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CLEANENERGYRESEARCHANDDEPLOYMENTINITIATIVE ASSESSMENTREPORTON CLEANERCOALTECHNOLOGY

ScottM.Smouse NationalEnergyTechnologyLaboratory U.S.DepartmentofEnergy BabatundeO.Fapohunda KeylogicSystems,Inc. Dr.RadhaP.Krishnan LeonardoTechnologies,Inc. JamesM.Ekmann LeonardoTechnologies,Inc ChrisBabel LeonardoTechnologies,Inc. J.P.Dutton LeonardoTechnologies,Inc. JohnW.Hindman SAIC,Inc. February25,2010 ThisreportismadepossiblebythesupportoftheAmericanpeoplethroughtheUnitedStates AgencyforInternationalDevelopment(USAID).Thecontentsofthisreportarethesole responsibilityoftheauthoranddonotnecessarilyreflecttheviewsofUSAID,USDOEsNational EnergyTechnologyLaboratory,oranyagencyoftheUnitedStatesGovernment.

TABLEOFCONTENTS
ExecutiveSummary.................................................................................................................4 1.0Introduction....................................................................................................................11 2.0IndiasCoal&PowerSectorBackground.........................................................................11 2.1CO2Emissions.....................................................................................................................12 2.2IndiaPowerSector.............................................................................................................14 2.3IndianPowerSectorPerformance.....................................................................................15 3.0U.S.IndoCooperationRelatedtoCleanCoal...................................................................18 3.1U.S.IndiaEnergyDialogue.................................................................................................18 3.2USAIDProgramswiththeGoI............................................................................................18 3.3GEPProjectSustainableBenefits.......................................................................................21 3.4CO2EmissionsAvoidedasaResultofUSAIDsCoalPrograms..........................................22 4.0U.S.IndiaCleanerCoalTechnologiesR&DPrograms......................................................24 4.1SupercriticalandUltraSupercriticalTechnologyDevelopmentinIndia ..........................24 . 4.2IGCCTechnologyDevelopmentinIndia............................................................................25 4.3USAID/IndiaSupportforIGCCTechnologyDevelopmentinIndia....................................26 4.4CCSTechnologyDevelopmentinIndia..............................................................................27 4.5IndianCCTR&DOrganizations...........................................................................................28 5.0TheWayForwardforIndia:Recommendations..............................................................30 5.1CleanerCoalTechnologiesDeployment............................................................................30 5.2U.S.IndiaServiceProvidersNetwork................................................................................31 5.3ModelPlantforCleanerCoalTechnologyDemonstrations...........................................33 5.4CleanerCoalTechnologiesR&D.........................................................................................35

APPENDICES
AppendixA:StakeholderConsultation AppendixB:AdditionalIndiaPowerSectorBackground AppendixC:BackgroundInformationonOtherBilateralandMultilateralCleanCoalPrograms AppendixD:BackgroundInformationonGoIEnergyPolicy

LISTOFTABLES
Table1:USAIDCleanerCoalPrograms.........................................................................................19 Table 2: CO2 Emissions Avoided (in Tonnes) from USAIDs Clean Coal Activities by Participant (April19962030)..................................................................................................................23

LISTOFFIGURES
Figure1:TotalCO2EmissionsfromEnergyConsumption:...........................................................13 Figure2:CO2EmissionsbySector................................................................................................13 Figure3:TotalCO2EmissionsperCapitafromEnergyConsumption:UnitedStates,China,India (19902030)..........................................................................................................................13 Figure4:CO2EmissionsAvoided(inTonnes)fromUSAIDsCleanCoalActivitiesbyParticipant (April19962030)..................................................................................................................23

ExecutiveSummary
TheUnitedStatesandIndiarecentlysignedaMemorandumofUnderstanding(MOU)to EnhanceCooperationonEnergySecurity,EnergyEfficiency,CleanEnergy,andClimateChange, andlaunchedaneweffortforcollaboration.Thisneweffortwillbeimplementedunderthe newCleanEnergyResearchandDeploymentInitiative(CERDI).Guidedbythestrategicintent anddirectionoftheMOU,CERDIwillbuildupontheIndiaMissionoftheU.S.Agencyfor InternationalDevelopments(USAID/Indias)bilateralenergyprograms,notablythe GreenhouseGasPollutionPrevention(GEP)ProjectandtheEnergyConservationand Commercialization(ECO)Program,aswellaseffortsoftheWorkingGroupsundertheU.S.India EnergyDialoguewiththeassistanceofseveralU.S.governmentagenciesandtheirpartners. CERDI,whichincludesbothresearchanddeploymentcomponents,willpromoteinnovationand collaborationinthedeploymentofcleanenergytechnologiesinthreepriorityareas: 1) Energyefficiencyinenergyintensiveindustry,inbuiltenvironment,andinutilities throughsmartgrids; 2) Accelerateddeploymentandscaleupofgridinteractiveanddecentralizedrenewable energytechnologies,and 3) Marketdrivencleanercoaltechnologydemonstrationprojectsanddeployment strategieswithanemphasisonthosetechnologiesandbestpracticesthathavethe maximumGHGreductionpotentialandthosethatcanbesustainedbytechnical expertiseandsupportwithinthecountry. USAID/IndiaisleadingthedeploymentinitiativeofCERDIgiventhemissionsexperiencein workingwiththeIndianenergysectorandbusinessenvironment. Thisreport,whichwaspreparedbyfederalandcontractorstaffattheU.S.Departmentof Energys(USDOEs)NationalEnergyTechnologyLaboratory(NETL),supportsdevelopmentof thecleanercoalcomponentoftheCERDIDeploymentCenter.Thisreportassessesthe potentialforgreenhousegas(GHG)emissionsreductionfromexistingcoalfiredpowerplantsin India,buildingupontheUSAIDongoingandotherrelatedprograms,andcleanercoal technologyresearch,development,anddeployment(RD&D)opportunities.Itreviews USAID/IndiasandNETLsinvolvementincleancoalactivitiesinIndiadatingbackto1983.The majortechnicalachievementsunderUSAIDsprograms,especiallytheongoingGEPProject,are highlightedfocusingonthemillionsoftonsofavoidedCO2emissionsandlessonslearnedto datealongwithidentificationofsupportneeded,andconceptsthathavebeendiscussedfor thewayforward.Inputsobtainedfromvariousstakeholders,includingtheGovernmentof Indias(GoIs)nodalministriesforpowerandcoal,andotherkeystakeholdersinpowerutilities andindustryassociationsobtainedinpartthroughfacetofaceandtelephonemeetings duringJanuary1829,2010,inIndiaaresummarizedinAppendixA. TheIndianpowersectorisgrowingatarapidpaceandcoalis,andwillcontinuetobe,the primaryenergysourcefortheIndianpowersectorthatunderpinsthecountryseconomic 4

development.About68%ofIndiascurrentpowergenerationisfromcoalandthatshareis expectedtoremaininthesamerangeformanyyears.AsignificantpercentageofIndias existingcoalfiredpowerplantsareagingandarenolongerveryefficientandreliable, especiallythoseoperatedbystateutilities.Inrecentyears,Indiapowergeneratorshave focusedonincreasingplantloadfactors(PLF,orcapacityfactors)toincreaseelectricityoutput, butoftenattheexpenseofplantefficiency.WhilethenationalaveragePLFforstationsin centralsector(i.e.,NTPC)hasapproached90%,whichisworldclass,theaveragePLFofstate operatedplantsisabout70%,andprivateutilityplantsis85%.However,manyindividual plants,especiallythoseoperatedbystateutilities,arebelow55%andbelow30%insomecases (AppendixB).TheCentralElectricityAuthority(CEA),thetechnicalarmoftheMinistryof Power(MoP),reportsthatthenationalaveragegenerationefficiencyhasremainedconstantat about32%foratleastthepast5years(AppendixB).Thisisdespiteretiringanumberofold, small,unitsandbuildingmanynew,larger,moreefficientunits,whichshouldhaveimproved overallgenerationefficiency.Heatrates(i.e.,fuelconsumptionperunitofelectricity generated)higherthan3,000kcal/kWh(i.e.,efficiencieslowerthanabout28%)arecommon amongtheolder,especiallysmaller(100200megawatt,MW)unitsoperatedbymanyIndian stateutilities.Plantreliabilityandefficiencysufferasaresultof(1)thehighashcontentof mostIndiancoals,whichoftenexceeds45%,andoverallpoorcoalquality,(2)limited maintenanceofequipment,(3)absenceofincentivestomaintainorimproveefficiencyand reliability,(4)inadequateoperatingbudgets,and(5)limitedknowledgeandexperienceon stateoftheartoperatingandmaintenance(O&M)practices,whichadverselyimpactsboth plantefficiencyandreliability.Theinabilitytosustainplantperformanceandreliabilityisa seriousissuefortheseoldplants.LackofattentiontoproperO&Mcanresultinrapid deteriorationofplantefficiency,reliability,andmaximumsustainableoutput(MWs)and increasedfuelconsumptionandCO2emissionsfromtheonsetofplantcommissioning. TherearethreewaysofloweringCO2emissionsfromcoalbasedpowerplants:(1)increasing efficiencyofexistingplants;(2)usingmoreefficientcleancoaltechnologies;or(3)switchingto lesscarbonintensivefuels(naturalgasandbiomass)otherthancoal.Indiaispursuingallof theseoptions,butoption#1,increasingtheefficiencyofexistingplants,canhavethegreatest neartermimpactowingtothelargeexistinginventoryofcoalfiredpowerplants.Future powerplantswillhavetouseadvancedcleancoaltechnologies,includingcarboncapture storage(CCS),ifIndiaistosignificantlyreduceitsemissionsofCO2. TheGoIhasembarkeduponanambitiousplantoadd78gigwatts(GWs)ofnewgenerating capacityduringthecountrys11thFiveYearPlan(April2007March2012)and94MWduring the12thFiveYearPlan.Theprivatesectorsshareofthisnewcapacityisexpectedtobenearly 40GW.ThereisaneedtousebetterO&Mpracticesinthesenewplantsorelseitwillbea wasteofthecountryslimitedinvestmentcapital.Inviewofthehighinvestmentrequirement forgreenfieldpowerplants,alongwithnaturalresourceconstraintsandenvironmental concerns,optimalutilizationofthecountrysexistinggeneratingcapacityhasbeengivenatop priorityunderMoPsLifeExtension(LE)andRenovationandModernization(R&M)Program.A largepotentialexiststoincreasegenerationandimproveefficiencythroughEnergyEfficient R&M(EER&M). 5

Onaverage,mostIndiancoalfiredpowerplantsoperateatheatratehigherthantheirdesigned value.ACEAstudyoftheheatrateof53coalfiredpowerplants,constitutingatotalcapacity of37,830MWabouthalfofIndiascurrentcoalgeneratingcapacityshowsthatstationheat ratesareabout13.7%higherthantheirdesignvaluesonaverage.Thisstudyindicatedthatan averageimprovementof300kcal/kWhisachievablethroughimprovedO&Mpracticesand plantR&M.Higheroperatingheatrateleadstoincreasedpowergenerationcosts,faster depletionofnaturalresources(coal),higheremissionsofconventionalpollutants(SO2,NOx, andparticulates),andincreasedCO2emissions. CEA,inconsultationwiththestateutilities,preparedaNationalPerspectivePlanforR&Mand LE,whichcoversupto2017,forexisting200210MWandsome500MWcoalfiredplantsthat aremorethan15yearsold.Intheplan,125existingunits(23,850MW)forLEand99units (23,936MW)forR&MabouttwothirdsofIndiasentireexistingcoalfleethavebeen designatedforimprovementduringthe11thand12thFiveYearPlans.Theplanindicatedthat theoperatingcapacityoftheseunitscouldbeincreasedby4to8%andtheirefficiency improvedby8to10%.Ifachieved,coalconsumptionintheseunitscouldbereducedbyupto 15milliontonnes(metrictons,or16.5millionshorttons)annually,whichisequivalentto reducingalmost20milliontonnes(22millionshorttons)ofCO2emissionsannually,and hundredsofmegawattsofpowergenerationcapacityrestored.ThetechnologyintensiveR&M forefficiencyimprovementneededintheseprojectsisbeyondrestorationoforiginal generationcapacity,lifeextension,andimprovedavailability.Itwouldenabletheseunitsto operateathigheroutputswithlowerrequiredfuelinputandCO2emissions.Additional backgroundinformationonIndianspowersectorisprovidedinAppendixB. SeveralEER&Mprojectshavealreadybeenimplementedundercooperativeprogramswith Germany,Japan,andtheWorldBank.Forexample,theJapanesegovernment,throughJapans InternationalCooperationAgency(JICA),issupportingNTPConcapacitybuildingactivitiesin thisarea.Otherrelatedongoinginitiatives,inwhichtheUnitedStatesisleadingorisinvolved, suchasthepowerplantpeerreviewsbeingconductedbythePowerGeneration& Transmission(PG&T)TaskForceoftheAsiaPacificPartnershiponCleanDevelopment& Climate(APP),arealsomakingsomecontributionstoimprovedO&MpracticesinIndianpower stations.OthernewinitiativesinvolvingtheUnitedStates,suchasdelineatedintheHigh Efficiency,LowEmissions(HELE)CoalTechnologiesActionPlanundertheMajorEconomies Forum,haveidentifiedsimilarneeds,buthavenotyetdevelopedworkplansorsecured resources.AdditionalinformationontheseinitiativesisprovidedinAppendixC. Someaspectsoftheneededpolicyandregulatoryframeworktosupporttheadoptionof cleanercoaltechnologiesareinplacethroughtheIntegratedEnergyPolicyand2009Electricity Act,andtheNationalMissionforEnhancedEfficiency(NMEE)of2009.Thelatterisaneffortto createamarketforenergyefficiencyestimatedtobeUS$16.5billioninIndia.Theflagshipof NMEEisitsPerform,AchieveandTrade(PAT)initiative,whichisamarketbasedmechanism toincentivizeenergyefficiencyinnineenergyintensiveindustrialsectors.Thisincludes 6

