Ucg

PSA/2007/1
STATUS REPORT ON
UNDERGROUND COAL GASIFICATION
AUGUST, 2007
PREPARED BY
THE WORKING GROUP ON
UNDERGROUND COAL GASIFICATION
Under the auspices of

The Office of the Principal Scientific Adviser
To the Government of India
326, Vigyan Bhawan Annexe
Maulana Azad Road, New Delhi-110 011.
1
CONTENTS
Page
Title
Number
BACKGROUND 4
CHAPTER-I: INTERNATIONAL STATUS. 6
1.1 Introduction 7
1.2 Ups and Downs of UCG 8
CHAPTER-II: UNDERGROUND COAL GASIFICATION – PROCESS. 12
2.1 The UCG Progress 13
CHAPTER-III: UNDERGROUND COAL GASIFICATION IN INDIA. 15
3.1 Introduction 16
3.2 Field Work at Chosen Site 19
3.3 Back-up Laboratory Work 22
CHAPTER-IV: PROCESS MODELLING. 25
CHAPTER-V: ENVIRONMENTAL CHALLENGES. 27
CHAPTER-VI: MANAGING GREENHOUSE GASES. 30
CHAPTER-VII: INPUTS OF THE OIL & NATURAL GAS CORPORATION LIMITED. 33
CHAPTER-VIII: INPUTS OF THE DIRECTORATE GENERAL OF HYDROCARBONS. 36
8.1 Introduction 37
8.2 Future Plans for Developing UCG as an Energy Source 37
8.3 Regulatory Frame work for Underground Coal Gasification 37
8.4 Areas Requiring R&D Efforts 41
CHAPTER-IX: INPUTS OF THE ESSAR OIL LIMITED. 42
9.1 Introduction 43
9.2 Work Plan (Tentative) 44
CHAPTER-X: INPUTS OF THE INDIAN SCHOOL OF MINES. 47
10.1 Introduction 48
10.2 Past and the current work on UCG being done at ISM 48
10.3 Future plans for exploiting UCG as an energy resource 49
CHAPTER-XI: INPUTS OF THE RELIANCE INDUSTRIES LIMITED. 51
11.1 The past and current work done on UCG 52
11.2 Regulatory Framework to be developed for UCG 53
11.3 Fiscal regime for putting R&D on UCG on the fast track 53
11.4 UCG R&D areas 53
11.2 Future plan for exploiting UCG as an energy source 54
CHAPTER-XII: INPUTS OF THE SINGARENI COLLIERIES COMPANY LIMITED. 55
12.1 The past and the current work on UCG 56
12.2 The future plans for exploiting UCG as an energy source 56
12.3 The fiscal regime for putting R&D on UCG on the fast-track 57
12.4 The different areas on which R&D is required to be taken-up 57
CHAPTER-XIII: INPUTS OF THE BHARAT HEAVY ELECTRICALS LIMITED. 58
13.1 Underground Coal Gasification and Power Generation – Perceived Role
59
of the Bharat Heavy Electricals Ltd.
CHAPTER-XIV: INPUTS OF THE COAL INDIA LIMITED 62
14.1 Past and Present Activities 63
14.2 Future Plan 64
14.3 R&D for putting UCG on Fast Track 64
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CHAPTER-XV: INPUTS OF THE NEYVELI LIGNITE CORPORATION LIMITED. 66
15.1 Present Activities 67
15.2 Further plans for exploiting UCG as an energy source 68
15.3 The Fiscal regime for putting R&D ON UCG on the fast-track 68
15.4 The areas on which R&D is required to be taken-up for UCG 68
15.5 Current issues to be addressed for speedy development of UCG in the
69
Country
CHAPTER-XVI: INPUTS OF THE MINERAL EXPLORATION CORPORATION
70
LIMITED.
16.1 The past and current work on UCG 71
16.2 Future Plan of exploiting UCG as source of energy 72
16.3 The fiscal regime for putting R&D on UCG on the fast track 73
CHAPTER-XVII: INPUTS OF THE CENTRAL INSTITUTE OF MINING AND FUEL
74
RESEARCH.
17.1 The past and current activities 75
17.2 The future plans for exploiting UCG as an energy source 75
17.3 The fiscal regime for putting R&D on UCG on the fast track 76
CHAPTER-XVIII: INPUTS OF THE GAIL (INDIA) LIMITED. 79
18.1 The Past and current work on UCG 80
18.2 Roadmap for the next course of action 80
18.3 The future plan for exploiting UCG as an energy source 81
18.4 Areas on which R&D is required 81
CHAPTER – XIX: INPUTS OF THE CENTRAL MINE PLANNING AND DESIGN
82
INSTITUTE LIMITED.
19.1 Initial Initiatives by CMPDI 83
19.2 Recent Developments 83
19.3 Actions taken by CMPDI 84
19.4 Collateral Activities for Development 85
ANNEXURE-I MENTIONED IN THE BACKGROUND. 86
ANNEXURE-II MENTIONED IN THE BACKGROUND. 91
3
BACKGROUND
On the 19th of April, 2006, a meeting was chaired by the Scientific Secretary to
the Principal Scientific Adviser to the Government of India in New Delhi to discuss the
subject of Underground Coal Gasification (UCG) with a cross-section of stakeholder
organizations in the country.
2. The main decision taken in that meeting was to constitute, under the
chairmanship of the Scientific Secretary, an R&D Committee on UCG with a member
each from all the stakeholder organizations in the country. It was also decided that the
prime objective of that Committee would be to synergize the various ongoing UCG
efforts in the country and help establish commercial UCG power plants in a stipulated
time frame. It was further decided in that meeting that the Office of the Principal
Scientific Adviser to the Government of India (PSA’s Office) would formulate the Terms
of Reference (ToR) of that Committee through a consultative process.
3. An email was, accordingly, sent by the PSA’s Office to the participants of the said
meeting on the 26th of April, 2006, requesting them to give their suggestions, as
stakeholder organizations, on what should be the ToR of the proposed R&D Committee.
Based on the responses received, the ToR of the Committee was formulated and the
R&D Committee on UCG was formally constituted, with the approval of the Principal
Scientific Adviser to the Government of India, on the 4th of May, 2006 (please see
Annexure-I).
4. As stated above, the prime objective of that Committee is to synergise the

various ongoing UCG efforts in the country and help establish commercial UCG power
plants in a stipulated time frame. The Committee is chaired by Dr. S. K. Sikka, Scientific
Secretary to the Principal Scientific Adviser to the Government of India, and has
Members from the Coal India Limited (CIL), the Bharat Heavy Electricals Limited
(BHEL), the GAIL (India) Ltd. (GAIL), the Neyveli Lignite Corporation Ltd. (NLC), the
Mineral Exploration Corporation Ltd., the Directorate General of Hydrocarbons, the
Central Electricity Authority, the Oil and Natural Gas Corporation Ltd. (ONGC); the
Central Mining Research Institute (now the Central Institute of Mining and Fuel
Research, CIMFR), the Indian School of Mines (ISM) and the Singareni Collieries
Company Ltd. Dr. K.L. Goyal, Former Director, Institute of Management Development,
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ONGC, Dehradun, is also a Member. Shri Neeraj Sinha, Scientist ‘E’, Office of the
Principal Scientific Adviser to the Government of India, is the Member-Secretary to the
Committee. Shri A.K. Hazarika, Director (Onshore), ONGC, New Delhi, was co-
opted as a Member of the Committee immediately after its constitution.
5. In its first meeting held on the 5th of February 2007, the R&D Committee decided
to constitute a Working Group on UCG with Shri A.K.Hazarika, Director (Onshore),
ONGC, New Delhi, as the Chairman and Shri Neeraj Sinha, Scientist ‘E’, Office of the
Principal Scientific Adviser to the Government of India, New Delhi, as the Member
Secretary. The Members of the Working Group include representatives of the CIL, the
GAIL, the NLC, the BHEL, the CIMFR and the ISM. Dr. K. L. Goyal is a Member of the
Working Group as well (please see Annexure-II). Representatives of the ESSAR Oil
Ltd. and the Reliance Industries Ltd. were co-opted as Members of the Working
Group immediately after its constitution. The prime objective of the Working
Group is to prepare a Road Map to develop the UCG technology in the country for
various applications (such as power generation, manufacture of pesticides & chemicals,
etc.).
6. In its first meeting held on the 12th March 2007, the Working Group decided that
as a first step to the preparation of the said Road Map, it would be a pre-requisite to
have a report on the status of the UCG activities of the various stakeholder
organizations in the country. All the concerned stakeholder organizations were,
thereafter, requested by the Member-Secretary to provide inputs on the following: -
i) The past and the current work on UCG being done by them,
ii) their future plans for exploiting UCG as an energy source,
iii) the fiscal regime for putting R&D on UCG on the fast-track, and
iv) the different areas on which R&D is required to be taken-up for enabling a
time-bound commercialization of the UCG technology for various applications,
including power generation.
7. Based on the inputs received, this Status Report on UCG has been compiled by
the Working Group. It gives the details of the UCG activities of all stakeholder
organizations in the country. As decided in the first meeting of the Working Group, this
Status Report will now pave the way for the preparation of the Road Map.
*********
5
CHAPTER - I
INTERNATIONAL STATUS
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1.1 INTRODUCTION
1.1.1. WORLDWIDE, coal reserves are vast: over 10 trillion tonnes. However,
unless cleaner and cheaper ways can be found to convert coal to gas or
liquid fuels, coal is unlikely to become an acceptable replacement for
dwindling and uncertain supplies of oil and natural gas. Mining coal is
dangerous work. Coal is dirty to burn and much of the coal in the ground is
too deep or too low in quality to be mined economically. Today, less than
one sixth of the world’s coal is economically accessible. However, there is
a renewed interest world over to revive the old technology that offers
promise to substantially increase usable coal reserves and make coal a
clean and economic alternative fuel. Known as underground coal
gasification (UCG), this technology converts coal to a combustible gas
underground.
1.1.2. In the early years of UCG, the technology gained an “ugly duckling”
reputation in the United State of America (USA). The UCG process
yielded gas of low heating quality with too much hydrogen and it was
considered an environmental risk. But as coal-rich countries now look to
replace imported oil with secure domestic energy sources, make hydrogen
fuels, and find ways to limit their greenhouse gas emissions, they are
rediscovering the potential of UCG.
1.1.3. Coal supplies about 50 percent of the USA’s electricity because it is the
least expensive energy source. Coal can be gasified or liquefied to make
transportation fuels, natural gas or chemical feed stocks. Today, the USA
has only one operating coal gasification plant and no commercial
liquefaction operation. However, because of the nation’s goal to produce
secure and clean energy from its domestic coal reserves, coal-to-gas and
coal-to-liquid conversions may become commonplace.
1.1.4. Applying improved UCG technology to gasify deep, thin, and low grade
coal seams could vastly increase the amount of exploitable reserves. The
coal could be converted to gas for a variety of uses and emissions of
sulphur, nitrous oxides and mercury could be dramatically reduced. UCG
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could increase recoverable coal reserves by as much as 300 to 400
percent. Another benefit of UCG is that hydrogen accounts for nearly half
the total gas product which can be separated and actively used as
automotive fuel or as feed-stock for the Chemical Industry.
1.1.5. As with any hydrocarbon combustion process, UCG generates carbon

dioxide (CO2), a greenhouse gas. Fortunately, potential sites for UCG
operations correspond to locations where sites are plentiful for
sequestering CO2 in geologic formations underground. UCG also
enhances the storage capacity of the coal seam itself to store injected
CO2. The generated gas, called syngas, would be taken from the ground
and by-products separated out. The CO2 would then be returned down-
hole nearby.
1.2 UPs AND DOWNs OF UCG:
1.2.1 The idea for coal gasification, either underground or in aboveground

plants using mined coal, has been around for more than 150 years. The
technology was first widely used in the USA during the later 1800s and in
India in Calcutta (Kolkata) and Bombay (Mumbai) in early 1900.
Lamplighters made their rounds in many cities lighting streetlights fueled
by “town gas”, the product of early and relatively crude forms of coal
gasification. Once vast fields of natural gas were discovered and pipelines
built to transport the gas to consumers, the use of town gas disappeared.
1.2.2 From the 1930s through the 1990s, the former Soviet Union invested in
developing UCG technology at numerous sites and was successful at the
commercial scale in several locations. China has been developing the
technology since the 1980s and currently has the largest operational UCG
programme. Their approach uses abandoned tunnels in conventional
mines.
1.2.3 During the energy crisis of the 1970s, interest in the USA spiked in all
forms of alternative energy, and the Department of Energy (DOE) invested
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billions of dollars to develop efficient coal-gasification technologies for
power generation. Over 30 UCG pilot tests were run across the USA. At
that time, the hydrogen by-product of UCG was viewed as a liability,
reducing the perceived quality of the gas. In addition, ground water
contamination problems resulted at two sites.
1.2.4 The Lawrence Livermore National Laboratory of the USA, a pioneer in the
study of UCG, developed two test sites- one in Centralia, Washington, and
the other in Hoe Creek, Wyoming. Livermore researchers also patented a
UCG process called Controlled Retraction Ignition Point, which was used
in Pilot tests performed in Europe during the 1990s. In the USA, when gas
and oil prices dropped in the 1980s and 1990s, efforts to commercialize
UCG came to a halt.
1.2.5 Today, high prices of oil and gas and uncertainties about political stability
in the Middle East, have renewed interest in all kinds of fuel. A renewed
interest in coal gasification is therefore not surprising. Further-more,
hydrogen is now a welcome by-product because of the current interest in
alternatively fuelled vehicles.
1.2.6 Recently, the DOE was encouraged to revisit UCG as a part of its
programme to develop hydrogen-from-coal technology. In February, 2006,
the DOE commissioned a team to prepare a document evaluating the
current state of UCG technology. Best practices in UCG were completed
at the end of 2006 and is awaiting official release by the DOE.
1.2.7 The document explores the UCG efforts that have been undertaken
worldwide. Importantly, it also addresses the issues that were problematic
in previous UCG operations by evaluating the potential application of
technological advances in areas such as environmental risk assessment,
combustion-process modelling, geologic subsurface characterization and
geo-mechanics.
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1.2.8 Over the last few years, the number of activities throughout the world
focusing on UCG have rapidly increased. The Chinchilla project, operating
from 1997 to 2003 in Queensland, Australia, demonstrated the first long-
term UCG pilot in the Western World. That project has now advanced to
the stage of raising capital for a coal gas-to-liquids pilot that will make ultra
clean diesel and aviation fuel. In South Africa, the electricity supply
company Eskom is developing UCG at the Majuba Coal Field and has
achieved ignition in January, 2007.
1.2.9 In the United Kingdom, the government undertook a five-year effort to

