Central Green Panels Permits HIL to Use Petcoke in Hirakud Power Plant

India: Hindalco Industries Limited, which operates as subsidiary of Mumbai based Aditya Birla Group and is involved in the production of copper and aluminium in India, has received permission from the Central Green Panel to use amalgam of petcoke and coke, for power generation in Hirakud power plant in Odisha. Expert Appraisal Committee (EAC) of the Union Ministry of Environment has provided certain guidelines for utilization of petcoke in power plant, according to which the company is not permitted to use petcoke beyond 70 percent. Additionally, the company has been dictated to use minimum 70% limestone and conduct a study on the use of petcoke in a captive power plant. The coal mines allotted to Hindalco are in Chhattisgarh, that is far from Hirakud, resulting in increased landed cost of coal, thereby increasing the operational costs of the plant.

TechSci Research depicts that the utilization of petcoke and lime blend with coal for power generation would reduce the operational cost of the plant as the cost of raw material procurement for the company would reduce significantly since the cost of petcoke procured from nearby refineries is considerably lower than the cost of coal procured from mines in Chhattisgarh.

According to the recently published report by TechSci Research, “Global Petroleum Coke Market (Pet Coke) By Type (Fuel Grade Calcined, Fuel Grade Calcined), By End Use (Cement, Power, Smelting & Others), By Region Competition Forecast & Opportunities, 2011-2025”, global pet coke market across the world is forecast to surpass USD25.35 billion by 2025, on account of rising government investments in construction and power generation sectors, coupled with growing demand for more cost effective and cleaner source of energy. In 2015, fuel grade pet coke garnered highest market share in global pet coke market, and this trend is anticipated to continue in the coming years, owing to its competitive pricing and high availability, as compared to calcined grade pet coke.