Que: Can you provide us with an overview of NLC India Limited, particularly the establishment of NLC India Green Energy Limited (NIGEL)?

Ans: For over six glorious decades, NLC India Ltd. has been a forerunner amongst the Public Sector Enterprises in the country, both in the mining and energy sectors, contributing to a lion's share in lignite production and a significant share in thermal and renewable energy generation. The company has its footprints in the states of Tamil Nadu, Rajasthan, Uttar Pradesh, Odisha, Jharkhand, and Andaman & Nicobar Islands.

The Company is operating 4 lignite based pit-head thermal power stations with an aggregate capacity of 3390 MW at Neyveli and a 250 MW lignite based thermal power station at Barsingsar, Rajasthan. A 1000 MW coal based thermal power station is also in operation at Thoothukudi, Tamil Nadu through its subsidiary company, NLC Tamil Nadu Power Limited (NTPL). A super-critical coal-fired power project of 1980 MW is being developed by Neyveli Uttar Pradesh Power Limited (NUPPL) at Ghatampur in Kanpur, Uttar Pradesh.

NLCIL operates 3 opencast lignite mines with a total installed capacity of 28 MTPA at Neyveli, one opencast lignite mine at Barsingsar in Rajasthan with an installed capacity of 2.10 MTPA, and an open-cast coal mine at Talabira in Odisha with an installed capacity of 20 MTPA. We have been allotted Pachwara South Coal Block of 9 MTPA capacity and North Dhadu (western part) Coal Block of peak rated capacity of 3 MTPA in Jharkhand. During the year 2022-23, the firm achieved highest ever mining production of 33.5 MT including all time high coal production of 10 MT.

NLC India Limited has incorporated two wholly owned subsidiaries NLC India Renewables Limited (NIRL) and NLC India Green Energy Limited (NIGEL).

NIGEL, with focused attention on renewable energy projects, will help in increasing the renewable power generation capacity faster. The subsidiary is expected to establish RE projects to the capacity of 6 GW by 2030 and contribute to carbon emission reductions. The projects to the tune of 2 GW are being developed in various parts of the country. NIGEL will take care of planning, participating in upcoming RE tenders, tendering, execution, and commissioning of renewable projects.

Meanwhile, NIRL will focus on transferring the existing renewable assets into its fold under the asset monetisation programme of the government.

Que: NLC India Limited aims to reach a renewable energy capacity of 6 GW by 2030. What specific projects are currently in progress to achieve this target, and how does the company plan to scale up its renewable energy portfolio?

Ans: With a total installed renewable power generation capacity is 1,431 MW, NLCIL is targeting to increase to about 6 GW by 2030. The company has renewable energy projects of about 2,060 MW under im¬plementation. We are establishing a 300 MW solar power project at Barsingsar which is expected to be commissioned in the second quarter of 2024-25.

NLCIL won a 600 MW solar project capacity at the Khavda Solar Park, a project being developed by Guja¬rat State Electricity Corporation Limited in Bhuj. In addition, an EPC contractor has been appointed to establish a 200 MW solar project on a Pan-India basis. We also won 810 MW solar project from Rajasthan Urja Vikas Nigam Limited (RUVNL) for development in the Pugal So¬lar Park. Meanwhile, tenders are under finalisation for ap¬po¬int¬ment of EPC contractors for the 150 MW wind-solar hybrid project won in 2022 under the Solar Energy Corporation of India’s (SECI) hybrid tender.

We signed an MoU with WAPCOS Ltd. to collaborate on pumped storage and hydropower. Apart from this, we are also in the advanced stage of signing a joint venture agreement with Assam Power Distribution Company Ltd. for developing a 1000 MW solar project. We are also contemplating establishing a 2000 MW Ultra Mega renewable energy power park in Tamil Nadu through a proposed JV Company with TANGEDCO and PFCCL. We are also in discussion with Odisha, Telangana, Andhra Pradesh, and Karnataka to install solar power stations.

NLC has started procuring biomass pellets for its 1,000 MW Neyveli New Thermal Power Project in Tuticorin. We are also in the process of procuring electrolysers. Once that is completed, we will be having a pilot project using solar power of 4 MW capacity for the generation of green hydrogen.

We have installed 8 MWh battery storage system in Andaman for smoothening the power output from the existing solar power project. Andaman govt. has requested for another 20MWh.

Que: Can you elaborate on NLCIL's efforts in reclaiming mined-out land and restoring it to pre-mining conditions? How has this initiative contributed to environmental sustainability?

Ans: NLC has plans to convert reclaimed lands into green hubs and take up solar projects. Such a project will be the first-of-its-kind in the country.

Engaged in fossil fuel mining and thermal power generation, NLC, as part of its Green Belt creation initiative, has planted more than 2 crore saplings in Neyveli township and the industrial areas. The PSU has reclaimed 2600 hectares of land from mined out area and afforestation has been carried out in 2188 hectares. More than 27.96 lakh saplings have been planted in the reclaimed land and high-tech vegetable cultivation is taking place in 100 hectares of land.

