Technical Evaluation to Use Local

Coal Instead of Imported Coal at

Sahiwal Power Plant

Submitted to: Dr. Asim

Submitted by: Adeel Tarar
2016-ME-169

University of Engineering & Technology, Lahore

Adeel Tarar CEP PP 2016-ME-169

Technical Evaluation to Use Local Coal Instead of Imported Coal at

Sahiwal Power Plant

Abstract
Coal is used as a major source of power generation throughout the world. The burning of this
solid fuel is coupled with a lot of harmful emissions, which may pollute the environment. In
order to limit the emissions, all the countries in the world, including Pakistan, have set some
emission standards, which limit the level of emissions from the burning of the fossil fuels,
specifically coal.
There are a lot of clean coal technologies adopted by different countries in order to combat the
harmful emissions. Among them, coal gasification through IGCC, has been recommended for
Pakistani coal. Sahiwal Power Plant currently imports all the coal needed for its consumption.
Through proper technical evaluation and cost benefit analysis, it was proved that local coal is
feasible than imported coal. The cost of mining and transportation is saved from using coal.
Despite of low heating value, local coal is more environment friendly and sustainable because of
low content of harmful elements which could cause serious emissions. The usage of local coal
also brings in a lot of socio-economic benefits for the local people which makes it much more
likeable to use instead of the imported coal.

1. Introduction
Power plants are a major source of power in the world. Hydroelectric power plants were the first
to be used for power generation purposes. Then thermal and now renewable power plants were
invented to meet the ever-increasing power demand. Among these, thermal power plants are the
ones in most use and the biggest source of power generation. They operate on fossil fuels like
coal, oil and natural gas. Our focus in this study is on coal – fired power plants (CPPs). Coal is
an abundant fossil fuel like oil or natural gas and in developing countries like Pakistan its
presence is very valuable.
Coal based power plants are responsible for meeting 38.5% of the world’s power generation
which is approximately a third of the total power generation. Although it is a relatively cheap
source of power but it has a significant side – effect i.e. emission of pollutant gases in large
quantities. Around 10 gigaton (Gt) of CO2 emission occurs from CPPs each year. Due to this fact
world in general and developed specifically is moving away from thermal to renewable and
hydroelectric power-plants in an effect to stop global warming phenomenon and to reduce
pollution levels in environment. But developing countries like Pakistan which are more
concerned with meeting its power demand have tremendous interest in CPPs, since CPPs are
capable of providing an economical source of power and thus helping the national economy
grow. Sahiwal coal power plant is a major CPP in Pakistan. But it is not designed for the locally
available coal in Pakistan, rather uses exported coal. This is because coal in Pakistan is not of
high quality and most CPP designs around the world do not use this category of coal. So this

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study focuses on technical requirements and feasibility for local coal to be used instead of
exported coal [1].
2. Emissions Level of CPPs
As discussed in the previous section, CPPs contribute a lot in the global warming by releasing
gases or chemicals that are not at all good for environment. The main emissions from CPPs are:

 Nitrogen Oxides (NOx)

 Sulphur Oxides (SOx)
 Suspended Particulate Matter (SPM)

There are some other emissions as well which include CO2, mercury etc. To minimize the impact
of these harmful emissions, there are certain standards which are developed in order to control
the emission levels. We will discuss these standards implementing in different countries and then
in our country.

2.1. Australia
Below are the standards of emissions in Australia regarding the coal-fired power plants. The
units of these emissions are parts per million (ppm).