review UCG and study the feasibility of using the technology for exploiting
coal on land and offshore. A new UCG partnership, launched in the United
Kingdom in 2005, draws its membership from more than eight countries.
The partnership hosted its second international conference in February,
2007, in Livermore. In India, interest in the potential of UCG is particularly
high.
1.2.10 On March 30, 2006, the Lawrence Livermore National Laboratory signed a
memorandum of understanding with Ergo Exergy, which has licensed its
proprietary UCG technology to clients in Wyoming (USA), South Africa,
India, Australia, New Zealand, Canada and Italy. The two organizations
have agreed to cooperate for conducting research on UCG technology,
specifically in the areas of process simulation and carbon sequestration,
with an emphasis on evaluating the environmental performance of a large-
scale operation. In addition, BP (formerly British Petroleum) recently
executed an agreement with the Lawrence Livermore National Laboratory
to develop (i) simulations for optimizing the UCG process and (ii) tools for
drilling, monitoring and environmental management that are essential for
field deployment of UCG.
1.2.11 The Power River Basin is a massive coal and natural gas deposit that
spans the Montana-Wyoming border. It is the largest source of mined coal
in the USA and is one of the largest deposits of coal in the world. The Gas
Technology Inc. and the Wyoming Business Council recently completed a
10
feasibility study showing UCG to be a better option with respect to cost,
emissions and environmental effects compared with conventional coal-
fired stations and integrated gasification combined-cycle plants. New UCG
field pilots are planned for the Powder River Basin. Ergo Exergy will be
involved in this test operation.
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11
CHAPTER - II
UNDERGROUND COAL
GASIFICATION – PROCESS
12
2.1 THE UCG PROCESS:
2.1.1 Coal may be gasified in a number of ways. The simplest method, and the
first used, was to heat coal in a retort in the absence of air, partially
converting coal to gas with a residue of coke. The most complete
conversion of coal or coke to gas, that is feasible, was achieved by
reacting coal continuously in a vertical retort with air and steam. The gas
obtained in this manner is called producer gas and has a relatively low
thermal content per unit volume of gas (100-150 Btu/ft3). The
development of a cyclic steam-air process in 1873 made possible the
production of a gas of higher thermal content (300-350 Btu/ft3), composed
chiefly of carbon monoxide and hydrogen, and known as water gas.
(Natural Gas has a thermal content of 1000 Btu/ft3).
2.1.2 UCG is a process to convert unminable underground coal/lignite into

combustible gases by gasifying the coal in-situ. The coal reacts with
injected air or oxygen and steam, to form gases, liquids and ash.
Produced gases are a mixture of combustible (carbon monoxide,
hydrogen & methane) and non-combustibles (carbon dioxide, nitrogen &
un-reacted water vapor) gases. UCG, at present, is the only feasible
technology to harness energy from deep unminable coal seams, in an
economical and environmentally clean way.
2.1.3 Coal is gasified underground by drilling boreholes from the surface into the
coal seam, creating a linkage through the coal seam between the injection
and production wells and injecting air (or oxygen) and water (or steam)
into the underground reaction zone. In the process, the coal is partially
oxidized, producing low and medium Btu gas. If only air is injected, the
produced gases contain a high percentage of Nitrogen and have a heating
value roughly one-tenth of natural gas, named as low-Btu gas. Injecting
oxygen rather than air reduces the nitrogen content and raises the heating
value of the produced gas to the ‘medium-Btu’ gas range – of heating
value roughly one-fourth of natural gas. If the goal is high-Btu gas (also
called as substitute natural gas or SNG), the percentage of methane in the
13
produced gases needs to be boosted. For methane formation in UCG, two
additional steps are required. First, some of the carbon monoxide made in
the gasification process is reacted with steam to form additional hydrogen.
This step, called shift conversion, sets up the proper ratio of gases for the
next step called methanation. The hot gas thus produced is allowed to
pass through the coal seam to the exit boreholes and is carried to the
surface where it is cleaned and upgraded for use.
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14
CHAPTER - III
UNDERGROUND COAL
GASIFICATION IN INDIA
15
3.1 INTRODUCTION
3.1.1 The Oil and Natural Gas Corporation Limited (ONGC), while drilling in
search of hydrocarbons, discovered large reserves of coal at depths more
than 600m. These coal seams are spread in Gujarat and West Bengal and
have been estimated to contain more than 350 billion tonnes of coal
deposit. In Gujarat alone, these coal reserves have been estimated to be
around 63 billion tonnes in Mehsana -Ahmedabad block and 60 billion
tonnes in Patan- Tharad block.
3.1.2 Due to prevailing sub-surface conditions such as depths, geology, geo-

hydrology, in-situ temperature and high gas content in the coal seam, the
exploitation of these coal reserves was not possible with any method
except UCG. The quantum of energy estimated for Mehsana -
Ahmedabad block alone, to be generated from these reserves through
UCG, is equivalent to about 15,000 billion cubic meters of natural gas. In
addition, the carbon dioxide, which is the main by-product of the produced
gases, can be utilized in enhancing the recovery of heavy oil, which has
been discovered in this area.
3.1.3 In January, 1981, the relevance of UCG in the Indian context, with
particular reference to 63 billion tonnes of coal reserves in Kalol area, was
considered. It was decided that initiating UCG at Kalol would be
worthwhile and to ensure expeditious development of this new technology,
collaboration with outside agencies was also to be considered. The
Department of Coal was required to interact with a team headed by Dr.
Inderjit Singh of the ONGC and consisting of experts from the Central Fuel
Research Institute (CFRI) and the Department of Science and Technology
(DST). At the instance of the Planning Commission, the ONGC made the
literature survey in January, 1981.
3.1.4 In an Inter-Ministerial meeting under the chairmanship of the Secretary

(Petroleum) in March, 1981, it was decided that an expert team consisting
of a representative each from the ONGC; the Central Mining Research
16
Station (CMRS); the CFRI and the Technical Adviser, Government of
Gujarat, may visit France, Belgium, West Germany, the USSR and the
USA to study UCG work in operation in these countries and submit a
report for the implementation of UCG in India. The team visited France,
Belgium, West Germany and USSR during May, 1981. The expert team
recommended that UCG is the only technique available for exploiting coal
at deeper depths.
3.1.5 It was suggested that while the Department of Coal would act as the nodal
agency for coal seams lying within a depth of 1000m, beyond this depth,
the Department of Petroleum would be in a better position to tackle the
problem. Later on, a decision was taken that the Department of Coal
would be the nodal agency for gasifying the coal in-situ (UCG) upto a
depth of 600m. The deeper seams were to be attempted by the
Department of Petroleum. The other conclusions of the report were:
• There is an urgency to tackle the UCG project.

• A Steering Group comprising of the representatives of the Department
of Coal, the Department of Petroleum and the Council of Scientific and
Industrial Research (CSIR) should be formed immediately.
3.1.6 A Steering Group was set-up by the Department of Petroleum to plan and
review the progress of UCG in the country in October, 1982. The
Committee comprised of representatives from the Ministry of Petroleum,
the ONGC, the Department of Coal, the CSIR, the Central Mine Planning
and Design Institute Limited (CMPDIL) and the Government of Gujarat.
3.1.7 The ONGC prepared a feasibility report on Kalol UCG project in which the
specific objectives of the Indian UCG programme were defined as under:
• To develop technology for producing low BTU gas for electric utility or
for industrial use from low rank deep coals of Kalol.
• To check its feasibility for commercial operation.
• To train cadres to meet the above objectives.
17
3.1.8 As the ONGC was identified to be responsible for the UCG Pilot Project,
the Chairman, ONGC, constituted an internal crash group under Dr.
K.L.Goyal to undertake detailed study, to co-ordinate the internal position
and to come out with the technical study report on UCG Pilot Project for
submission to the Steering Group for early implementation.
3.1.9 The ONGC, while provisioning for R&D budget for 7th Five Year Plan,
earmarked Rs. 50 crores under the head “Underground Coal Gasification”
on 4th April,1986.
3.1.10 The report of the said crash group was presented to the ONGC Board
giving the relevant advantage and urgent need to develop UCG
technology not only to provide energy security but also to get world
leadership in this upcoming technology. The cost of the project was
estimated to be Rs. 9.60 crores.
3.1.11 The ONGC Board approved conducting of the pilot test on UCG in
Mehsana area at an estimated cost of Rs. 9.60 crores. The ONGC Board
decided that this project should, more appropriately, be funded by the Oil
Industry Development Board (OIDB).
3.1.12 Accordingly, the proposal was sent to the OIDB, following which the OIDB
approved a grant of Rs. 9.60 crores to implement the R&D Pilot Project on
UCG in Mehsana, Gujarat. The Government of India (Ministry of
Petroleum) also approved the UCG R&D Pilot Project.
3.1.13 The objective of the pilot project was to acquire relevant sophisticated and
contemporary technology for exploitation of large unmineable coal
reserves in North Gujarat area, where the reserves were estimated to be
of the order of 63 billion tonnes of which around 37 billion tonnes was
estimated to be recoverable through UCG. The arguments in favour of
going in for UCG project in India were put forth in the report as follows:
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1. UCG is the only feasible technology, which enables exploitation of
deep (> 700m) coal reserves, which are not amenable to known
conventional mining methods.
2. UCG offers an environmentally clean way to harness energy from coal.
3. UCG produces insignificant surface disruption and brings no solid
waste to the surface.
4. Even at shallower depths (< 500m), UCG can be more economical
than conventional mining.
5. UCG reduces capital investment, operating costs, and the output
gases cost by 25 to 50% as compared to surface gasification.
6. Possibilities of transport of medium calorific value gas over a distance
of 100 km. exist.
7. Possibilities of using CO2 from the gas for enhanced oil recovery exist.
8. Basic UCG technology is known.
9. Potential for export of know how exists.
10. Conditions in India are far more compelling for adopting UCG than
most locations in the world.
3.2 FIELD WORK AT THE CHOSEN SITE
3.2.1 The Steering Group approved by the Government which was steering the
project was aware that the UCG Technology at great depths (beyond
800m) is a long range, high technology and very high gain project to
provide energy security to energy deficient India. The Group, therefore,
debated all the pros and cons of the Project and proceeded very
meticulously step-by-step. The doubts raised by Members were studied
and debated to arrive at a solution. The pre-project environment studies
for subsidence, water and air quality were initiated. In fact, the
Government of Gujarat and its pollution department commented that this
was one of the best planned projects.
3.2.2 As per recommendations of the report, an Information Well – UCG-1 –

was drilled in 1986 to a depth of 1005m at the selected site, between the
wells MC-2 and MC-3, to acquire the sub-surface geological and geo-
19
hydrological information/ data. All exploratory studies such as complete
set of logs, Velocity Seismic Profile (VSP), dipmeter, geo-hydrology,
production testing, etc., were carried-out in this well.
3.2.3 During drilling of the UCG-1 well, a number of coal seams of varying
thickness were encountered from the depths of 746m to 940m, inter-
bedded with sand, silt, shale and clay formations. The main coal seams of
thickness more than 5m were identified as Kalol IX/ X (5.5 m), Sobhasan-
1 (16.5m), Sobhasan-III (6.25m) and Sobhasan-V(5.5m).
3.2.4 For the first time in ONGC, 3-D seismic survey was carried-out at the
proposed pilot area near UCG-1 well to confirm the continuity, frequency
and alignment of the coal seams and to locate the presence of faults,
folding and other tectonic disturbances etc. in the surrounding area. The
data was processed and interpretation was carried out for the first time in
India by the ONGC, using interactive workstation ‘GEOQUEST’. The
possible extension of Sobhasan-III coals was traced. Two-way time
contour maps and depth maps were prepared, using time slices, for
Sobhasan-I coal top and corresponding to a horizon near Sobhasan-III
coal top. It was observed from these maps that the area around UCG-1
well is highly disturbed by the presence of faults. The area least disturbed
by the faults and where maximum thickness of Sobhasan-I and III coals
was expected was around MC-2 well. In addition, drilling of another
information well was proposed to acquire more surface information
required for preparation of various models.
3.2.5 Based on the results of 3-D seismic interpretation work, it was decided to
drill a second information well (UCG-3) on priority in a fault-free zone.
Structural contour maps of horizon, corresponding to top of Sobhasan-I
and Sobhasan-III coal, and the isopach map of Sobhasan-1 coal were
examined and it was felt that it would be technically most appropriate to
locate UCG-3 at a distance of 300 m South East of MC-2 along with the
same structural and isopach contours passing through MC-2. The
information well UCG-3 was spudded on 16th March, 1990. A number of
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coal seams of varying thickness were encountered. The well was
completed at a depth of 1160m. The lithology of the well was as
anticipated. The Sobhasan-III target coal seam of thickness 9.5m was
encountered between depths of 1026m and 1035.5m. Extensive coring of
266m, which includes 235m continuous coring, was carried-out.
3.2.6 The CMRS, Dhanbad, had undertaken environmental studies at and

