The government?s move to locate a mega coal-to-liquid (CTL) project in Orissa has been criticised by former coal secretary Prasanna Mishra. Mishra has questioned the viability of the project. It would create environment problems in the area and put pressure on water resources, said Mishra.
The CTL project, to be set up in Talcher with an investment of about $8 billion, is now under consideration of an inter-ministerial group. Three huge coalmines, Srirampur block with a capacity of 3,000 mt, Ramachandi block 1,500 mt and Palas Bani block 1,500 mt, have been identified for this project. It has been proposed to utilise one of these mines to extract 30 mt of coal annually through underground operation to feed the 80,000-barrel per day capacity CTL project.
?The CTL project appears too ambitious to be operationally successful. In the context of the present global financial crisis, it is doubtful whether it will be possible to muster resources of $8 billion for the project. Moreover, CTL project of this magnitude would encounter release of ash and carbon dioxide of mind-boggling magnitude. It is doubtful if a foolproof technology can be put in place for wholesome carbon sequestration to ensure an acceptable regime of carbon-release. The project would also need huge quantity of water,? he said.
China, which is going ahead with it 20,000 barrels per day flagship Shenhua CTL project, has announced moratorium on all such projects, except two.