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Tatagroup|TataSteel|Mediareports|TataSteel'sCleanCoalTechisonthevergeofabreakthrough

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July27,2012|ForbesIndia

TataSteel'sCleanCoalTechisonthevergeof
abreakthrough
TataSteelisonthecuspofdevelopingabreakthroughtechnologythatwillsignificantlyreduceash
contentincoal
Forascientistwhoispassionateabouthistory,MarkDenysappreciatestheimportanceoftheWest
BokarocoalfieldsintheIndiancleancoaltechnologyspace.ItwasinthesecoalfieldsinJharkhand
thatTataSteelsetupthecountrysfirstcoalwasheryin1951.Thewasheryreducedthecoalsash
contentfromasmuchas35percentto18percent,improvingthefuelsefficiencyandextendingthe
lifeofthemines.
Morethanhalfacenturylater,theheadofTataSteelsR&DandScientificServicesrealisesthatthe
coalfieldsnextbrushwithhistorymightwelldependonhisteam.Denysandhiscolleaguesatthe
companysR&DcentreinJamshedpurareintheadvancedstagesofdevelopingthenext
generationofcleancoaltechnology.ThenewmethodwillfurtherreduceashcontentintheWest
Bokarocoalto8percent,asignificantimprovementfrompresentstandardsofabout1315percent.
Thetechnology,thefirstofitskindtobedevelopedbyanIndiancompany,alsopromisestodouble
theyieldofthesemines.
Denysrealiseshowmuchthatmeansforthecountryslargeststeelmaker.TataSteelalready
importshalfofitscoaldespiteowningminesinWestBokaroandJharia,alsoinJharkhand.This
[thenewtechnology]willdecreaseourdependencyoncostlyimportedcoal,reduceourexposureto
thecoalpricemarketfluctuationsandtothedramaticchangesinthecurrencyexchangerateslike
weseetoday,saysDenys,whoearlierwasinchargeofIronmakingResearchatCorus,theBritish
companyTataSteelacquiredin2007.
Notonlythat.WhileTataSteelisincreasingitscapacityatitscenturyoldJamshedpurfacility,the
companyalsohasamassive6milliontonneayearplantcomingupinOrissathatwillagainpush
uptheneedforcoal.Blackdiamondandironorearethekeyrawmaterialstomakesteel.Andthis
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iswherethenewtechnologymighthelp.SaysDenys,Withtodaysbestavailabletechnologywe
generateabout35kgofmetallurgicalgradecoal[usedinsteelmakingandalsocalledcokingcoal]
forevery100kgofcoalminedOurnewcleancoaltechnologyisfarmoreselective.Wetargetto
generateabout60kgofmetallurgicalgradecoalforevery100kgofcoalmined.Thismeansthat
wenearlydoublethelifeofourcaptivemines!
Theprogressinthetechnologysdevelopmenthasalreadycreatedabuzzintheindustryandafew
ofTataSteelspeersinthesteelandpowersectorshaveofferedtopartner.Thoughthesteel
companyhasdeclinedhelp,itisnothardtoseewhyotherswouldbeinterestedinthetechnology,
forwhichTataSteelhasalreadyfiled13patents.Indiahasamongthelargestreservesofcoalin
theworldat267billiontonnes,butmostofthemhaveanashcontentofupto35percent,compared
withtheglobalaverageofabout15to20percent.Evenwiththeseconsiderablereserves,manyof
Indiassteelandpowerproducersimportcoal,asthesoleproducerandsupplierinthedomestic
market,CoalIndia,hastillnowfailedtorampupproduction.Thissummerhasseenrampantpower
shortages,partlybecausepowerplantsfacecoalshortages.Anotherinterestingaspectisthatthisis
oneofthefirsttimesachemicalprocessisbeingusedtocleancoalinIndiaratherthanusingthe
physicalmethodoftakingashoutofcoal.Thiswouldinvolvecrushing,grinding,sievingand
washingthecoal.Itseffectiveness,though,islimitedandatleast15percentofashstillremainsin
thecoal.
GivenIndiaspresentandfutureresourceneeds,itisveryimportanttohaveatechnologythatwill
makeefficientuseofresources,saysJamesOConnell,theSingaporebasedmanagingeditorof
PlattsInternationalCoalReport.Internationallytoo,minersandendusersofcoalinIndonesia,
AustraliaandJapanhave,individuallyoralongwithpartners,madeinitiativesinimproving
technologygiventhefinitereservesofthefuel.
