respect to Sale
price of Low rank Coal)
 High transportation cost per unit energy content.
 High tendency for spontaneous Combustion
 High emission of Co2 & noxious gases per unit of energy generated.

Major factor for Low thermal efficiency of Coal is High moisture and its impact
on Heating Value is conceptualised with following basics to know impact on
heating values.

MOISTURE % VS HEATING VALUE:

Coal is a composition of Total Moisture, Fixed Carbon, Volatile matter and Ash
content that can be analysed by Proximate Analysis of Coal as:
 TM- 19.3%, IM-11.5%,Ash- 2 % ARB, Volatile Matter- VM- 40.1% ARB,
Fixed Carbon (FC) - 38.6% ARB, GVV (Kcal/Kg) - 5766 ARB, 6419 ADB
 The heating Value of Coal is mainly generated because of Fixed Carbon
and Volatile Matter parameters only in the Coal and other parameter as
like Moisture, Ash don’t contribute any heating Value in the Coal.
Volatile Matter of all Coal is different based on composition of H2, N2,
O2 and other gases.
 Heating Value from Fixed Carbon + Heating Value from VM = Heating
Value of Coal
 Latent heat of Carbon – 32.8MJ/Kg (7.84 Kcal/gm)
 Heat Value generated because of Fixed Carbon in 1 Kg Coal-386*7.84 =
3026.2 Kcal/Kg of Coal
 Heating Value of VM in 1 kg Coal sample = 5766-3026.2 = 2739.8 Kcal
 401 * Lvm = 2739.8 Kcal
 Heat Value from VM for particular Coal sample – 6.83 Kcal/gm
 Impact of 1% moisture reduction on Heating Value:
 TM+ FC + VM+ ASH = COAL
 19.3gm + 38.6gm + 40.1gm + 2gm = 100gm Coal
 18.3gm + 38.6gm + 40.1gm + 2gm = 99gm Coal (1 % M Reduction)
 18.3 gm +(38.6+ 1*38.6/80.7)gm+ (40.1+1*40.1/80.7)+(2+1*2/80.7) =
100gm Coal ( Rationalisation)
 18.3gm + 39.08gm + 40.6gm + 2.02gm = 100gm Coal
 183gm+390.8gm+406gm+202gm = 1000gm Coal
 % increase in Fixed Carbon content b’cs of 1% Moisture reduction-
0.48%
 % increase in Fixed Carbon content b’cs of 1% Moisture reduction- 0.5%
 % increase in Ash content b’cs of 1% Moisture reduction- 0.02%
 Heat Value increase in Coal b’cs of 0.48% increase in Fixed Carbon –
4.8*7.84= 37.63 Kcal
 Heat Value increase in Coal b’cs of 0.5% increase in VM – 5*6.83= 34.15
Kcal
 Heat Value increase in Coal b’cs of 1% decrease in TM –
7.63+34.15=71.7 Kcal.
The other adding factor in Heating Value is Sulphur Content that is not
included in the basic calculation to find out the impact of Moisture on Energy
content of the Coal.

LRC RESERVE WRT SALE PRICE:

Mining of LRC and its export is feasible for Mine location near to Sea Port
facilitating the logistics and transportation Cost with Thick seam as its reserve
become limited because of working on less stripping ration up to 1:3.

LRC minable reserve get reduced around 3-4 times as compare to High grade
Coal Minable reserve for same geological situation because of less FOB price
as around 2.5 time leading to no investment in LRC mining even because of
vast reserve availability.

Under utilisation of minable reserve for LRC by Mining at Stripping ratio < 1:3
recommend Coal upgardation technology for Sustainable energy balance in
Indonesia and surrounding Asian country..

INODESAIN COAL PRICE INDEX:

KALIMANTAN,INDONESIA (FOB) PER TONNE

Ref:Issue 105,15th April 2010( Argus Coal Indo)

89.74
72.35
58.74
38.04

6500 5800 5000 4200

GAR/6200NAR/12% GAR/5500NAR/18% GAR/4700NAR/30% GAR/3900NAR/40%
TM TM TM TM

There is difference in price of around 52 USD for 28% Moisture

equivalent to 1.85USD/1% moisture. For Coal having high moisture %
and less GCV the price index is less as compare to less Moisture % for
per unit of heat value at FOB. But the Cost of transportation remain
 same for all rank of Coal and that leads to disadvantage for low rank
Coal for its utilisation close to Mining Site.

Kalimantan Coal Grade- FOB price ( Cents/Kcal)

1.381
1.247 1.175

0.906

6500 5800 5000 4200

GAR/6200NAR/12% GAR/5500NAR/18% GAR/4700NAR/30% GAR/3900NAR/40%
TM(A) TM(B) TM© TM(D)

Transport Cost impact on the Coal is not being considered but with same cost
for all type of Coal it is preferred to purchase only high grade Coal..

