A Pathway for Development of

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Successful UCG Projects in India

Dr. Michael S. Blinderman

Ergo Exergy Technologies Inc.

Montral, Qubec, CANADA

7th Annual International Gasification Summit: 2016

New Delhi, India, February 11-12, 2016
 The Essence
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UCG Project Development Pathway

is controlled by
Regulations
Selected UCG technology
Selected end products
Investment Schedule
 Indian UCG Regulations
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Regulations determine development path:

Timeline
Cost
Feasibility
 Indian UCG Regulations
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"With the objective to develop

UCG, the ministry of coal has
formulated a draft policy for
UCG for approval of the
government,"
Coal and Power Minister
Piyush Goyal, December 14, 2015
When the regulations
will be ready for
development of UCG
projects in India?
 Selection of UCG technology
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Selected UCG technology dictates:

Site Selection
Reliability of operations
Quality and consistency of products
Environmental performance
Capital and operational costs
 What Makes UCG Technology Commercial?
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Environmentally Clean Operation with:

Consistent Quality (e.g. Wobbe index variation 5%)

Consistent Quantity (energy output variation 1%)

Commercial Scale - over a million tonne a year for 30 years

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 Commercial Scale Plant
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Large Geological Coal Resource 50 MT

High Extraction Efficiency
Size for Greenfield Applications is determined by Syngas
Consumer Plant:
 Consistent Quality?
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Inherent inconsistency of gas quality in linear UCG reactors:

Growing diameter lower gas velocity less turbulence
worse mass exchange dropping gas quality
 Consistent Quality?
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RM1 CRIP:
Gas quality consistently drops
despite CRIP maneuvers

Depleted cavity downstream

of new injection point acts as
another reactor with poor
gasification conditions
 CRIP: Mine Plan
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(a) (b)
Proponents Dream

Somber Reality
 CRIP: Mine Plan
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(a) (b)
Proponents Dream

Somber Reality
 Parallel CRIP 3m channel
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Gasifying Coal
 Parallel CRIP 25m channel
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Cannibalizing Product Gas

 UCG: Coal Mining Technology
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UCG is not a 2-well process, but large-scale mining method

Rock deformation and ground water influx management
Injects oxygen, air, H2O, CO2 etc.
Drilling of directional, inclined, vertical and other wells
Modern technology based on 70+ years of Soviet work
Average panel capacity 5PJ/a (0.3 Mt/a), 2-5 years life
Mine-average coal extraction rates of 95%
Mine-average cold gas efficiency of 75-85%
Issues: large-scale consumption of GW, subsidence

vs.
 UCG Technology
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All Kinds of Coal

UCG Plant Rank Thickness, m Depth, m Dip LHV,MJ/kg

Lisichansk Bituminous 0.44 - 2.0 60 - 250 38 - 60 20.1 - 23.0

Yuzhno-Abinsk Bituminous 2.2 - 9.0 130 - 380 35 - 58 28.9 - 30.7

Podmoskovnaya Lignite 2.5 30 - 80 <1 11.8

Angren Lignite 3.0 - 24.0 110 - 250 7 15.3

Shatskaya Lignite 2.6 30 - 60 <1 11.0

Sinelnikovo Lignite 3.5 - 6.0 80 <1 8.0

Chinchilla Sub-bituminous 10.0 135 <1 21.7

Majuba Bituminous 3.5-4.5 285 3 20.3

Kingaroy Sub-bituminous 17.0 200 5 23.5

Huntly West Bituminous 4.0-22.0 220-540 0-75 24.5

CC Alberta Sub-bituminous 7.0 150-260 6 20.5-23.0

Lignite/
Alaska SHR 1.0-12.0 50-650 0-75 11.0-16.5
Sub-bituminous
 Chinchilla I (Ergo 1997-2006)
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Status Nov. 2006 : fully quenched, shut down.

1 panel - 9 process wells; capacity 80,000 Nm3/h, 30 months
35,000 t of coal extracted, over 80 million Nm3 of gas, stable
gas quality LHV=5.0 MJ/Nm3, p = 1100 kPa, t = 120o C
Demonstrated 95% recovery of the target coal resource and
75% total energy recover.
Gasifier pressure was always lower than hydrostatic.
Three-phase gradual shutdown procedure ended in 2003.
Venting cavity at the time of shutdown operation.
Cavity cooling by natural water influx.
Environmental monitoring during operation, shutdown and post
shutdown complied with rigorous EPA requirements; quarterly
environmental performance reports prepared by Golder Associates have
been submitted to Queensland EPA.
Annual environmental audits by independent company Sinclair Knight
Merz during all seven audits no environmental issues reported.
No environmental issues from1997 to Nov. 2006
 Chinchilla I (Ergo 1997-2006)
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reserved. Groundwater Protection
 Chinchilla II (Linc 2007-2015)
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No Involvement of Ergo Exergy Technologies Inc.