Table 1: Emission Standards of Australia [2]

Pollutant Plant type Emission Limits,
mg/m3
NOX (as NO2) Power generating boiler 800
>30 MWe
SOX (as SO2) Fuel burning equipment 200

PM10 All power plant boilers 80

2.2. Germany
Following are the emission standards that are implemented in Germany:

Table 2: Emission Standards of Germany [2]

Pollutant Plant type Emission Limits,
mg/m3
NOX (as NO2) Power generating boiler 150
SOX (as SO2) Fuel burning equipment 150

PM10 All power plant boilers 10

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2.3. European Union (EU)

Following are the emission standards that are implemented in European Union:

Table 3: Emission Standards of European Union [3]

Pollutant Plant type Emission Limits,
mg/m3
NOX (as NO2) Power generating boiler 150
SOX (as SO2) Fuel burning equipment 150

PM10 All power plant boilers 10

2.4. Japan
Japan observes the following emission standards:

Table 3: Emission Standards of Japan [2]

Pollutant Plant type Emission Limits,
mg/m3
NOX (as NO2) Power generating boiler 383 (200 ppm)

SOX (as SO2) Fuel burning equipment 133 (50 ppm)

PM10 All power plant boilers 100

2.5. The United States

The standards for the emissions of gases of coal-fired power plants in the US are given below:

Table 4: Emission Standards of United States [2]

Pollutant Plant type Emission Limits,
ng/J
NOX (as NO2) Power generating boiler 88
SOX (as SO2) Fuel burning equipment 130

PM10 All power plant boilers 11

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Primary standards include public health protection, and of sensitive populations such as
asthmatics, children, and the elder people.
Secondary standards provide public welfare protection, including protection against decreased
visibility and damage to animals, crops, vegetation, and buildings.

2.6. Pakistan
In Pakistan, the standards for the emissions of the pollutants are given by the National
Environmental Quality Standards (NEQS):

Table 6: Emission Standards of Pakistan by NEQS [4]

Pollutant Background Air Average Time Max. Emissions
Quality

NO2 - 1 year 100 µg/m3 (0.05 ppm)

SO2 Unpolluted 1 year 50 mg/m3

Moderately polluted 1 year 50 mg/m3

High 1 year 10 mg/m3

PM - 1 year 500 mg/m3

2.7. Punjab
Punjab follows the same standards as given by the National Environmental Quality Standards
NEQS:

Table 7: Emission Standards of Punjab [5]

Pollutant Background Air Average Time Max. Emissions
Quality
NO2 - 1 year 100 µg/m3 (0.05 ppm)

SO2 Unpolluted 1 year 50 mg/m3

Moderately polluted 1 year 50 mg/m3

High 1 year 10 mg/m3

PM - 1 year 500 mg/m3

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2.8. Comparison
We have found out all the emission standards globally as well as on the national level, now we
will make a comparison of them all:

Table 8: Comparison of Emission Standards of different countries

Place SOx NOx PP
Australia SO3: 200 mg/m3 NO2: 800 mg/m3 80 mg/m3

Germany SOx: 150 mg/m3 NOx: 150 mg/m3 10 mg/m3

Japan SOx: 50 ppm NOx: 200 ppm 100 mg/m3

(SO2: 133 mg/m3) (NO2: 383 mg/m3)
US SO2: 130 ng/J NOx: 88 ng/J 11 ng/J

Pakistan 50 mg/m3 NO2: 100 µg/m3 500 mg/m3

Punjab 50 mg/m3 NO2: 100 µg/m3 500 mg/m3

3. Clean Coal Technologies

Coal is a very highly polluting energy source. It is in fact, considered the dirtiest among the lot.
Coal is the most carbon intensive fossil fuel. Burning of coal produces almost 15 billion tonnes
of CO2 each year. The emission of CO2 results in the global warming. Its burning also produces a
large amount of sulphur dioxide, which is the main reason of acid rain. There also many harmful
gases emitted by burning of coal. That’s why it’s very necessary to employ certain techniques or
methods to reduce the harmful effects of burning goal. And they comprise the clean coal
technologies.

