introduction - abmecquality coal, it still has a descent calorific value; more than many other steam...
TRANSCRIPT
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DEMAND FOR COAL IN
MIDDLE EAST
Prepared by: Eng. Waleed AbourayaPresident of RGS Egypt Ltd.
INTRODUCTION
From buildings to tennis racquets and refrigerators to shampoo, coal is
used in the manufacture of products that touch every part of our
lives.
Coal is one of the most economic and
most important sources of energy, a
quarter of the global energy production,
41% of the Electricity Production and
more than 60% for Steel Making.
We will go through a list of the major uses
of Coal:
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Coal Main Usages
Other Coal Usages
Coal is also used in thousands of other applications and products like soap,fiber making, rayon, cooking fuel etc.
Since 2000, global coal consumption has grown faster than any other fuel. The five largest coal users - China, USA, India, Russia and Japan - account for 76% of total global coal use.
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Steam Coal Demand in The Middle East
It is a coal grade between Bituminous coal and Anthracite coal,
and was once widely used as a fuel for steam locomotives
Also known as Thermal Coal, is mainly used in power
generation. It’s called steaming, because it is used to fire
power plants that produce steam for electricity and
industrial uses.
It’s mainly used because of its calorific value, which
is usually in range of 4000-6500 Kcal/KG
The main competitor of Steam Coal is Petcoke; where its fuel grade
represents nearly 80% of worldwide Petcoke production and is a source of
fuel for cement kilns and electric power generation.
Although Middle East is known to be rich in Oil resources, Steam Coal
represents the main fuel source for cement production; which will be further
discussed later on.
Coal-Fired Power Generation in Egypt
Currently, there’s no power generation from steam coal yet. However, 1st
MOU has been signed between the Egyptian Government and Al Nowais
Group (U.A.E.) to build the 1st coal-fired power generation plant in Sinai,
Egypt to produce 1300 Mega Watt annually.
Egypt has plans to add 17,000 MW of coal-fired
power generation till year 2017.
Important to mention that total power production
in Egypt is 28,000 MW. So this represent about 60%
increase in power capacity fully relying on Coal and solid fuels generation.
The Middle East doesn’t have any coal production or reserve except in
Egypt; which has some steam Coal reserves.
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Egypt Coal Reserve
Egypt has one small coal mine, the
Maghara underground mine in the Sinai
Peninsula. Production was designed to
be around 600,000 t/year, with
confirmed reserve of about 60 million
tons.
The Maghara Mine halted production
due to some financial difficulties. However,
currently there are some negotiations that these debts could be turned into shares
owned by a company running the mine.
If this mine is back to operation, it can help to cover a portion of the increasing
demand for steam coal in Egypt.
Coal Specifications of Al Maghara Mine
Although it
doesn’t look
like a great
quality coal,
it still has a
descent
calorific
value; more
than many
other steam
coal
produced
around the
world.
Test Item Results
Moisture % 2-4
Volatile Matter % 48-55
Ash % 6-10
Fixed Carbon % 38-41
Gross Calorific
Value
6500-
7100
Net Calorific Value 6200-
6900
Carbon 67-72
Hydrogen 3-6.2
Nitrogen 1.2-1.3
Test Item Results
Sulphur 2-3
Oxygen 11-12.1
Hard groove Index 44-57
Ash Fusibility
Initial Deformation
Temp.
1258-
1380C
Softening Temp. 1317-
1418C
Hemispherical
Temp.
1400-
1428C
Fluid Temp 1424-
1434C
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Metallurgical Coal
Also known as Coking Coal; which is used in
producing Metallurgical coke necessary for
production of iron & steel making in blast
furnaces.
It is used as a fuel and as a reducing agent in
smelting iron ore in a blast furnace. The result
is pig iron, and is too rich in dissolved carbon,
so it must be treated further to make steel. The
coking coal should be low in sulfur and
phosphorus, so they do not migrate to the metal
A high quality coke should be able to support a smooth descent of the blast
furnace burden with as little degradation as possible, while providing the lowest
amount of impurities, highest thermal energy, highest metal reduction, and optimum
permeability for the flow of gaseous and molten products.
The only blast furnace operators in the whole Middle East is in
Egypt; in the Egyptian Iron & Steel Co. (EISCO).
Coke & Steel Industry in The
Middle East
Consequently, the Egyptian company ‘Al Nasr Co. for Coke &Chemicals (Chemicoke)’ was established to serve EISCO; as itsmain & sole supplier of blast furnace coke.
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Al Nasr Co. for Coke & Chemicals
The company started with 4 batteries. Their annual capacity was
1.6-1.8 MT of Met. Coke. Currently one battery is fully
demolished & is being re-constructed.
