Brief Summary for Energy Saving Project of IFFCO, Kalol

1.0 EXECUTIVE SUMMARY

Indian Farmers Fertiliser Co-operative Limited (IFFCO) is a national level cooperative
society engaged in the manufacture and marketing of various fertilizers including the
training to the farmers for skill development related to agro-based requirement through
the country. The Society, registered as an autonomous cooperative under the Multi State
Cooperative Societies Act, 2002, was born out of the Indian farming community’s
initiative along with the Government of India on 3rd November, 1967.

IFFCO Kalol Unit (An ISO 9001 & 14001 certified Co-operative Society was
commissioned in 1974-75. Initially IFFCO Kalol Unit was designed for production of a
910 MTPD gas-based Ammonia Plant and 1200 MTPD Urea Plant. In 1997, capacities
of both Ammonia and Urea Plants were enhanced to 1100 MTPD and 1650 MTPD
respectively, for a total investment of Rs.150 crores, utilizing largely the available design
margins in the original equipment with minor additions / modifications in the Plant. A
naphtha Pre-reformer was installed as an add-on unit in Ammonia Plant to provide
flexibility to use naphtha as mixed-feed along with gas, keeping in view the constraints in
supply of natural gas from the Mehsana gas fields.

Naphtha pre-reformer unit of IFFCO Kalol is not in line since April 2009. The Ministry of
Chemical & Fertilisers, Department of fertilizer (DOF), Government of India vide
notification No 12012/3//2006-FPP dated 8th March 2007 asked all the naphtha and
LSHS/FO based fertilizer units to get converted to NG/LNG within a period of 3 years.
Now, Kalol Unit is in operation with 100% RNLG. Presently, Kalol Unit produces Urea at
the rate of 1780 Metric Tons per day (MTPD) capacity and Ammonia (Intermediate
Product) at the rate of 1140 MTPD to meet the annual target. As per Consent to Operate
issued by GSPCB, IFFCO Kalol Unit has been allowed to produce 6,02,000 MT of urea
per annum.

IFFCO Kalol unit is committed to use the energy in the most efficient way. "Energy
Saving" is one of the major objectives of IFFCO. This has enabled to run the old vintage
Ammonia and Urea Plants with better performance level even after 40 years of
operation. IFFCO Kalol has been continuously improving its performance by
implementing several modifications and by adopting best operating philosophy under
scientifically based emerging technology. IFFCO Kalol Unit is reluctantlessly striving to
be prove itself as the lowest energy consumer in the fertilizer industry. To achieve its

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Brief Summary of Energy Saving Project of IFFCO, Kalol

goal, a number of energy conservation schemes have been identified, planned and
implemented in stages under Energy Saving Projects (ESP).

Production of Ammonia is an energy intensive process. Ammonia production accounts

about 80-90% of total energy consumption in Ammonia-Urea Complex. Energy is a
major factor in the cost of Ammonia & Urea production and hence, there has always
been a big scope for energy conservation efforts in Ammonia – Urea Plants.

IFFCO proposes the energy saving project to implement the latest available proven
technological solution to meet the target of substantial reduction in energy consumption
at its Kalol Complex. With implementation of energy saving project, around 10%
increase in Ammonia and urea production has been envisaged.

IFFCO has engaged Projects & Development India Ltd (PDIL) as consultant for
preparation of Pre Feasibility Report. PDIL has prepared the PFR on the basis of site
visit and data / documents provided by IFFCO officials.

1.1 PROJECT LOCATION

IFFCO Kalol fertilizer complex is located near village Saij in Gandhinagar District of
Gujrat State. IFFCO Kalol Unit is spread over an area of about 96 Hectares of land.
Kalol Unit is located near the State Highway No. 41 (connecting Ahmedabad-Mehsana),
25 Kms North-east of Ahmedabad city and about 4 km from Kalol town. The nearest
railway station is Kalol, which is on Ahmedabad-Mehsana section and about 4 km north
from the site. Geographically the fertilizer complex is located at Longitude 23º 12’ 44” N
and Latitude 72º 31’ 22” E at an elevation of 60 to 65 m above mean sea level (MSL).
Location map has been presented in Plate-1 & 2.

1.2 SCOPE OF ENERGY SAVING PROJECT

The scope of Feasibility Study has been aimed at to reduce the Urea specific energy
consumption by about 0.221 Gcal per MT of Urea at Kalol Fertiliser Complex. To
achieve the target, the following energy saving schemes have been considered.