3.1. Different Technologies Used

Following are some of the clean coal technologies widely used:

a) Coal Washing
The first step in coal preparation is coal washing. When the coal reaches the power plant, it is in
the raw form i.e. it has some minerals attached to it that need to be removed before the process of
burning starts. It is generally done in two steps. First is crushing it and removing the unwanted
minerals through gravity separation. Then, pulverizing it to make it ready for further processes.
[6]

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b) Coal Gasification
It is the technology which converts the coal to a gaseous mixture through the process of coal
pyrolysis and char gasification. Through this technique, we can avoid the burning of coal
altogether. By using Integrated Gasification Combined Cycle (IGCC), steam and high
pressurized air or oxygen is made to react with coal to force the carbon molecules apart. The
result gives us syngas, a mixture of CO and H 2. This gas is then cleaned and burned in a gas
turbine to produce electricity. The heat energy released from the gas turbine powers a steam
turbine. Since IGCC power plants have the luxury of creating two forms of energy, they can
reach up to an efficiency of 50%. Coal gasification is considered to be the heart of the clean coal
technologies. IGCC is becoming more and more popular, because it reaches high efficiency and
also is a very environment friendly method. [7]

Fig. 1: An IGCC System

c) Low NOx Burners

The burning of coal produces a lot of harmful gases among which are nitrogen oxides, which is a
cause of ground level ozone. Thus, these burners are employed to prevent the formation of these
oxides by up to 40% by reducing the available oxygen in the combustion chamber. The reduction
of O2 impacts the level of nitrogen oxides produced. Reburning process can further reduce it up
to 70%, and by using selective catalytic reduction, nitrogen oxides can be reduced up to 90%.
Hence, certain level of pollution is prevented. [8]

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Fig. 2: Contact Reduction for removal of NOx

d) Electrostatic Precipitators
Electrostatic precipitator or bag filters is a device that removes the particulate matters, dust and
smoke, from the flue gas by using the charge of an electric field. Then they are collected on a
collector plate. PM are very harmful as they are the cause of asthma and other respiratory
ailments. It is different to wet scrubbers because it applies the force on the PM being collected
and this makes this device very efficient. It can remove up to 99% of fly ash from the flue gas.
[9]

Fig. 3: An Electrostatic Precipitator Device

e) Fluidized Bed Combustion (FBC)

FBC technique is specifically used for burning of solid fuels. In this technique, solid fuel
particles are dispersed in a hot fluid bath of particulate matter such as ash, sand etc., and then
oxygen is passed through it to provide the means for combustion. The temperature of the bed is
kept around 750-1000℃. This result in rapid heat transfer. Due to the low combustion
temperature, it reduces corrosion and allow less emission of sulphur and nitrogen oxides. It can
also hinder the emission of sulphur by addition of limestone to the fluidized bed. This makes
FBC a highly efficient heating process without the need to prepare expensive fuels. As its size is
much smaller than a furnace, it is considered cheap and flexible than the latter. [10]

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3.2. CCT for Pakistani Coal

Pakistani is a coal rich country with large reserves of coal present. It has a lot of power
generation capacity. But we are unable to do so because of the lack of basic infrastructure,
inadequate spending and lack of coal mining techniques. However, through proper devising of
the clean coal technologies, we can make our coal sustainable. The requirement is to develop
such a strategy, that may make our coal to be highly efficient, environment friendly and
sustainable.

3.2.1. Composition of Pakistani Coal

Thar coalfield has about 175 billion of the total 184 billion tonnes of recoverable reserves of
Pakistan. Thar coalfield covers an area of 8800 km2 and approximately contains 193 Gt of
lignite coal. This coal has a high heat content of 9.9–13.4 MJ/kg [11]. According to a survey,
Pakistan’s coal has been ranked from lignite-B to sub-bituminous-A. In addition to its low
ranking, it has high water, ash and sulphur content. The following table shows the details of
composition of coal in Thar coalfield:

Table. 9: Analysis of Coal in Thar coalfield

Property Value
Moisture 23.42%
Carbon 16.66%
Ash 6.24%
Sulphur 1.16%
Nitrogen 0.31%
Heating Value 11.48 MJ/kg

3.2.2. Coal Gasification through IGCC

Coal gasification is a combustion process through which the solid fuel is converted into fuel gas
i.e. synthetic gas. It consists of carbon mono-oxide and hydrogen gas. Syn gas is free of
particulate matter due to the presence of several cleaning technologies. This makes the output of
the gasification pure and free of polluted materials. Following are the major gasification facilities
in Pakistan:
 Sasol-Lurgi dry ash
 GE
 Shell
 Conoco Phillips E-gas