requiringpowergenerationplantstoreducetheirspecificenergyconsumptionbyimproving overallplantefficiency.AdditionalinformationonrelevantGoIisprovidedinAppendixD. Since1982,USAID/Indiahassoughttopromoteanddemonstratebettercoalutilization technologiesandpracticesinIndia.InsupportofUSAID/India,USDOE/NETLhasprovided technicalandmanagementsupporttovariouscoalR&DinstitutionsinIndiatoidentifyand demonstratecleancoalpowertechnologies,andhasworkedcloselywithBharatHeavy Electricals,Ltd.(BHEL),NTPCLtd.(formerly,NationalThermalPowerCorporation;89%GoI ownedunderMoP),PowerFinanceCorporation(PFC),andvariousIndianR&Dinstitutions, includingtheCentralFuelResearchInstitute(CFRI),CouncilofScientific&IndustrialResearchs (CSIRs)RegionalResearchLaboratory(RRL),andtheTataEnergyResearchInstitute(TERI,now TheEnergyandResourcesInstitute).ChangingtheO&McultureintheIndianpowerplants thathavebenefitedfromthecleancoaltechnologyprogramsinitiatedbyUSAID/IndiaandNETL isshowingsignsofmovingthestagnationinpowerplantefficiencyandreliability.Atthesame time,technologicaldevelopmentscoupledwithnewinstrumentation,diagnostics,andsoftware havemadesignificantefficiencyimprovementspossibleinunderperformingplants.Each projectimplementedthroughUSAID/IndiasProgramshasassistedIndiabytransferringneeded U.S.powerplanttechnologyandbestpracticesforimprovedoperationalefficiency, maintenance,andenvironmentalperformanceand,atthesametime,helpedtobuildbusiness relationshipsbetweentheIndianandU.S.powersectors. ActionsundertheUSAIDsGEPProject,supportedbyparalleleffortsundertheAPPPG&TTask Force,toimprovepowerplantsO&Mcultureandoperationalefficiencyandotherrelatedcoal activitieshaveresultedinsignificantCO2emissionsavoidance.StartinginApril1996through March2010,anestimatedtotalofapproximately101milliontonnes(111millionshorttons) ofCO2emissionshavebeenavoidedthroughpowerplantperformanceoptimizationand efficiencyimprovementsandtheuseofwashedcoal.Testimonytothesuccessofthese projectsisfoundinseveralmajorinternationalclimateandbusinessqualityawardsthathave beenbestowedonNTPCsCenterforPowerEfficiencyandEnvironmentalProtection(CenPEEP) foritsaccomplishmentsinreducingGHGemissionsinpowergenerationthroughefficiency improvements.Anenormousbodyofcumulativeexperienceandstronglinkageshasbeen generatedamongUSAID/IndiaanditsU.S.partnerswiththeIndiangovernmentandnon governmentalentitiesandvariousIndianstategovernments,stateutilities,research organizations,privatesectorcompanies,andeducationalinstitutions.Theselinkagesprovidea strongbasefromwhichtoestablishcommercialpartnershipsandtocatalyzedevelopmentand deploymentofcleanercoaltechnologiesunderCERDI. ThereisstrongconsensusamongallIndianpowersectorstakeholdersthatnotonlycontinuing, butexpanding,USAID/IndiasongoingpowerplantefficiencyimprovementandGHGemissions reductionprogramtoincludemoreIndianutilities(stateandprivate)isverymuchneededand willyieldsubstantialreductionsCO2emissionsfromIndiaspowersectorthelargestsourceof CO2emissionsinIndia.WhiletheplantbyplantapproachadoptedundertheGEPProjectin workingwithNTPCandselectedstateutilitypowerplantshasbeenhighlysuccessful,ithas limitationsfrombothresourcesandlogisticsissues.Itisbelievedthatabetterapproachisto 7

developamodelplant,wherenewcleancoaltechnologiesandbestpracticesthathavethe greatestimpactonplantefficiencycouldbedemonstrated.Thismodelplantcouldserveasa technologyinduction,testing,andtrainingcenteragainstwhichallotherIndiancoalfired powerplantscouldbebenchmarked. TheneedtocreateapoolofserviceprovidersforIndianutilitieshasalsobeenstrongly endorsed.Absenceofreliableservicecompaniesisalreadybeingfeltbythemajorutilities, whohavehistoricallyreliedonBharatHeavyElectricalLimited(BHEL),thedominantoriginal equipmentmanufacturer(OEM)inIndia,toprovideallneededtechnicalservices.BHELis stretchedtothelimitinsupplyingnewpowerplantstomeetingthecountrysrapidlygrowing demandforpower,andforeignOEMs,suchasAlstomandSiemens,whohaverecentlyentered thesector,areconcentratingmainlyonlargecapitalequipmentprojects.Localprovidersatthe middletolowerendofthespectrumforperformanceimprovement,troubleshootingof auxiliarysystems,anddiagnosticservicesareveryfewandfarbetween.Thisleavespower plantswithfewoptionstoacquiretheneededequipment,instrumentation,andknowhowto addresstheirproblems.Creatinganetworkofhighlyskilledengineersandtechniciansand technologysuppliersthroughjointventureswithU.S.serviceprovidersandtechnologysupplier willbenefittheIndianpowersectorimmensely. InJuly2008,IndiareleaseditsfirstNationalActionPlanonClimateChange(NAPCC, http://pmindia.nic.in/Pg0152.pdf),whichdelineatedthegovernmentscurrentandfuture policiesandprogramstoaddressclimatemitigationandadaptation.TheNAPCCaddressesthe urgentconcernsofthecountrythroughadirectionalshiftinthecountrysdevelopment pathway,includingenhancementofcurrentandplannedprograms.ThePlanstatesthatIndia isdeterminedthatitspercapitagreenhousegasemissionswillatnopointexceedthatof developedcountriesevenaswepursueourdevelopmentobjectives.Toachievethis,India intendstodevelopandusenewtechnologies,andfocusonpromotingunderstandingofclimate change,adaptationandmitigation,energyefficiency,andnaturalresourceconservation.The planidentifiedeightcorenationalmissionsrunningthrough2017anddirectedrelevant MinistriestosubmitdetailedimplementationplanstothePrimeMinistersCouncilonClimate ChangebyDecember2008.Inaddition,thePlanalsoaddressedotherinitiativesincluding GHGMitigationinPowerGeneration,withspecificrecommendationsonmoreefficient, cleanercoalbasedpowergenerationtechnologies.Specifically,thePlanstated: Sincecoalbasedpowergenerationwillcontinuetoplayamajorroleinthenext3050years,it wouldbeuseful,wherevercosteffectiveandotherwisesuitable,toadoptsupercriticalboilers, whichisaproventechnology,intheimmediatefuture,andultrasupercriticalboilerswhentheir commercialviabilityunderIndianconditionsisestablished.Supercriticalandultrasupercritical plantscanachieveefficienciesabout40%and45%,respectively,comparedtoconventional subcriticalplantsatabout35%,andhenceemit1530%lessCO2. Demonstrationofplantsforintegratedgasificationcombinedcycle(IGCC)usinghighash,low sulphurIndiancoalneedstobepursued,whilerecognizingconstraintssuchashighcostsand availabilityofsuperiorimportedcoal.IGCChasthepotentialtobemoreefficientthan 8

conventionalpowergeneration,especiallythroughhybridsystems,andoffersanattractive optiontoseparateaconcentratedstreamofCO2forsequestrationviastorageingeologic formations,whichwouldallowcoalusewithnearzeroemissionsofCO2. In2004,IndiasPlanningCommissionformedanExpertCommitteeonIntegratedEnergyPolicy, whichwaschargedwithpreparingintegratedenergypolicyforIndialinkedwithsustainable developmentthatcoversallsourcesofenergyandaddressesallaspectsincludingenergy security,accessandavailability,affordabilityandpricing,efficiencyandenvironment.Their 2005study(http://planningcommission.nic.in/reports/genrep/intengpol.pdf)indicatedthatthe countrymeetswasmeetingabout30%ofitsenergyneedsthroughimports.Withthe increasingshareoffossilfuelsintheenergysupply/use,theshareofimportedenergywaslikely toincrease.ThereportpositsthatIndiafacesformidablechallengesinmeetingitsenergy needsandprovidingadequateenergyofthedesiredqualityinvariousformstousersina sustainablemannerandatreasonablecosts.ItindicatedthatIndianeededtosustainan economicgrowthrateof810%toeradicatepovertyandmeetitseconomicandhuman developmentgoals.Sucheconomicgrowthwouldrequireasubstantialincreaseinenergy consumptionwhileensuringaccesstoclean,convenient,andreliableenergyforall.Todeliver sustainedgrowthof8%through2031,Indiawouldneedtogrowitsprimaryenergysupplybyat least3to4timesandelectricitysupplybyatleast5to7timesofconsumptionatthattime.By 203132,powergenerationcapacitywouldhavetoincreaseto778,095MWandannualcoal requirementwouldexceed2billiontonnes,unlesssignificantmeasurestoincreasepower generationfromrenewableenergysourcesandtoincreasebothdemandandsupplyefficiency wereundertaken.ThereportstatesMeetingthisvisionwouldrequirethatIndiapursuesall availablefueloptionsandformsofenergy,bothconventionalandnonconventional,aswellas newandemergingtechnologiesandenergysources.CoalshallremainIndiasmostimportant energysourcetill203132andpossiblybeyond.Indiawillneedtotakealeadinseekingclean coaltechnologies. Movingforward,twoconceptsforwiderscalereplicationofthelowcostpowerplantefficiency improvementactivities,whichhavebeenunderconsiderationforthepastyearandshouldbe supportedunderCERDIsdeploymentinitiative,are(a)creationofaserviceprovidernetwork, and(b)developmentofmodelcoalfiredpowerplant.TheGoIandtheIndianpower generationsectorhaveexpressedstrongsupportforthesereplicationconcepts,indicatingthat theyarelikelytobesuccessfulatexpandingupontheongoingwork,whichhasalreadyavoided millionsoftonnesofCO2emissions.

KEYFINDINGS Overthepast14years,USAIDscoalrelatedprogramshaveaddressedmanyofthe Indiancoalandpowersectorsimportantproblems.Inparticular,theGEPProjecthas gainedadeepknowledgeoftheproblemsfacingIndiascoalpowersectorandhas developedanextensivenetworkofrelationshipsbetweenthegovernmentsandindustry oftheUnitedStatesandIndia. SupportprovidedthroughUSAID/IndiasGEPProjectandtheAPPPG&TTaskForcehas nurturedIndiasbasicabilitytomeetitsownneedsandopenedtheeyesandmindsof Indianpowerplantoperatorsbyeducatingthemonhowtheinterrelationshipsbetweena numberofpowerplantsystemshasimpededoptimumplantperformancefordecades. ThishasbeenaccomplishedthroughextensivehandsontraininginboththeUnited StatesandIndia. ThroughtechnicalsupportprovidedbyDOEsNationalEnergyTechnologyLaboratoryand U.S.expertsandtechnologysuppliers,inpartnershipwithIndiancoalandpowersector firms,morethan100milliontonnesofCO2emissionshavebeenavoidedtodate. BaseduponthesuccessesoftheongoingU.S.governmentsupportedpowerplant efficiencyimprovementactivitiesunderUSAID/IndiasGEPProjectandtheAPPPG&T TaskForce,replicationofsimilarlowcostpowerplantefficiencyimprovementactivities throughoutIndiaisclearlydoable. Twoconceptsforwiderscalereplicationofthelowcostpowerplantefficiency improvementactivities,whichhavebeenunderconsiderationforthepastyearand shouldbesupportedunderCERDIsdeploymentinitiative,are(a)creationofaservice providernetwork,and(b)developmentofmodelcoalfiredpowerplant. TheGoIandtheIndianpowergenerationsectorhaveexpressedstrongsupportforthese replicationconcepts,indicatingthattheyarelikelytobesuccessfulatexpandinguponthe ongoingwork,whichhasalreadyavoidedmillionsoftonnesofCO2emissions. Thisreplication,whichcanonlybeaccomplishedwithadditionalfunding,couldachieve tensofmillionsoftonnesofadditionalavoidedCO2emissionsannually. Indiaisjuststartinginvestinginmoreefficient,cleanercoalbasedpowergeneration technologies,suchassupercriticalpulverizedcoalsystems.Indiahasstartedbuildingits firstsupercriticalpowerplantsusingimportedtechnologyandinvestingindomestic designandmanufacturingcapabilities.WithtechnicalsupportthroughCERDI,thesenew plantsshouldbeabletooperateneartheirdesignparametersandmaintaintheplant efficiency,reliability,andmaximumsustainableoutput(MWs)andreducefuel consumptionandCO2emissions. IndiahasyettofullycommittoitsIGCCtechnologyandhasinsistedthatitisntreadyto considercarboncaptureandstorage(CCS)technologyasacarbonmitigationoptionfor itspowersector.CreatingpartnershipsbetweenIndianandU.S.R&Dorganizationson IGCCandCCSunderCERDIisclearlyneededifthisparadigmistobeshifted.

