The technology would give an old fuel, coal, a fresh lease of life in power generation at competitive cost. Indian has large coal reserves coexisting with a power shortage. The country was heavily dependant on imported liquid fuels and gas for much of its power.
According to the study, it was possible to reduce ash content up to 28 per cent in coal, much below the required specification of 34 per cent for power plants, and still both washeries and bigger power plant can profit from the process, Steve Frankland of Dargo Associates told Business Standard.
Private sector investment in washeries has been hard to come by even after government sops, but this model can change things.
An existing power plant with capacity of 500 MW can save up to Rs 30 crore a year by switching to 28 per cent ash content coal. On the other side, by selling power at Rs 3 per unit, an integrated washery can realise entire return on investment within five years.