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Gasification is widely used for power generation and clean synthetic gas. However, due to the
low quality and rank of Pakistani coal, it has less efficiency. Because of high moisture content
and sulphur, large process equipment is required. High ash content means that more oxygen is
required to keep the temperatures down and also large slag handling system is required.
Therefore, this increases the cost of the gasification system significantly.
Therefore, to counter all the above problems, the system is upgraded to IGCC. Here the emission
gas from the gasifier is burned in a gas turbine to generate electricity. The waste gas from the gas
turbine is then used to power a steam turbine. In this way, IGCC combines both turbine units and
is termed as ‘combined cycle’. This increases the efficiency of the power plant to 42-44% [12].
The power consumed in general power plants for FGD is now utilized in IGCC system. In this
way, it can be termed as more economical and efficient. [13]

3.2.3. Significance
The use of gasification with IGCC is best suitable for Pakistani coal as it has the following
benefits:
 The gasification results in Syn gas, which is a source of power, clean fuel, transportation,
cooking and for heating.
 The conversion of solid fuel into a gaseous fuel makes it easier to clean the emission.
Hence, it reduces the harmful impact that otherwise can have on the environment.
 It can be utilized to manufacture products and chemicals such as methanol, ammonia,
ethanoic acid and as a substitute fuel.
 Coal gasification through IGCC provides opportunity to generate electricity with
increased efficiency, less harm to environment and more cost-effective methods.[14]

4. Techniques to increase the usage of Local Coal

Pakistan is a coal rich country with total reserves of around 184 billion tonnes. Sindh contains
almost 90% of the total reserves in Pakistan, with about 175 billion tonnes in Thar (Sindh).
Despite this luxury, 70% of our coal consumption comes from imports from Indonesia, South
Africa and Australia. Local coal contains high level of moisture, sulphur and ash content which
lowers its heating value. Thus, imported coal is preferred over the former.

Following table provides the detail of local coal resources of Pakistan:

Table. 10: Coal Reserves of Pakistan [15]

Province Coalfield Coal Resources
(million tonnes)
Sindh Lakhra 1328
Sonda-Thatta 3700
Jherruck 1323
Others 2266

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Thar 175506
Baluchistan Khost-Sharig-Harnai 76
Sor-Range / Degari 50
Duki 50
Mach-Abegum 23
Pir Ismail Ziarat 12
Chamalang 6
Punjab Eastern Salt Range
Central Salt Range 235
Makerwal
Grand Total - 184575

4.1. Mining
The total coal reserves all over the Pakistan have been discussed above. Mining of all these
resources are done by using several methods. Baluchistan still use old and outdated methods of
extracting coal by handpicks and animals. In Pakistan, vertical shaft mining is done mostly. In
this mining technique, a vertical tunnel is dug and then coal is excavated from it. Thar coalfield
use open cast mining. This method is employed where the coal is near the surface. It avoids the
digging of deep mines and the respective long shafts used there. Coal can be extracted, and the
time used to dig long shafts is saved. This makes it cost effective and efficient.
Several other techniques can also be applied that can not only increase the mining capacity but
also decrease the human capital required at the mines. In this way, mining process can achieve its
highest efficient point. According to a study, using unmanned mines and making all the process
of mining mechanical can do the purpose. Digital mining technology may be employed which
digitizes the initial information from radars, seismic prospectors, drilling etc. Then, a layout is
made that contains all the information required from the mining such as transportation,
ventilation and safety regulations. [16]

4.2. Transportation
We are required to utilize a transportation method for the usage of local coal instead of the
imported coal in Sahiwal coal-fired power plant. Currently the imported from Indonesia and
South Africa comes via railways. It starts from Karachi and Port Qasim and reach the plant by
passing from Sahiwal. The plant has the capacity to store the coal for at least 60 days.
For the usage of local coal, we desire a transportation method for the coal from Thar to reach the
plant. Now, currently there are no rail roads to transport it. However, there is a road present
which can be used by trucks to transport the coal to the desired place. A project of constructing
railroad from Islamkot, Tharparkar to Chor, Mirpur Khas is underway. There is a railroad present
from Chor to Tando Muhammad Khan to Sahiwal. After the completion of this rail track, the
coal can be transported directly from Thar to the plant site.