LOW RANK COAL UP-GRADATION & UTILITATION:

Due to limited Coal reserve of High grade Coal it is mandatory to upgrade the
Coal quality of Low Rank Coal by various available techno economical process
under R & D, Coal either used directly in form of Solid or converted into gas or
liquid that is cleaner to environment and much easier to be handled in
transportation & utilization.

Coal
Gassification

Coal
liquification LRC Coal
Briquetting

Power
Generation
By LRC up- gradation by above technology, the abundant reserve of LRC can be
used both for domestic use and export market.

- LRC should be upgraded to clean and high calorific energy sources

before used or transportation for longer distance.
- LRC should be utilised for power generation that must be close to Mine
Site..
- LRC is converted into gas by Coal gasification.
- LRC is converted into Oil by Coal liquefaction.
- LRC is converted in Briquettes after moisture reduction without binders.

With this price variance of around 52 USD per ton for Coal having difference in
Moisture % by 28% it look techno-economic feasible to upgrade Coal by
various technology as mentioned.

KALIMANTAN,INDONESIA-PRICE INDEX VARIANCE WRT 40% TM COAL

Ref:Issue 105,15th April 2010( Argus Coal Indo
89.74
72.35
51.7 58.74
38.04 38.04 34.31 38.04 38.04 38.04
20.7
0

6500 GAR/6200NAR/12% 5800 GAR/5500NAR/18% 5000 GAR/4700NAR/30% 4200 GAR/3900NAR/40%

TM TM TM TM

COAL BRIQUETTING:

In the Coal briquetting process the Low rank Coal is crushed to -8mm and dried
in rotary steam tube dryer from 60 % to about 15%, the dry coal is then cool
and briquetted without a binder, using a extrusion press at 1200 kg/cm2 to
form hard compact Coal.
White Energy Company Limited 51% owned subsidy, PT. Kaltim SupaCoal has
build a 1MTPA binder less Coal briquetting plant in Indonesia in joint operation
with PT.Bayan Resources. WEC technology upgraded low grade High moisture
Coal by removing the moisture from Coal, thereby significantly increasing heat
energy content and quality. The planted process involve the crushing, drying
and briquetting of high moisture Coal resulting in converting the product into
higher energy content, stable product, while maintaining low sulphur ,low ash.
The resultant upgraded coal is of export quality and planned to export price
when sold by PT. Kaltim Supa coal. The Company has also JV agreement with
Adaro group to build additional plants in Indonesia.

Main factor that has to be review for this technology is the better transport
facility and storage facility if Briquette absorbs water from humid
environment; rain etc during transport and storage.

Physical and chemical characteristics of Coal briquettes after its exposure with
Rain and its impact on Increase in moisture % during storage and transport, its
impact of increased moisture on stability of Coal Ignition time, combustion
characteristics wrt of ellipse shaped, cylindrical briquettes should be
investigated otherwise the its export without considering good transport
facility and storage system will remain an issue..It is well known that increase
moisture leads to decrease in compressive strength, and combustibility..

COAL GASSIFICATION:

Gasification is conversion of Coal into gaseous product (CO & H2) either with
or without reactant (Air, Oxygen, steam or mixture of these) CO & H2 can be
converted into CH4.
  Coal + Air (O2 & N2) --- CO + H2+ N2 (Producer gas , Low gas < 200
Btu/ft3)
 Coal + Air (O2 & N2) + Steam (H20) --- CO + H2+ N2 (Water gas, Low gas
< 200 Btu/ft3)
 Coal + Oxygen (O2) + Steam (H20) --- CO + H2 (Synthesis Gas/Syngas, Gas
- 200-400 Btu/ft3)

CH4 (Synthetic natural Gas, Gas - 1000 Btu/ft3)

For gasification agent as Steam only content of Hydrogen gas is more and
Carbon monoxide is less as compare to gasification agent as Oxygen & Steam
Mixture and Oxygen only.

GOI has planned to replace use of natural gas from LRC gasification in
petrochemical industry as as gas fuel in other industry as like fertiliser plant
etc. The gasification process of LRC can also produce Methanol, of of the fuel
source for transportation in the future.

Study shows that LRC with cut-off price of Natural gas is at of USD2/MMBTU
with LRC price of USD 30/MT and when the level price of gases increases then
using this technology will become feasible as Integrated Gasification Combine
Cycle (IGCC).
Around 5000 MW of energy are being generated by this technology mainly in
USA, Germany& Italy. Integrated drying gasification Combined Cycle( IDGCC)
offers substantial improvements in fuel efficiency and Cost saving for High
moisture Low rank Coal.

While this technology looks to be meet the future energy requirement may be
2025-2050 because of limited reserve of high grade Coal and advantage of this
process technology in term of clean environment as compare to conventional
power plants..

- Pre combustion cleans up of fuel prior to power generation.