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Brief Summary of Energy Saving Project of IFFCO, Kalol

1.2.1 Schemes to be Implemented in Kalol

Following schemes have been envisaged in ESP:

(A) Ammonia
Table-1.1
Schemes Considered for Ammonia Plant

Sr.No. Schemes under consideration

1. Installation of New single steam turbine for Synthesis gas Compressor
2. New air burner for Secondary Reformer
3. Installation of saturated coil at suction of ID fan.
4. Installation of Fuel gas Expander with preheaters and bypass arrangement
5. Hot desulphurization of feed gas in place of activated carbon
6. New additional MP Boiler in between Ammonia Converters
7. Ammonia Recovery from Synthesis Loop LP Purge Gases
8. Installation of MP Stripper for Process Condensate Stripping
9. Installation of New Methanator Feed/ Effluent Heat Exchanger
10. Installation of New Trim Heater at the exit of HTS (For Methanator
Temperature Control)
11. Installation of new BFW Pre Heater at exit of HTS (in place of existing
104C)
12. Replacement of Ammonia Converter BFW Pre Heater 123C
13. Saturated MP Steam Export from Synthesis Loop to Urea Plant
14. Reduction in Steam to Carbon Ratio from 3.3 to 3.0

(B) Urea

Table-1.2
Schemes Considered for Urea Plant

1. VAM for cooling of CO2 Compressor Suction Chilling

2. High Efficiency Trays in Urea Reactor
3. HP Split Flow Configuration Ejector and new HPCC
4. Replacement of Second Evaporator Heat Exchanger
5. Installation of HP Ammonia Pre Heater

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Brief Summary of Energy Saving Project of IFFCO, Kalol

1.2.2 Scope of Work of Engineering Consultant

M/s CASALE would prepare basic engineering design package (BEDP) for the proposed
project as under:
(i) Design basis
(ii) Material balance, cooling water and steam & condensate balance
(iii) Process flow diagram for all section of the plants. The PFD shall be prepared
for design condition
(iv) Equipment list of new and modified equipments
(v) Engineering Process Specifications and data sheet for new and modified
equipments
(vi) Details of Tie-in points for taking tapping in plant turn-around marked on PIDs
(vii) Engineering specification for piping with reference to existing piping
specifications
(viii) Preliminary equipment arrangement for new and modified equipments
(ix) Electrical motors specification with emergency power requirement for new
and modified equipments
(x) First edition of P&I diagrams for all new and modified sections of the plants
The P&I diagrams shall show nominal diameters and medium symbols, walls
and instrumentation, i.e., control loops and measuring points, control logic
and analyzers, etc. Details of changes and modifications to the safety inter-
lock trip systems for new and modified parts shall be shown in separate
diagrams.
(xi) Line list for new and modified piping based on existing pipings class
specifications.
(xii) Insulation requirement, if any.
(xiii) Slope requirements of lines, if any.
(xiv) Proposed modified plot plan showing the general layout for all new and
modified section of the plant
(xv) Marked up existing plot plan showing the available area for the new
equipments
(xvi) Layout of the equipments and space required.

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Brief Summary of Energy Saving Project of IFFCO, Kalol

(xvii) Trip interlock logic diagram of new and modified sections showing trip set
points, alarm annunciation and set points & delay time and manual reset.
(xviii) Data sheet for new and modified control valves and new safety valves
(xix) Typical Hook-up drawing for new and modified instruments loops
(xx) Functional instrument diagrams and loop diagrams for documenting very
complicated loops
(xxi) HAZOP study for new installations and modifications
(xxii) Operating Manual / guidelines for the new installations and their integration in
existing plants, highlighting normal operations, start-up and shut-down
operations which are modified after revamping.

1.3 RAW MATERIAL AND UTILITIES

Basic purpose of implementation of energy saving schemes at each unit is to conserve
the raw materials i.e. natural gas and water. There will be over all saving of natural gas
of 13360 Sm3/day and 200 m3/day water in Kalol Unit. No additional raw materials will be
required for the proposed project.

1.4 PROJECT IMPLEMENTATION PLAN & TIME SCHEDULE

The ESP will be implemented in two Phases. Energy savings schemes which required
short lead time will be implemented during year 2016 turnaround and energy savings
schemes which required long lead time will be implemented during year 2017
turnaround.