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The following figure shows the railway networks. Here we can see the railway tracks that will
transport the coal from Thar to the plant site:
4.3. Utilization
We are required to check the utility of the local coal so that it can be used instead of the imported
coal, at Sahiwal Power Plant. It is a 1320 MW Power Plant with the following characteristics:

Coal Consumption (Annual) = 4.48 MT

Rate of Coal Consumption = 291.65 g/kWh
Annual Power Generating Capacity = 8976 GWh
Fuel to Electric Efficiency = 42.11%

To get to know the amount of local coal required for the plant instead of the imported coal at the
plant, first we will see the following statistics:

Table. 11: Statistics of Coal in Pakistan [17]

Statistics of Coal in Million Tonnes
Coal Reserves 3063.997
Coal Production 4.088
Coal Consumption 9.252
Net Coal Imports 6.448

Now, from the data of Sahiwal Power Plant provided above, we will find the yearly coal
requirement, in case we use the local coal.

In the formula below, we know the fuel to electric efficiency and we also know the power
output, so by putting the values, we will get the value of input i.e. the consumption of the coal:
Output
Efficiency=
Input
Input=3134.647 MW

To get the amount of energy required in a day, we will multiply the value with the number of
production hours in a day:
Energy Needed Daily =Input x 22
Daily Energy=68,962,241.75 kWh

Local Coal of Thar

In the previous section, we found out the value of the heating value of lignite coal of Thar:
Heating Value = 11.48 MJ/kg

By comparing heating value with the daily energy, following relation can be made:
1 kg = 3.18889 kWh

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Now, finding the daily consumption of coal in terms of kg:

Daily Energy
Daily Consumption=
Energy / kg
Daily Consumption=21625782.56 kg

Now, to compare the consumption of the local coal with the imported one, we will convert this
value into tonnes and then find the annual consumption as well:
Daily Consumption=21625.783tonnes
Annual Consumption=7.893 million tonnes

Thus, annual consumption of Thar coal for Sahiwal Power Plant comes out to be 7.89 MT as
compared to 4.48 MT imported coal. That’s almost twice as the imported coal quantity.

4.4. CO2 Emissions

Carbon dioxide is a Greenhouse gas (GHG) and is a major pollutant as well. Therefore, its
necessary to minimize its emission as well. We studied the clean coal technology specifically in
order to reduce CO2 emission, in the previous section. In this section, we will calculate the CO 2
emissions from both sources of coal and will try to see whether the local coal is feasible or not.
Following table shows the chemical analysis of the imported bituminous coal used in the plant.
Its quite evident that the there is a great difference between the heating values of both the coals.

Table. 12: Analysis of Imported Coal used in the plant

Property Value
Moisture 9.43%
Carbon 57.50%
Ash 13.99%
Sulphur 0.56%
Nitrogen 1.02%
Heating Value 22.223 MJ/kg

4.4.1. Imported Coal

We will find the amount of CO2 released in the same amount of the coal burned:
CO2 MM
CO 2 released per MJ =Carbon content x HV x
C MM
CO 2 released per MJ=46.853 kg
kg of CO 2 released withthe input energy=4.966 ×108

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4.4.2. Local Coal

To find the amount of CO2 released from the local (Thar) coal, we will use the same relation.
The answer comes out to be:
CO 2 released per MJ =24.204 kg
kg of CO 2 released with the input energy=2.566× 108

4.4.3. Comparison of CO2 emissions

After comparing both the values, the difference between both the values comes out to be around
48%. The difference between the values is due to the carbon content difference. From the above
calculations, it can be seen that the local coal emits far lesser CO 2 than the imported one. Thus,
from the carbon dioxide emissions point of view, local coal is a better choice.

4.5. Pollution
The emissions from the Power Plant results in a lot of air pollution. The emission gas contains
Sulphur and nitrogen oxides, and Particulate Matters. All of them are responsible in adding to the
pollution of the environment. In this section, we will calculate the value of all of these emissions
in both, local and imported coal.