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1.0Introduction
BuildingonthebilateralEnergyandGlobalClimateChangeDialogue,thegovernmentsofIndia andtheUnitedStatesofAmericaenteredintoastrategicpartnershipbysigningaMOUon November24,2009,toenhancecooperationonenergysecurity,energyefficiency,clean energy,andclimatechange.Thepartnershipintendstofocusonincreasingcollaborationin energyefficiency,renewableenergy,andcleanenergytechnologieswithcobenefitsfor reducingtheimpactsofclimatechangethroughthedevelopment,deployment,andtransferof transformativeandinnovativetechnologies.ThekeyinstrumenttocarryforwardtheU.S.India partnershipisthenewIndoU.S.CleanEnergyResearchandDeploymentInitiative(CERDI)as announcedbyU.S.PresidentBarackObamaandIndiaPrimeMinisterManmohanSingh.CERDI iscomprisedoftwoprimarycomponents: ResearchAJointResearchCenter(JRC)topromotecleanenergyinnovationbysupporting collaborativeresearchthroughoneormoreconsortiainvolvinguniversities,theprivate sector,andnationallaboratoriesineachcountryaspartners. DeploymentCooperativeeffortstoacceleratedeploymentofcleanenergytechnologies, focusinginparticularonfinancingandcreatinganenablingenvironment. Thisassessmentreportisintendedtosupportthedevelopmentofthecleanercoalcomponent oftheCERDIDeploymentCenter.TheaccomplishmentsofUSAID/IndiasongoingGreenhouse GasPollutionPrevention(GEP)Project,whichspecificallyaddressespowerplantefficiency improvementsandGHGemissionsreductionsfromcoalfiredpowergeneration,and predecessorcleancoalprograms,arereviewedfocusingnotonthespecifictechnicalactivities, butontheavoidedCO2emissions.AspartoftheongoingGEPProject,animplementation strategyforcosteffectiveandsustainablereplication,whichhasbeenproposedbyNETLto USAID,isalsoreviewed.Inaddition,activitiesunderthecleanercoalcomponentofCERDIwill leverageotherongoingbilateral,multinational,andtheGoIscurrentprograms.

2.0IndiasCoal&PowerSectorBackground
Indiahassignificantcoalresources,withestimatedreservesofover264billiontonnesuptoa depthof1200metersasofJanuary4,2008(www.coal.nic.in/induction08.pdf).Indiascoal reservesprovideasecureeconomicresourceforgenerationofelectricityandmeetingthe energydemandsofthesteel,cement,andmanufacturingindustries.MoPsBlueprintforthe PowerSectordescribestheproblemsandissueshamperingthegrowthofthepowersector, andthegovernmentsambitiousplantosupplyPoweronDemandtoallIndiancitizensby 2012.Mainly,theyare: Higherdemandthanpowergeneratingcapacity Lackofoptimumutilizationofexistingpowergenerationcapacity Environmentallysustainablepowerdevelopment Upgradingtechnicalefficiencyandskilllevelsandreorientation Awarenesscampaignandconsensusbuilding 11

Tomeetincreasingdemandforelectricityandtobridgethesignificantgapbetweensupplyand demand,Indiaplanstodoubleitscurrentinstalledcapacityby2020.Thecostofthiscapacity additionandtheassociatedtransmissionanddistributionsystemshasbeenestimatedat US$160billion.Thisenormousundertakingwillrequireexpertiseandskillsintheareasof benchmarking,adoption/adaptationofproventechnologies,efficientplanningand implementationstrategiesfromconcepttoprojectexecution,trainingandskillenhancement, consultancyservices,researchanddevelopment,andinformationmanagementand dissemination.Theblueprintalsonotes,apartfromthemassiveresourcemobilizationneeded todoublegeneratingcapacity,thatthetaskofidentifyingtechnoeconomicallyviableand environmentallysustainableprojectsisadauntingchallenge.Tomeetthesechallenges,there isanoverridingneedtoprovideexpertiseonabroadrangeoftechnologyandpolicyissuesfor therelevantMinistries(Coal,Power,andEnvironment&Forests)andallpowergeneratorsin thecentral,state,andprivatesectors. 2.1CO2Emissions Indiaemitsnearly5%ofglobalCO2emissions,anditsemissionscontinuetogrowasthe countrysstandardoflivingincreases.WhileIndiasCO2emissionsareincreasingmuchslower thanChinas,itsemissionsmorethandoubledbetween1990and2007.DOE/Energy InformationAdministrationsInternationalEnergyOutlookprojectsthatIndiasCO2emissions willmorethandoubleagainbetween2007and2030,increasingbyanaverageof4.1%peryear (Figure1).Thelargestshareoftheseemissionswillcontinuetobeproducedbytheelectricity andheatsector,whichrepresented56%ofCO2in2007,upfrom42%in1990.Thetransport sector,whichwasonly9%ofCO2emissionsin2007,isgrowingrelativelyslowlycomparedto othersectorsoftheeconomy(Figure2).OftheBRICScountries(Brazil,Russia,India,China,and SouthAfrica),IndiahasthelowestCO2emissionspercapita(1.2tCO2in2007),aboutone fourththatoftheworldaverageowingitsrelativelylowelectrificationrate.However,Indias powerandindustrialsectorsrelyextensivelyoncoalandithassignificantscopetoimproveits efficiency.Moreover,duetotherecentlargeincreasesinemissions,mainlyfrompower generation,IndiasCO2emissionspercapitaismorethan1.5timesofits1990levelof0.8and willcontinuetogrow.WhileIndiaspercapitaemissionsin2030areprojectedtobewellbelow thoseoftheOECDmembercountriestoday(Figure3),thecountrysnaturalresourceswillbe furtherstressedandemissionsofCO2perunitofGDPwillremainhighifadditionalactionsare nottaken.IndiaimprovedtheefficiencyofitseconomyandreduceditsemissionsofCO2per unitofGDPby21%between1990and2007(www.iea.org/co2highlights/co2highlights.pdf), however,allsectorsstillhavealotofscopeforimprovement. 12

Figure1:TotalCO2EmissionsfromEnergyConsumption: UnitedStates,China,India(19902030)
14,000

Million Metric Tons CO2

12,000 10,000 8,000 6,000 4,000 2,000 0

1990 2000 2010 2020 2030 Source:HistoricalData,USDOE/EIA,InternationalEnergyStatistics,ForecastData,USDOE/EIA,InternationalEnergyOutlook2009.

Figure2:CO2EmissionsbySector

Source:InternationalEnergyAgencyStatistics2009Edition;CO2EmissionsfromFuelCombustion

Figure3:TotalCO2EmissionsperCapitafromEnergyConsumption:UnitedStates,China, India(19902030)

MetricTonsCO2perPerson

25 20 15 10 5 0 1990 2000 2010 2020 2030

Source:HistoricalData(19902007):U.S.EnergyInformationAdministration,InternationalEnergyStatisticsPortal;ProjectedData(20082030): U.S.EnergyInformationAdministration,InternationalEnergyOutlook2009.

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OtherkeyIndiaCO2emissionsstatistics: IndiasCO2emissionsin2007were1,324milliontonnesaccordingtotheInternational EnergyAgency(IEA)(http://www.iea.org/co2highlights/co2highlights.pdf) CO2emissionsfromcoaluseinIndiawere895milliontonnesin2007accordingtothe IEA.(http://www.iea.org/co2highlights/co2highlights.pdf) IndiasCO2emissionsfromcoalcombustionareprojectedtototal1.3billiontonnesin 2030,accountingformorethan7percentoftheworldtotal(USDOE/EIAInternational EnergyOutlook2009,http://www.eia.doe.gov/oiaf/ieo/index.html) IndiasCO2emissionspercapitaincreasefrom1.1tonnesperpersonin2006to1.4 metrictonsperpersonin2030(USDOE/EIAInternationalEnergyOutlook2009, http://www.eia.doe.gov/oiaf/ieo/index.html) 2.2IndiaPowerSector Withhighratesofeconomicgrowthandover15percentoftheworldspopulation,Indiahas becomeasignificantconsumerofenergyresources.ElectricityproductioninIndiatotaled 904,477GWhinfiscalyear20072008(CEA,AllIndiaElectricStatistics,2009).In2007,68%of electricitycamefromcoal,another8%fromnaturalgas,and4%fromoil(AppendixB).The shareoffossilfuelsinIndiastotalgenerationmixgrewfrom73%in1990to85%in2002.Since then,theshareoffossilfuelshasdeclined,fallingto81%in2007.Althoughelectricity producedfromhydroincreasedduringthisperiod,itssharefellfrom25%in1990to15%in 2007.Indiahadaninstalledcapacityof13GWofrenewableenergysourceson31August 2009.Withaninstalledwindcapacityof10GWinJuly2009,Indiahasthefifthlargestinstalled capacityofwindpowerintheworld.UnderitsNationalActionPlanonClimateChange,India planstoinstall20GWofsolarpowerby2020. In2004,thePlanningCommissionformedanExpertCommitteeonIntegratedEnergyPolicy, whichwaschargedwithpreparingintegratedenergypolicyforIndialinkedwithsustainable developmentthatcoversallsourcesofenergyandaddressesallaspectsincludingenergy security,accessandavailability,affordabilityandpricing,efficiencyandenvironment.Their 2005study(http://planningcommission.nic.in/reports/genrep/intengpol.pdf)indicatedthatthe countrymeetswasmeetingabout30%ofitsenergyneedsthroughimports.Withthe increasingshareoffossilfuelsintheenergysupply/use,theshareofimportedenergywaslikely toincrease.ThereportpositsthatIndiafacesachallengeinmeetingitsenergyneedsand providingadequateenergyofthedesiredqualityinvariousformstousersinasustainable mannerandatreasonablecosts.ItindicatedthatIndianeededtosustainaneconomicgrowth rateof810%toeradicatepovertyandmeetitseconomicandhumandevelopmentgoals.Such economicgrowthwouldrequireasubstantialincreaseinenergyconsumptionwhileensuring accesstoclean,convenient,andreliableenergyforall.Todeliversustainedgrowthof8% through2031,Indiawouldneedtogrowitsprimaryenergysupplybyatleast3to4timesand electricitysupplybyatleast5to7timesofconsumptionatthattime.By203132,power generationcapacitywouldhavetoincreaseto778,095MWandannualcoalrequirementwould exceed2billiontonnes,unlesssignificantmeasurestoincreasepowergenerationfrom alternative(e.g.,renewableornuclear)energysourcesandtoincreasebothdemandand 14

supplyefficiencywereundertaken.ThereportstatesMeetingthisvisionwouldrequirethat Indiapursuesallavailablefueloptionsandformsofenergy,bothconventionalandnon conventional,aswellasnewandemergingtechnologiesandenergysources.Coalshallremain Indiasmostimportantenergysourcetill203132andpossiblybeyond.Indiawillneedtotakea leadinseekingcleancoaltechnologies. AdditionalchartsandtablesonIndiapowersectorincludingCO2emissions,installedcapacity byfuelandbysector,plantloadfactors,andthermalefficienciesarepresentedinAppendixB. 2.3IndianPowerSectorPerformance AsignificantpercentageofIndiasexistingcoalfiredpowerplantsareagingandoperateat muchhigherheatratethandesigned,especiallythoseoperatedbystateutilities.Inrecent years,Indiapowergeneratorshavefocusedonincreasingplantloadfactors(PLF,orcapacity factors)toincreaseelectricityoutput,oftenattheexpenseofplantefficiency.Whilethe nationalaveragePLFforstationsincentralsector(i.e.,NTPC)hasapproached90%,whichis worldclass,theaveragePLFofstateoperatedplantsisabout70%,andprivateutilityplantsis 85%.However,manyindividualplants,especiallythoseoperatedbystateutilities,arebelow 55%andbelow30%insomecases(AppendixB). AlargepotentialexiststoincreasegenerationandimproveefficiencythroughEnergyEfficient R&M.Onaverage,mostIndiancoalfiredpowerplantsoperateatheatrateshigherthantheir designedrate.ArecentCentralElectricityAuthority(CEA)studyof53powerplants, constitutingatotalcapacityof37,830MW,whichisabouthalfofIndiastotalcoalfired capacity,showsthattheirheatratesareabout13.7%higherthantheirdesignvalues.The weightedaveragedesignheatrateis2,377kcal/kWh(about36%),whereastheirweighted actualheatrateis2,703kcal/kWh(31.8%).Thisclearlyindicatesthatanaverageperformance improvementontheorderof300kcal/kWhisachievable.Higheroperatingheatrateleadsto increasedpowergenerationcosts,fasterdepletionofnaturalresources(coal),higheremissions ofconventionalpollutants,suchasSO2,NOx,andparticulates,andincreasedCO2emissions. Also,CEA,inconsultationwiththestateutilities,preparedaNationalPerspectivePlanforR&M andLE,whichcoversupto2017,forexisting200210MWandsome500MWcoalfiredplants thatmorethan15yearsold.Intheplan,53units(7,318MW)forLEand76units(18,965MW) forR&Mwereidentifiedinthe11thFiveYearPlanandanadditional72units(16,532MW)for LEand23units(4,971MW)forR&Minthe12thFiveYearPlan.Ifsuccessful,coalconsumption intheseunitscouldbereducedbyupto15milliontonnesannually,whichisequivalentto reducingalmost20milliontonnesofCO2emissionsannually.ThetechnologyintensiveR&M forefficiencyimprovementneededintheseprojectsisbeyondrestorationoforiginal generationcapacity,lifeextension,andimprovedavailability.Itwouldenabletheseunitsto operateathigheroutputswithlowerrequiredfuelinputandlessGHGemissions. Efficiencyimprovementinexistingpowerplantsrepresentsthegreatestneartermopportunity intheIndianpowersectortoconservefuelandachievesignificantreductionsofCO2emissions. Asmallreductionof25kcal/kWhinheatrate(i.e.,approximately,0.3%absolute,or1% 15