Another battery is being revamped by changing its refractory &
coke oven doors. The other 2 coke batteries are working with less
efficiency. Consequently, their total annual production currently is
only 600-700 MT.
When they had full production, they used to export almost
500,000 MT coke every year. But right now their entire production
is utilized by the EISCO; which is the only steel plant operating by
blast furnace in Egypt.
A Closer Look to Middle East
COAL BUYING IN THE CONTEXT OF
CEMENT
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Cement Industry in Middle
East
The main fuel used for firing pre-heater cyclone and rotary kiln is coal.
Therefore, coal plays an important role in the manufacturing process of
cement. Based on the composition of raw feed, a wide range of coal is used. In
a cement plant; two systems of coal firing are used, namely, Direct Firing and
Indirect firing.
In direct firing system, coal is
milled on line and is directly
fed to the kiln. High moisture
coal is not suitable for direct
firing, as this has the effect of
lowering the flame
temperature and therefore the
process efficiency.
In indirect firing system, coal is
milled off line and stored in a
bunker from where it is fed to
the kiln as per the
requirement.
Cement capacity and demand continues to
accelerate in the GCC and Middle East countries as
the construction sector is boosted by high volume of
government projects. Countries like Turkey and
Saudi Arabia continues to consolidate and increase
capacity to meet domestic consumption.
Saudi Arabia's King has issued a directive to fund more
cement plants and import around 10 million MT of
cement in order to offset a shortage in the country.
Iran has moved to be the 3rd largest exporter of cement
globally after China and India, exporting to as many as
twenty-four countries including Afghanistan, Azerbaijan, Russia
and Africa.
The cement landscape in Iraq is also changing
as new green-field cement plants sprouts out in
the country, making it more self-sufficient.
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The UAE has about 10 cement plants, but its capacity way outstretches
consumption. Today, it is forced to export the commodity to countries,
both near and far.
1. Union Cement Co. 7. Jebel Ali Cement Co.
2. Binani Cement Co. 8. National Cement Co.
3. Emirates Cement Company (Lafarge)
4. Fujairah Cement Co. 9. Rak White Cement Co.
5. Gulf Cement Co. 10. Sharjah Cement Factory
6. Star Cement Co, L.L.C
Kuwait Cement Company is the main Cement
producer in Kuwait; which has a licensed design
production capacity of 3.8 million tons annually of
cement, whereas the operating capacity has reached
more than 5 million tons.
Jordan Cement Factories (Lafarge) is the leading
cement company in Jordan. It owns two cement plants,
one in Fuheis and another in Rashadiyah, and has an
export terminal in Aqaba. Currently the company
produces 4.6 million tons Cement annually.
Cement Industry Egypt
In 2004 the number of the cement's companies has reached 14 companies
and their production capacities has reached more than 35 million tons of
normal grey cement and 700 thousand tons of white cement. Now Egypt has
28 cement plants and considered one of the top list of cement producers
worldwide, with an annual production of more than 60 million tons.
The Egyptian government is encouraging a more diverse energy mix, calling
for plants to switch to coal and solid fuel. The government has cut the volume
of Gas it supplies to cement plants from 11.6Mm3/day by 7.08Mm3/day, a
drop of 61%. Now it has been announced that cement volumes decreased by
30% in the first half of 2013 due to shortages of gas.
The first factory in Egypt was built in the prime of 20th century with a 60
thousand ton production capacity that was in a region "Al-Maasra" one of the
Egyptian suburbs.
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Cement Industry Egypt
In response, Egyptian cement producers are investing in
converting to using coal. Producers like
(Italcementi Group) and have started pushing
the benefits of using coal including its place as an
international mainstay and highlighting the potential
savings for the state.
Arabian Cement; which is owned by Spanish company, Cementos
La Union, has applied to switch to 70% coal and 30% RDF-
based production. This would reduce its gas requirements by 378 million m3 pa.
Important to mention that gas prices are increasing rapidly in Egypt. Currently
price is $8/MBTU compared instead of $3/MBTU short time ago.
You need 3.5 MBTU to produce one ton of cement, so It means that one ton of
cement will cost $28 compared to about $12 when using coal/petcoke
Cement Industry Egypt
Suez Cement also recently announced plans to invest US$14.9 m to convert two of
its four cement plants to use coal. Last update is that one of its factories is ready
to use coal and others are only months away. All are just waiting on a permit.
Sinai Cement Company (SCC) has contracted Danish engineering
company FLSmidth to provide the equipment for it to start using coal.
SCC added that it would also partner with local contractors and
suppliers to equip the factory to use coal as an alternative fuel source
to natural gas and Mazut fuel oil.
Lafarge Egypt is now ready to switch 100% to officially using Pet
Coke in cement production in Egypt after its several battles with
the Egyptian Government.
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Questions? Comments?