JSPL awards tech contract to KBR Group for coal gasification
New Delhi, Aug 26 (PTI) Naveen Jindal-led Jindal Steel and Power (JSPL) today awarded a technology contract to the US-based KBR Group for coal gasification plant, which is to be built along with company”s upcoming 6 million tonne steel plant at Angul in Orissa.
As per the agreement, KBR Group would construct three gasifiers with the capacity of 1,20,000 nm/hour (a unit for the compressed air/gas requirement) at the coal gasification plant, JSPL”s Deputy Managing Director and CEO-Steel Business, V R Sharma told reporters here.
Citing confidentiality clauses of the agreement, Sharma, however, refused to disclose the contract cost.
“Total project cost is around Rs 2,500 crore for building the plant and in it KBR”s part is very small as they will be supplying technology, while we would be doing all the physical construction,” he further said.
The coal gasification technology has the capability of recovering almost 100 per cent of sulphur and preventing dust emission into the atmosphere, thereby, making it environment friendly.
Subsequently, the coal gas would act as a substitute for natural gas and the quantity produced will suffice for the Direct Reduced Iron (DRI) as reducing agent as well as for other plants as fuel, Sharma said.
Moreover, gas production cost is the main factor behind going for tie up with KBR Group, as the coal gasification technologies are yet to be established for Indian coal, which has high ash content, the Steel Business CEO of JSPL said.
“They have confirmed that it is going to be very, very cost effective technology in the years to come. The gas cost is the main factor,” Sharma added.
Besides this, the company will be using coal from its Utkal-B coal block from where it intends to begin mining by March, 2012, he said, adding that the company would be ready with its detailed project report for the plant in the next 2-3 months.
JSPL had earlier said that it would invest Rs 40,000 crore in Orissa to produce 12.5 million tonnes per annum steel in phases and generate 2,500 mw power over the decade and the plant will use gas produced through coal gasification.
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