relative)inalargeutilitywithatotalcapacityof25,000MW,burningatypicalIndianhighash (>40%)coalwithacalorificvalueof3,500kcal/kginaplantwithatypicalPLFof83%willreduce theutilityscoalconsumptionbyapproximately1.3milliontonsandCO2emissionsby1.6 milliontonsannually.Achievinga25kcal/kWhimprovement,whichispossiblethroughsimple changesinoperationalsetpointsdeterminedaftercombustionoptimizationtesting,requires littleornocapitalinvestment.Oncethesetpointsaredetermined,performance improvementsachievedcanbesustainedthroughperiodictesting,whichcanbedoneeitherby trainedplantstafforqualifiedcombustionoptimizationserviceproviders. WhilemanyofNTPCsplantsarelessthan20yearsold,manystateutility/SEBplantsaverage morethan30yearsinagewithlimitedmaintenanceandupkeepduetolackofresources. Consequently,manyoftheseplantsarenolongerinagoodshape.Somearenowbeing restoredunderGoIandotherinternationallyfinancedR&Mprograms.Adecisionhasalsobeen madebytheGoItoretirearound3,000MWofexistingoldgeneratingcapacitysuppliedby110 MWunitsandbelow,primarilyduetotheirpooroperatingefficiency(lessthan20%).Thelost capacitywillberestoredbybuildinglarger210and500MWunits,whichhavebecomethe standardcapacityofmostcoalfiredunitsbeingbuiltinIndiatoday. Stateutility/SEBplantsinthecountryhavethegreatestpotentialforefficiencyimprovement. Onaverage,theseplantsoperateat3to6%belowtheirdesignefficiency,owinglargelyto constraintsincriticalequipment,wantofproperinstrumentation,poorqualitycoal,andlimited availabilityofpoorlytrainedmanpower.ThegoalofGoIandanumberofotherbilateraland multilateralprogramsistoturnaroundtheperformanceofstateutility/SEBpowerplants. Thefirstdemonstrationofheatratemonitoringandimprovementwasconductedduring1996 98atNTPCsDadriplantundertheUSAIDGEPProject.Throughaninteragencyagreementwith NETL,theTennesseeValleyAuthority(TVA)conductedtheefficiencytestsandhelpedtrainthe NTPCCenPEEPandNTPCDadriplantpersonnel.USAIDsuppliedacompletesetofdiagnostic testequipmentperTVAspecifications.Subsequently,twoadditionalNTPCplants(Singrauliand Rihand)andtwoStateElectricityBoard(SEB)plants(GujaratStateElectricityBoards WanakboriplantandMaharashtraStateElectricityBoardsKoradiplant)werealsoincludedfor efficiencyimprovement.Inall,thedemonstrationofefficiencyimprovementandtransferof bestpracticeswerecompletedinfiveIndianpowerplantsby2000.TVAandCenPEEPprepared comprehensiveHeatRateImprovementGuidelinesdocumentcompletewithtestprocedures andcalculationsforIndiancoalfiredpowerplants.TheguidelinesweredistributedbyCenPEEP toallstateutilities.CenPEEPandNTPCplantengineerswerealsotrainedinTVAplantsand workshopsonbestpracticeswerealsoprovidedtoCenPEEPandNTPCplantpersonnel. SubsequentlytworegionalCenPEEPsoneintheEasternRegionatNTPCsheadquartersin Patna,andoneintheNorthernRegionatLucknowwereestablishedtomeettheneedsof NTPCstationsintheseregions.USAIDassistancewaslimitedtoprovidingthetestequipment forthesecentersandtechnicalassistanceduringtheinitialoperationofthecenters.Building onthesuccessesgarneredthroughitsnetworkofCenPEEPs,NTPCestablishedanEfficiency MonitoringSystemthroughoutitspowerplantfleet,whichhasledtosomeoftheNTPCplants beingareamongthetopperformingcoalfiredpowerplantsintheworld. 16

PowerplantefficiencyimprovementactivitiesarealsobeingsupportedundertheAsiaPacific PartnershiponCleanDevelopmentandClimate(APP),fundedbyDOEandUSAID/India.Under thisprogram,twostateutilitypowerplants,PunjabStateElectricityBoards(PSEB)Roparplant andWestBengalPowerDevelopmentCorporationLimiteds(WBPDCL)Kolaghatplantwere selected.One200MWcoalfiredunitwasidentifiedineachofthetwostationsfor performanceimprovement.Theseeffortsledtoa23%boilerefficiencyimprovementinboth powerplantsandasetofrecommendationsforfurtherimprovementandmaintenanceofthe gainsachievedintheunitswasdeveloped.Bothplantshavesixnearlyidenticalunits,which theutilitiesarenowimprovingontheirownbasedontheknowledgeand instrumentation/equipmentprovidedthroughtheAPPprogram.Another200MWunitat TamilNaduElectricityBoards(TNEB)TuticorinThermalPowerStation(TTPS)isalsobeing providedsimilarperformanceimprovementassistance. KeyFindings Indiacurrentlyreliesoncoalformorethan2/3ofitselectricity.Coalwilllikely continuetounderpinIndiaseconomicdevelopmentformanyyearsinthefuture. WhileIndiahassignificantcoalreserves,itisincreasinglyturningtoimportedcoal, fromAustralia,Indonesia,andothercountries,tomeetitenergyrequirementsfor powergeneration,owingtodifficultmininglogistics,overloadedtransportation infrastructure,andhighinfrastructurefinancingcosts. AsignificantpercentageofIndiasexistingcoalfiredpowerplantsareagingandno

longerveryefficientorreliable,especiallythoseoperatedbystateutilities.There existsalargepotentialtoincreasegenerationandimproveefficiencythroughEnergy EfficientR&M. Stateutility/SEBplantsinthecountryhavethegreatestpotentialforefficiency improvement.Onaverage,theseplantsoperateat3to6%belowtheirdesign efficiency,owinglargelytolimitationsincriticalequipment,needforproper instrumentation,belowaveragecoalquality,andneedfortrainedmanpower. Asmallreductionof25kcal/kWhinheatrate(i.e.,approximately1%relative improvement)inalargeutilitywithatotalcapacityof25,000MW,burningatypical Indianhighashcoalinatypicalplantwithaplantloadfactorof83%willreducethe utilityscoalconsumptionbyapproximately1.3milliontonsandCO2emissionsby1.6 milliontonsannually.Thisisachievablethroughsimplechangesinoperationalset pointsdeterminedaftercombustionoptimizationtesting,requiringlittleornocapital investment.

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3.0U.S.IndoCooperationRelatedtoCleanCoal
CooperationbetweentheUnitedStatesandIndiaoncleancoalrelatedtechnologiesoccurs through: U.S.IndiaEnergyDialogue Power&EnergyEfficiencyWorkingGroup CoalWorkingGroup USAIDProgramswiththeGoI 3.1U.S.IndiaEnergyDialogue TheU.S.IndiaEnergyDialogueispartoftheEnergyandClimateChangePillaroftheU.S.India StrategicDialogue.Itconsistsoffiveworkinggroups:(i)theCivilNuclearWorkingGroup;(ii) theNewTechnologyandRenewableEnergyWorkingGroup;(iii)thePowerandEnergy EfficiencyWorkingGroup;(iv)theCoalWorkingGroup;and,(v)theOilandGasWorkingGroup. ThePowerandEnergyEfficiencyWorkingGroupiscochairedontheU.S.sidebyDOEand USAID,andontheIndiansidebyMoP.ThePowerandEnergyEfficiencyWorkingGrouphas undertakenworkinanumberofareas,including: cooperationbetweenNETLandUSAID,andMoP,CEA,NTPC,andseveralstateutilities toimprovetheefficiencyofexistingcoalfiredpowerplantsinIndia(jointeffortstodate haveresultedinthesavingsofmillionsoftonsofcoalandmillionsoftonsofCO2) creationofanIntegratedGasificationCombinedCycle(IGCC)TaskForce,focusedon involvingmajorIGCCtechnologyprovidersinajointIGCCprefeasibilitystudy workonbuildingandindustrialenergyefficiency,includingpromotingEnergySaving Companies(ESCOs)andenergyaudits,andbroaduseofstateoftheartbuildingenergy simulationmodelsandtools TheCoalWorkingGrouphasfocusedoncoalminingrelatedissues,includingcoal preparation/beneficiation,includingdrycoalcleaning;coalbedandcoalminemethane(CBM andCMM);utilizationofwastecoalfromcleaningoperation,includingcombustionusing advancedboilertechnologies;andcoalminesafety.Althoughtheseareasoffersomepotential forGHGreduction,especiallyCBMandCMMutilization,andresourceconservation,theyhave notbeenamajorfocusofNETLandUSAIDcooperationwithIndia,andarenotaddressedinthis assessmentreport. 3.2USAIDProgramswiththeGoI Severaleventsleadinguptotheearly1980sgaverisetoUSAIDsenergyprogramactivitiesin India.Inthe1960s,Indiafacedseverenationalfoodcrises,andwasheavilydependenton foreignassistancetomeetitsfoodneeds.TherewasagrowingcommitmentacrosstheIndian governmentandtheworldcommunitytoagriculturaldevelopmentandfoodsecurityforIndia. Duringthelate1960sandintothe1970s,USAIDworkedwithIndiasRuralElectrification Corporation(REC)toformruralcooperativesandbuildoveradozenthermalandhydroelectric 18

powerplants.USAIDusedcongressionallyauthorizedresources(PL480)toinvestingrid expansionandprovidedUS$175millionforruralelectrificationtohelpIndiameetitsfood productionneeds.Thoseinvestmentswereexpandedduringthe1980sasRECextendedrural electrificationundertheMinimumNeedsProgramforparticularlyunderdevelopedareas.A largenumberofruralareasreceivedpowerforthefirsttime.Atthemacrolevel,investments inpower,irrigation,andruralroadshelpedtolaythefoundationforIndiasGreenRevolution andsetitfirmlyonthepathtoselfsufficiencyindomesticfoodproduction.Inaddition,oil embargoofthemid1970sleftIndiafacingseriousoilshortages(nearly60%oftheoilusedin thecountrywasimported)andonthesearchforalternatesourcesofenergy. BilateralcooperationbetweentheUnitedStates,supportedbyUSAID,andIndiaintheareaof cleancoaltechnologiesbeganin1982.TheoverallgoalofUSAIDsIndoU.S.CleanCoal TechnologiesProgramhasbeentostrengthenthecapacityofIndiasscientificlaboratories, powerplantequipmentmanufacturers,andcoalfiredutilitiestodevelop,deploy,and commercializenewtechnologiesaimedatutilizinghighashIndiancoalefficiently.This objectivewaslaterexpandedintheearly1990stoaddresstheneedtomitigateGHGemissions fromIndianpowerplants.Since1982,theU.S.DepartmentofEnergys(DOE)NationalEnergy TechnologyLaboratory(NETL),anditspredecessororganizations,supportedimplementationof significantelementsofseveralUSAID/Indiaenergyandenvironmentprograms.Thishasbeen accomplishedthroughaseriesofinteragencyagreements(i.e.,ParticipatingAgencyServices Agreements,PASAs)betweenUSAID/IndiaandNETL.Table1showsthefocusandtimeframe ofUSAIDsprogramthatNETLsupported. Table1:USAIDCleanerCoalPrograms
Program/Project AlternativeEnergyResearch&Development(AERDPhasesI&II) EnergyManagementConsultationandTrainingProgram(EMCAT) ProgramforAcceleratingCommercialEnergyResearch(PACER) IndoU.S.CoalPreparationProgram GreenhouseGasPollutionPrevention(GEP)Project GEPClimateChangeSupplementI GEPClimateChangeSupplementII Focus PilotPlantSupport PlantStudy DemoPlant DemoPlantSupport TrainingandDemos TrainingandDemos TrainingandDemos Term 1982 1992 1993 1995 1993 1997 1994 1996 1995 2002 2000 2005 2003 2010

