AutomatedCoalBlendingBusinessproposition

Whycoalblending?
Power plants are designed and optimized to operate using specific compliant coal for each boiler, which ensures high plant performance and environmental compliance with relevant regulations. Most power plant boilers are designed for bituminous coal with low to medium moisture, medium to high volatile matter and, within a reasonable calorific value range (compliant coal). However, an increasing portion of coal reserves are high moisture, lower calorific value, moderately high ash, and high sulphur noncompliant coals, which cannot be effectively used in power generation and other industries. Combustion of coal without specifically matching it to the power plant's boiler design is the major reason for serious inefficiencies in coal combustion worldwide. This results in the reduction of electrical output, andmorecoalconsumptionperunitofoutput. As world reserves of compliant coal are rapidly exhausted, the most effective solution is to optimize the utilization of noncompliant coal. The most prevalent system of coal blending involves on the ground blending (stockpile blending), i.e. stacking layers of coals with differentqualitiesontopofoneanotherandaccessingthestackedpileonaverticalbasis.This method is timeconsuming and results in inconsistent mix and quality. It only has reasonable resultswhenthetypesofcoalbeingblendedarereasonablycloseinspecification. CoalBlendingTechnology Traditionalcoalblendingmethodsinvolveblendingundergroundandongroundlevel: 1.Blendingunderground Atunnelequippedwithaconveyorbeltandspeciallydesignedscraperisemployedforthecoal blendingoperation.Whendifferenttypesofcoalareplacedinthetunnel,thescraperputscoal on the conveyor belt by moving through the tunnel.

Disadvantages:

Largeundergroundstructure Longconstructiontime Highinvestmentandmaintenancecosts Difficulttoensurehomogeneityofblendingprocess Willresultinunevenburningintheboiler

2.Blendingongroundlevel Different types of coal will be built up to a coal stock pile in horizontal layers. By vertical excavationofthecoalstockthedifferentcoaltypeswillbemixed.

Disadvantages:

Incompletemixingprocess Lowqualityofblending Lackshomogeneity Willresultinunevenburningintheboiler

AutomatedCoalBlending Automatedblendingtechnologyappliedtechnologyenablesblendcoalaboveground.Different types of coal are placed in each silo (of which there are usually six). Computer controls dischargefromeachsilothecomputerisedtechnology,andensuresthecorrectpercentageof eachtypeofcoalfallsontoaconveyorbeltfromeachsilomixingthecoalinpreciselytheright quantitiestoensurecompliantcoal.

Silos Advantages:

Reliableandconsistentqualityblendingguaranteedwithin1%ofrequiredspecification Homogeneousblend Controlledprocess Relativelysmallsiteduetoverticalnature Abilitytoblendnumeroustypesofcoalwithconsistentoutput

OtherbenefitsofAutomatedcoalblending ConsistentCoalQuality
Computerised system enables up to 10 different types of coal to be blended using a computerizedprocess,whichgiveshighpredictabilityofblendingoutcome.Theendproductis evenlyblended,stable,tailoredtoboilerspecificationsandconsistent.

ImprovedPowerPlantOutput
A conservative estimate is that approximately 20% of power plants are not able to achieve design output, due to difficulty in consistently sourcing coal with qualities which meet their boilerdesignrequirements.Thesepowerplantssufferfromanapproximate10%reductionin output capacity, or a 2% reduction in output from the overall coalfired power industry. This

lost plant output capacity can be restored by supplying compliant coal of consistent quality. Thisresultsinareducedrequirementforoverallsystemcapacityadditions.

CostSavings
This system will enable to blend a wide range of coals. This allows buy coals with the lowest prices available in the market within the constraints of the fuel specifications of the power plants, resulting in cost savings without deterioration in thermal performance of the boiler. AccordingtoPetrocom'scalculation,onareductionpertonofpollutantbasis,windpoweris5 times moreexpensive,while solar is a prohibitive 21 times more expensive than this system.

Strategiclocation
The strategic point which I have chosen for blending plant is in the vicinity of Krishnapattanamporttrustareawhichis180KmfromChennai,LocatedinNellore(DistrictHQ of Andhra Pradesh) on National Highway 5 (ChennaiKolkata) Vast hinterland covering SouthernAndhraPradesh,DistrictsofRayalseema,NorthTamilNaduandEasternKarnataka 26kmfromVenkatachalam,thenearestrailheadontheChennaiKolkatamainlineBeingon EasternCoast,supportsLOOKEASTEximTradePolicy.