4.5.1. Imported Coal

It is the Bituminous coal which is imported from Indonesia and South Africa

Particulate Matter (PM)

PM includes the dust and ash content present in the emission after the burning of the solid fuel.
In order to calculate this, first we will have to find pounds in a million Btu:
22.223 MJ/kg = 9554.179 Btu/lb.
10519300 MWh = 35891851.6 million Btu
1000000
Lbs of coal ∈a million Btu=
9554.179
Million Btu=104.67 lbs
Now,
Ash emitted per million btu= Ash content x lbs∈a million btu
Ash emitted per million btu=0.1399 x 104.67=14.643lbs
Ash emitted annually=2.384 ×108 kg

Sulphur Oxides (SOx)

Among Sulphur oxides, SO2 has the most concentration. Thus, we will find out the quantity of
Sulphur dioxide emitted from the emission:

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SO 2 MM
SO2 emitted per million btu=Sulphur content x lbs∈a million btu x
S MM
64
SO2 emitted per million btu=0.0056 x 104.67 x =1.1723 lbs
32
SO2 emitted annually=42.076 million lbs

Nitrogen Oxides (NOx)

Among Nitrogen oxides, NO has the most concentration. Thus, we will find out the quantity of
nitric oxide emitted from the emission:
NO MM
NO x emitted per million btu=Nitrogen content x lbs∈a million btu x
N MM
30
NO x released per million btu=0.0102 x 104.67 x =1.143 Pounds
28
NO x emitted annually=41.024 million lbs

4.5.2. Local Coal

It is the Lignite coal which is mined from Thar coalfield in Sindh.

Particulate Matter (PM)

PM includes the dust and ash content present in the emission after the burning of the solid fuel.
In order to calculate this, first we will have to find pounds in a million Btu:
11.48 MJ/kg = 4935.516 Btu/lb.
And,
10519300 MWh = 35891851.6 million Btu
1000000
Lbs of coal∈a million Btu=
4935.516

One Million Btu=202.613 lbs

Now,
Ash emitted per million btu= Ash content x lbs∈a million btu

Ash emitted per million btu=0.0624 x 202.613=12.643 lbs

Ash emitted annually=2.058× 108 kg

Sulphur Oxides (SOx)

Among Sulphur oxides, SO2 has the most concentration. Thus, we will find out the quantity of
Sulphur dioxide emitted from the emission:

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SO 2 MM
SO2 emitted per million btu=Sulphur content x lbs∈a million btu x
S MM
64
SO2 emitted per million btu=0.0116 x 202.613 x =4.7006 lbs
32
SO2 emitted annually=168.713 million lbs

Nitrogen Oxides (NOx)

Among Nitrogen oxides, NO has the most concentration. Thus, we will find out the quantity of
nitric oxide emitted from the emission:
NO MM
NO x emitted per million btu=Nitrogen content x lbs∈a million btu x
N MM
30
NO x released per million btu=0.0031 x 202.613 x =0.673 Pounds
28

NO x emitted annually=24.155million lbs

4.5.3. Comparison
Now, we will make a table to compare the value of the emissions of the power plant:

Table. 13: Comparison of the Emissions of Imported and Local Coal

Emission Element Emission Value
Imported Coal Local coal
PM (108 kg) 2.384 2.058
SOx (million lbs) 42.076 168.713
NOx (million lbs) 41.024 24.155

In this table, it can be seen that the ash content and nitrogen emissions, are effectively reduced
by using the local coal. While, the quantity of sulphur emitted is increased in the case of the local
coal. Thus, from the above results we can conclude that the local coal gives better results while
considering emissions.

5. Cost Benefit Analysis of the Selected Techniques

In this section, we will perform cost benefit analysis of both, local and imported coal. From this
technique, we can conclude in a better way, by comparing the finances of both coals, the coal we
are going to use.

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5.1. Imported Coal

It is the Bituminous coal that is imported from countries such as South Africa and Indonesia. It is
imported due to the increased demand of coal and high consumption. Also, the production
capacity of Pakistan is much less to meet the requirements. Thus, coal is imported via cargo and
then transported from the port to the desired location by railways.