AlternativeEnergyResearchandDevelopmentProgram(AERD)Thistwophaseprogramwas designedtohelpIndiadevelopcombustiontechnologiesandrelatedtestfacilitiestouseits indigenoushighashcoalandbiomassresourcescleanlyforelectricpowergenerationwhile reducingGHGgeneration. EnergyManagementConsultationandTrainingProgram(EMCAT)Thisprogramwasdesigned toimprovetheavailability,reliability,andefficientuseofenergyinIndiathroughimproved management,policyreforms,andpublicawareness,andincludedeffortstoassessandevaluate theconditionsofIndianthermalpowerplantsandidentifymeasuresforextendingtheiruseful life. 19

ProgramforAcceleratingCommercialEnergyResearch(PACER)Thisprogramwasdesignedto promotethedevelopmentofneworinnovativeproductsorprocessesrelevanttotheIndian energysector.Thecoalconversiontechnologycomponentfocusedonsupportingthe developmentofpressurizedfluidizedbedcoalgasificationwithacombinedcyclepowerplant, andademonstrationplantforthebeneficiationofhighashIndiancoalsinthefirstcommercial washeryinIndiaintheprivatesectorforsteamcoal.ThecleanedcoalfromtheBilaspur washeryhasallowedmoreefficientoperationofReliancesDahanupowerplant,resultingin substantialCO2emissionreductions. IndoU.S.CoalPreparationProgramThisinteragencypublic/privatepartnershipprogramwas designedtodemonstratewithinIndiathecommercialfeasibilityandeconomicand environmentalbenefitsfromusingbeneficiatedorwashedcoalinpowerplants. GreenhouseGasPollutionPrevention(GEP)ProjectTheGEPProjectagreementwassigned betweentheGovernmentsofIndiaandtheUnitedStatesthroughUSAID/IndiaonApril10, 1995.Thisprojecthastwocomponents:(a)EfficientCoalConversion,whichfocusedon technologydemonstration,trainingandoutreachtoimprovetheperformanceofexistingcoal firedpowerplants,therebyreducingCO2emissions,and(b)AlternativeBagasseCogeneration, whoseintentwastodemonstratetheyearrounduseofbagasse(crushedsugarcanewaste)or otherbiomassfuelsforefficientcogenerationintheIndiansugarindustry.The accomplishmentsachievedundertheGEPProjectanditsextension,theGlobalClimate Supplementareamainfocusofthisassessmentreport. Whentheagreementwassigned,Indiaseconomicreformprocesswasatacriticalpointas therewasashortfallinthesupplyofreliableelectricpower.Indianpowerplantswerenotas efficientasworldstandardsandwerefueledbylowcalorificvalue,highashcoals.ForIndiato continuetogrow,itwasnecessarytoaugmentitselectricgenerationcapacity.However,India wasalreadythefifthlargestandsecondfastestgrowingGHGsourceintheworld.Decisions abouttheselectionofnonpollutingcapitalequipmentandtheimprovementoftheefficiency ofexistingthermalplantswereviewedaskeyelementstosustainingIndiaseconomicgrowth andprotectingitsenvironment.TheGEPProjectwasdesignedtoprovidetheknowhowand toolsneededtoensurethatsuchdecisionswouldimprovetheIndianstandardoflivingand protecttheenvironment. GEPProjectEfficientCoalConversion(ECC)ComponentTheGEPECCComponentaimedto establishaselfsustaininginstitutionfortechnicalsupporttoimproveefficiencyinthethermal powersectorinIndiaandconductastudyonadvancedcoalconversiontechnologiessuitable forIndia.UndertheECCcomponent,theCenterforPowerEfficiency&Environmental Protection(CenPEEP)wasestablishedin1994byNTPCinpartnershipwithUSAID/Indiaand NETL.CenPEEPservesasthenationalresourcecenterforacquiring,demonstrating,and disseminatingtechnologiesandbestpracticesfortheimprovementofpowerplantoperating efficiency,availability,andenvironmentalperformanceincoalfiredpowerplants.NETLhas supportedCenPEEPsgrowthandexpansiontotworegionalcentersinPatnaandLucknow,and 20

nowworkscloselywithCenPEEPinimplementingbothGEPandAPPprojectactivities throughoutIndia. GEPProjectClimateChangeSupplementEfficientPowerGenerationComponentTheGEP ClimateChangeSupplements(GEPCCS)EfficientPowerGeneration(EPG)Componentwas launchedtoexpanduponthesuccessofGEPECC.Twonewelementsfosteringclimate changeinitiativesforsustainabledevelopment,andlinkingurbandevelopmentandclimate changeactivitieswereadded.ThroughtheGEPCCSEPGComponent,manyactivitieswere conductedwithNTPCastheprimarypartnertoimprovetheirpowerplantsandseveralstate utilityplants.NETLprovidedtechnicalassistanceandtrainingtoNTPCandtocoalbasedpower plantsofstateutilitiesthroughCenPEEP,whichresultedinasignificantreductionofGHG emissionswhilesavingmanymillionsofdollarsinreducedoperatingandmaintenance(O&M) andcoalcosts.Forexample,HeatRateImprovementGuidelineswerepreparedanddistributed throughouttheIndianpowersector,andarebeingroutinelyusedbypowerstationstoimprove theirperformance.Morethan300demonstrationexerciseshavebeenconductedand replicatedinvariousIndianpowerstationsonawiderangeofstateofthearttechnologiesand practices(e.g.,combustionoptimization,condenseroptimization,coolingtowerperformance improvement,andturbineevaluations). Since1996,CenPEEPhashostednearly50U.S.expertteamscoveringabout1,000persondays and15Indianteamshavevisitedmorethan20U.S.powerstationsandinstitutesfortraining. About110workshopshavebeenconductedonabroadrangeoftopics,andCenPEEPprovided morethan13,000persondaysoftechnicalassistance,training,andoutreachtopower professionalsthroughoutIndiathroughaComprehensivePerformanceOptimizationProgram thataddressed(1)powerplantefficiencyimprovement,(2)predictivemaintenanceand overhaulingpracticesforpowerplantequipment,(3)environmentalmonitoringandcontrol, and(4)largescaleflyashutilization. ForitseffortsinpromotingclimatefriendlytechnologiesandreducingGHGemissions,CenPEEP hasreceivedthefollowingmajordomesticandinternationalclimateandbusinessexcellence awards: WorldClimateTechnologyAward2002byIEAsClimateTechnologyInitiative(CTI) U.S.EnvironmentalProtectionAgencysClimateProtectionAwardin2003 IndiasCouncilofPowerUtilitiesIndiaPowerAward2008Jury'sAward ISAQInternationalStarAwardforQualityintheGoldCategory,presentedbyBusiness InitiativeDirections(BID)in2009 3.3GEPProjectSustainableBenefits Aheatrateimprovementof12percentagepoints(3.26.4%relative)canbeachievedin themajorityofexistingIndiancoalfiredpowerplantssimplythroughsoundefficiency monitoringpractices,techniques,andsystems,andimprovedplantoperational practiceswiththehelpofsimplediagnosticandtestingequipmentallwithlow investment.A1%heatrateimprovement(equivalenttoabout0.33%efficiency)is 21

equivalenttoareductioninannualreductionofabout4milliontonsofcoalandover5 milliontonsofCO2forallIndiancoalfiredpowerplants,withtheaccruedbenefits, includingimprovedreliability,exceedingcosts. Infraredthermographyandacousticdiagnostictechniqueswereintroducedforearly detectionofequipmentproblems,andhavebecomeacceptedpracticesinmanyIndian coalbasedpowerplants.Theintroductionofpredictive,conditionbasedmaintenance inNTPCpowerplantshassignificantlyimprovedthereliabilityofpowerplant equipment. Ashresistivitymeasurementfacilitieshavefilledagapinashcharacterizationcritical foroptimizationofelectrostaticprecipitators,whichisessentialforIndianpowerplants. AnoverhaulingpracticesmanualforusebypowerplantprofessionalsthroughoutIndia wasprepared,whichisprovidingthefoundationforplantimprovementprojects. Theuseofeddycurrentsforremovingthestudsofsteamturbineshasbeen demonstratedandisnowbeingusedbylocalmanufacturers.

3.4CO2EmissionsAvoidedasaResultofUSAIDsCoalPrograms MeasuresinstitutedundertheU.S.CleanCoalactivitiestoimprovepowerplantsoperations andmaintenance(O&M)cultureoritsoperationalefficiency,haveresultedinsignificantCO2 emissionsavoidance.Table2isasnapshotofwhathasbeendocumentedstartinginApril1996 andestimatedthroughtheendofMarch2010. Whilerigoroustestingwasntperformedbeforeoraftermostoftheactivitiesconductedowing totechnical(e.g.,plantavailability)andbudgetlimitations,theavoidedCO2emissionswere estimatedbaseonestimatedemissionsreductiondeterminedthroughsoundengineering experienceandjudgmentbyveryexperiencedengineers.Theavoidedemissionswere estimatedbyassumingthatemissionsreductionachievedinareportingperiodismaintained oversubsequentperiods.Ifnoadditionalefficiencyimprovementmeasuresaretakenthenthe reductionsachievedintheprecedingperiodareassumed,whichisreasonablebasedonsound engineeringexperience.Inotherwords,onceareductionisattained,itismaintained.The stateutilities,whoweresupportedearlyintheGEPProject,havenotreportedtheiractivities afterApril2000;however,itisbelievedthatadditionalreductionswereachievedthrough incrementalimprovementsinefficiencyinadditionalplants.Therefore,the101milliontonnes ofavoidedCO2emissionsislikelyaconservativenumber.EffortsarebeingmadebyUSAID, NETL,andNTPCtoobtainthesedata,includingaskingMoPandCEAtoformallyrequestitfrom thestateutilities. EstimatedaggregateCO2emissionsavoidedduringOctober2006andSeptember2009,which wereprojectedtotheendofMarch2010,aregiveninFigure4andTable2.Itisobviousfrom theestimatesthatthepotentialforCO2emissionsreductionandsubsequentavoidanceisthe greatestinstateutilityplants,whicharemuchlessefficientthanplantsoperatedbyNTPC, privateutilities,andsomecaptivepowerplantsoperatedintheindustrialsector.

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Figure4:CO2EmissionsAvoided(inTonnes)fromUSAIDsCleanCoalActivitiesbyParticipant (April19962030)

Table2:CO2EmissionsAvoided(inTonnes)fromUSAIDsCleanCoalActivitiesbyParticipant (April19962030)
PERIOD Apr.96Mar.97 Apr.97Mar.98 Apr.98Mar.99 Apr.99Mar.00 Apr.00Mar01 Apr.01Sep.01 Oct.01Sep02 Oct.02Sep03 Oct.03Sep04 Oct.04Sep05 Oct.05Sep06 Oct.06Sep07 Oct.07Sep08 Oct.08Sep09 Sep09Mar10 (estimated) NTPC 349,337 853,680 1,493,116 1,808,658 1,840,222 1,912,409 2,138,368 2,178,368 2,228,368 2,298,368 2,378,368 2,473,368 2,571,868 2,667,061 1,333531 CUMULATIVE NTPC 349,337 1,203,017 2,696,133 4,504,791 6,345,013 8,257,422 10,395,790 12,574,158 14,802,526 17,100,894 19,479,262 21,952,630 24,524,498 27,191,559 28,525,090 STATE UTILITIES 1,409,913 4,229,739 5,490,430 5,490,430 5,605,430 5,605,430 5,605,430 5,605,430 5,605,430 5,605,430 5,605,430 5,605,430 2,802,715 CUMULATIVE STATEUTILITIES 1,409,913 5,639,652 11,130,082 16,620,512 22,225,942 27,831,372 33,436,802 39,042,232 44,647,662 50,253,092 55,858,522 61,463,952 64,266,667 COAL WASHERY 174,390 300,730 363,900 490,240 616,580 728,589 854,929 981,269 1,107,609 1,107,609 1,107,609 553,805 CUMULATIVE WASHERY 174,390 475,120 839,020 1,329,260 1,945,840 2,674,429 3,529,358 4,510,627 5,618,236 6,725,845 7,833,454 8,387,259 CUMULATIVE TOTAL 698,674 1,552,354 4,455,383 10,668,170 18,299,552 26,066,291 34,300,329 42,700,707 51,263,094 60,021,821 68,986,888 78,173,295 87,458,202 96,838,302 101,528,352

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Key Findings Overthepast14years,USAIDscoalrelatedprogramshaveaddressedmanyoftheIndian coalandpowersectorsmostimportantproblems.Inparticular,theGEPProjecthasgained adeepknowledgeofthemostpressingproblemsfacingIndiascoalpowersectorandhas developedanextensivenetworkofrelationshipsbetweenthegovernmentsandindustryof theUnitedStatesandIndia. ThroughtechnicalsupportprovidedbyDOEsNationalEnergyTechnologyLaboratoryand U.S.powerplantexpertsandtechnologysuppliers,inpartnershipwithNTPCandseveral stateutilitypowerplantsundertheGEPprogram,morethan100milliontonnesofCO2 emissionshavebeenavoidedtodate. Basedontheseaccomplishments,widerreplicationofsimilarlowcostpowerplant efficiencyimprovementactivitiesthroughoutIndiaisclearlydoable. Thisreplication,whichcanonlybeaccomplishedwithadditionalfunding,couldachievetens ofmillionsoftonnesofadditionalavoidedCO2emissionsannuallytoaddtothecumulative avoidedCO2emissionstodate.