1.5 ESTIMATED PROJECT CAPITAL COST

The estimated capital cost of ESP is as under (Rs. Crore):
Table-1.4
Estimated Cost

Sr No Units Equipment Cost BEDP DEDP Total

(including 3%
Contingency)
1. Kalol 192 17 4 213

2. TOTAL 192 17 4 213

BEDP : Basic Engineering Design Package

DEDP : Detailed Engineering Design Package

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Brief Summary of Energy Saving Project of IFFCO, Kalol

1.6 FINANCIAL ANALYSIS OF PROJECT

 

The overall saving in Urea specific energy at each Unit and the financial analysis will be
as under:

Table-1.5
Financial Analysis

ESP UNIT Kalol

Urea Production MTPD 1780

Total Energy Saving Gcal 393

Energy Saving Gcal/MT 0.221

Estimated Investment Rs. Crore 213

Energy Cost Rs./Gcal 2900

Monetary Savings /Year Rs Crore 42

Payback Years 5.1

1.6 SAVINGS OF RAW MATERIAL OF PROJECT

The present raw material consumption is as under:

Table-1.6
Raw Material Consumption

Particulars Unit Kalol

Urea Production MTPD 1780

Total gas consumption SM3/day 1190901

Feed gas in Ammonia SM3/day 684461

Fuel gas in Ammonia SM3/day 373997

Fuel to Steam generation SM3/day 132443

Power (imported from State grid) MWH/day 159.8

Urea Energy Gcal/MT 5.573

Savings of raw material after ESP is as under:

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Brief Summary of Energy Saving Project of IFFCO, Kalol

Table-1.7
Savings on Raw Material

Particulars Unit Raw Material Consumption

Existing Proposed Saving
Total NG SM3/day 1190901 1177541 13360
Water m3/day 14,000 13800 200

1.7 NEED & JUSTIFICATION

The need and justification of the proposed project is summarized as under:

¾ It will reduce overall energy consumption leading to a substantial reduction

in pollution load.
¾ It will decrease the dependency of IFFCO, Kalol unit over GSEB grid
¾ It will reduce the consumption of natural resources viz. water (approx.
200 m3/d) & NG (13360 Sm3/day) ) which in turn will have positive
impact on environment
¾ It will impose positive impact on the consumption pattern of electricity in
near-by area
¾ It will reduce the subsidy burden of Government of India (GOI).
¾ It will maintain the profitability of IFFCO.
¾ It will maintain stability in indigenous / domestic market for Urea.
¾ It will check the import possibility of fertilizers to some extent and yield
national savings
¾ There will be temporary employment generation during construction period.
¾ It will ease the availability of chemical fertilizers to farmers.
¾ Adoption of proven long lasting emerging technology will produce the
intangible effect to reduce the present stress of environment.
¾ It will fulfill the aims and objective of EIA related to continual improvement in
the field of Energy Saving by adopting emerging technology.
¾ The reduction of green house gas emissions from the stack will contribute to
INTENDED NATIONALLY DETERMINED CONTRIBUTION (INDC) under
UNEPCCC.
¾ ESP is a complement to “India’s Low Carbon Strategy” to meet the target
of carbon reduction equivalent to 20-25% of GDP by 2020 against the base
of 2005.

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Brief Summary of Energy Saving Project of IFFCO, Kalol

1.8 Conclusion

As energy cost is increasing with passage of time, it is prudent to take the measures to
save the energy at each location of IFFCO Plants. It is always the endeavour of
IFFCO’s top management to adopt the latest available and proven technology for
improving the productivity of the Society. With the efforts taken by IFFCO management
in the past, the IFFCO Plants are running at comparable energy consumption with
global benchmarks. The proposed Energy Saving Project (ESP) will further reduce the
energy consumption at all the nitrogenous fertiliser units. With implementation of the
proposed Energy Saving Project (ESP), the overall urea specific energy will be
reduced by about 0.221 Gcal per MT of Urea with payback of 5.1 Years. Thus, there
will be reduction in the emission levels with implementation of Energy saving project
due to reduction in consumption of natural gas, imported power and water.

The ESP is simply a change-over scheme without any change in production rate. For
this type of project, EIA Notification 2006 is also silent on preparation of EIA report and
issuance of EC. Further, it would not be out of place to mention here that the area
around IFFCO Kalol Unit has never been identified as “CRITICALLY POLLUTED
AREA / ZONE” by CPCB. Further, the ESP fulfills the IFFCO policy related to
protection & safe guard of environment and measures for energy conservation. It also
fulfills the aims & objective of EIA.

Considering the above facts, it requires a critical review with due diligence regarding
exemption of Public Hearing and preparation of EIA report in generic form for grant of
EC on priority basis.

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