Reasonsbehindchoosingthearea
There is a specific reason behind choosing this area as a strategic location one of the major reasons is the future power plants which are sprouting up in the vicinity of Krishnapattanam porttrust.Itisestimatedthatthereareabout15320MWofelectricitywillbegeneratedfrom thisareawithin2015andallarebasicallycoalfiredpowerstations.Thebelowshowntablegive aclearindicationofsproutingenergysectorinthisarea.
Plants 1 2 3 4 5 6 7 8 Reliance UMPP Krishnapatnam Power Kineta Power Thermal Power Tech Simhapuri Power AP Genco Nelcast Meenakshi Group Capacity (MW) 4,000 1,980 1,980 1,980 1,920 1,600 1,320 540 Expected COD FY14 FY13 FY13 FY13 FY11 FY12 FY13 FY11

The upcoming power projects in vicinity of Krishnapatnam Port will require coal in excess of 60MTPA.Inadditionthat20MnMTsofcoalrequiredforexistingpowerplantsinhinterlandof the port which blend imported coal cement and steel plants in the hinterland sourcing coal

from Australia, Indonesia and Mozambique Imports of coal by traders catering to regional market The next major business attraction in this area is the state of the art infrastructure of Krishnapattanamporttrust.InadditiontoalltheseKrishnapattanamporttrustisfocusingon havingadedicatedHubportforcoalwhichwillbeoneandonlyofthekindinIndia.Inaddition to all these facilities Krishnapattanam port trust has achieved different mile stones such as it hasachievedmaximumamountofcoaldischargein24hrstimewhichisthehighestrecordin India.Thebelowshownpicturesgiveaclearindicationoftheabovementionedfacts.

Arialviewofthecoalstockpiles RailwayFacilities

Inmotionweighbridge AnewallIndia&possiblyaworldrecordwas establishedfordischarging106,171tonsof steamcoalinjust24hrs.on23.07.2011 beatingourveryown18.06.2011recordfigures

Logisticsandco onnectivit ty Railco onnectivit ty

Krishnapa atnamRailCo ompanyLimited(KRCL)isa aSpecialPurp poseVehicle comprisingtheGovernme entof AndhraPr radesh,KrishnapatnamPo ortCompanyLimitedandR RailVikasNig gamLimited,formedtopr rovide railconne ectivitytothe eport. Thereisa adedicated19 9kmrailwaylineconnecti ingtheporttotheChenna aiKolkatama ainline.Inadd dition tothata 91kmnewb broadgaugelinebetween theportand dObulavaripa alleinDr.YS RajasekharR Reddy previously Cu uddapah Dist trict), with a outlay of 600 core. This rail line will reduce the an District (p distanceb betweentheportandtheregionineas sternKarnata akaandsouth hernAndhra Pradeshby75km, therebysa avingsubstan ntialfreightcost.

RoadC Connectiv vity

Dedicated 26 km fou d urlane road connecting t the port to National Hig ghway No. 5 (ChennaiKo 5 olkata Highway) willbeupgra adedtosixla aneroadinthefuturefor rwhichthela andacquisitio oniscomplet ted.It acilitateobstructionfreep passageforprojectcargo. willalsofa

Availab bilityofd domesticcoalforblending

Inthesta ateofAndhra aPradeshthe egovernmentownedcoalfieldsareth hereunderth hebannerof fSCCL whichiss situatedinKa ammamarea andbyroaditcomesbel low500K.M. .Thisobviouslyshowstha atthe railroadw willbecompa arativelylessthantheroad ds.UnderSCC CLahugedep posithasbee enfoundoutinthe Godavari basinalsoan ndtheexcava ationhasalre eadybeensta artedwhichisapproxless sthan300K.M.by road. hepowerplantswillbeha avinganFSAf formthenearestcoalfield dsandasfara asAndhraPra adesh Mostofth isconcern nedSCCListh heoption.Andthelogisticsuptothepo ortareawilln notcostmuchcomparedt tothe powerpla antsituatedn neartoanylandlockedare eas.

Busine essoperationalpla an

ImportationSouthAfrica

ImportationIndonesia

ImportationMozambique

lendedco B oal

asperclie ent specs s

Au utoma ated blending b plantinport

Domestic coa al