4.0U.S.IndiaCleanerCoalTechnologiesR&DPrograms
Historically,Indiahashadamodestnationalefforttoresearchanddevelopcleanercoal technologies,alongwithsomebilateralandmultilateralcooperationwithothernations.The MinistryofCoalhassupportedR&Donimprovedcoalminingandprocessingtechnologiessince 1976.Duringthelast2decades,anumberofscience&technology(S&T)projectsoncleaner coaltechnologieshavebeensupportedbytheCouncilofScientific&IndustrialResearch(CSIR). Mostactivitieshavefocusedontheadaptionofproventechnologiesfromaroundtheworldto Indianconditions(e.g.,highashcoalsandhighambienttemperatures)andsituations(e.g., manufacturingcapabilitiesandcoststructures).Also,mostofthecleanercoalR&Dconducted byleadinguniversitiesisdirectedatbasicresearch,withlimitedcommercialapplication. 4.1SupercriticalandUltraSupercriticalTechnologyDevelopmentinIndia BHEL,theprimaryboilersupplierinIndia,hasthecapabilitytomanufacturesubcriticalboilers up800MW.However,basedonthechallengingtargetsthathavebeensetforcapacity additionduringthe11thFiveYearPlan,alongwithGoIsUltraMegaPowerProjectconcept, BHELsignedanindustrialpartnershipagreementin2007withAlstom,aglobalpowersystems manufacturerandserviceprovider,forcooperationononcethroughboilerandpulverizer technologies.Amajorobjectiveofthispartnership,whichwillenableBHELtoproduce1,000 MWpowerplants,istowinbusinessinIndiassupercriticalpowerplantprogramtohelpIndia efficientlymeetitspowergenerationneeds.Thepartnershipagreementwasconstitutedbya TechnicalAssistanceAgreement(e.g.,license)includingalloncethroughboilerdesignsand associatedhighperformancepulverizersandaBusinessCooperationAgreementdefiningthe industrialscopeofeachofthepartnersforfutureboilerstobeordered.Alstomwillsupply engineeringandkeyboilercomponents,bringingworktoitsfacilitiesintheUnitedStates, Germany,andIndia.BHELhavealsosignedaMOUwithSiemensforcooperationinthefieldof advancedpowerplanttechnology.BHELandSiemenswilljointlyofferandinstallsteam turbinesforsupercriticalpowerplantprojects. 24

InFebruary2010,Alstom,andBharatForgeLtd.,agloballeaderinmanufacturingandmetal forming,laidthefoundationstonefortheirnewpowerequipmentmanufacturingplantat Mundra.Theplantwillmanufacture300800MWsubcriticalandsupercriticalequipmentwith anannualcapacityof5,000MW.Inthefuture,theJVwillalsoexplorepossibilitiesof manufacturingturbinesandgeneratorsforgasbasedplantsandnuclearapplications. NTPCiserectingIndiasfirstsupercriticalthermalpowerstationinSipat,Chhattisgarh.The totalapprovedcapacityofSipatis2980MW,whichincludesthree660MWsupercriticalunits inStageIandtwo500MWsupercriticalunitsinStageII.Theboilersandauxiliariesforthe StageIunits,whichareundervariousstagesofimplementation,arebeingsuppliedbyDoosan ofKorea.TheStageIprojectwasduetobecompletedinearly2009,buthasbeendelayeduntil early2010. 4.2IGCCTechnologyDevelopmentinIndia BHELstartedbenchandpilotscaleR&Doncoalgasificationinthemid1980s.Thefirstpilot scaletestfacilitybasedonfluidizedbedgasification(FBG)wassetupatBHEL'sCorporate ResearchCenterinHyderabad.Thiswasdesignedfor18tons/hourcoalthroughputwitha pressurizedlockhoppersystem.Earlytestingwasaimedatrunningthegasifiertoresolvethe operationalbottlenecksandimprovetheheatvalueofthecoalgas.Aparalleleffortfundedby CSIRwasinitiatedatitsRegionalResearchLaboratoryinHyderabadtoconductbenchscale researchoncoldgascleanupandatBHELCorporateR&DCenteronhotgascleanupR&D. Subsequently,BHELsetupalargerscale(6.2MWe)IGCCpilotplantatitsR&DCenterin Tiruchirapalli(Trichy)in1985.Thefacilitywascommissionedin1989,withapressurized fluidizedbedgasifieranda4.0MWMitsubishigasturbineusingcoldgascleanup.Thegas turbinedidnotoperateasexpectedbecauseofbladefailurefromcorrosionfromthehigh sulfurcontentofthesyngas.Thereafter,thegasifierwasoperatedonlytoobtainprocessand systemsdata.BHELhasreported4000hoursofoperation.Later,BHELincreasedthecoal throughputto150tons/dayandoperatingconditionsto13atmospherespressureand1000oC. Thegasifierhasoperatedformorethan2000hoursandhasprovideddataforscaleuptoa 125MWIGCCplant.InadditiontotheinitialcapitalinvestmentofRs15Crores(aboutUS$3 million)forthepilotplant,anadditionalinvestmentofRs18crores(aboutUS$4million)has beenmade.BHELscurrentannualexpenditureonIGCCdevelopmentisabout8crores(about US$1.7million). GoIhasconstitutedanR&DCommitteetobringaboutsynergybetweenBHELandtheuser utility.ThecommitteewithmembersfromCSIR,NTPC,andBHELsettargetstobemetbefore takinguptheinstallationofademonstrationproject.Theworkinggroupparticipatedin experimentsinBHELsresearchfacilities,evaluatedthedata,andreportedtheresultstothe R&DCommittee.TheCommitteeconcludedthatthetargetedperformancehasbeenachieved andscalinguptheBHELdesignfrom6.2MWto125MWwasfeasible.Subsequently,Andhra PradeshGeneratingCompany(APGENCO)andBHELagreedtoenterintoaMOUtoestablisha 125MWIGCCproject.ThedemoplantisproposedtobeinstalledatAPGENCO'sVijayawada 25

ThermalPowerStation.TheexpectedcostoftheprojectisaroundRs.950crores(aboutUS$2.1 billion)withBHELcontributingRs.420crores(aboutUS$915million)forthecoalgasifierand gascleanupsystemandAPGENCOmobilizingRs.530crores(aboutUS$1.2billion)forthe powerblock. Separately,NTPChasproposedbuildinga100MWIGCCdemonstrationplant.Theprojectaims toadapttheIGCCtechnologytoIndianconditions.Inthefirstphase,NTPCwouldprocureand developthefluidizedgasifierandgascleanupsystemandotherrequiredequipment.Under thesecondphase,itwouldprocureappropriatecombinedcyclegastreatmentplantand integrateitwiththegasifierandgascleanupsystem.NTPCistoappointareputedconsultant toassistinpreparationoftechnicalspecificationsandprovideservicesastheowners engineers. 4.3USAID/IndiaSupportforIGCCTechnologyDevelopmentinIndia Startinginthemid1980s,NETLprovidedtechnicalassistancetoBHELthroughUSAID/Indias AERDProgramstoimprovetheirtechnologyforgasificationofIndiancoals: Technicalassistanceondesign,processintegration,gascleanup,coalcharacterization andprocesssimulationandmodeling USAIDpartiallyfunded(US$3million)BHELsIGCCpilotfacilityinTrichy,including providingequipment,controls,andinstrumentationfromU.S.vendors VisitsbyBHELengineerstoU.S.IGCCfacilities(Tampa,Wabash,andPinonPine) Inearly1990's,technicalassistancewasprovidedbytheformerDOEPittsburghand MorgantownEnergyTechnologyCenters(PETCandMETC,nowNETL)ongascleanupsystems andarrangedvisitsbyIndianinvestigatorstoMETCandothergasificationresearchfacilities, includingtheInstituteforGasTechnology(IGT)andWestinghouse.Inaddition,anonlinegas analyzersystemandlaboratoryinstrumentationwereprovided.UnderUSAID'sPACER Program,US$3.0millionwasprovidedtoBHELtosupportthescaleupofthegasifier,including purchasesofequipment,instrumentation,etc.Also,PETCandMETCprovidedtechnical assistance,valuedataboutUS$300,000,includingreviewofthegasifierdesign,supportfor modelingoftheoverallgasificationprocess,andstudiesonashagglomeration,andcoaland charreactivitymeasurement. In2002,USAIDfundedaUS$2.0millionIGCCfeasibilitystudy,whichwasconductedbyNexant withNETLtechnicaloversight.TheIndianpartnerwasNTPC,whichhadindicatedinterestin settingupIndia'sfirstIGCCdemonstrationplant.Thisfeasibilitystudy: evaluatedandrankedcommercialIGCCtechnologiesthataremostsuitableforIndian coals; comparedtheireconomicswiththeconventionalPCfiredandotheradvancedcoalfired powergenerationtechnologies;

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selectedthemostsuitableIGCCtechnologyintermsoftechnoeconomicfeasibilityand environmentalbenefits; performedasitespecificengineeringdesignandeconomicanalysisfortheselected technologyfor100MWcapacity; determinedthebenefitswithrespecttolifecyclecostsandemissions;and establishedaroadmapforcommercializationofcoalbasedIGCCtechnology.

BHEL,Lurgi,KRW,GasTechnologyInstitute(GTI),andothertechnologysupplierswereaskedto participateintheproject.Thefinalreportconcludedthatthepressurizedfluidizedbed gasification(PFBG)technologyofferedbyGTIwasthetechnologyofchoicefortypicalhighash Indiancoals,basedingreatpartonithavingoperatedatscaleonsimilarcoals.TheBHEL technologywasbelievedtobepromisingbutunprovenatscale,andhencewasnotreadyfor fullscaledemonstration.Thestudyfocusedondevelopingperformanceandcostdatafora fullscaledemoplant.However,theserecommendationswerenotacceptedowingtoa preferencefordomestictechnology.Theprojectdidnotmoveforwardowingtolackofaviable plantofinancetheincrementalcostsfortheIGCCdemonstrationplantbytheIndian government,andinterestedorganizations,includingNTPCandBHEL. Subsequently,theAsianDevelopmentBank(ADB)proposedaUS$2millionProjectPreparatory TechnicalAssistance(PPTA)ProjecttoMoPandNTPCtodevelopareferenceIGCCplant(100 200MWcapacity)forIndia.ThePPTAwouldhavecoveredgasificationtechnologyselection, developmentofEPCcontractdocumentation,andprobablefinancingmechanism,andwould havebeenexecutedthoughaninternationalconsultantselectedthroughaproposalprocess. TheADBindicateditwantedtoinvolveNETLinthePPTA,asanadvisortotheselected consultantbasedonitsearlierIGCCstudyforUSAID.However,MoPandNTPCwerenotready toundertakealargescaledemonstrationproject. UndertheflagshipBestPracticesforPowerGenerationProject,theAmericanElectricPower Company(AEP)hostedasetofsitevisitsduring30October4November,2006.AEPfostered ahandsonenvironmentwhereparticipantslearnedfromoneanother,sharedinformation, andcollaboratedonhowbesttoaddresstheworldsneedtogenerateelectricityfromcoalwith lessorminimalenvironmentalimpacts.OneofthesessiontrackswasonIGCCtechnologyin whichseveralIndianengineersfromBHELandNTPCparticipated. 4.4CCSTechnologyDevelopmentinIndia Currently,IndiahasannualCO2emissionsofaround1343Mtwithapproximatelyhalfbeing emittedfromlargepointsourcessuitableforCO2capture.AGoIinitiativetodevelopuptonine UltraMegaPowerProjects(UMPP)tomeetincreasedenergydemandwilladdapproximately 36,000MWofinstalledcapacity,withacorrespondingincreaseinCO2emissionsof approximately275milliontonnesperyear.ConsideringIndiasstatusasalargeemitterofCO2 fromexistingcoalpowergenerationandwithalargeexpectedincreaseinCO2emissionsinthe nearterm,ithasbeensuggestedthatIndiaconsiderCO2captureandstorageasamitigation option. 27