around the UCG site at Mehsana, with a view to study the ambient
environmental status and the impacts of the UCG Pilot Project. The
environmental studies at the UCG site were classified into three
categories namely (i) Air Quality Monitoring, (ii) Water Quality Monitoring
and (iii) Subsidence. The studied parameters were monitored in
consultation with the Gujarat State Pollution Control Board (GSPCB).
3.2.7 Subsidence can result due to UCG. For this purpose. a grid of subsidence
monitoring stations was planned at and around the UCG site. Subsidence
can take place due to various natural and man-made activities, which
include pumping of water and petroleum from underground and
underground exploitation of coal and minerals. At and around the UCG
site, large scale pumping of water from underground was being done for
domestic purposes and also for cultivation. Therefore, at and near the
UCG site, subsidence can be expected to take place not only due to
underground gasification of coal but also due to pumping of water from
below ground. Keeping this in view, it was decided to start subsidence
study (vertical movement of points on the surface) well in advance of the
actual UCG trial. For this purpose, a grid of subsidence monitoring
stations was planned at and around the UCG site. Monitoring stations at
about 30m intervals were commissioned at the site.
3.2.8 A Joint Commission of the US Department of Energy and India was also
established for UCG and Enhanced oil recovery (EOR). Dr.K.L.Goyal
represented India on the Joint Commission, while the Under Secretary,
US Department of Energy, represented the US Government. This
provided access to the work being done in the USA. ONGC Officials
21
visited the UCG sites in the USA, as well as the Lawrence Livermore
National Laboratory, and obtained valuable information.
3.3 BACKUP LABORATORY WORK
3.3.1 The coal/core samples collected at various depths of UCG-1 were tested
for detailed physico-chemical analysis, petrography, petrology and
reactivity tests, etc., at various National Laboratories such as the Coal
Survey Lab., Nagpur; the CFRI, Dhanbad; the Indian Institute of Chemical
Technology (IICT), Hyderabad; the CMRS, Dhanbad and the Keshava
Deva Malviya Institute of Petroleum Exploration (KDMIPE), ONGC,
Dehradun. The analysis indicated that the object coal was low rank, soft
brown bituminous with high moisture and volatile contents. It was also
observed that the coal was highly reactive with carbon dioxide and steam,
which indicated its suitability for underground gasification. The non-coal
rock samples of the overlying beds were also tested for detailed physico-
mechanical properties. The rocks were found to be comprised of sand/
sandstone, clay/ claystone, shale/ carbonaceous shale/ coal and inter-
collations of sand/ silt/ shale, etc. The rock samples were found poorly
cemented, less compact and of low strength.
3.3.2 On analysis of geological and geo-hydrological data, coal seams

characteristics, lithology, physico-mechanical properties of the roof and
floor rocks, etc., the Sobhasan-III coal seam was found most suitable and
safer for in-situ gasification during the pilot experimentation.
3.3.3 The integrated study report incorporating details of all the tests carried out
in respect of UCG-1 well at various work centres in the ONGC and at
other National Laboratories was prepared and submitted to the Steering
Group.
3.3.4 The coal samples collected at various depths of UCG-3 were also tested
for detailed physico-chemical analysis, petrography, petrology and
reactivity tests, etc. at various National Laboratories such as the IICT, the
22
Coal Survey Lab., the CMRS and the KDMIPE. The non-coal rock
samples of the overlying beds were tested in the KDMIPE in association
with the CMPDIL for detailed physico-mechanical properties.
3.3.5 The geological model was prepared using the available data of two drilled
wells, i.e. UCG-1 and UCG-3 and other earlier wells, i.e. MC-1,2, 3 & 4
and the interpreted 3-D seismic data. The work identified the area without
any faults around UCG-3 and MC-2 wells where two process wells PUCG-
1 and PUCG-2 were proposed at 150 meters interval.
3.3.6 To further assure all concerned, and clear all doubts, a fully structured
International Seminar was organized in September, 1985, with
participation from India, the US Department of Energy, the Lawrence
Livermore National Laboratory, USA and Belgo-German experts. (The
latter had tried UCG at depths of 860m. Their project, however, failed due
to some minor mistakes, and unfortunately, because of low oil prices, the
project authorities could not get funding for a second attempt for which the
ONGC had offered expertise). A questionnaire, for possible doubts that
still remained in the minds of participants, was circulated to each
participant especially foreign delegates, and they were asked to include
their comments on those points in their presentations. Armed with all the
backup, the project details were finalized, including the well completion
and the technology to be used for crip.
3.3.7 A second International Seminar was organized in September, 1987, to

present the final details and firm-up the material specifications. The
tender document was also finalized; however, just when the tenders were
to be floated, it was decided to rework the financial details by including the
cost of surface installation. Naturally, the cost got escalated to about Rs.
50 crores. No agency was approached for the additional funding and the
project was shelved.
3.3.8 It may be relevant to point-out that the original aim of the project was to
gasify the coal at the projected depth. Being an R&D Project, it was very
clear from the beginning that financial return was not the requirement.
23
After gasification, the plan was to model various aspects, like cavity
formation, calorific value, quantity and composition of produced gas,
temperature profile, requirement of air, water encroachment problem and
the like. The model was to be tested and refined in subsequent burns in
the same well. All this would have helped to reduce the cost of further
wells, both injection and production, to arrive at a reasonable estimate of
financial return.
3.3.9 In November, 2006, a Workshop on UCG was hosted jointly by the

Ministry of Coal, Government of India and the US Department of Energy.
It was attended by representatives from India’s coal industry. At least
three pilot projects are now in the planning stages. The Lawrence
Livermore National Laboratory, through the US Department of Energy, is
working closely with India, on its UCG development.
*********
24
CHAPTER - IV
PROCESS MODELLING
25
4.1 Many organizations are in the process of developing a combustion model to
optimize the operating parameters and predict the performance. For e.g., the
University of California at Berkele is developing improved combustion process
models and a computational fluid dynamics model. The goal of those
organizations is to optimize the design, operation and control of UCG processes
so that the composition of the product gas can be predicted and, despite variable
subsurface conditions, constrained within acceptable limits. Gas composition
affects the economic viability of the operation and must stay within the limits of
the capabilities of the gas-processing plant at the surface. Thus far, they have
developed the essential process model and have integrated it with Aspen Plus, a
commercial software package for simulating steady-state chemical processes.
4.2 Upadhye and Wallman’s simplified model may work for some variables but not
for all, as shown in the table below, which compares model results for UCG gas
component levels to measurements made during the U.S field tests in the 1980s.
The model quite accurately predicts the hydrogen, methane and water content of
the gas. However, it predicts twice the actual level of carbon monoxide and about
two-thirds the actual level of CO2. “Verification of the model’s accuracy can only
be done with field experiments,” notes Upadhye. “We cannot run laboratory
experiments to verify the models. UGC takes place many hundreds of feet
underground and its results can be difficult to measure”. Upadhye hopes to test
and improve the model using field data from the UGC pilot tests that will occur
throughout the world over the next few years.
Component UCG model predictions Field measurements

(in %) (in %)
Hydrogen 27.2 27.3

Carbon monoxide 13.0 6.3
Carbon dioxide 19.4 27.1
Methane 7.4 6.3
Water 33.0 33.0
*********
26
CHAPTER - V
ENVIRONMENTAL CHALLENGES
27
5.1 The new pilot projects will also provide key data for the environmental models
being developed by a team of environmental scientists led by Burton at the
Lawrence Livermore National Laboratory, USA. Although most of the previous
UCG pilots did not produce significant environmental consequences, Livermore’s
1970s test site at Hoe Creek, Wyoming, USA, unfortunately resulted in
contaminated groundwater, as did one pilot in Carbon County, Wyoming. At Hoe
Creek, operation of the burn cavity at pressures higher than that in the
surrounding rock strata pushed contaminants away from the cavity, which
introduced benzene, a carcinogen, in potable groundwater. The contamination
has required an expensive and long-term cleanup effort at the site.
5.2 Since those problematic tests in the 1970s, environmental scientists have
learned a great deal about the behaviour and types of contaminant compounds
produced by UGC as well as about contaminant transport and environmental risk
assessment. Several steps can be taken to avoid groundwater pollution. One is
balancing operating conditions to minimize the transport of contaminants from
over pressurized burn zones. Another is to locate a UGC site where natural
geologic seals isolate the burn zone from surrounding strata. Isolating the site
form current or future groundwater sources and understanding how UCG affects
the local hydrogeology are essential. This knowledge greatly benefited the
Chinchilla project. “Chinchilla is an excellent example of how to plan a site and
operate UCG plant”, says Friedmann. “The operators maintained negative
pressure in the combustion cavity so that contaminants could not flow beyond the
cavity.
5.3 Burton’s team is creating the first detailed models of contaminant flow and
transport, specifically for UCG operations. “The standard types of hydrologic
models used for environmental assessments do not consider the full effects of
UCG operations”, she says. UCG requires integrated simulations that capture the
complex geochemical, geo-mechanical and geo-hydrological processes
occurring during a burn.
28
5.4 Initially, Livermore groundwater specialists Walt McNab and Souheil Ezzedine
created and tested a modified version of the groundwater-modeling tool Flex, to
generate simple models of contaminant transport from UCG combustion. The
models included thermal buoyancy effects on contaminant migration.
5.5 These first simplistic models used a homogeneous subsurface. The layering and
permeability contrasts that characterize natural rock sequences associated with
coal seams were ignored. In this way, the researchers could isolate important
thermal changes when predicting and assessing UCG environmental effects.
5.6 Another environmental concern is that the void created by gasification may cause
the land surface to subside. Subsidence is likely to be more of a problem if
gasification occurs in a shallow coal seam, closer to the surface. This
phenomenon also often occurs above long-wall underground coal mines but is
less of a problem if the seam is deep.
*********
29
CHAPTER - VI
MANAGING GREENHOUSE GASES
30
6.1 At the surface, the various combustion products are separated out to make the
syngas usable. After cooling, the gas is filtered to remove ash and tar particles.
Removal technologies are well established for hydrogen sulphide and ash
products such as arsenic, mercury and lead. These compounds are then
disposed off safely. Hydrogen can be separated out for use alone, or it can be
included as a component in the syngas, which is a mixture of hydrogen and
carbon monoxide.
6.2 If the CO2 is to be captured at the surface and sequestered, it must be separated
from the syngas. The Lawrence Livermore National Laboratory, USA, is
developing a number of separation or ‘capture’ technologies. At a UCG
production site, a significant percentage of the CO2 would likely be sequestered
in the void left by the burned coal seam. Ideally, remaining CO2 can be
sequestered in deep geologic formations nearby.
6.3 UCG processes cause thermal, geochemical, and geothermal changes to the
surrounding rock reservoir, which may affect the reservoir’s ability or capacity for
CO2 storage. Such changes include the effects of heating and quenching on
fractures and rock properties. The reservoir may become more porous as acid
leaches from ash, tars, char, coal, and rock minerals. Fluid densities in the
reservoir may change because of high combustion temperatures. In addition,
organic contaminants in CO2 and metals in acid ground waters may become
more soluble because of UCG. Additional research is essential to quantify and
characterize the effect of these processes before any CO2 can be pumped back
down near a UCG production facility.
6.4 If the CO2 is not sequestered in place, it can be piped to oil fields. Oil companies
can then inject it underground to increase production from oil and natural gas
wells, a process called enhanced oil recovery. This represents an opportunity to
sequester carbon at a lower cost compared with storing it in geologic
repositories. Sales of the recovered oil and gas could generate revenues to help
offset the expenses of sequestration. The only operating coal gasification plant in
the USA, at Beulah, North Dakota, has been piping its captured CO2 to oil fields
in Canada for years.
31
6.5 Livermore researchers have developed electromagnetic imaging and electrical
resistivity tomography to monitor the CO2 injected underground and ascertain its
location over time. Electromagnetic imaging was originally designed as an aid in
oil recovery. Electrical resistivity tomography was designed for environmental
research but has since been extended for use in oil fields. When existing well
casing are used as electrodes, electrical resistivity tomography is a nearly non
invasive and low-cost method for monitoring. Three-dimensional modeling at
Livermore allows researchers to examine injection scenarios in detail, including
those involving enhanced oil recovery, and to “test” monitoring tools in a virtual
environment before expensive prototypes are built.
*********
32
CHAPTER - VII
INPUTS OF THE OIL AND NATURAL
GAS CORPORATION LIMITED
33
7.1 After being given a green signal by the Chairman and Managing Director, Oil and
Natural Gas Corporation Limited (ONGC), Dehradun, to restart the UCG Project,
it was decided that in the beginning, UCG at shallow depths of upto 500m may
be taken-up. The ONGC, thereafter, signed an agreement with the Skochinsky
Institute of Mining (SIM), Moscow, on the 29th of November, 2004. According to
the agreement, the SIM was to provide assistance in selection of suitable sites
for UCG, identify and assist in collection of required data and thereafter
undertake the actual UCG operations including the well design, surface handling
systems and techno-economic analysis.
7.2 Simultaneously, the ONGC signed Memoranda of Understanding (MoUs) with

the Gujarat Mineral Development Corporation Ltd (GMDC), the Neyveli Lignite
Corporation Ltd. (NLC), the Gujarat Industries Power Company Ltd (GIPCL), the
Coal India Ltd. (CIL) and the Singareni Collieries Company Ltd (SCCL) for
cooperation in the area of UCG.
7.3 Based on the available data, a total of 11 sites were suggested to the SIM for
detailed studies. Out of those 11 sites, five were found not suitable either
because of roof and floor characteristics or aquifer problem. Out of the remaining
six, five sites required additional data and further analysis. Ultimately, as a first
step, one site near Surat, Gujarat, belonging to the GIPCL, was selected for UCG
trials. Topography survey of the site was carried-out. Geological and hydro-
geological data was collected to complete the geological model. Geochemical
data of lignite characteristics and over burden, proximate and ultimate analysis
was generated. The lithological and section maps were also prepared. The data
was, thereafter, sent for evaluation to the SIM. 18 slim holes were drilled for
extensive data collection. Simultaneously, high resolution seismic survey was
carried-out in a small pilot area for mapping of lignite seams. The collected data
is encouraging. It is planned to carry-out a UCG pilot first.
7.4 Simultaneously, drilling activities are being carried-out for collection of geological
and hydro-geological data (pumps test) in other identical sites of Hodu-
Sindhari Block and Kurla Block (Rajasthan), Tadkeshwar Block and Bhavnagar
Block (Gujarat). The geological and hydro-geological data, proximate and
34
ultimate analysis, geo-mechanical data, etc., alongwith relevant maps, sections,
etc. of these sites are being sent to the SIM for further evaluation. The identified
site shall follow the same data generation sequences as in the first selected
block near Surat.
*********
35
CHAPTER - VIII
INPUTS OF THE DIRECTORATE
GENERAL OF HYDROCARBONS
36
8.1 INTRODUCTION
8.1.1 Underground coal gasification (UCG) is a physico-chemical process of
conversion of coal into gaseous energy source at the place of its
occurrence. Through this process, techno-economically unviable coal
resources can yield energy for present day use.
8.1.2 Coal on global scale and particularly for developing economy is main
source of power generation. Continued use of coal by deploying clean
coal technologies can help
• In protection of environment, and
• In energy security in view of supplementary supply of energy.
It may also provide price stability against imported petroleum and natural
gas.
8.2 FUTURE PLANS FOR DEVELOPING UCG AS AN ENERGY SOURCE
8.2.1 The route to commercial development of UCG is through trial and semi-
commercial demonstration, with supporting studies to address concerns
regarding:
¾ Uncontrolled combustion,
¾ Escape of pollutants,
¾ Ground water contamination and
¾ Subsidence.
8.3 REGULATORY FRAME WORK FOR UNDERGROUND COAL GASIFICATION
8.3.1 The Operation, Product and the Process of UCG:

