A case for clean coal combustion technology
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14/06/2003
• assuming the cost of converting 1 mw capacity of existing tpps to fbc: Rs 3 crore (@ Rs 30,000/KW capacity)
• tpps' total capacity (2001-02): 74,700 MW
therefore, cost of converting tpps to fbc: Rs 224,100 crore (28.1 per cent of MOP's projected cost of Rs 800,000 crore)
• electricity produced by existing tpps with current load factor of 69 per cent: 4,515.20 lakh MWH (ignoring losses)1
These TPPs, with an additional investment of Rs 224,100 crore for retrofitting to FBC, will increase their efficiency from 31.1 per cent to 42.5 per cent2.
therefore, the new capacity of the tpps: 74,700 + 11.4% of 74,700 = 83,216 MW. With the new technology, the TPPs can be expected to operate at a minimum of 90 per cent load factor2.
therefore, new power generation from tpps after retrofitting: 6,561 lakh MWH
• additional power generation with fbc: about 2,046 lakh MWH, or about 45 per cent of the existing power generation capacity of TPPs.
Cost-benefit analysis
• coal saved for generating the additional 2,046 lakh mwh3 power (0.65 kg coal with 40 per cent ash content/kwh electricity): 133 million tonnes
• cost saving in coal4 (@ rs 650/tonne of coal): Rs 8,650 crore approx
therefore sales from additional 2,046 lakh mwh electricity5 (@ rs 2.00/kwh): Rs 40,900 crore approx
• reduction in ash generation (40 per cent ash content): 53 million tonnes
• ash handling and disposal cost (@ rs 100/tonne of ash): Rs 532 crore
therefore total conventional cost saved (excluding humanpower etc): approx Rs 50,000 crore per annum
therefore reduction in CO2 emissions (@ 0.25 mt/mt of coal) due to reduction in 133 million tonnes of consumption: 33.20 million tonnes
• assuming the trading cost of CO2 per tonne is us $5 (rs 200 approx) in the international market, the notational value of CO2 reduction for upgrading the tpps to fbc: Rs 665 crore (approx)
• ignoring the pollution cost, even with conventional costing, an investment of rs 224,100 crore for retrofitting tpps to fbc technology will recover: Rs 50,000 crore per annum.
This means the capital investment can be recovered in four-five years.
Sources:1. Teddy, 2001-02; 2. Fludised Bed Coal Combustion Technology, US Department of Energy (www.fe.doe.gov/coal_power/fluidizedbed.html); 3. GRP estimate: Average calorific value of coal (D, E and F grades) used in Indian TPPs
• tpps' total capacity (2001-02): 74,700 MW
therefore, cost of converting tpps to fbc: Rs 224,100 crore (28.1 per cent of MOP's projected cost of Rs 800,000 crore)
• electricity produced by existing tpps with current load factor of 69 per cent: 4,515.20 lakh MWH (ignoring losses)1
These TPPs, with an additional investment of Rs 224,100 crore for retrofitting to FBC, will increase their efficiency from 31.1 per cent to 42.5 per cent2.
therefore, the new capacity of the tpps: 74,700 + 11.4% of 74,700 = 83,216 MW. With the new technology, the TPPs can be expected to operate at a minimum of 90 per cent load factor2.
therefore, new power generation from tpps after retrofitting: 6,561 lakh MWH
• additional power generation with fbc: about 2,046 lakh MWH, or about 45 per cent of the existing power generation capacity of TPPs.
Cost-benefit analysis
• coal saved for generating the additional 2,046 lakh mwh3 power (0.65 kg coal with 40 per cent ash content/kwh electricity): 133 million tonnes
• cost saving in coal4 (@ rs 650/tonne of coal): Rs 8,650 crore approx
therefore sales from additional 2,046 lakh mwh electricity5 (@ rs 2.00/kwh): Rs 40,900 crore approx
• reduction in ash generation (40 per cent ash content): 53 million tonnes
• ash handling and disposal cost (@ rs 100/tonne of ash): Rs 532 crore
therefore total conventional cost saved (excluding humanpower etc): approx Rs 50,000 crore per annum
therefore reduction in CO2 emissions (@ 0.25 mt/mt of coal) due to reduction in 133 million tonnes of consumption: 33.20 million tonnes
• assuming the trading cost of CO2 per tonne is us $5 (rs 200 approx) in the international market, the notational value of CO2 reduction for upgrading the tpps to fbc: Rs 665 crore (approx)
• ignoring the pollution cost, even with conventional costing, an investment of rs 224,100 crore for retrofitting tpps to fbc technology will recover: Rs 50,000 crore per annum.
This means the capital investment can be recovered in four-five years.
Sources:1. Teddy, 2001-02; 2. Fludised Bed Coal Combustion Technology, US Department of Energy (www.fe.doe.gov/coal_power/fluidizedbed.html); 3. GRP estimate: Average calorific value of coal (D, E and F grades) used in Indian TPPs