A2009IEAstudy(http://co2storage.org/Reports/200802.pdf)assessedCO2storagepotential inIndia'ssalineaquifersandcoal,oil,andgasfieldsat5gigatons(GT).However,thegeological dataneededtoestimatethestoragepotentialofIndiassalineaquifersaresparseandwould needtobequantifiedbeforeIndiacouldconsiderthisoption.Someofthemajorconclusions fromthisstudyaresummarizedbelow. Storageindeepcoalseamsisstillinthedemonstrationphase,and,therefore,notreadyforfull scaledevelopment,butasmoredemonstrationprojectsbecomeactivearoundtheworld,there maybescopeforademonstrationprojecttoascertainitsrelevancetoIndia.Thereispotential forCO2forenhancedoilrecovery,bothonshoreandoffshore,butthepotentialcannotbe quantifiedwithoutfurtherexplorationoftheoilfields.TheremaybepotentialtostoreCO2in Indiasdeepsalineaquifersinshallowoffshoreareas,inGujarat,Rajasthan,andAssamand possiblyinCachar,Tripura,andMizoram,althoughmostofthemainemissionsourcesare locatedsomedistancefrompotentialstoragesites(IEATechnicalStudyReportNo.200/2,May 2008).ItisessentialthatthesalineaquiferCO2storagepotentialofIndiasonshoreand offshoresedimentarybasinsbeinvestigatedinmoredetail.Ifthesaline aquifersarefound wanting,exportofCO2byship,perhapstotheMiddleEast,couldbeanalternativeforCCSfor India. DOEsCarbonSequestrationProgramisfocusedondevelopingtechnologiestocapture, separate,andstoreCO2.IndiacouldbenefitthroughcooperationwithNETL,whichcouldbe supportedthroughCERDI. 4.5IndianCCTR&DOrganizations IndiascapacityforconductingcuttingedgecleanercoalrelatedR&Disratherlimited comparedtoChinas,fromtheviewofbothresourcesandresearchfacilities.Anumberof IndianorganizationshavethebeginningsofcleanercoalR&Dprograms,andsome organizationsareexpandingtheirexistingR&Dcapabilities,includingBHELandNTPC.Several ofthesearecollaboratingwithwellknowninternationalorganizationsonpreliminary investigativeresearchworkonIGCCandCCStechnologies.Theseexistingplatformscouldbe expandedunderCERDI. CouncilofScientific&IndustrialResearch(CSIR)thepremierindustrialR&Dorganizationin India.With38laboratories,CSIRisoneoftheworldslargestpubliclyfundedR&D organizations.CSIRsR&DportfolioembracesessentiallyallS&TR&Dareas. NationalEnvironmentalEngineeringResearchInstitute(NEERI)aconstituentofCSIR,withhas fiveregionallaboratories,wasestablishedin1958astheCentralPublicHealthEngineering ResearchInstitute,whentheprimaryenvironmentalconcernswasonhumanhealthissues (watersupply,sewagedisposal,diseases,industrialpollution,andcommunicable/occupational diseases).Withincreasingworldwidepublicawarenessontheenvironmentonregionalto globalscalein1970s,itwasrenamedasNEERIin1974,withanexpandedmissiononresearch andinnovationsinenvironmentalscienceandengineeringandsolvingarangeofnational environmentalproblemsbyS&Tintervention.NEERIhasabout125scientistsinvariouscore 28

disciplinesofrelevancetoenvironmentalscienceandengineering(e.g.,environmental engineering,chemicalengineering,environmentalchemistry,andenvironmentalbiology). NEERIsbudgetin200506wasonlyRs.23.90Crore,oraboutUS$5million,withfunding receivedfromtheGoI,primarilyCSIRandvariousindustrialandforeignsources. NationalGeophysicalResearchInstitute(NGRI)NGRIhasascientificstaffofabout200,and focusesonexplorationofhydrocarbonandmineralresources;engineeringgeophysics; assessmentandmanagementofgroundwaterresourcesandearthquakehazards.NGRIhas initiatedsomeprojects,includingcooperationwiththeUnitedKingdomandNorway,on estimationofIndiaspotentialtostoreCO2incontinentalfloodbasaltsandviaenhancedoil recovery(EOR).UnderAPP,NETLattemptedtodevelopajointprojectundertheCleanerFossil EnergyTaskForcewithNGRIandColumbiaUniversitytoassessthepotentialtostoreCO2from theplanned100MWIGCCdemonstrationprojectinthestateofAndhraPradeshbeing developedbyAPGENCOandBHEL.However,whileNGRIwasinterested,theMinistryof EnvironmentandForestsrejectedformalregistrationoftheprojectonthegroundsthatIndia wasntreadyforaCCSproject. BharatHeavyElectricalLtd.(BHEL)BHEL,whichhasaround40,000employees,isIndias largestdeveloperofpowerplants,withaninstalledbaseof100GWworldwide.Duringfiscal 200809,theirannualturnoverwasapproximatelyRs27,205crore(US$6billion),whichis expectedtonearlydoubleby2012.NearlyRs5,405crore(US$150million)about20%ofthe companystotalturnoverwasachievedthroughcommercializationofproductsandsystems developedbyitsinhouseR&Dgroups.However,historically,BHELassimilatedand updated/adoptedstateofthearttechnologiesforthepowerandindustrialequipmentsectors acquiredfromworldleadersthroughlicensingandjointventuresratherthandevelopingits owntechnologies.BHELhasplacedincreasingemphasisonR&Dasakeydriverofthe companysevolutionintotherealmofnextgenerationproductsandsystems.Significantly, duringtheyear,BHELspentoverRs650crore(US$30million)onR&Defforts40%morethan thepreviousyear.Duringfiscal200809,BHELspent2.36%ofitstotalturnoveronR&D,which isamongthehighestinIndiaformanufacturingcompanies.FormalcooperationbetweenNETL andtheBHELhasbeendiscussed,includingtechnicaladvicewithexpandingBHELsR&D capabilitiesandjointR&D,suchasmodelingandsimulationofadvancedpowerplantsandCCS relatedtechnologies,especiallyoxyfuelcombustion.Initialdiscussionsonformalcooperation havebeenheld,butnodecisionhasbeenmadeyetpendingidentificationofspecificprojects, resourceneeds,andanappropriatecooperationmechanism. NTPCEnergyTechnologiesandResearchAlliance(NETRA)NTPCestablishedNETRAtoconduct researchtechnologydevelopmentandscientificservicesrelatedtoelectricpowergeneration. 75acresoflandhavebeenpurchasedbyNTPCforNETRAinGreaterNoida(UP),ofwhich25 acresisearmarkedforfuturepilotplantR&Dfacilities.NETRAsprimethrustareasareclimate change,newandrenewableenergy,efficiencyimprovement,andcleanandeconomicpower generation.NTPChascommitted0.5%ofitsprofitaftertaxtowardsR&Dandanother0.5%of itsprofitaftertaxtowardsclimatechangeresearch.AResearchAdvisoryCommittee(RAC) comprisingofeminentscientistsandexpertsfromIndiaandabroadhasbeenconstitutedto 29

steerNETRAforhighendresearch.AninhouseScientificAdvisoryCouncil(SAC)hasalsobeen constitutedtoguidethedirectionofscientificservicesandTechnologyDevelopment.NETRAis involvedincollaborativeresearchprojectswithkeynationalinstitutesanduniversities, includingR&Dresearchtodevelopeconomictechnologiesforcleancoal,newandrenewable energy,efficiencyandreliabilityenhancementofthermalpowergeneration,andCO2 mitigation/fixation. FormalcooperationbetweenNETLandNETRAwasproposedundertheU.S.IndiaEnergy Dialoguein2007.Proposedcooperationincludedtechnicaladvicewithsettingupand expandingNETRAsR&DcapabilitiesandjointR&Donareas,suchasmodelingandsimulation ofadvancedpowerplants,especiallyIGCCandCCSrelatedtechnologies.Initialmeetingswere heldfollowingthe2007EnergyDialogueMeetingonanewIGCCstudyincludingdirect involvementofU.S.technologysuppliersunderthenewJointIGCCTaskForce.NETLattempted toarrangeavideoconferencetodiscussnextstepsinlate2007andearly2008todiscussnext steps;however,MoPandNTPCdidnotconfirmtheiravailability.Furtherdiscussionsonformal NETLNETRAcooperationhavebeenheld,includingduringtheAssessmentTeamsvisit,butno decisionhasbeenmadeyetpendingidentificationofspecificprojects,resourceneeds,andan appropriatecooperationmechanism.

5.0TheWayForwardforIndia:Recommendations
Thisisaverydynamicperiodasmajorgovernmentsoftheworldaresearchingforaway forwardoncleanenergyandclimatechangeissuesaftertheCopenhagen ClimateChange Conference2009.Inaddition,bilateralrelationships,suchastheonebetweenthe governmentsoftheUnitedStateandIndia,areintheprocessofbeingredefined.However, acrossallofthisuncertainty,emphasisoncleanerandmoreefficientenergytechnologies remainsattheforefrontoftheinteractions.USAIDisrenewingitsfocusonusingdevelopment assistancetoimprovethelivesofpoorandimpoverishedpeoplesandtoadvanceAmericas goalsandvaluesaroundtheworld.Initiativesfocusingonimprovingsupplysideefficiencyand inpromotingadoptionofnewhighefficiencypowersystemswillimprovethequalityoflifeby increasingaccesstoreliableandresponsiblygeneratedelectricity. 5.1CleanerCoalTechnologiesDeployment DeploymentofcleanercoaltechnologiesthroughCERDIshouldfocusontechnicalassistance fromtheUnitedStatesonimprovingheatratesandothermeanstooptimizetheoperationsof existingcoalfiredpowerplantsandtoaccelerateadoptiononadvancedcleancoal technologies,especiallyIGCCandCCS.AnewphaseofworkwithsupportfromCERDIwould assessemergingcommercialtechnologiesandpromisingnewtechnologieswiththe correspondingskilledworkforcedevelopmentactivities.Thiswouldbeamplifiedbytheservice providersnetworkdiscussedinSection5.2andthemodelpowerplantconceptinSection5.3.

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5.2U.S.IndiaServiceProvidersNetwork WiththeanticipatedgrowthinthermalpowergenerationinIndia,andtheadditionofcaptive powerplantsinthesteel,cement,aluminum,andotherenergyintensiveindustries,thereisan imminentandcriticalneedforserviceproviderstomeettheO&Mneedsofbothexistingplants andfuturepowerplants.TheshortageofserviceprovidersisalreadybeingfeltbyNTPC,state andprivateutilities,andcompaniesthatoperatecaptivepowerplantswhorelyonBHEL,the dominantoriginalequipmentmanufacturer(OEM)inIndia,fortheirtechnicalplantservices. BHEListheonlyserviceproviderinIndiaforalltypesofpowerplantequipment,largeand small,andisstretchedtothelimit.Others,suchasAlstomandABBSiemens,providetechnical services,buttheyfocusmainlyonoverhaulingofmajorcapitalcomponents(boiler,turbine generator,andparticulatecontrolequipment)andR&Mprojects.Atthelowerendofthe serviceprovidersspectrum,suchasperformanceimprovement,troubleshootingofauxiliaries, anddiagnosticservices,thereareonlyafewcompaniesthatconductroutinethermalauditsfor powerplants.Theirexpertiseislimitedtoconductingenergyauditsoftheentireplantand providingareportontheheatlossesandhealthoftheperipheralcomponents.ManyIndian powerplantsarenotawareoftherangeofperformanceimprovementtechnologies, equipment,andsystemsthatareavailablefromdevelopedcountries,andarehesitantto modifyexistingequipmentandsystems,orchangeevensimpleoperationalpractices,without theconsentoftheirOEM.SuchhighdependenceontheOEMandtheprofoundlackofservice providerstoprovidesimilarservicesarehamperingtheabilityofIndianutilitiestoaddress maintenanceproblemsintheirplantsonatimelybasis. ManyofIndiaspowerplants,especiallythoseoperatedbythestateutilities,needtodevelop skillsandtoolstodothetestinginhouseandbecomefamiliarwithwheretoprocuresuch servicesandequipmentinIndiaandothercountriessuchasUnitedStates.Itishighlydesirable tocreateamechanismtoofferkeyservicesfromtheUnitedStatesthatarecriticallyneededfor efficiencyimprovementinIndianpowerplants. Recognizingthis,in2004,NETLcollaboratedwiththeConfederationofIndianIndustry(CII)to submitanapplicationtoUSAIDforfundingunderitsGlobalDevelopmentAlliance(GDA)to establishaCleanCoalBusinessCentre(CCBC)attheCIISohrabjiGodrejGreenBusinessCentre (GBC)inHyderabad,India.Theintentwastofacilitate: EstablishmentinIndiaofanetworkofindigenous,cleancoaltechnologybusiness serviceprovidersthroughastructuredincubation/enterpriselaunchingsupportsystem. Awarenessofthisnetworkofindigenouscleancoaltechnologybusinessservice providersandtheircapabilitieswithintheIndiancoalfiredpowergeneration community. RecognitionoftheCCBCasthepreferreddestinationinIndiaforsmall/mediumsized U.S.servicefirmsthatseekworkintheIndianpowersector. Developmentandmaintenanceofadatabaseof(a)specificcleancoalbusiness opportunitiesinIndia,(b)availableU.S.cleancoaltechnologies,and(c)U.S.cleancoal technologybusinessserviceproviders. 31

Provisionofrelevantcleancoalbusinessadvisoryservicesthatcouldleadtothe establishmentofIndo/U.S.jointventures,etc. TransitionofUSAIDssuccessfulassistanceprogramsaimedatIndiaspowersectortoa selfsustaining,Indianledorganization.