i) All the steps involved in development of UCG, viz. well drilling, coal /
lignite gasification, production / processing / transportation / usages of the
UCG gas is similar to natural gas and Coal Bed Methane (CBM)
production operations. The mining plan for UCG would be entirely different
from conventional mining plan for underground mining operation. Instead
of conventional mine planning, the UCG operation would require the
incorporation of well spacing, year wise coal/lignite burning, production of
UCG gas and hydrocarbons, etc.
37
ii) Although the UCG operation is closely associated to coal / lignite deposits
/ occurrences, operationally it is similar to natural gas operation. The UCG
operation is neither akin to coal mining nor the product as the produced
gas is syn-gas and not coal and therefore it will not be prudent to consider
this activity as supplementary activity to underground coal mining
operation.
iii) The product gases from the gasification process are recovered from the
second well. The gasification process is somewhat similar to that utilized
in surface gasification plants and the product gases are mixture of
hydrogen, carbon monoxide, methane, higher hydrocarbons and carbon
dioxide. The produced gas has low calorific value ranging between 800
kCal/m3 to 3000 kCal/m3 and is primarily derived from hydrocarbons.
iv) Therefore, it would be prudent to consider development of this resource

under the Petroleum & Natural Gas Rules, 1959, with minor modification in
the definition of “Petroleum”. The similar terms & conditions framed for the
development of CBM resources can be made applicable for the
development of UCG resources also. The fiscal and regulatory regime for
UCG could be developed on the similar lines of CBM policy jointly by the
Ministry of Coal (MoC) and the Ministry of Petroleum and Natural Gas
(MoPNG).
v) Moreover, in para (c) & (d) of the Memorandum of Understanding (MoU),*

entered into between the MoC and the MoPNG in September, 1997, there
is a provision to include coal gasification project after the exploitation of
CBM gas.
* (TO BE GIVEN AS AN ANNEXURE)
vi) The legal and regulatory framework for commercialization of UCG,

prepared by the MoC for the development and commercialization of UCG,
has been examined keeping in view the above mentioned process of UCG
as well as composition of UCG and the present legal position as contained
under Oil Fields (Regulation and Development) Act 1948 read with
Petroleum & Natural Gas Rules, 1959 (as amended from time to time).
38
vii) It has been observed that UCG, as a product, is compatible to the
definition of “Hydrocarbon” as contained in section 3 (ga) as well as to the
definition of “Natural Gas” as contained in section 3 (i) of Petroleum &
Natural Gas Rules, 1959 (as amended from time to time). *
viii) Further, UCG as a product is compatible to the definition of “mineral oils”

as per section 3 (c) of the Oil Fields (Regulation and Development Act
1948). *
ix) The above comments are further fortified by our observation that UCG is
not covered by the Mines and Minerals (development and regulation) Act,
1957, since section 3 of the said Act defines “minerals “ as including all
minerals except mineral oils and further stating that “mineral oils” include
natural gas and petroleum.
x) Natural Gas has been defined under the Petroleum and Natural Gas
Rules, (1959) as “’natural gas’ or gas means gas obtained from bore-holes
and consisting primarily of hydrocarbons but does not include
helium………”
xi) Further, Hydrocarbons has been defined in the said act as

“‘hydrocarbons’” means any organic compound of ‘hydrogen’ and ‘carbon‘.
It is found that the above definition of hydrocarbon as contained in the
Petroleum and Natural Gas Rules (1959) fits the chemical composition of
UCG as detailed in the introductory paragraphs and thus the development
and commercialization of the said mineral oil would be in terms of the strict
definition of both the Oil Fields (Regulation and Development Act 1948) as
well as the Petroleum & Natural Gas rules, 1959 (as amended from time
to time). However, since UCG is a substance extracted from coal by the
application of heat or by a chemical process, it is evident that section 3 (k)
of the Petroleum & Natural Gas Rules, (1959), should be amended to
bring the process of UCG within the ambit of Oil Fields (Regulation and
Development Act, 1948).
39
xii) The policy & regulatory mechanism to govern the exploitation of UCG
(whether similar to the existing CBM or other wise) as deemed fit can be
framed after effecting the amendment suggested above to the Petroleum
& Natural Gas Rules, (1959). Development and commercialization of
UCG would require Petroleum Licenses and Mining Lease to be granted
under the Petroleum & Natural Gas Rules, (1959) as is the case with other
petroleum products.
8.3.2 Fast Track Development of UCG Technology
i) In the interest of development of UCG techniques on a fast track, it would

be necessary to allow private /foreign companies for setting-up
demonstration-cum commercial UCG projects for utilization of deep
seated coal and lignite deposits. This will not be feasible if UCG
operations are taken-up under the coal mining regulatory framework. It will
require changes in these statutes, viz. Coal Mines (Nationalization) Act
1973, in order to avoid the restriction of captive consumption/mining.
Therefore, it would be more prudent to consider development of this
resource under the legal & regulatory framework as applicable to CBM
exploration and production operation wherein there is no restriction of
captive consumption/mining and the operator is free to sell the gas in the
market at market driven prices.
ii) Incentives may be considered, viz. tax-free regime for UCG for next 7
years similar to the CBM policy and the New Exploration Licensing Policy
(NELP), to encourage public private partnership. If successful, large
resources of deep-seated and isolated lignite & coal deposits, which may
not be amenable to conventional physical extraction economically, can be
exploited through UCG process.
8.3.3 Safety & Environment Framework
8.3.3.1 UCG operation requires: -

a. Drilling of wells to access the coal seams. Latest directional drilling and
injection control technology is required. Drilling and borehole technology
40
is available with oil companies. Under the present statute, drilling
operations are covered by Oil Mines Regulations, 1984.
b. Handling large volumes of toxic and high pressure gas which has to be
treated before transmission by pipelines. Locating the equipment at the
surface UCG station and protecting the local environment from gas
escape, equipment failure emergency procedure, blow offs and
spillages is a significant challenging operation.
c. Oil industry already deals with high pressure gas and oil processing in
group gathering stations. Regulation 51 of Oil Mines Regulations, 1984
deals with these issues.
d. According to the Directorate General of Mine Safety (DGMS), UCG

operations require technical knowledge of various disciplines. Due to
diverse and mixed nature of technologies of coal and oil applicable for
UCG operations, perhaps a separate set of regulations may have to be
developed for UCG operations. Safety features would be needed for :
− Hydro-geological regime in the area to avoid possible groundwater
contamination.
− Effect of subsidence due to cavity generated as a result of UCG.
− The technology for terminating underground fire, if so required.
8.4 AREAS REQUIRING R&D EFFORTS
8.4.1 R&D efforts are required to evaluate the potential application of

technological advances made in the field of UGC technology since last
three decades in the Indian condition. The areas of concern are :
9 Combustion-Process modeling
9 Geological subsurface characterization
9 Geo-mechanics
9 Environmental risk assessment
*********
41
CHAPTER - IX
INPUTS OF THE ESSAR OIL
LIMITED
42
9.1 INTRODUCTION
9.1.1 Currently, Essar has substantial coal and lignite resources in its Coal Bed
Methane (CBM) and Oil & Gas exploration blocks namely RG (E)-CBM/2001/1
(West Bengal) and CB-ON-3 (Gujarat). Under the Production Sharing Contract
(PSC), the non-productive areas of the CBM and Oil & Gas blocks will be
relinquished by the operator to the Government, at different phases of
exploration. These areas would be ideally suited for UCG, as the Coal and
Lignite occurring at depth will neither be amenable for mining nor for CBM
development. Besides, the key geological parameters required to evaluate the
feasibility of UCG, namely quality attributes of coal / lignite, permeability of coal /
lignite, engineering properties of rocks associated with the coal/lignite beds,
hydro-geological regimes, etc. acquired during the exploration would be
available. Furthermore, the dry wells drilled in relinquished areas could possibly
be utilized for conducting UCG studies. In the relinquished areas, therefore, with
existing infrastructure, i.e. rig, equipments, laboratory facilities, manpower and
expertise available, a techno-economic feasibility study for UCG under Indian
conditions can be undertaken by Essar at much lower cost. For this purpose, a
“mining lease” for UCG will have to be necessarily obtained from the Ministry of
Coal (MoC), New Delhi. The MoC has been provisionally empowered by the
Committee of Secretaries, Government of India, to grant UCG lease for captive
purposes only.
9.1.2 It is learnt that the Neyveli Lignite Corporation Ltd. (NLC), which has got
Government approval for taking-up a UCG Project in lignite deposits of
Rajasthan, under Coal S&T, Department of Science and Technology (DST) and
NLC funding, has not been able to get a suitable technical partner, so far. The
Singareni Collieries Company Ltd. (SCCL) is also interested in the development
of UCG in parts of its leasehold. If Essar can have a technical collaborator/
partner, it can get the Government approval for a UCG project, as a joint venture
with the NLC and/or the SCCL, early.
9.1.3 Currently, the E & P Division of the Essar Oil Ltd. is handling Oil & Gas and CBM
exploration & development activities. This Division can be geared-up to handle
43
the UCG and other coal related activities viz. “surface” Coal Gasification,
identification and acquisition of coal mining blocks in India and abroad,
conducting detailed coal exploration for mining, etc. A tentative plan is given in
the para 9.2.
9.2 WORK PLAN (TENTATIVE):
9.2.1 The project is proposed to be undertaken by the Essar Oil Ltd. in association with
internationally reputed UCG experts like Linc Energy, Australia; Ergo Exergy
Technologies, Canada; etc. It would be necessary to identify a suitable
consultant/ expert agency. To start with, the Project work is proposed to be
carried-out in three stages which are outlined below: -
Stage I: Pre-selection of block

• Identification of suitable consultant / expert agency.
• Collection of all available exploration data of the coal / lignite blocks.
• Preliminary evaluation and selection of a suitable block based on geology,
hydro-geology, structure, seam thickness, quality and quantity etc.
Approx Cost: INR 200.00 lakhs.
Stage II: Preliminary Exploration and Feasibility study

• Planning and execution of additional exploration/seismic work in the selected
block to generate site specific information.
• Undertaking feasibility study for establishment of UCG by drilling holes/ wells.
• Preparation of Environmental Impact Assessment (EIA), Quality Health Safety
and Environment Plan (QHSE) and Environment Management Plan (EMP) for
the project.
• Approx Cost: INR 500.00 lakhs.
Stage III: Gasification Operation and Evaluation

• Drilling of Injection, Production, Monitoring wells and construction of sites.
• Linking of injection and production wells in the coal / lignite seam.
• Execution of gasification operation using air / oxygen / steam.
• Establishment of gas testing facility.
• Establishment of gas monitoring facility.
44
• Evaluation of the operation through close monitoring.
Approx. Cost: INR 1300.00 Lakhs.
TIME SCHEDULE AND ESTIMATED COST ABSTRACT
Project Activities Month Duration in

months
Stage-I From To
1. Identification of Consultant 0 3 3
2. Exploration Data Acquisition 0 4 4
3 Pre-selection study 4 6 3
Stage-II
1. Preliminary Exploration 7 18 12
2. Sample testing and special characterization 13 19 7
studies
3. Hydro-geological studies 20 22 3
4. Baseline environmental data collection 13 19 7
5. Preparation of EIA & EMP reports 20 23 4
6. Preparation of feasibility report 20 24 5
Stage-III
Infrastructural Development for the project
1. Obtaining surface rights / ML 22 25 4
2. Land acquisition 22 30 9
3. Construction of site office 25 36 12
4. Making water supply, electricity arrangements 22 30 9
etc.
Gasification Operation & Evaluation:

1. Drilling and construction of injection & production 25 36 12
wells
2. Drilling and construction of monitoring wells 25 40 16
3. Establishment of air/ oxygen/ steam generation 25 35 11
facility
4. Linking of wells, UCG operation and gas testing 32 42 11
5. Performance evaluation 42 45 4
6.Documentation 45 48 4
Year-wise and stage-wise estimated cost abstract (rupees in lakhs)