In operation : 2007 2013, four consecutive trials, total extraction under 10,000t; shutdown underway
Major environmental investigation by Department of Environmental and Heritage Protection (QEHP) :
More than 230 bores were drilled; water and soil samples were collected from 13 farms.
Lab tests confirmed presence of carbon monoxide, hydrogen, hydrogen sulphide, BTEX and other
chemicals.
Allegedly found scientific evidence of operation above hydrostatic pressure, fracturing the landform,
and excursion of contaminants.
QEHP alleges that plant owner failed to report numerous plant incidents:
Fire that caused site evacuation in 2007
Persistent leaks of toxic gas into air and groundwater from 2007 till 2011
Workers claims about their ill health as result of uncontrolled releases of gas at site in 2007-2013.
QEHP Charges:
Irreversible damage to more than one environmental receptor [the atmosphere, vegetation, water
and soil].
A 320 km2 exclusion zone around 1 km2 plant.
EHP has laid 5 criminal charges against the plant owner
 Majuba UCG Project (Eskom)
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Multiple unresolved small faults and dykes

Very low: permeability, moisture, VM, reactivity
Sponcom Hazard
Overburden rock: negative angles of draw
7 years of UCG operation, over 60,000t
1 directional, 10 vertical wells
Record RCL rates
Successful environmental management
Co-firing syngas in commercial boilers
Controlled Shutdown of panel 1 underway
FEED for 140MWe Gas Turbine Plant
Commissioning of 6MWe UCG co-firing plant
Developing 70,000 m3/h plant
Pathway to 2,100MWe UCG-IGCC plant
Source: Eskom Holding Ltd.
 Kingaroy UCG Project (Cougar)
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210m depth, 19m thick sub-bituminous coal

seam
Partial (top 50%) coal seam extraction
Soft unconsolidated overburden with strong
basalt layers multiple casing completion
High permeability coal seam: vertical wells with
RCL (15.7m/day)
Short operation RCL only

Commissioned March 15, 2010

Shut down due to laboratory error
17,000 analyses of GW have been undertaken
on and around the site and no contamination of
ground water has been detected
Plant moth-balled
 Huntly West UCG Project (SENZ)
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Depth 240 540 m, very complex geology

Two target coal seams gasified together
Coal thickness >17m
Partial (top 30%) coal seam extraction
Over 35 bar hydrostatic pressure
Very weak coal, overburden multiple casings
Sponcom Management
Vertical wells, Aquasplitt & RCL

Pilot Plant Started April 12, 2012

5 months operation, over 5,000t
Controlled shut-down completed
No environmental issues

Image: Solid Energy New Zealand Ltd

 Alberta UCG Project (Laurus Energy)
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Consistent 7m coal seam

Depth 180 -350m
High quality subbituminous coal
No known faults or geological
complications
Target Zone Low permeability coal
Poor coal aquifer
180-350 m deep

Protection of sub-surface aquifers

Status
P-F & Site characterization completed
Demonstration Plant permits obtained
Commenced EIA
Built demonstration plant
GW monitoring
Calibration burn pending
 SHR UCG Project (Laurus Energy)
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Depth 200-1650m
Weak, partly unconsolidated surrounding rock
Sequence of 14 coal seams, 2 7m thick
Remote location, limited site access
Rank varies from lignite to subbituminous
within project area
Multiple major faults
Multiple sand bands in the formation
Completed Exploration & Site Selection
Site Characterization starting

Images: StoneHorneRidge Project

 NFS UCG Project (Sasol)
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1.5 to 8m coal seams

Depth 140 470m
Strong stable overburden rock
Piezopermeability effects
Oxygen injection
F-T syngas
Site Selection and Pre-Feasibility completed
 The Essence
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Economics of

products from UCG

(India 2014)
 Synthesis Products (India 2014)
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 UCG vs. CG Electricity (India 2014)
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 UCG vs. CG SNG (India 2014)
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 UCG vs. CG Methanol (India 2014)
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 UCG vs. CG Gasoline (India 2014)
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 UCG vs. CG Diesel (India 2014)
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 UCG vs. CG Urea (India 2014)
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 The Essence
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What must be done to bring

UCG development

into India?
 Necessary for Success:
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GOI Strategic UCG Facilitation Program

Pragmatic
Transparent
Scientific
Government/Private Co-operation

Regulation in place schedule and project feasibility

Selection of UCG technology
Suitable coal resources - careful exploration and evaluation
Committed developer and investors
Capable and reliable Indian participants
 Thank you!
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