A Snapshot of

FEASIBILITY STUDY
of Project (Relocation of Coal to Ammonia Plant from Germany
to India)

21 Feb 2009
 INDEX

1. What is this Project About

2. Raw Materials and Products
3. Project Cost
4. Financials
5. Variation Analysis
6. How Demand is met
7. Comparison of Delivered Cost
8. Ammonia Prices For Asia
 1.What is this Project about
BGL Gasifier
The German plant was built within a huge industrial complex which has all
infrastructure facilities and supplier facilities including oxygen supply,
briquetting/feedstock preparation units, natural gas lines, etc. The plant became
economically unviable due to lower cost of production of methanol from competitors.
The government reduced the Gate Fee from 150 € to 57 €/ton which was too low to
meet the feedstock preparation( including briquetting)
Commissioning Shutdown
BGL Gasifier 2000 2007

Ammonia Loop
Used Ammonia plants are available and the plant suitable to SEPC’s requirement is
being sourced.
 Schematic diagram and units for Ammonia plant.

Stream No→ Units↓ 1 1.1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

consumers

FGD Boiler
Limestone

Purge Gas

Purge gas

Purge gas

Gasliquor
Ammonia

Steam to

Steam to

Steam to

Nitrogen
Flue gas
Flue gas
Syn gas

Syn gas

Syn gas

Syn gas

Cooling
Tar / Oil
Oxygen

various
CaCO3)

Power
Steam

Steam

Steam

Steam

Steam

Steam
Media
(80%
Coal

Coal
Slag

ASU
Stream
-

Name→

257.
Mass flow TPH 41.6 12.6 11 15.2 22.5 1.3 31.8 36 16 3500 22146 46 3 2.0 30 5 49.3 12
5
Nm3/hr
Volume flow - - - 53000 32600 62300 18650 43650 -
dry
O 235.
Temperature C NT NT 380 40 165 30 380 30 10 165 10 525 165 235 235
0
Pressure Bar a NP NP 36 32 NP 25 24.2 36 22.5 1.5 5 21.5 126 5 16 16.0 16
Heating value KJ/Nm3 - - 1550
243.
Energy MW 196 163 13 112.2889 8 20 28 40 36.48 2.4 1.6 4.5 226.3 12
7
CO2 Vol-% - - - - - 17.5 - 17.5 - 40.1 92.9 - 0.0 - 0.0 78.2 - - - - - - - - - - -
CO Vol-% - - - - - 38.0 - 38.0 - 0.0 1.2 - 0.0 - 0.0 1.0 - - - - - - - - - - -
H2 Vol-% - - - - - 32.2 - 32.2 - 50.8 2.8 - 85.2 - 0.0 2.4 - - - - - - - - - - -
CH4 Vol-% - - - - - 7.0 - 7.0 - 5.1 1.6 - 8.5 - 94.5 16.2 - - - - - - - - - - -
CnHm Vol-% - - - - - 0.4 - 0.4 - 0.2 0.7 - 0.5 - 5.4 1.4 - - - - - - - - - - -
H2S / COS Vol-% - - - - - 0.2 - 0.2 - 0.1 0.5 - 0.0 - 0.0 0.4 - - - - - - - - - - -
N2 / Ar Vol-% - - - - - 4.7 - 4.7 - 3.4 0.3 - 5.7 - 0.0 0.3 - - - - - - - - - - -
 2. Raw Materials and Products

Coal : 41.6 tph Ammonia : 16 tph

Proposed Plant
Coal for Power & Electricity export: 22.5 Mw
Steam: 49.3 tph

Slag : 22.5 tph

Limestone: 12.6 tph

Coal sourced indigenously or imported.