Stage Year 1 Year 2 Year 3 Year 4 Total
I 200 - - - 200
II 100 300 100 - 500
III - 200 800 300 1300
Total 300 500 900 300 2000
45
Note: In the event, the UCG appraisal is conducted in the relinquished areas of Essar’s
CBM / Oil &Gas exploration blocks, the cost of the project study could possibly be
reduced to the extent of 20% - 30% of the above estimated expenditure.
*********
46
CHAPTER –X
INPUTS OF THE
INDIAN SCHOOL OF MINES
47
10.1 INTRODUCTION
10.1.1 During the late eighties work on gasification of coal on a laboratory scale
was carried-out at the Indian School of Mines (ISM) but it was subsequently
suspended due to some unavoidable circumstances. UCG technology is a
part of the underground coal-mining subject that has been taught in the past
and is being taught here at the Under Graduate / Post Graduate level. The
students carry-out their dissertation projects on UCG on a regular basis.
The Institute is engaged in the development of human resource base of
qualified personnel for UCG industry. A revised full course syllabus is under
preparation and shall be introduced as a full subject at the
undergraduate/postgraduate level.
10.2 PAST AND THE CURRENT WORK ON UCG BEING DONE AT THE ISM:
10.2.1 In addition to what has been mentioned above, following jobs have been/are
being done at the ISM:
i. Development of coal reactor technology. (The reactor has been
designed and it is under construction. The reactor shall enable us to:
(a) Study the characteristics of coal for gasification in which the
parameters to be studied would be:
• Impact of temperature variation
• Variation of feed rate
• Molecular combination of gases evolved with different ramp
rates and temperature range;
(b) Monitor, on-line, the total process by using microprocessor based
hybrid-monitoring system.)
ii. Study of laboratory scale heating characteristics of coal by using
‘Polish Sz index’, ‘Russian U index’ and by wet oxidation potential
difference method.
iii. Determination of the composition of coal to be used for gasification by
C-H-N analyzer and by proximate analysis (for moisture, volatile
matter, fixed carbon and ash).
iv. Delineation of coal/lignite blocks suitable for UCG.
48
v. Petrographic characterization of coal/lignite.
vi. Study of microscopic pores, cleats and their impact on permeability.
vii. Study of the reactivity of minerals and coal.
viii. Impact of delineation of organic facies.
ix. Porosity and permeability of coal seam and the enclosing strata.
x. Plastic properties of coal.
xi. Development gasifier for study of gasification kinetics, using CO2,
steam, air and their mixtures at different temperatures.
xii. Fixed bed gasification using vertical and horizontal reactor as well as
rotary kiln.
10.3 FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY RESOURCE:
10.3.1 The ISM shall engage itself on laboratory and field studies as a part of the
research & development project. (The commercial scale exploitation of
coal/lignite by UCG technology shall, however, be done by a joint group of
organizations like the ONGC, the GAIL, the NLC, the BHEL, the Essar Oil
Limited, the Reliance Industries Limited, etc.)
10.3.2 The ISM has submitted a multi-disciplinary R&D project proposal to the
Planning Commission for the grant of Rs. 12.00 crores, for the setting-up of
a ‘CENTRE OF CLEAN COAL TECHNOLOGY’ in the ISM campus. This
Centre shall act as a nodal centre for all the research activities related to
UCG.
10.3.3 The salient features of the above-mentioned multidisciplinary R & D project

are being mentioned below:
¾ Characterization of the coal/coal-seams and the rocks above & below

the coal seams for their geo-mechanical, petrographic, geological &
hydrological properties and for the calorific value, combustion and
liquefaction of coal.
¾ Laboratory model study for underground coal gasification by
developing surface and underground gasifiers.
49
¾ Mathematical modelling of UCG technology.
¾ Field investigations and pilot plant studies for UCG.
¾ Other relevant areas of research.
The project duration, as proposed, would be 3 years.
*********
50
CHAPTER - XI
INPUTS OF THE
RELIANCE INDUSTRIES LIMITED
51
11.1 THE PAST AND CURRENT WORK DONE ON UCG
11.1.1. The need for encouraging production of clean and environmentally friendly
gas by in-situ underground gasification of coal/lignite in India cannot be
overemphasized. The Reliance Industries Limited (RIL) has been
conscious of the strong potential of UCG and has been exploring
possibilities for taking up a UCG project in India.
11.1.2. As a measure to understand technology and operations of UCG, a RIL

delegation visited the UCG site at Chinchilla, Australia and the only
commercial UCG operations since last 45 years at Angren, Uzbekistan.
Further, RIL officials have been attending various national and
international UCG conferences to gather the recent developments in the
field of UCG all around the world.
11.1.3. Various possible sites for UCG project in India have been under
investigation by the RIL for some time now. To gain access to coal for
UCG project, a Memorandum of Understanding has been signed with the
Gujarat Mineral Development Corporation Limited (GMDC) to undertake
UCG projects. A joint committee of the GMDC and the RIL has been
examining various possible sites for UCG in GMDC command area.
Currently, evaluation of a few lignite blocks is going-on. Likewise, the RIL
is exploring the possibility of alliance with other coal leaseholders in India.
11.1.4. For sourcing the operational know-how, the RIL has developed an alliance
with an Uzbekistan company and discussions are underway with UCG
know-how agencies from the USA.
11.1.5. With the recent notification by Government of India allowing captive

mining of coal for underground syngas production end use, the RIL plans
to participate in the block allocation process to acquire a couple of blocks
for taking-up UCG project.
52
11.2 REGULATORY FRAMEWORK TO BE DEVELOPED FOR UCG
11.2.1 Notification of UCG by the Government of India necessitates that

regulatory framework needs to be put in place to facilitate the taking-up of
UCG projects. HSE (Health, safety and environmental) regulatory
mechanism needs to be developed for taking-up pilot project at the
earliest. The regulatory mechanism may be interim in nature, allowing the
pilot projects to be taken-up. Experience of pilot projects can be used as
input to firm-up the regulatory setup.
11.3 FISCAL REGIME FOR PUTTING UCG R&D ON THE FAST TRACK
11.3.1 Since UCG will be a new technology, which remains untested in India and
has many inherent uncertainties, following fiscal incentives should be
provided for UCG:
¾ Tax holiday of 7 years
¾ Zero customs duty
¾ No carried interest of the government
¾ No upfront payments
¾ Phased work programme with exit options
¾ Freedom for use, market and pricing of produced gas
11.3.2 Similar fiscal terms have been provided to CBM operators and would go a
long way to promote UCG.
11.4 UCG R&D AREAS
11.4.1 Generation of data base for coal / lignite for UCG which may cover
relevant parameters is an important area requiring immediate attention.
Further, as UCG is a new technology, it is imperative to develop a sound
technical base to understand and predict the UCG process. Technical
know-how that needs to be created is as follows:
11.4.1.1 SITE CHARACTERIZATION: The physical, chemical, hydrological

and geometric properties of coal seam, neighboring strata and
53
overburden need to be assessed to predict the performance of coal
gasification.
11.4.1.2 SIMULATION AND MODELING: Various simulations that may be

carried-out are given below:
¾ UCG process – combustion models: To model design, operation
and control of UCG processes and to predict gas yields, and
composition.
¾ Environmental and geo-mechanical simulation: To identify the
environmental impacts associated with UCG such as subsidence,
contamination of groundwater, etc.
¾ Modelling of surface facilities: To model the above ground
facilities for gas clean-up and processing.
¾ Carbon capture and sequestration: To study the capture,
separation and selection of suitable sequestration sites for CO2.
¾ Field monitoring: To develop a geochemical and geophysical
monitoring programme that can demonstrate environmental
suitability of active UCG operations and provide information for
taking key decisions. Strict environmental monitoring of the pilot
project must be ensured to avoid any failure in a pilot project as it
may undermine the future of UCG in India
¾ Integration of simulation models: To integrate the baseline
assessment of operations, economical and environmental issues
associated with the UCG project needed for optimization of site
design and operations.
11.5 FUTURE PLAN FOR EXPLOITING UCG AS AN ENERGY SOURCE:
11.5.1 Equipped with requisite technical know-how and financial resources, the
RIL plans to seek allotment of captive coal / lignite block to be offered by
the Government of India for UCG. Taking-up UCG pilot project and
expanding it to commercial scale remains the RIL’s objective.
*********
54
CHAPTER –XII
INPUTS OF THE SINGARENI
COLLIERIES COMPANY LIMITED
55
12.1 THE PAST AND THE CURRENT WORK ON UCG BEING DONE BY THE
SINGARENI COLLIERIES COMPANY LIMITED (SCCL), IN THE GODAVARI
VALLEY COALFIELD (GVCF)
12.1.1 The SCCL entered into a Memorandum of Understanding (MoU) with the
ONGC on 15.04.2006 for the development of UCG process in the GVCF.
Keeping the broad suitable conditions in view, three blocks, namely
Manzoor Nagar, Indaram Shaft Block and Manuguru Shaft Block-II are
proposed for UCG and the data was submitted to the ONGC for further
feasibility study.
12.1.2 Russian experts studied and indicated that Manuguru Shaft Block-II may
be suitable for UCG and further advised for generation of required Hydro-
geological data.
12.1.3 The required Hydro-geological data was generated and submitted to the
ONGC for further study.
12.1.4 Later on, the SCCL entered into an MoU with the Carbon Energy Pty.
Limited (CEPL), Australia, for the development of the UCG process in
moderately shallow (300m - 500m depth) to deeper blocks (600m-1500m
depth)
12.1.5 The CEPL experts visited mines and proposed UCG blocks in the GVCF
and collected relevant data and plans. The conceptual report is yet to be
received from the CEPL authorities.
12.2 THE FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY SOURCE
12.2.1 The SCCL is planning to develop UCG technology and enhance the
energy resource by the UCG process:
In shallow and deeper virgin blocks which are not amenable for
conventional mining.
From left out virgin seams in running mines, which are not amenable
for conventional mining and
56
In abandoned mines where 20% - 30% coal reserves only were
extracted by conventional mining.
12.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST-TRACK
12.3.1 The SCCL will identify suitable blocks for conducting UCG investigations
and also provide local logistic support and the SCCL shall not provide any
financial support for R&D investigations due to its limited financial
resources.
12.4 THE DIFFERENT AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP

FOR ENABLING A TIME-BOUND COMMERCIALIZATION OF THE UCG
TECHNOLOGY FOR VARIOUS APPLICATIONS, INCLUDING POWER
GENERATION.
12.4.1 The SCCL is interested to conduct R&D on suitability of coal seams,

overlying and underlying lithofacies, ground water regime, structural
suitability for directional drilling and inter-connections between injection
well and production well, suitability of gas for various purposes such as
power generation, manufacture of fertilizers and pesticides, separation of
Hydrogen and its suitability as transport fuel and also carbon dioxide
sequestration. As the SCCL is not having experience, it is planning to
conduct the above studies with organizations like the ONGC, the CEPL
etc. and with financial support from the Government of India.
*********
57
CHAPTER – XIII
INPUTS OF THE BHARAT HEAVY
ELECTRICALS LIMITED
58
13.1 UNDERGROUND COAL GASIFICATION AND POWER GENERATION –
PERCEIVED ROLE OF THE BHARAT HEAVY ELECTRICALS LTD (BHEL).
13.1.1 The following is perceived as the role of the BHEL in the development of
UCG:
¾ As Designer and Manufacturer of equipment and systems

- For design, manufacture, installation & operation of UCG plant
equipment and systems, including up-stream equipment and
downstream gas cleaning & utilization plants.
¾ As Partner in UCG technology development

- To adapt existing equipment and develop new hardware to meet the
UCG requirements, based on the BHEL’s experience in coal utilization,
including surface gasification.
- To provide support for modelling & simulation of the system design and
performance monitoring of UCG.
13.1.2 The UCG related capabilities in the BHEL, viz. equipment and system
supply capabilities and expertise on Indian coal/ lignite utilization, are
detailed below:
i) UCG related equipment supply capabilities

¾ Upstream Equipment
High Pressure Compressors for Air, Nitrogen
- flow up to 350,000 Nm3/hr
- horizontal split casing, up to 40 kg/sq.cm
- vertical split casing, up to 350 kg/sq.cm
High Pressure Water Pumps

- flow 400 to 1200 cubic metre/hr, 200 to 225 bar
- flow 20,000 cubic metre/hr, 2.5 bar
¾ Drilling rigs
- Onshore rigs, for drilling up to a depth of 1500 m to 9000 m.
¾ Gasification Equipment
59
− Air & steam mixing vessel
− Seamless steel tubes
− Valves
− Ignitors
¾ Downstream Equipment
Gas clean-up system
− Dust cyclones for high ash content
− Gas coolers
− Scrubbers electro de-tarring
Gas handling systems

− Centrifugal wet gas compressors- up to 350000 Nm3/hr
− Piping systems
− Motors
− Valves
Power Generation System

− Gas turbines from 4MW to 250 MW capacities
− Heat recovery steam generator (HRSG) to suit Gas Turbine
− Steam Turbine to match HRSG
− Firing UCG gas in boilers
− Controls & instrumentation
− Steel stacks
¾ The BHEL has an erection & commissioning wing for all field equipment
ii) Expertise with respect to Indian coal & lignite utilization, including
gasification
¾ The BHEL has utilized all types of Indian coals
- Sub-bituminous, bituminous coals, tertiary coals of Assam
- lignites of Neyveli (fresh water origin) and of Gujarat & Rajasthan
(marine origin)
¾ Characterized organics & inorganics from combustion, gasification &

emission (NOx, SOx, trace metals) view points
60
- gasification reactivity of coal at high pressure & temperature by
Total Gas Analyzer (TGA).
- clinkering propensity of coal by thermo mechanical analysis
¾ Employed different combustion technologies

- pulverized coal, bubbling fluidized bed & circulating fluidized bed,
stoker fired
¾ Employed different gasification technologies

- atmospheric & pressurized moving bed
- pressurized fluidized bed
¾ Designed, built & operated the only Integrated Gasification Combined

Cycle (IGCC) Plant with high ash Indian coals
− has rich engineering, construction & operational experience with
low calorific value gas based IGCC plant like start up, normal &
emergency shut down, load change, banking, safety engineering,
etc.
¾ Simulation & Modelling

− modelling & simulation of power plant systems
− computational fluid dynamic studies of reactive & non-reactive
phases
¾ In-bed control of SOx by limestone

− characterization of reactivity of limestone w.r.t SOx reduction
− limestone preparation & feeding to control SOx
¾ Has geared up for installation of a 125 MW IGCC Plant.
*********
61
CHAPTER - XIV
INPUTS OF THE COAL INDIA
LIMITED
62
14.1 PAST AND PRESENT ACTIVITIES
14.1.1 Previous work done by the Central Mine Planning and Design
Institute Limited (CMPDIL), Ranchi
14.1.1.1 In India, UCG was taken up as a national project in the early 1980s.
Initially, 13 coal/lignite blocks were identified by the CMPDIL for UCG.
However, only 3 blocks were selected by the Soviet experts for
generation of additional data. Data was generated by the CMPDIL in
few blocks selected by the Soviet experts for pilot studies for
evaluating techno-economic viability of the process under the Science
& Technology (S&T) grant of the Ministry of Coal. Merta Lignite deposit
was found to be technologically feasible for pilot project studies for
techno-economic evaluation, but keeping in view the chances of
contamination of aquifers lying above and below the lignite seam, the
S&T project recommended that it should not be pursued further as the
entire population of the area is dependent on the ground water. As
such, the project was not pursued further.
14.1.2 Recent Developments:
14.1.2.1 The Coal India Limited (CIL) has entered into a Memorandum of
Understanding (MoU) with the ONGC to jointly pursue UCG. Parallely,
the ONGC has also entered into an MoU with the Skochinsky Institute
of Mining (SIM), Russia, for providing technical consultancy in this
field.
14.1.2.2 The CIL/ the CMPDIL have identified 5 blocks and data packages were
prepared for these blocks based on the formats supplied by the
ONGC/ the SIM. The data supplied was examined by the Soviet
experts and only one block, namely Kasta in Raniganj coalfield, was
selected for generation of additional data for considering its suitability
for taking-up pilot scale studies. Actions have been taken to generate
the requisite data.
63
14.1.3 Various collateral works to support UCG development has been
undertaken as indicated below:
14.1.3.1 Draft regulatory framework to support UCG operation has been

formulated by a multi organizational group and submitted to the
Ministry of Coal for consideration.
14.1.3.2 In the 3rd Indo-US Working Group meeting held in April, 2006, UCG
has been identified as one of the possible areas for collaboration.
14.1.3.3 Under the aegis of the Indo-US Working Group, a workshop was
organized in November, 2006, at Kolkata with a focus on the criteria for
identification of suitable sites.
14.2 FUTURE PLAN:
14.2.1 In case additional data generated at Kasta turns out acceptable for UCG,
the pilot scale studies would be pursued.
14.2.2 As a follow-up of the UCG workshop, identification of additional UCG

blocks is under active consideration at the CMPDIL.
14.2.3 After identification, this would be discussed with the international experts
for short-listing of 4-5 blocks for generation of UCG specific data for
taking-up pilot scale studies.
14.3 R&D FOR PUTTING UCG ON THE FAST TRACK:

