Coal India to replace diesel with LNG in mining ops

India's dominant coal producer, state-controlled Coal India (CIL), is planning to replace diesel with LNG as a fuel for its heavy mining machinery as part of a five-year road map to cut emissions.

CIL, which supplies more than 80pc of India's coal requirements, will focus on replacing its fleet of heavy earth-moving machines that run on diesel with those fueled by regasified LNG, the federal coal ministry said late yesterday.

"This will be a major breakthrough in not only cutting down cost, but will also reduce carbon emissions," the ministry said.

The move comes after Delhi this month formed a panel to speed up the adoption of low-carbon technologies and promote energy efficiency, with a broad goal of reducing India's carbon footprint.

The government has also outlined plans to sharply lower India's dependence on coal in the electricity generation mix by boosting generation from cleaner sources. Delhi is considering a target to achieve net-zero carbon emissions amid pressure to match commitments made by top emitters China and the US.

CIL's plan may boost India's LNG demand, although the coal ministry did not indicate the volume of diesel that would be displaced. CIL's push to cut emissions will help to offset 250,000t of CO2 in the next five years, it said.

CIL will collaborate with state-controlled Indian natural gas company Gail for pilot projects at some mining sites, where Gail will facilitate LNG transport from terminals as well as its storage and use.

It is aiming to complete the maiden pilot project, at its 3.5mn t/yr Bharatpur Opencast Mine in eastern Odisha state, by the end of this year. Bharatpur comes under CIL's Mahanadi Coalfields (MCL) subsidiary, which produced 148mn t of coal in the April 2020 to March 2021 financial year, making it the firm's second-biggest subsidiary by output levels. CIL's total output in 2020-21 was 596.2mn t.

The trials will monitor and evaluate the performance of dumpers used in mining, the coal ministry said. A comprehensive plan is being drafted to convert more heavy vehicles to LNG in the coming years.

Gail will also support retrofitting to help with the fuel switch, while state-controlled heavy equipment manufacturer BEML will provide technical assistance, the ministry said.

Energy efficiency

CIL is also looking to introduce around 1,500 e-vehicles in all mining areas in the next five years, as well as installing scores of energy efficient water pumping devices.

The company is working on plans to replace around 5,000 conventional air conditioners with newer and more efficient units. It will also install 250,000 LED lights and 100,000 energy-efficient fans as part of the drive.

CIL is already looking to tap solar energy to power its mining operations as it aims to achieve carbon neutrality. It outlined plans in November to set up 14 rooftop and ground-mounted solar power projects with a combined capacity of 3GW by the 2023-24 financial year.

The company has also been exploring alternative uses for its coal, including plans to set up a facility to convert coal into methanol. It is also part of a coal-gasification and fertilizer project in eastern India.

By Saurabh Chaturvedi