The details of the cost spent on importing the coal can be calculated by examining the annual
report published by NEPRA. Through this report we can get an idea the latest facts and figures of
the transportation charges and the custom duty which is spent to bring the coal to the desired
location. [18]

Following table gives the cost of transportation and freight charges:

Table. 14: Transportation and Freight Charges

Richard Bay (South Africa)- 40% US$93.40/Ton

FOB

Newcastle-Australia-FOB 20% US$89.00/Ton

Newcastle-Indonesia-FOB 40% US$87.55/Ton

Weighted average FOB US$ 90.18

Marine Freight US$20.00/Ton

Marine Insurance 0.10% of FOB price

Other Costs 10% of FOB price

Weighted Average CIF Price US$119.60/Ton
FOB = Free on Board
CFI = Cost, Freight and Insurance

The table below gives the Freight charges applied on the coal, in order to transport it from the
port to the plant site:

Table. 15: Freight Charges of Transporting Coal

Description Rs/ton/km
Freight Component 1.330
O&M Cost Component 0.304
Fuel Cost Component 0.404
Depreciation/Replacement Cost 0.720

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Total Freight Charges 2.990

Cost Calculations
Now, we will find the total cost to use the imported coal. This will add up the cost of
transportation and freight charges. The values have been provided above. Now, we will just add
them accordingly. The sea and the land route, both will be considered in the calculations below:

Cost, Freight and Insurance of coal imported to Pakistan = $80/Ton

Wharf age Cost = Rs 35/Ton (placed on all goods that pass in or out of the port)
Transhipment Cost = Rs 30/Ton (placed on all good that do not need a wharf)
Freight Cost = Rs 2.8/Ton/km
Distance between port and Plant = 1075 km
Requirement of Coal in one year = 4.48 Mt
Price of CFI =4.48 × 106 × 80=$ 358.4 Million

Now, we will convert this value according to the exchange rate:

1 $=160 Rs .
Price of CFI =57.344 Billion Rupees
Cost at Port=4.48× 106 × ( 35+30 ) =291.2 Million Rupees
RailwaysCost =4.48 x 106 x 2.8 x 1075=13.485 Billion Rupees
Total Charges paid per annum=71.12 Billion Rupees

5.2. Local Coal

The local coal selected in this section is the one obtained from the Thar coalfield. The data of its
cost of transportation and mining is provided by Thar Coal Energy Board.

Price of the local coal = 5,500 Rs. /Ton

Cost of transportation of the local coal by trucks = 2.5 - 3.3 Rs. /Ton /Km
Cost of transportation of the local coal by train = 2.7 Rs. /Ton /Km
Requirement of Coal in one year = 7.893 MT
Distance between Chor, Mirpur Khas and Islamkot, Tharparkar = 105 Km
Average capacity of a truck = 50 Tons
The distance between Chor and Tando Muhammad Khan is considered same as distance between
Port Qasim and Tando Muhammad Khan i.e. 1075 km.

5.2.1. Cost of Thar (local) coal

Requirement of Coal in one year = 7.893 ×106 Tons
Annual Cost of coal=7.893 ×10 6 × 5,500
Annual Cost of coal=43.412 Billion Rs .

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5.2.2. Transport by trucks

Tons of coal required daily = 21625.783 Tons
21625.78
Number of Trucksrequired daily=
50
Number of Trucks required daily=432.5 or 433

Cost of Trucks per day=21625.783× 3× 105=6.812 Million Rs .

Cost of Trucks per year =7.493× 106 × 365=2.486 Billion Rs .

5.2.3. Transport by train

Transportation Costs ( Islamkot−Chorr )=7.893 x 10 6 × 2.7 ×105=2.237 Billion Rs .
Transportation Costs ¿(Chorr −Sahiwal )=7.893 x 106 ×2.7 × 1075
Transportation Costs ¿ ( Chorr−Sahiwal )=22.91 Billion Rs .

