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non-OECD region, it will rise by 85% (International Energy Outlook Report 2008)
Coal use is likely to grow from 40% to 44%, as a source for
initiated projects to produce Coal-to-Liquids, that entail producing diesel and other liquid products and Coal gasification projects in China, US, India and South Africa.
World Proven Coal Reserves Over 860 billion tons.
* Source IEA Report 2009
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860
405 260 195 47 30 23
According to Survey of Energy Resources 2010 by World Energy Council The use of coal to rise by 60% by 2030 Coals Share in Power generation is set to increase from 41% to 44% by 2030*
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Israel
Kazakhstan India Czech Republic Morocco
71
70 68 62 57
Greece
USA Germany World Average Pakistan
55
49 49 41 0.1
3.02
30.16 40.6 195.38 186.2**
( Source,2008, IEA) * Sub bituminous & Anthracite reserves only www.sindhcoal.gos.pk 4 ** Thar Coal Resources are 175 billion tonnes Proven Reserve in 9 explored Blocks alone is 20 billion tonnes
Pakistan
Pakistan Power Generation Fuel Mix 2008-09
Nuclear 15%
Coal 41%
Hydro 16%
Gas 20%
Oil 6%
others
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19,566
Balochistan
217 million tonnes
KP
90 million tonnes
Azad Kashmir
9 million tonnes
Thar
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Uses of Lignite
Electricity (Steam Turbines) Ethanol Jet Fuel Diesel Petrol Paraffin Chemicals (Ethylene Polymers
CH4 CO2 H2
CO H2
Coal to Liquid
Ash Tar Naphta Phenol Catechols Carbon Dioxide Dephenolized Cresylic Acid
H2S NH3
Source: Syngas and Coal Technology, R & D, SASOL Mr Johannes Van Heerdeen
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Uses of Lignite
From 1 ton of Lignite in Germany they produce
1100 Kwh of electricity 400 Kg of Briquettes 360 Kg of Pulverized Lignite 380 Kg of fluidized bed Lignite 250 Kg of Coke 190 Cu Mtr of Substitute Natural gas 160 Ltrs of Diesel 50 cu Mtrs of Synthetic gas
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Thar area development will transform rural economy (primarily based on subsistence farming) to a urban economy Increased economic activity will create number of opportunities for locals residents
CSR expenditure of Sindh Thar Coal Mining Company (2% of Earnings Before Tax) will be spent on community and social development programs improving socio-economic indicators of the area and reducing burden on PSDP
Extensive skill development will have a positive spillover effect on productivity due to knowledge transfer and human capital development Improvement in infrastructure and ancillary facilities will improve local residents access to hospitals, schools etc.
Benefit to Economy Reduction in Power Generation CostTrillion NPV of savings from Block II alone is over Rs. 3.2
Year Price of Oil (USD/bbl) * RFO Tariff (Usc/kWh) Coal Tariff (Usc/kWh) Annual Savings (Rs B) Cumulative Savings (Rs B)
2016 81 14 10 14 14
Savings discounted at the rate of inflation (local inflation: 8%) Source: CERA (Cambridge Energy Research Associates) ; RFO and Coal Prices calculated from crude oil prices through historical regression analysis
Net Present Value of USD 31 B discounted at the rate of inflation (US CPI: 3%)
Goal
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Status of Blocks
Thar Coal Block
Block-II Sindh Engro Coal Mining Company (JV: 40% Sindh Government; 60% Engro) 2X600 Power Plant planned Open Pit Mining @ 6.5 Mtpa Block III-A Cougar Energy (UK) 400 MW Planned Under Ground Coal Gasification Project Ergo Exergy Technology planned Block-V UCG Project Under Ground Coal Gasification Project 2X50 MW IGCC Power Plant Planned Block-VI Oracle Coalfields, PLC (UK) Strip mining; MoU signed with KESC for 300MW
Status
Bankable Feasibility completed Project financing activity continued. 31st August 2010
Unit gasifier design prepared, Technical team mobilized and desktop studies under process. Drilling in Process by GSP Test Burn Planned April 2011 Geotechnical drilling in process through DRD BFS completion June 2011 ESIA completed
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Rate of Return 20% ($ Based) IRR to firms which achieve Financial Close before 31st December 2015 for Mine & Power Plants based on indigenous coal and additional half a percentage IRR i.e. 20.5% IRR for firms which Financial Close by or before 31st December 2014.
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The GoS has planned to construct a water carrier to provide 300 Cusecs water to Thar.
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BUSINESS FACILITATION
Strategic alliance between Coal & Power sector High powered Thar Coal Energy Board (TCEB) established as one stop org. with Federal and Provincial agencies to facilitate investors. TCEB is a decision making body on Thar Coal Mining and Power Generation Projects. TCEB facilitates and coordinates with all the projects related to Thar Coal. Causing concerned agencies to improve infrastructure To act as coal Pricing agency
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In all six proposals were received and these are being examined as per rules/ evaluation criteria by following Evaluation Committee:i. ii. iii. iv. v. Advisor to CM for Investment Advisor to CM for P&D Secretary, M/o W&P, GoP (or Rep) Secretary, Coal & Energy Dev. Deptt:, GoS Director Projects, PPIB, GoP
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Investment Options
1.
Coal Mining Investors interested only in mining may apply for a mine lease for mining the coal. Integrated Coal & Power Generation Project Investors may also opt for investing an integrated coal mining and power generation projects.
2.
3.
Mine Mouth Power Project Thar coalfields present best opportunity for mine mouth power projects in view of the great demand for energy in the country.
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Investment Options
4. Coal Gasification Investors may propose to convert coal into gas and market the syngas and bye products in open market, or may develop a forward integrated project on any one or more bye products from gasification project 5. Coal to Liquid Projects Investors may propose to convert coal into Liquid and market the byproducts in open market, or may develop a forward integrated project on any one or more bye products from CTL project
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Rheinbraun's lignite mines provide fuel for five power stations operated by RWE Energie AG, with a combined capacity of 10,289MW.
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RECOMMENDATIONS
Creation of Gov-Ind Energy Council welcome Should act proactively to create the enabling environment for dev local coal for long term energy solution Gov to initiate public sector projects to produce atleast 5000mw from local coal International financing thru Govtal effort for Thar coal based projects Provide essential infrastructure to promote large scale investment in local coal to provide baseload at affordable rates Indigenous resources can only provide Energy Security for the country
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Thar today
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Thar Tomorrow
Thank You
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