NTPC Ltd. Will Build 800MW World’s Cleanest Coal Plant in India

India said its effort to build the world’s cleanest coal-fired power plant will improve on existing technologies in terms of efficiency and carbon emissions, but critics question the country’s continued investment in coal.

India’s largest power producer, NTPC Ltd., signed a deal last week with engineering and manufacturing company Bharat Heavy Electricals Ltd., known as BHEL, to set up an 800 megawatt joint demonstration plant in Sipat in Chhattisgarh state.

The plant will be based on “advanced ultra supercritical” technology, which guarantees the highest possible power generation from each unit of coal, the government-owned company said in a statement.

It will join 291 other coal-fired power stations currently operating in India, which produce about 221 gigawatts of power, according to Global Coal Plant Tracker.

The new plant will be “the most efficient in the world, resulting in reduction of carbon dioxide emission by about 20%" as compared to the current best standard, said NTPC.

“Coal provides about half of India’s commercial primary energy supply today and is the dominant fuel for power production in India” despite the country’s ambitious renewable energy goals, the U.S.-based Brookings Institution said in a recent report. “Coal will remain the dominant fuel for electricity generation in India through 2030 and beyond, even though its share of generation will fall.”

The new plant will be 3% more efficient than current best standards, with 46% of the thermal energy contained in the fuel converted into electricity, the government said.

But that efficiency could come at a steep cost—twice the price of building a typical coal power plant, according to Tim Buckley, director of energy finance studies at the U.S.-based Institute for Energy Economics & Financial Analysis.

“For a gigawatt of power capacity, this new plant will probably cost about $2 billion,” said Buckley. “If you were to build a supercritical power plant [the current best standard] in India, it probably only costs you $1 billion, while a gigawatt of wind or solar would probably cost you $800 million.” 

The announcement comes as some countries are moving away from coal as an energy source, citing climate change.

But Karan Mangotra, associate director with the climate division at The Energy & Resources Institute in Delhi, said energy access is a much higher priority in India currently than curbing greenhouse gas emissions.

The pilot project in Sipat is “the best in the world and shows a strategic climate angle in how the government operates,” he said.

But Sunil Dahiya, air pollution analyst with Greenpeace East Asia, questioned the rationale for the new plant.

“India is grappling with health emergency due to high air pollution levels and the pollution emission from all technologies for coal combustion is nearly the same until and unless emission control technology is adopted,” he said. “In all scenarios the [Sipat] plant will add to already existing disaster India is facing due to reliance on the dirty fuel.”

Construction of the facility is expected to take about seven years, and the plant could operate for 40 years.

NTPC declined to answer specific questions about the project from Bloomberg Environment, and BHEL did not respond.

Report this Page