14.3.1 The world over, UCG development has largely been concerned with
enhancing the connection between boreholes in coal/lignite, controlled
underground process engineering and scaling-up of the process to
commercial size operations. Since the route to UCG development is
through trial and semi-commercial demonstrations, a corpus may be
created to promote developmental activities leading to commercialization.
Support from this corpus for part funding of the activities related to
environmental impact assessment may be considered in addition to
several incentives already proposed in the draft regulatory framework
prepared by a multi-organizational team appointed by the Ministry of Coal
and now awaiting the Government of India’s approval.
64
14.4.1 Uncontrolled combustion.
14.4.2 Controlled process engineering to:

(i) Restrict escape of pollutants, and
(ii) Yield consistent quality of gas.
14.4.3 Development of model for real time assessment of reactor behaviour.
*********
65
CHAPTER - XV
INPUTS OF THE NEYVELI
LIGNITE CORPORATION LIMITED
66
15.1 PRESENT ACTIVITIES
15.1.1 UCG Project sanctioned jointly by the Ministry of Coal (under its S&T
grant), the Department of Science and Technology (DST) and the
Neyveli Lignite Corporation Limited (NLC).
15.1.1.1 The project entitled “Underground Coal Gasification and its

utilization for power generation studies in Lignite deposit of
Rajasthan Phase-I” was sanctioned during August, 2005. The
commencement date of the project was fixed as September, 1,
2005. The total estimated cost of the project is Rs. 1125.00
lakhs, which is to be shared by Coal S&T (Rs. 562.50 lakhs),
the DST (Rs. 375.00 lakhs) and the NLC (Rs. 187.50 lakhs).
The UCG pilot study is to be taken-up in a suitable shallow
lignite block in Rajasthan to be identified by the consultant to the
project. The NLC had floated global tender for appointment of
consultant to the project.
15.1.1.2 Since no one responded, after negotiating with certain

prospective firms, the NLC issued limited tender enquiry to four
parties and got response from two and appointment of
consultation for the project is under finalization.
15.1.2 The NLC-ONGC joint venture UCG Project:
15.1.2.1 The NLC has signed a Memorandum of Understanding with the

ONGC on 24th September, 2005, intending to cooperate in
service, operation, process development and research related
to UCG in coal/ lignite bearing States of India.
15.1.2.2 Initially, the NLC has identified Hodu-Sindhari lignite block in

Rajasthan and Tadkeshwar lignite block in South of Gujarat
area. Subsequently, East of Kurla Block in Barmer District of
Rajasthan was also identified. In order to generate additional
67
data on geo-mechanical properties of overburden, hydro-
geological data, etc., core drilling, sampling and analysis of geo-
mechanical properties and hydrological tests were undertaken
in Hodu-Sindhari and Tadkeshwar Blocks. The data was
submitted to the ONGC consultant – Schokinsky Institute of
Mining (SIM), Russia. After scrutiny of the data by the
consultant – SIM, Russia – further course of action for UCG pilot
studies would be initiated.
15.2 FURTHER PLANS FOR EXPLOITING UCG AS AN ENERGY SOURCE
15.2.1 The NLC has planned to utilize the UCG gas in the Integrated Gasification
Combined Cycle (IGCC) Power Plant to be taken-up under Phase-II of the
Coal S&T Project. The exact capacity of the IGCC plant would be decided
after ascertaining the UCG gas quality and the calorific value of the
producer gas in the Phase-I studies.
15.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST-TRACK
15.3.1 Since the above-mentioned two UCG projects are in nascent stages, fiscal
regime for putting R&D on UCG would be decided after the pilot studies.
15.4 THE AREAS ON WHICH R&D IS REQUIRED TO BE TAKEN-UP FOR UCG
15.4.1 Linking of wells at shallow level.

(Deviation drilling/ inclined drilling).
15.4.2 Successful ignition technology for lignite seams since it contains high
moisture.
15.4.3 Surface mapping of gasification chamber through geophysical methods.
15.4.4 Commercialization and using syngas in IGCC power plant for

domestic purpose.
68
15.5 CURRENT ISSUES TO BE ADDRESSED FOR SPEEDY DEVELOPMENT OF
UCG IN THE COUNTRY
15.5.1 Allotment of UCG block for development.
15.5.2 Need-based changes in the statutory requirements under the existing

Coal Mines Regulation Act 1957 and Oil Mine Regulation Act 1984.
15.5.3 Regulatory framework should be developed to facilitate final stage

operation.
15.5.4 Legal, statutory, safety and conservation aspect related to environmental

issues.
15.5.5 A specific license would be required for pursuing UCG.
15.5.6 Royalty on gas produced should not be charged during the pilot/
developmental period until commercialization.
*********
69
CHAPTER - XVI
INPUTS OF THE MINERAL
EXPLORATION CORPORATION
LIMITED
70
16.1 THE PAST AND CURRENT WORK ON UCG BY THE MINERAL EXPLORATION
CORPORATION LIMITED (MECL)
16.1.1 The concept of UCG in India is in infancy stage and not much work has
been done. The progress is largely confined to compilation of available
data and initiatives to formulate regulatory frame work, etc. The MECL has
assumed a leading role in establishing the coal and lignite resources in
different parts of the country. It has played a vital role in delineating/
locating new potential areas both for coal and lignite. So far, it has carried-
out detailed assessment of over 800 prospects of coal and lignite involving
over 53 lakh metres of drilling and associated geological and analytical
studies, leading to proving of about 82 million tonnes and 33 million
tonnes of coal and lignite reserves, respectively. Over 91% of the total
lignite reserves in the country have been established by the MECL. It has
implemented coal and lignite exploration programmes by adopting
integrated approach with the use of remote sensing technology followed
by surface geophysical studies, regional scanning by drilling followed by
detailed exploration in number of areas leading to delineation of new coal
and lignite prospects.
16.1.2 In addition, it has played a pivotal role in Coal Bed Methane investigation
in the country since the early nineties. It has extended its service of slim
hole drilling to all the agencies engaged in exploration and development of
CBM blocks. During the course of investigation, it has drilled a deepest
borehole upto a depth of 1400 m in Jharia coalfield which is the only store
house of coking coal in India.
16.1.3 The MECL has got experienced geo-scientists and engineers, fleet of
medium and deep capacity drills supported with laboratory facilities and
state-of-the-art IT centre.
16.1.4 With the aforesaid experience and the infrastructure available, the MECL
can play a vital role in exploration and development of areas for UCG. It
can extend the services for topographical survey, geological studies,
surface geo-physical studies, drilling, sampling, borehole geophysical
71
logging, borehole deviation survey, laboratory studies, environmental
studies and 3-D core body modelling culminating into preparation of the
geological report.
16.2 FUTURE PLAN OF EXPLOITING UCG AS SOURCE OF ENERGY
16.2.1 The global coal reserves are over 10 trillion metric tonnes. India, with 253
billion tonnes of coal reserves, ranks 4th as far as the world coal inventory
is concerned. In terms of production, India is the third largest coal
producer (383 million tonnes during 2005).
16.2.2 The coal reserves of the country have been estimated/ assessed upto a
depth of 1200m, while the mining activities are largely confined upto 300m
except that in some areas, the coal is being mined at greater depths, i.e
upto 450m. The near surface and shallow deposits are on the verge of
depletion. In terms of quality, the major resources are of low grade with
high ash content. Further, the mining in most of the existing mines is
being carried-out with conventional methods resulting in low recovery and
high cost of operations. Thus, in the given circumstances, UCG could be
considered as an alternate option both in terms of eco-friendly as well as
cost effective proposition.
16.2.3 The Indian coal deposits are normally multi seams and the inter seam
parting is represented by sandstone of various grain size, shales, inter
bedding of shale and sandstones, thus depicting wide permeability
contrast. During the process of UCG, the hydrostatic imbalance is
expected, resulting in movement of ground water into different litho units
depending on permeability. There is a possibility of the ground water
getting contaminated with variety of elements, some of which may be
hazardous to human beings. Therefore, a detailed study in this aspect
would be needed before implementation of UCG projects.
16.2.4 With sizeable coal and lignite reserves available in the country which
could not be developed economically due to constraints of depth,
inclination of strata, high ash content, etc., UCG is expected to be a viable
72
future source of energy. The MECL is committed for extending its services
for mineral exploration and development in the country and would play a
vital role in development of UCG blocks &, in turn, in its exploration.
16.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST TRACK
16.3.1 In our opinion, there is an urgent need for expediting and expanding the
R&D activities which are being carried-out in India w.r.t UCG. It would
facilitate identification of potential coal/ lignite areas which could be
considered for detailed exploration/ studies before these could be
developed commercially for the end use of UCG technology.

FOR ENABLING A TIME BOUND COMMERCIALIZATION OF THE UCG
TECHNOLOGY FOR VARIOUS APPLICATIONS, INCLUDING POWER
GENERATION
16.4.1 In our opinion, for enabling a time bound commercialization, there is an

urgent need of :
16.4.1.1 Compilation of the available data which should be made available
free of cost to the nodal agency by the custodian.
16.4.1.2 Creating necessary infrastructure in terms of high capacity, high
performance drills for speedy exploration of potential areas.
16.4.1.3 Additional laboratory facilities for chemical, physico-mechanical,
hydro-geological studies, exclusively for UCG programme as the
available resources may not be adequate to match the processing
of data generated during the exploration.
16.4.1.4 Finalization of regulatory frame work.
*********
73
CHAPTER - XVII
INPUTS OF THE CENTRAL INSTITUTE

OF MINING AND FUEL RESEARCH
(ERSTWHILE CENTRAL MINING
RESEARCH INSTITUTE)
74
17.1 THE PAST AND CURRENT ACTIVITIES
17.1.1 In 1984, the Government of India constituted a Steering Group on UCG

with Prof. M.M. Sharma as the Chairman. The Central Institute of Mining
and Fuel Research (CIMFR) [erstwhile Central Mining Research Institute
(CMRI)/ Central Mining Research Station (CMRS)] was one of the
participating institutions. The coal samples of different seams were
evaluated for their detailed in-situ gas content, petrology, reactivity and
physico-mechanical properties, etc.
17.1.2 The CIMFR conducted laboratory study of channel gasification with

steam-air blast in sub-bituminous coal in 2003. It was found that addition
of steam to the injection blast, generally, lowers the temperature of the
reaction zones and thus improves the gasification efficiency. Large
proportion of steam, however, slows the gasification due to further
lowering of temperature in reaction zones. Addition of steam to the blast
increased the fuel value of the product gas. Optimum percentage
(average) of CO + H2 (58.45) was obtained.
17.1.3 Prepared background paper on UCG for the Technology Information,

Forecasting and Assessment Council (TIFAC) in 2006. Global
technological status, barriers, technological and policy interventions
required and prospects of UCG in India have been highlighted in this work.
17.2 THE FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY SOURCE
17.2.1 Compilation of general characteristics of coal seams and identification of

suitable sites for UCG. Evaluation of technical and economic indices.
Study of geology of UCG blocks, coal quality, roof and floor rock lithology,
geohydrology, geological models and numerical modelling to assist a
UCG-Pilot programme. A project proposal has been submitted to the
Council of Scientific and Industrial Research (CSIR) under the 11th Five
Year Plan to undertake the above study in association with some public
sector companies.
75
17.3 THE FISCAL REGIME FOR PUTTING R&D ON UCG ON THE FAST TRACK
17.3.1 Before answering this question, let us first understand if finance is the
constraint. It does not appear to be so. The outlay for S&T projects in the
Ministry of Coal remains unutilized year after year. The Coal India Limited
itself has some finance earmarked for S&T which is rarely utilized because
there is no serious contender with a serious project proposal.
17.3.2 If there are cutting edge technologies like UCG where R&D can help and if
finance is not the problem, why R&D projects are not being undertaken?
The answer to this perhaps would have to be searched in inadequate R&D
base in the country serving coal and mineral industries, the size of which
is quite big even by global standards.
17.3.3 To answer the question asked, it can be said that initially Rs. 20.00 - Rs.
40.00 crores (5-10 million US dollars) is required to decide whether UCG
is feasible or not. Subsequently, Rs. 160.00 crores (40 million US dollars)
is needed for a demonstration project.
Cost of 100MW IGCC Plant Vs an equivalent capacity UCG plant (Rs. in

crores)
Description IGCC UCG
Power block (Combined cycle) cost 365 365
Gasifier and particulate cleaning 100 0
Coal and ash handling plants 35 0
Acid gas removal and sulphur recovery 50 50
Balance of Plant (BOP) Mechanical/Electrical/Civil 100 75
Land/ Site development/ Erection and Commissioning/ 200 150
Taxes/ Duties
Total 850 640
76
FOR ENABLING A TIME-BOUND COMMERCIALIZATION OF THE UCG
TECHNOLOGY FOR VARIOUS APPLICATIONS INCLUDING POWER
GENERATION.
17.4.1 R&D is required in the following areas for commercialization of UCG:
17.4.1.1 Scanning of available data and identification of suitable UCG sites.