Over burden removed from open cast mines is refilled in mined out areas as part of reclamation of land. NLCL, with dedicated effort, converts such refilled areas into agriculture fields by improving the soil quality to pre-mining level. More than fifty water bodies have been created in 104 hectares facilitating rain water harvesting.

NLCIL has developed a unique park 'Punaruthan Charkha Udyan' by freeing a garbage dump area and converting it into a green space. The park was created in an area of 36,000 sq.ft with a focus on cleanliness and paving the way to create 'Wealth from Waste'.

Que: The development of a 50 MW solar power project in mined-out lands is innovative. Can you share more details on the project?

Ans: We plan to utilize mined out land by either filling the mine voids with fly ash from thermal projects and developing solar or pumped storage projects. We have contemplated developing 50 MW SPP in the mined out land at Neyveli. Taking the experience, we will further expand the same to other mined out areas.

Besides creating a new source of green energy, the project offers a model for solar development that does not impinge on forests or farmland. It is an effort to drive toward economic diversification with creative and innovative reclamation projects. With both the extraction sites and power plants for coal disappearing, renewables to replace and repower sites that were once economic drivers for many communities.

Que: The lignite to methanol project is an interesting diversification measure. Could you share more details about the project, its expected impact on natural gas usage, and the reduction in LNG imports?

Ans: The lignite to methanol is an interesting and essential diversification measure in the present context for the Net Zero mission through just transition. Because of their high oxygen content in the form of moisture, direct liquefaction of lignite by various hydrogenation processes requires more hydrogen than required to liquefy bituminous and sub-bituminous coal. Lignite might be considered, therefore, as a more suitable feedstock for gasification and indirect liquefaction.

A methanol plant of 0.4 MTPA/1200 MTPD capacity is proposed at Neyveli. 1200 MTPD methanol will replace 1.5 MMSCMD natural gas and will annually save INR 1000 crore of LNG import with indigenous sources. The estimated capital cost is INR 4,400 crore, with expected commissioning by FY 2027.

The process involves converting lignite into syn-gas first and then converting that into methanol. This initiative is set to meet the future energy needs of the country and also to achieve the govt. target of coal gasification of 100 million tonnes (MT) coal by FY 2030.

The adoption of gasification technology in India will revolutionize the coal sector, reducing reliance on imports of natural gas, methanol, ammonia, and other essential products. Currently, India imports approximately 50 percent of its natural gas, over 90 percent of its total methanol consumption, and around 13-15 percent of its total ammonia consumption to cater to the domestic demand. It will contribute to India's vision of becoming Aatmanirbhar and create a surge in employment opportunities.

The implementation of coal gasification is expected to make significant contributions to the nation's development by reducing imports by 2030. This initiative holds the potential to alleviate the environmental burden by reducing carbon emissions and fostering sustainable practices, contributing to our global commitments towards a greener future.

Que: How does NLCIL plan to utilize overburden from mines in the construction industry as manufactured sand (M Sand)? What environmental and economic benefits are anticipated from this initiative?

Ans: With a total capacity of 28.1 MTPA at Neyveli, NLCIL is keen on converting the OB waste into valuable products. We are targeting to set up three pilot plants one each at Mine-I, Mine I-A, and Mine-II with a capacity of processing 100 tonnes per hour OB material for extraction of sand and clay in an environment friendly manner.

Last year, the first over burden to M-Sand project at Mine-1A was awarded. This plant is expected to produce civil construction Grade M-Sand of 2.62 Lakh Cubic meters per year. The plant is expected to be operationalized soon. Similar and higher capacity plants will be installed in other Mines at Neyveli, in due course.

This ‘Green Initiative’ is in line with sustainable practices for maximizing the ‘Waste to Wealth Concept’ in the utilization of natural sources and minimizing the impact on the environment and River eco-system.

Que: What factors influenced the decision to pursue wind-solar hybrid projects, and how do they fit into NLCIL's renewable energy strategy?

Ans: India has set a target to reduce the carbon intensity of the nation’s economy by less than 45 percent by the end of the decade, achieve 50 percent cumulative electric power installed by 2030 from renewables, and achieve net-zero carbon emissions by 2070. India aims for 500 GW of renewable energy installed capacity by 2030.

Keeping in mind the sustainable development goals, India's power generation mix is rapidly shifting towards a more significant share of renewable energy.

Balancing the Grid is a major concern with a higher share of RE being injected into the grid. Even though Storage Systems are important, hybridization is one concept of providing a relatively stable and good volume of energy. NLCIL is amongst a few large firms that are both vertically integrated as well as successfully diversified into an optimal mix of thermal and renewable energy generation.