A Resource and Technology Assessment of Coal Utilization in India

Electricity production in India is projected to expand dramatically in the near term to energize new industrial development, while also easing the energy shortages throughout the country. Much of the new growth in electricity production will be fueled by domestic coal resources; however, there is worldwide concern about increased coal use, as greater carbon dioxide (CO 2) emissions from coal combustion will exacerbate climate change. At the same time, there are now a number of different existing and emerging technological options for coal conversion and greenhouse gas (GHG) reduction worldwide that could potentially be useful for the Indian coal-power sector. This paper, part of a series of Pew Center White Papers exploring strategies for reducing CO 2 emissions from coal-powered electricity, reviews coal utilization in India and examines current and emerging coal power technologies with near-and long-term potential for reducing greenhouse gas emissions from coal power generation. According to the Ministry of Coal, India is currently the third largest producer of coal in the world, with a production of about 407 million tons (MT) of hard coal and 30 MT of lignite in 2005–06. India has significant coal resources, but there is considerable uncertainty about the coal reserve estimates for the country. Without improvements in coal technology and economics, the existing power plants and the new plants added in the next 10–15 years could consume most of India's extractable coal over the course of the plants' estimated 40-to 50-year lifespans. Indian coal demand, driven primarily by the coal power sector, already has been outstripping supply; over the past few years, many power plants have restricted generation or have partially shut down because of coal supply shortages. Hence, heavy investments in the coal sector, particularly in underground mining, will be needed to increase the pace of domestic coal production. Coal imports are also projected to increase significantly over the next 20 to 25 years, with important implications for the Indian coal industry, as well as for the national and financial security of the country. The demand for coal in India's power plants has rapidly increased since the 1970s, with power plants in 2005–06 absorbing about 80% of the coal produced in the country. Other key coal consumers are the steel and cement industries. A large fraction of India's coal is transported using railways, and the future development of coal is linked to greater investments in coal transport infrastructure. The demand for …