17.4.1.2 Drilling exploratory wells in the identified areas and collection of
core samples.
17.4.1.3 Characterization of coal.
17.4.1.4 Development of laboratory scale model.
17.4.1.5 Seismic studies for better understanding of coal seam and aquifer
occurrence.
17.4.1.6 Understanding the cavity formation because of UCG in various
geotechnical conditions.
17.4.1.7 Defining the cavity and its characteristics
mathematically/numerically vis-à-vis rate of production, total
product output, time, etc.
17.4.1.8 Hydro-geological conditions and aquifer characterization.
17.4.1.9 Experimental study of the compressibility characteristics of
partially/fully gasified remnants.
17.4.1.10 Development of norms for defining the subsidence engineering
parameters pertinent to UCG cavity formation.
17.4.1.11 Three-dimensional subsidence prediction software using the above
subsidence parameters and cavity modelling.
17.4.1.12 Establishment of terrestrial as well as remote ground movement
monitoring systems over some of the UCG sites.
17.4.1.13 Suggestions for design of UCG sites to minimize subsidence and
keep the subsidence and strains within the threshold values.
17.4.1.14 Examination of sensitivity of the production behaviour on
parameters like coal permeability, cleat density, fracture length,
etc., through modelling.
77
17.4.1.15 Pressure transient tests for in-situ permeability and stress
measurements.
17.4.1.16 Testing for compressibility characteristics for coal samples from
various coalfields in India.
17.4.1.17 Development of models for cavity simulation, various zones such
as caved and compressible zones.
17.4.1.18 Development of three dimensional subsidence prediction model.
17.4.1.19 Producing combustible gases and pyrolysis products from the
producing well.
17.4.1.20 Assessment of composition and heat values of the producer gas
and effect of temperature and pressure on heating value.
17.4.1.21 Establishment of a power station of appropriate size wherein the
product gas will be used as a feedstock for electricity generation.
17.4.1.22 Demonstration of the UCG-IGCC technology constantly for a given
period.
*********
78
CHAPTER - XVIII
INPUTS OF THE GAIL (INDIA)
LIMITED
79
18.1 THE PAST AND CURRENT WORK ON UCG.
18.1.1 The GAIL (India) Limited (GAIL) has signed a Memorandum of

Understanding (MoU) with the Government of Rajasthan on 26th
September, 2005 to set-up a pilot project at Barmer, Rajasthan. The GAIL
has also signed an MoU with M/s Ergo Exergy, Canada – the technology
provider for UCG – on t15th February, 2005 for developing projects using
their technology in India. The Government of Rajasthan has ear-marked
two sites of 195km2 and 32km2 out of block RJ-ON-90/1 (1691.75km2) in
October, 2005, for GAIL's pilot project. Clear cut and land lease assurance
for the commercial project was also obtained from the Government of
Rajasthan.
18.1.2 An assessment of the preliminary data collected from the Government of

Rajasthan was made by M/s Ergo Exergy, Canada, which indicates that
25 km2 of lignite field in Barmer holds high potential of gas which can
generate 1000 MW of power for 110 years.
18.1.3 At present, top management approval is in progress for signing the

General License Agreement with M/s Ergo Exergy, Canada and award of
site selection and pre-feasibility study.
18.2 ROADMAP FOR THE NEXT COURSE OF ACTION
Sl. No. Activities Date/ Timeline
a Signing of General License Agreement 31st July, 2007
b Award of contract for site selection and 15th August, 2007

pre-feasibility study
c Site Selection & Pre-Feasibility report February, 2008
d Pilot plant setup August, 2009
80
18.3 THE FUTURE PLAN FOR EXPLOITING UCG AS AN ENERGY SOURCE
18.3.1 Based on the available sizes of Industrial Gas turbine, it is envisaged to go

for a commercial plant of 750 MW after successful pilot stage operation.
18.3.2 Steps of execution are planned in the following manner: Step-I: Pilot plant
of 5 MW - by 2009. Based on successful implementation of the Pilot
Project of 5 MW power plant, first commercial plant of 177MW will be
completed by 2011 and second commercial plant of 177 MW will be
completed by 2013 and, finally, the third commercial plant of 400 MW will
be commissioned by 2015.
18.4 AREAS ON WHICH R&D IS REQUIRED
18.4.1 Through Site Selection & Pre-feasibility and site characterization, the
following things, amongst others, will be studied by M/s Ergo Exergy:
18.4.1.1 Coal seam density and characteristics.
18.4.1.2 Depth of coal seam.
18.4.1.3 Assessment of environmental risk.
18.4.1.4 Techno-economical feasibility for commercial power plant based

on UCG.
*********
81
CHAPTER - XIX
INPUTS OF THE CENTRAL MINE
PLANNING AND DESIGN INSTITUTE
LIMITED
82
19.1 INITIAL INITIATIVES BY THE CENTRAL MINE PLANNING AND DESIGN
INSTITUTE LIMITED (CMPDIL)
19.1.1 In India, UCG was taken up as an S&T project in the early 1980s. Initially,
13 coal/ lignite blocks were identified for UCG. However, only 3 blocks
were selected by the Soviet experts for generation of additional data. Data
was generated by the CMPDIL in few blocks selected by Soviet experts
for pilot studies for evaluating techno-economic viability of the process
under the Science & Technology (S&T) grant of the Ministry of Coal. Merta
Lignite deposit was found to be technologically feasible for pilot project
studies for techno-economic evaluation; but keeping in view the chances
of contamination of aquifers lying above and below the lignite seam, the
S&T project recommended that it should not be pursued further as the
entire population of the area is dependent on the ground water. As such,
the project was not pursued further.
19.2 RECENT DEVELOPMENTS
19.2.1 The Coal India Limited (CIL) has entered into a Memorandum of
Understanding (MoU) with the Oil and Natural Gas Corporation Limited
(ONGC) to jointly pursue UCG. The ONGC has entered into an MoU with
the Skochinsky Institute of Mining (SIM), Russia, for providing technical
consultancy in this field. .
19.2.2 The CIL/CMPDIL has identified 5 blocks and data packages were
prepared for these blocks based on the formats supplied by the
ONGC/SIM. The data supplied was examined by the Soviet experts and
only one block, namely Kasta in Raniganj coalfield, was selected for
generation of additional data for considering its suitability for taking-up
pilot scale studies. Actions have been taken to generate the requisite data.
19.2.3 A UCG related project with an approved outlay of Rs 11.25 crores and
duration of 4 years, funded jointly by the S&T grant of the Ministry of Coal
and the Department of Science & Technology, has been taken-up by the
83
Neyveli Lignite Corporation Limited (NLC) in 2005 with an objective of
evaluation of exploration data and selection of a Lignite block for UCG trial
to carry-out pilot scale studies and also to assess the heat value of the
gas produced. The project is under implementation.
19.2.4 The Adviser (Projects), Ministry of Coal, vide his D.O.No. 14011/4/05-CRC
dated the 18th of May 2007, addressed to the Chairman and Managing
Director (CMD), CMPDIL, has requested for the following:
¾ To demarcate potential blocks for UCG application, it is being

proposed to make the CMPDIL as the nodal agency along with the
Geological Survey of India (GSI), the Singareni Collieries Company Ltd
(SCCL), the NLC and the Directorate General of Mine Safety (DGMS)
for fixing criteria for selection of suitable coal reserves for application of
UCG. These reserves can be available in abandoned mines, existing
mines or in Greenfield areas.
¾ While fixing-up the criteria, interaction and assistance with foreign
experts in this field of operation will be required.
¾ The identified blocks can be offered for further development through
public/private/joint venture participation. The modalities for offering
UCG blocks initially can be adopted in the similar manner as that of
allocation of coal blocks with suitable modifications.
19.2.5 To facilitate operation of UCG, it is a necessity that suitable regulatory

framework has to be in place for implementation of UCG. A committee has
already drafted the regulatory framework for operation of UCG and for the
time being, it appears to be in order to initiate implementation of UCG in
India.
19.3 ACTIONS TAKEN BY THE CMPDIL ON THE ABOVE
19.3.1 A meeting was convened by the CMD, CMPDIL, on the 10th of June, 2007
at the CMPDIL, Ranchi, in which representatives from the GSI, the SCCL,
84
the NLC and the CMPDIL participated. In this meeting, the broad criteria
for selection of UCG blocks was decided.
19.3.2 In a subsequent meeting held on the 11th of July, 2007, the NLC and the
GSI have submitted a list of a few blocks where UCG could be taken-up.
These blocks are currently under examination.
19.3.3 In addition, the CMD, CMPDIL, has requested the CMDs of all the coal
producing subsidiaries of the CIL, the SCCL and the NLC for furnishing
the list of suitable blocks for UCG.
19.4 COLLATERAL ACTIVITIES FOR DEVELOPMENT
19.4.1 Draft Regulatory Framework for UCG Development: The Ministry of

Coal has constituted a committee comprising members from the CMPDIL,
the NLC, the Directorate General of Hydrocarbons, the ONGC and the
Mineral Exploration Corporation Limited (MECL) where the DGMS was
later co-opted as a member for drafting the regulatory framework to
govern UCG in India. A recommendation in this regard was made by this
committee in August, 2006, which is currently under examination by the
Ministry of Coal.
*********
85
ANNEXURE-I MENTIONED IN THE BACKGROUND
F.No.: Prn.SA/UCG/2003
GOVERNMENT OF INDIA
OFFICE OF THE PRINCIPAL SCIENTIFIC ADVISER
TO THE GOVERNMENT OF INDIA

Maulana Azad Road
New Delhi-110 011
Tel. No.: 011-2302 2091
: 011-2302 2115
Fax No.: 011-2302 2113
: 011-2302 2116
E-mail: npsa@nic.in
neerajmnes@yahoo.co.uk
Dated: 4th May, 2006
OFFICE MEMORANDUM
Sub.: Constitution of an R&D Committee on Underground Coal Gasification – reg.
The undersigned has been directed to convey the decision of the Government of
India to constitute an R&D Committee on Underground Coal Gasification (UCG), the
prime objective of that Committee being to synergize the various ongoing UCG
efforts in the country and help establish commercial UCG power plants in a
stipulated time frame. As decided in the meeting held in this Office on the 19th of April,
2006 with the various stakeholder organizations in the country, the Terms of Reference of
that Committee have been formulated through a consultative process.
2. The following shall be the Composition and the Terms of Reference of the said
Committee:
2.1 Composition:
Sr. No. Name, Designation and Organization Status
i. Dr. S.K. Sikka, Scientific Secretary to the Principal Chairman

Scientific Adviser to the Government of India, 324-A,
Vigyan Bhawan Annexe, Maulana Azad Road, New
Delhi - 110 011.
ii. Dr. K.L. Goyal, Former Director, Institute of Member
Management Development, Oil and Natural Gas
Corporation Limited, Dehradun.
Current Address: 8-A, Bengali Mohalla Road, Dehra
Dun – 248 001.
iii. Shri L. Jha, Director (Tech.), Coal India Limited, 10, Member
Netaji Subhas Road, Kolkata-700 001.
86
iv. Shri Ramji Rai, Director (Engg. R&D), Bharat Heavy Member
Electricals Limited, BHEL House, Siri Fort, New
Delhi-110 049.
v. Shri B.S. Negi, Director (Business Development.), Member
GAIL (India) Limited, 16, Bhikaiji Cama Place, R.K.
Puram, New Delhi-110 066.
vi. Shri K.S. Anandan, Director (Mines), Neyveli Lignite Member
Corporation Limited, Block-1, Neyveli-607 801.
vii. Dr. S.K. Haldar, Director (Tech.), Mineral Exploration Member
Corporation Limited, Dr. Baba Saheb Ambedkar
Bhawan, Seminary Hills, Nagpur-440 006.
viii. Shri V.K. Sibal, Director General, Directorate Member
General of Hydrocarbons, 4th Floor, Hindustan Times
House, Kasturba Gandhi Marg, New Delhi-110 001.
ix. Shri R.K. Jain, Member (Thermal), Central Electricity Member
Authority, Sewa Bhawan, R.K. Puram, New Delhi-110
066.
x. Dr. D.M. Kale, Executive Director, Keshava Deva Member
Malaviya Institute of Petroleum Exploration, Oil and
Natural Gas Corporation Limited, 9, Kaulagarh Road,
Dehradun-248 195.
xi. Dr. Amalendu Sinha, Director, Central Mining Member
Research Institute, Barwa Road, Dhanbad-826 001.
xii. Dr. S.B. Srivastava, Professor (Mining Engineering), Member
Indian School of Mines, Dhanbad-826 004.
xiii. Dr. K.V. Narappa, Deputy General Manager Member
(Geology), The Singareni Collieries Company
Limited, Kothagudem-507 101, Khammam District
(A.P.).
xiv. Shri Neeraj Sinha, Scientist ‘E’, Office of the Member-
Principal Scientific Adviser to the Government of Secretary
India, 326, Vigyan Bhawan Annexe, Maulana Azad
Road, New Delhi – 110 011.
2.2 Terms of Reference:
The following shall be the Terms of Reference of the Committee:-
i. The Committee will review the international and national status of the UCG
technology, identify the technology gaps vis-à-vis the world status and
recommend steps to bridge those gaps through indigenous R&D.
ii. The Committee will study the available data on UCG and encourage the use
of technologies like slim hole drilling for generating more data in the event of
necessity.
87
iii. The Committee will frame and recommend demonstration projects for power
generation through UCG and guide those projects through all the phases till
testing and evaluation.
iv. The Committee will recommend appropriate regulatory, fiscal and other such
measures for ensuring that the UCG technology is commercialized for various
applications (such as power generation, manufacture of pesticides &
chemicals, etc.) in the shortest possible time frame.
v. The Committee shall have the power to take, on payment of appropriate
remuneration, the services of senior experts, as and when required, for
discharging its duties.
vi. The Committee will also execute any other task that is assigned to it, from
time-to-time, by the Office of the Principal Scientific Adviser to the
Government of India.
vii. Initially, the tenure of the Committee will be two years from the date of issue
of the Office Memorandum notifying its constitution. The tenure can be
extended beyond the said period, if deemed fit by the Government of India.
viii. The Committee will meet atleast once every four months during its entire
tenure.
ix. The Chairman of the Committee shall have the authority to co-opt members
as and when required, and shall also have the authority to call for emergency
meetings of the Committee, even when they are not due.
x. Special invitees can be invited to attend meetings of the Committee, with prior
consent of the Chairman.
xi. The travelling and daily allowances will be payable, as per the existing rules
of the Government of India, to the non-official constituents, if any, of the
Committee. Official members of the Committee will be entitled to draw
travelling and daily allowances from their respective organizations to attend
the meetings of the Committee.
3. This issues with the approval of the Principal Scientific Adviser to the Government of
India.
Sd/-
(NEERAJ SINHA)
SCIENTIST ‘E’
To:
i) Dr. K.L. Goyal, Former Director, Institute of Management Development, Oil
and Natural Gas Corporation Limited, Dehradun.
Current Address: 8-A, Bengali Mohalla Road, Dehradun – 248 001.
ii) Shri L. Jha, Director (Tech.), Coal India Limited, 10, Netaji Subhas Road,
Kolkata-700 001.
iii) Shri Ramji Rai, Director (Engg. R&D), Bharat Heavy Electricals Limited,
BHEL House, Siri Fort, New Delhi-110 049.
iv) Shri B.S. Negi, Director (Business Development.), GAIL (India) Limited, 16,
Bhikaiji Cama Place, R.K. Puram, New Delhi-110 066.
88
v) Shri K.S. Anandan, Director (Mines), Neyveli Lignite Corporation Limited,
Block-1, Neyveli-607 801.
vi) Dr. S.K. Haldar, Director (Tech.), Mineral Exploration Corporation Limited,
Dr. Baba Saheb Ambedkar Bhawan, Seminary Hills, Nagpur-440 006.
vii) Shri V.K. Sibal, Director General, Directorate General of Hydrocarbons, 4th
Floor, Hindustan Times House, Kasturba Gandhi Marg, New Delhi-110 001.
viii) Shri R.K. Jain, Member (Thermal), Central Electricity Authority, Sewa
Bhawan, R.K. Puram, New Delhi-110 066.
ix) Dr. D.M. Kale, Executive Director, Keshava Deva Malaviya Institute of
Petroleum Exploration, Oil and Natural Gas Corporation Limited, 9, Kaulagarh
Road, Dehradun-248 195.
x) Dr. Amalendu Sinha, Director, Central Mining Research Institute, Barwa
Road, Dhanbad-826 001.
xi) Dr. S.B. Srivastava, Professor (Mining Engineering), Indian School of Mines,
Dhanbad-826 004.
xii) Dr. K.V. Narappa, Deputy General Manager (Geology), The Singareni
Collieries Company Limited, Kothagudem-507 101, Khammam District (A.P.).
Copy, for information, to:
i) Shri M. S. Srinivasan, Secretary, Ministry of Petroleum & Natural Gas, Room