Internal Power consumption: 17.5 MW
 Design Concept of the Proposed Plant

1. To produce various steam streams internally

2. Maximize Ammonia production

3. Power available for export are only by-products.

4. Tar is recycled (option: to be fed into FGD)

5. Slag is to be disposed.
 New Units( Add-ons)/ Exclusions from Envirotherm
S.No Units Name Capacity Remark Work items:
1 Coal Unloading
1.Dismantling, Packing, Transport,
2 Coal storage
3 Coal Preparation and conveying
2..Site Preparation;
4 Coal Conveying in Gasifier Building 3.Detailed Engineering;
5 Lime Stone Unloading 4.Civil and Building Works including all engineering;
6 Lime Stone storage 5. Erection and Commissioning
7 Lime Stone preparation and conveying 5.Permits
8 Lime Stone conveying in Gasifier building
9 Slag loading Single heaviest item: Gasifier
10 Slag storage
11 Slag handling
12 Waste water treatment plant
160 MT
13 Phenosolvan plant 13.6 M( height)
14 Gsa liqour/Tar oil/Dust seperation 4.6 M dia
15 Tar oil dust storage
16 NaOH Unloading
17 Central flare
18 Methanol Storage Tank
19 Methanol Unloading
20 Cooling tower
21 Cooling water system
22 CCGT
23 Process steam System
24 Start up Boiler
25 DM water plant
26 LP flare
27 Desulphurisation
28 Gypsum storage and loading
29 FGD Boiler
30 Top up Burner
31 Used Ammonia Plant
32 Used ASU
 Units Coming from German Plant

Year
S.No Equipment Name of Capacity Weight(MT) Condition Remarks
Commissioning

1 BGL Gasifier 2000 2,800 Operable

2 Gas cooling 100 Operable

Gas Liquor Separartion including Not operable, so
3 Tar/Oil Storage to be newly built

3 CO-Shift 1994 1,000 Operable

Selectively
reconstructed and
improved in 1988
4 Gas Rectisol 1967 2,000 Operable and 1993

5 Ammonia Loop To be sourced

6 ASU To be Sourced

Some equipments may have to be refurbished for use, some to be

scrapped after inspection at Germany
 3. Project Cost
Summary of Project Cost Rs in Crores
1 Gasifier unit 101.10 Note 1
2 Ammonia unit 109.53 Note 1
3 ASU plant 80.00 Note 1
4 Power plant 40 MW @ 3.75 Crs 150.00
5 Balance of Plant 64.55 Note 2
6 Civil 40.00
7 Engineering 41.92 Note3
8 Commissioning, Spares & Insurance 19.30

A Total EPC Cost 606.39

B Land & Site development 15.00

C Preliminary & Pre operative expenses 5.00
D SEPC Project Management (@ 15% EPC cost) 90.96
E IDC (@10% of A+B+C+D) 71.74
F WC Margin (@1.25% of A+B+C+D) 8.97
G Contingency (@10% of A+B+C+D+E+F+G) 79.81

Total Project Cost (A+B+C+D+E+F+G) 877.9

1. Used Gasifier, Ammonia and ASU plant including dismantling, transport, duties(@ 10%) and erection.
2. Order of magnitude estimate for balance of plant.
3. Engineering service @12.36% service tax.
 4. Financials

1. Ammonia Capacity tpa 1,15,200

2. Power Export MW 22.5
3. Equity IRR in % 23
4. EBITDA: Rs in Crores 128.2
5. Project Cost Rs in Crores 878
6. Loan (70% of project cost) 615
7. Equity (30% of project cost) 263
8. Cost of coal Rs/mt 1400
9. Sale Price of Ammonia Rs/mt($400) 19,200
10.Power Sale Price Rs/MWh 2500
11.Plant Life 15 Years
 5. Variation Analysis

S.No Unit Base Case1 Case2 Case3 Case4

1 Capex Rs crores 878 878 937 937

2 Equity @ 30% Rs crores 263 263 281 281
3 Coal Price RS/Mt 1,400 1,400 1,400 1,400
4 Power Price RS/MW 2,500 2,500 2,500 2,500
5 Ammonia Price RS/Mt 19,200 16,000 19,200 16,000
6 Ammonia Landed Price $/Mt 400 333 400 333
7 Equity IRR % 23 16 21 14
8 Project IRR(Before Tax) % 10 6 9 5
9 EBITDA Rs crores 128 95 127 95
10 EBITDA/Equity 49% 36% 45% 34%
11 Revenue Rs crores 240 206 240 206

Base Case : Used Ammonia Plant + Used ASU plant + Ammonia Price @ $400/MT
Case 2 : Used Ammonia Plant + Used ASU plant + Ammonia Price @ $333/MT
Case 3 : Used Ammonia Plant + New ASU plant + Ammonia Price @ $400/MT
Case 4 : Used Ammonia Plant + New ASU plant + Ammonia Price @ $333/MT
6. How Demand is met (Region wise)?
(thousand tons per year)
7. Comparison of Delivered Cost of Ammonia in Asia
($ per mt of Ammonia)

Total 200 220.16

 8. Ammonia Prices For Asia

Prices in $/t
Max Min Annual Avg
2008 875 125 500
2007 325 225 275
2006 350 200 275
2005 350 175 262.5
2004 325 125 225
Avg for 5 years 307.5
Logistic etc 92.5
Landed Cost 400