Now, we will add the costs for the transportation and mining of the local coal:
Total Charges paid per annum=71.045 Billion Rupees

5.3. Comparison of Both Coals

After the cost benefit analysis performed on both the coal, it is concluded that the cost to mine,
transport and consume local coal is more feasible than the imported coal. Although the
difference between both the figures is not that significant, still it can be termed as workable
because of the low heating value of the local coal. Thus, after this cost benefit analysis it is
proved that the local coal can be successfully used in the place of imported coal in Sahiwal
Power Plant.

6. Advantages of Using Local Coal

In the previous section, we have already proved that local cheap is more affordable and feasible
than the imported coal through the cost benefit analysis. Now, we will state socio-economic
impacts of using domestic coal

6.1. Social Benefits

The excavation of coal brings a lot of benefits along with it. First of all, the mining will create a
lot of job opportunities for the native people. As many people are required for the sturdy job to
mine and transport the coal, it will create a lot of employment opportunities for the people. As
Thar coalfield was discovered, it automatically paved for the development of the area
surrounding it. There was development of infrastructure such as school, hospital and airport.
Transportation was also made easy by creating roads that joined the area of coalfield with the
national highway. All these projects can significantly help in improving the social status of the

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people living there. For instance, schools will educate children, hospitals will treat the injured
and provide employment opportunity for the people. An airport will not only connect the local
people with the outsiders but also give many employment opportunities for the people. The
development of roads will make the people to travel easily and also make way for the
transportation of the coal much more feasible. Thus, overall society will benefit a lot with the
application of local coal.
6.2. Economic Benefits
The usage of local coal from Thar instead of importing it from countries such as Indonesia and
South Africa will benefit a lot economically. As our country is already buried under the menace
of debts, importing coal with no compensation on the price, will result in widening the gap of
balance of payments further. As Pakistan face an issue of less GDP growth and imbalance
between the exports and imports, its highly recommended to not stifle our economy further.
Now, Pakistan holds a large reserve of coal naturally. And in the previous section, we provided
the data regarding the annual consumption and the production capacity. If the production
capacity is increased by mining the required locally from Thar, then a lot of money can be saved.
The cost of imported coal is more than the local coal. So, if we use the local coal instead and
meet the local consumption, then there will be no immediate need to import coal. This will not
only save our finances, but also help in its better utilization in other departments such as
education, health and infrastructure development. Moreover, it will provide employment
opportunities to a lot of local people. Also, there will be a lot of development projects in the
nearby areas, which will also help the local people help their social and economic status. And the
biggest of them all, it will make Pakistan self-sufficient as far as utilization of coal is concerned.
7. Environmental Impact & Sustainability of Local Coal
Pakistan’s coal has less heating value, which means it gives a relatively less output for the same
amount of imported coal used. But the local coal has less amount of most of the polluting
elements. It has low nitrogen content, which means it releases less amount of nitrogen oxides.
Due to less carbon content, it releases less carbon dioxide, a major source of global warming and
pollution. It contains less ash content; therefore, it releases very less amount of PM. The only
worrying thing about using the local coal is the amount of Sulphur present in it. It releases large
amounts of Sulphur oxides, which may pollute the environment. But its also been taken care of,
as Sahiwal Power Plant is already equipped Flue Gas Desulphurization (FGD) system. The
advantages of using the aforementioned system, have already been discussed previously.
8. Conclusion
Sahiwal Power plant uses imported coal to generate power. Our task was to evaluate the
techniques through proper technical working in order to use the local instead of imported coal to
a percentage of 50 to 100 percent. We were successful in this task, as we proved through the cost
benefit analysis, that the local coal is more economically feasible. Moreover, we also proved by
the emission levels of all the harmful gases and PM, that the local coal is far more environment
friendly, despite its low heating value. It was also observed that the usage of local coal brings in
a lot of socio-economic benefits such as building of infrastructure as schools, hospitals, roads

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and railway tracks. This could help in providing employment opportunities for a lot of people
living nearby or associated with the concerned projects. Overall, it made the image of Pakistan as
a self-sufficient country, at least in generating power from coal.

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