No. 207, 2nd Floor, Shastri Bhawan, New Delhi-110 001.
ii) Shri Harish Chandra Gupta , Secretary, Ministry of Coal, Room No. 317, ‘A’
Wing, Shastri Bhawan, New Delhi-110 001.
iii) Shri Subir Raha, Chairman and Managing Director, Oil and Natural Gas
Corporation Limited, Jeevan Bharti Building, Indira Chowk, New Delhi -110
001.
iv) Shri Shashi Kumar, Chairman, Coal India Limited, 10, Netaji Subhas Road,
Kolkata-700 001.
v) Shri A.K. Puri, Chairman and Managing Director, Bharat Heavy Electricals
Limited, BHEL House, Siri Fort, New Delhi – 110 049.
vi) Shri Prashanto Banerjee, Chairman and Managing Director, GAIL (India)
Limited, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi -110 066.
vii) Shri S. Jayaraman, Chairman and Managing Director, Neyveli Lignite

Corporation Limited, Block – 1, Neyveli – 607 801, Cuddalore District,
Tamilnadu.
viii) Dr. A.K. Lomas, Chairman and Managing Director, Mineral Exploration
Corporation Limited, Dr Baba Saheb Ambedkar Bhawan, Seminary Hills,
Nagpur – 440 006.
89
ix) Shri Rakesh Nath, Chairperson, Central Electricity Authority, Sewa Bhavan,
R.K. Puram, New Delhi – 110 066.
x) Shri R. H. Khwaja, Chairman and Managing Director, The Singareni Collieries

Company Limited, Singareni Bhavan, Red Hills, Khairatabad, Hyderabad –
500 004.
xi) Dr. T. Kumar, Director, Indian School of Mines, Dhanbad – 826 004.
Copy also to:
i) Dr. R. Chidambaram, Principal Scientific Adviser to the Government of India,

318, Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi – 110 011.
ii) Dr. S.K. Sikka, Scientific Secretary to the Principal Scientific Adviser to the
Government of India, 324-A, Vigyan Bhawan Annexe, Maulana Azad Road,
New Delhi – 110 011.
Sd/-
(NEERAJ SINHA)
90
ANNEXURE-II MENTIONED IN THE BACKGROUND
F.No.: Prn.SA/UCG/2003
GOVERNMENT OF INDIA
OFFICE OF THE PRINCIPAL SCIENTIFIC ADVISER
TO THE GOVERNMENT OF INDIA

Maulana Azad Road
New Delhi-110 011
Tel. No.: 011-2302 2091
: 011-2302 2115
Fax No.: 011-2302 2113
: 011-2302 2116
E-mail: npsa@nic.in
neerajmnes@yahoo.co.uk
nprnsa@gmail.com
Dated: 12th February, 2007
OFFICE MEMORANDUM
Sub.: Constitution of a Working Group on Underground Coal Gasification – reg.
In accordance with the decisions taken in the recently held 1st meeting of the R&D
Committee on Underground Coal Gasification, the undersigned has been directed to
convey the approval of the Government of India to the constitution of a Working Group
on Underground Coal Gasification, the prime objective of that Group being to
prepare a Road map to develop the Underground Coal Gasification technology in
the country for various applications (such as power generation, manufacture of
pesticides & chemicals, etc.).
2. The following shall be the Composition and the Terms of Reference of the said
Group:
2.1 Composition:
Sr. No. Name, Designation and Organization Status
i. Shri A.K. Hazarika, Director (Onshore), Oil and Natural Gas Chairman
Corporation Limited, New Delhi.
ii. Shri L. Jha, Director (Tech.), Coal India Limited, Kolkata. Member
iii. Shri A.K. Purwaha, Director (Business Development.), GAIL Member
(India) Limited, New Delhi.
iv. Shri K.S. Anandan, Director (Mines), Neyveli Lignite Member
Corporation Limited, Neyveli.
v. Shri A.K. Ghosh, General Manager (PSE), Bharat Heavy Member
Electricals Limited, New Delhi.
91
vi. Dr. Amalendu Sinha, Director, Central Mining Research Member
Institute, Dhanbad.
vii. Dr. S.B. Srivastava, Professor (Mining Engineering), Indian Member
School of Mines, Dhanbad.
viii. Dr. K.L. Goyal, Former Director, Institute of Management Member
Development, Oil and Natural Gas Corporation Ltd., Dehradun.
ix. Shri Neeraj Sinha, Scientist ‘E’, Office of the Principal Scientific Member-
Adviser to the Government of India, New Delhi. Secretary
2.2 Terms of Reference:
i. The Working Group will prepare and submit, to the R&D Committee on
Underground Coal Gasification, a Road Map for the development of the
Underground Coal Gasification technology for various applications (such as
power generation, manufacture of pesticides & chemicals, etc.).
ii. For accomplishing the above, the Working Group will assess the on-going
efforts and future plans of different organizations, both in the public as well as
the private sector, on Underground Coal Gasification technology.
iii. The Working Group will identify, plan and initiate the R&D to be done in
Underground Coal Gasification by the various involved stakeholders.
iv. For discharging its duties, the Working Group may hire the services of senior
experts/ consultants on payment of appropriate remuneration.
v. The tenure of the Working Group will be 9 months from the date of its
constitution, i.e. from the date of issue of this Office Memorandum.
3. This issues with the approval of the Scientific Secretary to the Principal Scientific
Adviser to the Government of India.
Sd/-
(NEERAJ SINHA)
SCIENTIST ‘E’
and Member-Secretary to the R&D Committee
To:
i) Shri A.K. Hazarika, Director (Onshore), Oil and Natural Gas Corporation Limited,
Jeevan Bharati Buidling, 9th Floor, Tower II, 124 Indira Chowk, New Delhi-110 001.
ii) Dr. K.L. Goyal, Former Director, Institute of Management Development, Oil and
Natural Gas Corporation Limited, Dehradun.
Current Address: 8-A, Bengali Mohalla Road, Dehradun – 248 001.
iii) Shri L. Jha, Director (Tech.), Coal India Limited, 10, Netaji Subhas Road, Kolkata-
700 001.
iv) Shri A.K. Purwaha, Director (Business Development.), GAIL (India) Limited, 16,
Bhikaiji Cama Place, R.K. Puram, New Delhi-110 066.
92
v) Shri K.S. Anandan, Director (Mines), Neyveli Lignite Corporation Limited, Block-1,
Neyveli-607 801.
vi) Shri A.K. Ghosh, General Manager (PSE), Bharat Heavy Electricals Limited,
BHEL House, Siri Fort, New Delhi – 110 049.
vii) Dr. Amalendu Sinha, Director, Central Mining Research Institute, Barwa Road,
Dhanbad-826 001.
viii) Dr. S.B. Srivastava, Professor (Mining Engineering), Indian School of Mines,
Dhanbad-826 004.
Copy, for information, to:
i) Shri C.P. Singh, Director (Engg. R&D), Bharat Heavy Electricals Limited, BHEL
House, Siri Fort, New Delhi-110 049.
ii) Dr. S.K. Haldar, Director (Tech.), Mineral Exploration Corporation Limited, Dr. Baba
Saheb Ambedkar Bhawan, Seminary Hills, Nagpur-440 006.
iii) Shri V.K. Sibal, Director General, Directorate General of Hydrocarbons, 4th Floor,
Hindustan Times House, Kasturba Gandhi Marg, New Delhi-110 001.
iv) Shri R. Dahiya, Member (Thermal), Central Electricity Authority, Sewa Bhawan,
R.K. Puram, New Delhi-110 066.
v) Dr. D.M. Kale, Executive Director (R&D), Oil and Natural Gas Corporation Limited,
SCOPE Minar, 15th Floor, Lakshmi Nagar, Delhi-110 092.
vi) Dr. K.V. Narappa, Deputy General Manager (Geology), The Singareni Collieries
Company Limited, Kothagudem-507 101, Khammam District (A.P.).
Copy also to:
i) Dr. R. Chidambaram, Principal Scientific Adviser to the Government of India, 318,

Vigyan Bhawan Annexe, Maulana Azad Road, New Delhi – 110 011.
ii) Dr. S.K. Sikka, Scientific Secretary to the Principal Scientific Adviser to the
Government of India and Chairman of the R&D Committee, 324-A, Vigyan Bhawan
Annexe, Maulana Azad Road, New Delhi – 110 011.
Sd/-
(NEERAJ SINHA)
93

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PSA/2007/1

Under the auspices of

4. As stated above, the prime objective of that Committee is to synergise the

1.1.5. As with any hydrocarbon combustion process, UCG generates carbon

1.2 UPs AND DOWNs OF UCG:

1.2.1 The idea for coal gasification, either underground or in aboveground

1.2.9 In the United Kingdom, the government undertook a five-year effort to

2.1.2 UCG is a process to convert unminable underground coal/lignite into

3.1.2 Due to prevailing sub-surface conditions such as depths, geology, geo-

3.1.4 In an Inter-Ministerial meeting under the chairmanship of the Secretary

• There is an urgency to tackle the UCG project.

3.2 FIELD WORK AT THE CHOSEN SITE

3.2.2 As per recommendations of the report, an Information Well – UCG-1 –

3.2.6 The CMRS, Dhanbad, had undertaken environmental studies at and

3.3 BACKUP LABORATORY WORK

3.3.2 On analysis of geological and geo-hydrological data, coal seams

3.3.7 A second International Seminar was organized in September, 1987, to

3.3.9 In November, 2006, a Workshop on UCG was hosted jointly by the

Component UCG model predictions Field measurements

Hydrogen 27.2 27.3

MANAGING GREENHOUSE GASES

INPUTS OF THE OIL AND NATURAL

GAS CORPORATION LIMITED

7.2 Simultaneously, the ONGC signed Memoranda of Understanding (MoUs) with

INPUTS OF THE DIRECTORATE

8.2 FUTURE PLANS FOR DEVELOPING UCG AS AN ENERGY SOURCE

8.3 REGULATORY FRAME WORK FOR UNDERGROUND COAL GASIFICATION

8.3.1 The Operation, Product and the Process of UCG:

iv) Therefore, it would be prudent to consider development of this resource

v) Moreover, in para (c) & (d) of the Memorandum of Understanding (MoU),*

vi) The legal and regulatory framework for commercialization of UCG,

* (TO BE GIVEN AS AN ANNEXURE)

viii) Further, UCG as a product is compatible to the definition of “mineral oils”

* (TO BE GIVEN AS AN ANNEXURE)

xi) Further, Hydrocarbons has been defined in the said act as

8.3.2 Fast Track Development of UCG Technology

i) In the interest of development of UCG techniques on a fast track, it would

8.3.3 Safety & Environment Framework

8.3.3.1 UCG operation requires: -

d. According to the Directorate General of Mine Safety (DGMS), UCG

8.4 AREAS REQUIRING R&D EFFORTS

8.4.1 R&D efforts are required to evaluate the potential application of

INPUTS OF THE ESSAR OIL

9.2 WORK PLAN (TENTATIVE):

Stage I: Pre-selection of block

Stage II: Preliminary Exploration and Feasibility study

Stage III: Gasification Operation and Evaluation

TIME SCHEDULE AND ESTIMATED COST ABSTRACT

Project Activities Month Duration in

Gasification Operation & Evaluation:

Year-wise and stage-wise estimated cost abstract (rupees in lakhs)

INDIAN SCHOOL OF MINES

10.3 FUTURE PLANS FOR EXPLOITING UCG AS AN ENERGY RESOURCE:

10.3.3 The salient features of the above-mentioned multidisciplinary R & D project

¾ Characterization of the coal/coal-seams and the rocks above & below

The project duration, as proposed, would be 3 years.

RELIANCE INDUSTRIES LIMITED

11.1.2. As a measure to understand technology and operations of UCG, a RIL

11.1.5. With the recent notification by Government of India allowing captive

11.2.1 Notification of UCG by the Government of India necessitates that

11.4 UCG R&D AREAS

11.4.1.1 SITE CHARACTERIZATION: The physical, chemical, hydrological