TheCCBCwastoserveasaninformationclearinghousetohelpIndiascoalpowerindustry developandsustaintheinstitutionalcapacityrequiredforplanningandselectionof technologiesandbestpractices.TheCCBCwasto: DevelopandmaintainadatabaseofU.S.equipmentvendorsandserviceproviders.This databasewastobeavaluableresourcefor(1)reducingthetimeandcostofidentifying, evaluating,andselectingequipmentandserviceprovidersforexistingandnewcapacity additions,(2)improvingplantavailabilitybyimprovingoutageplanning,management, andexecution,whichreducesbreakdownsandthetimetakentoaccomplishallofthe requiredtasksinaplannedplantoutage,and(3)maintainingplantoperatingefficiency atdesignstandards. ProvidetrainingandhumanresourcedevelopmentthroughabalancedmixofIndiaand U.S.basedtrainingactivitiesforIndiancoalpowerplantandrelatedenvironmental personnel. Conveneandfacilitateconferences,workshops,seminars,andsymposiathataddress issuescriticaltothesustainableexpansionofIndiascoalfiredcapacity. SupportandpromotethedevelopmentofapoolofIndianprivatesectorservice providerstomeetcurrentandfutureneedsofIndiascoalpowergenerationsector. Acquire,evaluate,makeavailable,anddisseminatethroughhardcopyandelectronic mediathelatestmarket,services,technologies,andR&Dinformation. Provideauniqueforumandplatformtoattractexistingcoalutilityserviceprovidersand technologyvendorsinIndiaandsupporttheirgrowthandexpansionthrough associationwithU.S.partners. Althoughtheproposalwasnotfunded,theCCBCconceptbecamethefoundationfor establishmentofaServiceProvidersNetworkinIndia.Thisconceptwaskickedoffby conveningthePowerPlantSummit2008ServiceProvidersNetworkConference(November6 7,2008,NewDelhi).USAID,NETL,andCIIcollaboratedonplanningandconveningofthis event.Attheevent,participantswereintroducedtosomeofthelatesttechnologiesand productsandservicesavailabletoU.S.utilities.Over150delegatesfromtheIndianpower sector(publicandprivate)attendedthe2dayconference.Atotalof16serviceproviders(15 fromtheUnitedStatesand1fromJapan)participated,coveringabroadrangeofplant efficiencyanddiagnosticandtestingimprovementtechnologiesandtechniques,andO&Mbest practices,andmonitoringsystems.Theparticipantsagreedthatenormousbenefitswould accruetotheIndiapowersectorbyestablishmentofaserviceprovidernetwork.Followingthe event,twoU.S.companieshavereturnedtoIndiatopursuebusinessopportunities.

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5.3ModelPlantforCleanerCoalTechnologyDemonstrations Goingforward,theplantbyplantapproachthathasbeenadoptedbyUSAIDandNETLin workingwithNTPCandseveralstateutilities/SEBsundertheGEPProjectandAPPProgramis difficulttosustain,bothfromaresourceandlogisticsstandpoint.Allthepreviousandongoing worktoimprovetheefficiencyofexistingIndiancoalfiredpowerplants,whichhasandis yieldingsignificantCO2emissionsreduction,wasspreadbyworkingonindividualsolutionsin individualacrossIndia.QuantificationoftheoverallimpactonCO2emissionsreduction, includingtheaccumulativeimpactofthevariousstrategies,hasbeendifficulttoobtain. Atthesametime,theopportunityforGHGemissionsreductioninthestateutility/SEBplants, privatelyownedpowerplants,andcaptivepowerplantsintheindustrialsectorandthroughout thecountryissignificant.Theidealsettingtomeettheneedsofsuchalargecustomerbase wouldbeacentralfacilitylocatedatapowerplantwithfacilitiesfortraining,laboratories, communicationanddatalinksaswellasonlinedemonstrationoftechnologies.TheElectric PowerResearchInstitute(EPRI)adoptedthisapproachwhenitcreatedtrainingand demonstrationfacilitiesinthe1980sand1990satseveralpowerplantstomeettheneedsof theU.S.powerindustry.EPRIsMonitoring&Diagnostic(M&D)CenteratPhiladelphiaElectric PowerCompany(PEPCO),theirInstrumentationandControls(I&C)CenteratTVAsKingston plant,andtheirHeatRateImprovementCenteratPotomacElectricPowerCompanyareafew examplesofwherecollaborativeresearchandtechnologydemonstrationprojectsonbehalfof theU.S.electricpowerindustrywereconducted.Byapplyingmanyofthesame,aswellasnew strategies,inasinglelocation,theoverallimpact,aswellastheimpactofmultipleinteracting strategies,canbeeasilyassessed. TheprimaryobjectiveofaModelPlantinIndiaisto: Establishasinglefacilitywherepowerplantefficiencyimprovementequipment, instrumentation,andbestpracticescanbedemonstratedandincorporatedintoexisting plantoperationsandsystemmaintenancestrategiessothattheirapplicabilityinIndian coalfiredpowerplantscanbevalidated. Establishasinglefacilitythatcanserveasatrainingcenteranddisseminateproven powerplantefficiencyimprovementequipment,instrumentation,andbestpractices throughoutIndia. Theadvantageofhavingalltheseresourcesandcapabilitiesatasingleplantlocationisthatit willprovidepracticaldemonstrationsofnewtechnologiesunderrealplantoperating conditions.ATechnologyTransferCenter,locatedonsitewithtrainedstaffwouldhosttraining workshopsandseminars.Utilitiescantakeadvantageoftheresourcesavailableatthecenter toimproveupontheirO&Mpracticesaswellastroubleshootnewequipment/instrumentsand solvelingeringequipmentproblems. OneexampleofatechnologydemonstratedthathasbeenproposedfortheModelPlantis turbineupgrades.Thereare53LMW(Russian)210MWunitsinIndiathathavetheold BowmanndesignstageintheLowPressure(LP)turbine.ThelaterLMZturbinescamewitha 33

modifiedLPturbinewithouttheBowmannstage,andthesemachinesgenerateanadditional6 8MWfromthesameturbogeneratorforthesamesteamflow.Otheradvancesintipseals, bladedesign,etc.,havealsocontributedtobetterperformance(23%decreaseinheatrate). Someoftheothertechnologiesandservicesthatcanimproveplantefficiencythatcouldbe consideredare: Combustionoptimizationbycoalandairflowbalancing(usedbyAEP,AlleghenyPower, XcelEnergy,etc.),pulverizerperformanceassessmentandimprovement(grindability, fineness,spills,etc.) Artificialintelligencebasedplantcontrolsystems(e.g.,Neuco)forintelligentsoot blowingsystemsandoverallplantoptimization Realtimemappingandmeasurementofcombustion(e.g.,ZoloTechnologies) Computationalfluiddynamic(CFD)modelingoffluegasductflows Isomembranesealingoffurnaceroofandducts(e.g.,HighTemperatureTechnologies) Plantperformancesoftware,suchasETAPRO,AWARE,TargetedBoiler Management Highpressureboilerfeedpumpreengineering(e.g.,HydroAirInternational) InfraredThermographyforPredictiveMaintenance Acoustictechnologiestoassessboilertuberupture,steamleaksinpipes,partial dischargeingeneratortransformers Condensercleaningandtroubleshooting Steamturbinepathaudit Conditionmonitoringofhightemperaturepipingandsupports Nondestructiveevaluation(NDE)ofboilerandturbinecomponents Damageandremaininglifeassessment(RLA)ofpowerplantcomponents Thecriteriaforselectionofthemodelplantwillbedevelopedbyacommitteeofutilityexperts drawnfromtheIndianandUnitedStates,includingbothpublicandprivatesectorutilitiesand consultingcompanies.Tosuccessfullydemonstratepowerplantheatrate/efficiency improvements,includingO&MbestpracticesandothercleancoaltechnologiestoachieveGHG emissionreductions,selectionofrightpartnerforthemodelplantiscritical.Thecriteriafor selectingthesuitableplanttodevelopintothemodelplantarebothcomplexandsomewhat subjective.Theselectioncriteriashouldinclude,butnotlimited,tothefollowing. PlantCommitmentAstrongcommitmenttomeetprojectgoalsfromsenior managementoftheparticipatingutilityisrequiredupfront.Suchcommitmentwould includeadequatehumanandcapitalresourcesdedicatedtotheprogramandperiodic mutuallyagreedupondatacollectionandanalysistoassessprogress,quantify improvementsmade,andtodocumentefficiencygainsincludingemissionsreductions. Additionalresources,ifrequired,willbedeterminedduringtheprojectdesignphase andwillbecommunicatedtotheutility.

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PlantOperatingConditionsThedesignatedplantshouldbeoperatingatitsrated capacityandclosetothedesignparameters.Thelevelofinstrumentationavailableand theconditionofthecriticalequipmentneededforestablishingbaselineconditions necessaryforfullimplementationmustbeacceptabletotheexpertgroup.Toproperly collectandmanagetheunitoperatingdatapriortoandafteratechnologyisapplied,it isimportantthatthemodelplanthaveproperlyfunctioninginstrumentationanddata collectioncapabilities.Astateoftheartdataacquisitionandhandlingplatform,suchas thePIHistorian,isdesired. PlantVintageThevintageofthedesignatedplantmaybecriticalinthat,dependingon thetechnologyattheperiodofdesign,thelevelofimpactofaparticularnew technologywillvary.Ingeneral,anewerdesignplantwithmorerecentlyengineered equipmentmaybenefitlessfromaparticularsolution.Thetechnologiesdeployedat themodelplantshouldhavecommensurateimpactonasmanyotherIndianplantsas possible. PlantSizeandTypeThemodelplantshouldbesomewhatrepresentativeoftheoverall Indiafleet.Theselectioncriteriashouldincludeunitsize,fuelfired,firingconfiguration andequipmenttype.TheplantsizeshouldrepresentmajorityoftheIndianfleet. AccessibilityTheselectedplantshouldbeeasilyaccessibleeitherbyrail,air,orground toavoiddauntingtravellogistics. PlantAvailabilityTheparticipatingutilitymanagementshouldbewillingtomakethe plantavailableforinitialwalkdownandassessmentandsubsequentperiodictesting, evaluation,andtraining.Thefrequencyandtimingwillbedeterminedbytheutility.

5.4CleanerCoalTechnologiesR&D Inadditiontofocusingoncleanercoaltechnologydeployment,anumberofcriticalneeds shouldbeaddressedacrosstheRD&DspectrumthroughCERDI.Inparticular,theincreasing useoflowerqualityIndiancoalsalongwithblendsofdomesticandimportedcoalsorother opportunityfuels(petroleumcoke,biomass,etc.)isdrivinganeedforincreasedR&D.ThisR&D programshouldfocusonappliedtechnologiesthatcanbedemonstratedatlessthanfull commercialscalefacilities.Theseeffortsneedtobesupportedbypartnershipsamongtop Indiancorporateresearchorganizations,suchasNTPCsNETRA,otherindependentresearch centers,includingnationallabs(e.g.,NEERIandNGRI),andleadingIndianresearchuniversities.

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KeyFindings BaseduponthesuccessesoftheongoingU.S.governmentsupportedpowerplant efficiencyimprovementactivitiesunderUSAID/IndiasGEPProjectandtheAPPPG&TTask Force,twoconceptsforwiderscalereplicationthatcouldbesupportedunderCERDIs deploymentinitiativeare(a)creationofaserviceprovidernetwork,and(b)development ofmodelcoalfiredpowerplant. TheGoIandIndianutilitysectorhaveexpressedstrongsupportfortheserviceprovider networkandthemodelcoalfiredpowerplantconcepts,indicatingthattheseactivitiesare likelytobesuccessfulatexpandingupontheongoingwork,whichhasavoidedatotalof morethan100millionsofCO2todatethroughlowcosttechnologydemonstrationand deploymentactivities. Throughtheongoingprograms,severalU.S.companieshaveenteredorexpandedtheir businessintheIndianutilitymarketforpowerplantefficiencyimprovementtechnology andservices.SignificantopportunitiesexistforU.S.inthismarketspace,whichislargely unservedbyIndiancompaniestoday,ifsupportcouldbeprovidedunderCERDI. TheprimarycleanercoalR&DrelatedactivitiesthatcouldbesupportedunderCERDIare (a)IGCCforhighashIndiancoalandtotakeadvantageofthebenefitsofpolygeneration, and(b)carboncapture,utilization,andstorage(CCUS)forexistingandnewcoalfired powergeneration. CleanercoalR&DcooperationontheseareasunderCERDIcanbeachievedby strengtheningexistingtiesbetweenU.S.andIndianuniversities,nationallaboratories,and otherresearchorganizationsincooperationwithprivateindustrytoacceleratethe transitionofR&Dresultsintopracticalapplications.

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