Reliance Investing $2.1 Billion in India’s First IGCC-Based Complex

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Researched by Industrial Info Resources (Sugar Land, Texas). India’s first integrated gasification combined cycle (IGCC) power plant is planned for a site in the Jamnagar SEZ (special economic zone) by Reliance Industries (Bombay, India).

The company will invest over $2.1 billion in the plant, which will use petcoke as a feed. Petcoke is a refinery residue that can be blended with coal to be used as a power plant feed. The IGCC technology would enable the petcoke to be gasified before it is utilized in the heat and electricity producing process. The Jamnagar plant will produce petrochemicals, fertilizers, power and hydrogen.

RIL is in discussions with Shell and GE Texaco on the technology specifications and a decision on the preferred technology is expected soon. Both companies have made presentations on the project, scheduled for commissioning by 2010.

Compared to the calorific value of coal, petcoke has a value of 8,400 kilocal/kg compared to 4,000 kilocal/kg for coal. With the use of petcoke, the thermal efficiency of a power plant could reach 50% in converting fuel to energy, whereas coal-burning plants average about 35% thermal efficiency.

Reliance is in need of extra power at its plants in the zone and other companies are in need of more power and water. Reliance will be able to use its existing refinery residue to produce clean power.

Reliance, which is currently expanding refining capacity at Jamnagar through a $5.3 billion project, has a history of ‘clean’ energy awards at the site. The company is targeting an output capacity of 1.2 million barrels per day by 2009 to make the refinery complex one of the largest in the world.

The company also has plans to invest $530 million for laying a pipeline network plus retail operations. Reliance is also investing $425 million in laying methane gas pipelines in Satna, Mahiya and Shehdol in Madhya Pradesh, and $106 million in opening 75 retail outlets.

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