Butdespitetheincreasedresearchactivityglobally,therehasntbeenarealbreakthrough.Thekey
toasuccessfultechnologyisthatitshouldbeeasilyreplicableandviable.Thisiswheremosthave
failedtodeliver,saysOConnell.DenysrealisesthatandreiteratesthattheTataSteel
managementwouldnthavecontinuedtoinvestinthetechnologyhaditnotbeensureofitsviability.
MAKINGPROGRESS
Theseedforthenewtechnologywaslaidin2006whenthemanagementunderthenManaging
DirectorBMuthuramanlookedforsolutionstoincreasetheproductivityofcaptiveminesamidst
risingpricesanddemand.HissuccessorHMNerukarisnowkeepingconstanttabsontheprogress
madebyDenysteaminJamshedpur.Reducingashcontentwillhelpimprovemarginsaswecan
bringdownourimportsanddependoncoalfromourownminesinWestBokaroandJharia.The
requirementforcoalinourplantisgrowing,saysParthaSengupta,vicepresident,RawMaterials,
TataSteel.
ThefocusonrawmaterialssecurityincreasedafterthecompanyacquiredCorusin2007,since
Corusdidntownminesandwasvulnerabletomarketvolatilityinprices.TataSteelGroupis
exploringvariousrawmaterialopportunitiesacrosstheglobe,guidedbythebasicfactorssuchas
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politicalandsocioeconomicconditionofthecountries/regionsandresourcesizeandquality,adds
Sengupta.Butwithheighteningcompetitionforresources,whichhasdrivenupvaluationsofthese
assets,bettertechnologyisanotherwaytoincreaserawmaterialsecurity.Alotwilldependonthe
successofthenewtechnologythatisbeingdeveloped.
ThisisthebiggestprojectthathasbeenundertakenbyusinIndia,saysPKBanerjee,chief
researcher,RawMaterialsandCokeMaking,TataSteel.Whilehedeclinedtosayhowmuchthe
companyhasinvestedintheprojecttillnow,TataSteelannuallyspendsalmostRs700croreon
R&Dthroughitsfivecentresglobally.
TheteaminitiallyexperimentedwithafewgramsofcoalfromWestBokaroinsidelaboratoriesinthe
R&DcentreinJamshedpur.Theygraduallyincreasedtheamounttheyworkedwithto500kg,
scalingup1,000times,andshiftedtheexperimenttothepilotplantinAndhraPradesh.Itinvolves
severalstepswheretheteamaddsdifferentchemicalstothecoalthatselectivelyreactwiththeash.
Afterthistreatment,thecoalisfilteredandwashedtogetcleancoalwithlowash.Wearestillabout
20to50timesbelowindustrialcapacity(intermsofscale),saysDenys.
Scalinguptheprojectisonlyoneofthechallengesthattheteamstillfaces.Themostimportant
factor,asOConnellmentioned,isviability.ThekeytothatIstheeffectiveandefficientrecyclingof
thechemicals.Wearestillworkingtoimprovethispartoftheprocessfurther,butweareconfident
thatwehavefinallycrackedthischallengeandhavediscoveredwaystomakeiteconomicallyviable
andenvironmentallyfriendly.Wehavedevelopeduniquesolutionsforrecyclingthechemicals.
Someofthesewekeepsecretandotherswehavepatented.Wehavefiledatotalof13patents,
saysDenys.
Thatisoneofthereasonswhythescientistisunperturbedbytheresearchinitiativescurrently
underwayinothercountriesthathavealsotakenthechemicalsroutetocleancoal.Also,adds
Banerjee,WehavedevelopedauniqueprocessflowsheettosuittherequirementsofIndiancoals
withahigherashcontentthatisveryfinelydistributedinthecoal.
Bytheendofthisyear,theteam,whichhassixscientistsand20supportstaff,willfinishtrialsatthe
pilotplantinAndhraPradeshbeforestartingatthenextdemonstrationplant,onalargerscale.But
evenasthetrialsprogress,Denyswillhaveoneeyeonthepricesofcoal.
Thereisalotofbuzzonbiofuelseverytimeoilpricesrise,butthattalkdiesoffwhentheprices
comedown.Similarly,atechnologythatcosts$10willmakesenseifcoalcosts$200atonne,but
willnotmakesensewhenpricescomedownto$70atonne,saysOConnell.Coalpricesatpresent
hoveraroundthe$220$250range,butcanfallto$100duringabearphaseinthecommodity
market.ItmightseemthatDenyshastimeonhishandswiththetechnologyexpectedtobe
commercialisedby2018,butherealiseswhatisatstake.Inresearch,youcannotbesureof
anything,butconfident,weare,hesays.
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