- Best suited technology for High Moisture & High sulphur Coal as sulphur
can be recovered in between process.
- Generate less solid waste as compare to conventional power plant.
- Use 20-50% less water and can be utilised dry cooling to minimise water
consumption.
- Have option of C02 disposal by geological sequestration and less
emission of pollutant as like Nox, Sox etc..

At present this technology have high Capital & operating cost as compare to
conventional power generation and can only be make economical only after
imposing taxes of environment pollutant or R & D effort further to make it
economical and established technology.

Coal

Gasification

Synthetc gas

Fischer-Tropsh H2/Ammonia &

Methanol Fuel/Town gas Iron Reduction Power & Steam
Liquid Urea/Transport

Ethylene/Proylene Acetic Acid Jet Fuel Waxes FT Diesel Naptha

COAL LIQUEFECTAION:
Coal liquefaction can be divided into two process i.e Direct and Indirect
Coal Liquefaction, the indirect Coal liquefaction the production of
hydrocarbon is from synthesis gas consisting of Carbon monoxide and
Hydrogen. This gas is cleaned of all impurities and the clean synthesis
gas is sent to Fisher-Tropsch reactor where most of clean gas is
catalytically converted into zero sulphur liquid hydrocarbon fuels. Its full
scale plant is made in South Africa while it is expensive in term of
thermal efficiency, moreover the other by-product can also be
generated after few reaction and catalyst that may put some advantage
in this technology.

In direct Liquefaction, High molecular structured Coal is reacted under

high temperature and pressure with hydrogen and Coal derived solvent
with catalyst to produce a synthetic Crude oil, the same oil then further
upgraded with distillation and another hydro cracking to produce Light
and Medium Oil as described in flow chart..The thermal efficiency vary
from 50-70% based on Coal grade etc..

Study shows that oil recovered from 1 ton of Coal is 3 barrel for
Indonesian South Banko Coal having 35 % moisture and 1 barrel Oil for
Victorian Coal having 60% moisture.
Few study mentioned that cost of production of Oil from Coal is around
USD 50 per barrel and in today contest with Crude Oil Cost in range of
USD 82/ barrel (Nov.2010), it look economical to prospect further for
Conversion of Low rank Coal into Oil to meet the requirement of
transport fuel in near future with fast depletion of Natural Oil and gas
sources.

LRC POWER PLANT:

Conventional technology for thermal power generation from Low Rank
Coal having high moisture involve pulverised Coal combustion & Coal is
dried on line in an integrated drying system. For this large proportion of
hot flue gas is recycled to dry the Coal, LRC furnaces have bigger size 1.5
times in height and 1.4 time in area to meet the same power generation
because of large volume handling as compare to Bituminous Coal result
in high capital cost, beside this significant improvement has been done
to improve the Coal efficiency and green house gas emission but still
power plant is recommended near Mine Site.

CONCLUSIONS:
In Asia shortfall of Oil and Natural Gases is expected to grow in future
with present fuel-energy matrix. Present developing Asian economics
and growing requirement of fuel for transportation & energy per captia
requirement in Asia facilitate LRC up gradation and Indonesia will play a
major role to maintain a Energy Balance in Asia.\
With current price variance of 52 USD/MT @ FOB Kalimantan data in
between Coal of grade having difference of 28% moisture recommend
bright future of Coal briquetting with certain improvements in transport
and storage improvement to meet at export level specification.
The future requirement of Oil and gases mainly for transportation
requirement in Asia and high price of Oil as USD 82/barrel and positive
result on Coal liquefaction at level of 3 barrel per ton of LRC for
Indonesian Coal shows future of Indonesia’s Low Rank Coal for Sustain
Energy balance in Asia.
REFRENCES:

1. Geoffy Kimber, Petrol & Diesel from Coal, British Coal liquefaction
process, CAER & IMMR –Research paper
2. Sadao Wasaka” Bulletin of Japan Institute of Energy”
3. Development of Coal liquefaction technology- Nippon Coal & Oil Ltd.
4. Report of the result of International Coal Liquefaction Cooperation
project, Development of Low grade Coal liquefaction technology 2003.
5. Upgraded brown Coal process development Kobe steel Engineering &
Japan Coal Energy Centre Report,2003
6. Indonesian Coal development, Ministry of Energy and Mineral
Resources, 2007.
7. Douglas W. Later, Determination of hydrogen donating property of Coal
liquefaction process solvent, Pacific NW Lab, Washignton.
8. John Winslow, Direct Coal liquefaction technology, US department of
energy.
9. Hartiniati, Prospect of Coal liquefaction in Indonesia, BPPT Technology.
10.David & Brain, Utilisation of Low Rank Coal, Envirosafe Pty Ltd, Austraila.
11.White Energy Coal bulletin on Coal briquetting.
12. IGCC workshop India 2008, US department of Energy.