Indian Metals & Ferro Alloys Ltd (IMFA) is a leading player in the ferro alloys industry, with a standing of over 50 years. IMFA is also among the earliest private entities to set up captive power plants. In this interview, we have Binoy Agarwalla, Head — Power Business Unit, Indian Metals & Ferro Alloys Ltd (IMFA), discussing IMFA’s captive power business in conjunction with pertinent issues like RE-based RTC power, Open Access regulations, FGD retrofitting, battery energy storage systems, etc. Agarwalla feels that for industrial users with high power demands, having access to an economical and stable power supply is most critical.
We understand that IMFA actually ushered the culture of captive power plants in India. Tell us how it all began and what the current captive power capacity of the IMFA Group is.
Yes, IMFA was one of the first entities to set up a thermal power plant in Odisha. In 1989, a 108-mw thermal power plant equipped with traveling grate boilers was commissioned to support the energy needs of ferro alloys production units in Choudwar, Cuttack, Odisha, and Therubali, Rayagada, Odisha. Subsequent expansions included the commissioning of 30 mw with CFBC boilers in 2011 and 120 mw with CFBC boilers in 2012. The 30-mw boiler utilizes the CO gas generated from the closed furnace.
We embarked on a journey towards renewable energy in 2017 and have since commissioned a solar unit with a total capacity of 4.55 mw.
In 2019, the 108-mw power plant was de-rated to 50 mw. As of today, the current captive power capacity of IMFA stands at 204.55 mw.
Tell us about the coal linkages to your captive power plants. Also, what is the average PLF that IMFA’s captive power plants have been recording?
Our coal consumption is aligned with the power generation demands of our ferro alloys production. A portion of the coal requirement is met through the coal linkages/e-auction from Mahanadi Coalfields Ltd (MCL), and the balance is met by utilizing washery rejects.
To meet our in-house demand, we are operating our captive power plant at around 150 mw with 30-mw and 120-mw power plants. The 50-mw CPP is operated only during maintenance activity of the 150-mw plant. For the current financial year, we expect the PLF to be around 80 per cent.
In line with our commitment to environmental compliance and reducing emissions, IMFA utilizes Indian coal with low sulphur content in the boilers. Further, to ensure that the sulphur oxides (SOx) levels in our flue gas remain within regulatory limits, we have adopted the practice of feeding limestone as a sorbent alongside the coal in the CFBC boilers. This approach is in line with the emission norms.
Assuming that grid supply has been improving over the years, do you see lesser dependence on your captive power plants?
With a firm commitment to sustainability, IMFA has strategically invested in captive power plants that are capable of generating 204.55 mw of electricity, ensuring a reliable and uninterrupted power supply.
What is your view on the Open Access regime? We understand that some states are imposing high OA charges, making it unviable for consumers to source electricity from outside their home state.
We view the Open Access regime as a strategic avenue for energy sourcing that is both energy-efficient and sustainable. However, opting for Open Access regime requires careful consideration, ensuring alignment with state regulations, technical feasibility, and business requirements. We are actively exploring this avenue as part of our commitment to optimizing our energy consumption.
Our ferro alloys process is based on proven and automated technology prevailing in other such industries. We utilize CO gas generated from the closed furnace of the Charge Chrome Unit in our boiler and briquetting unit for better energy utilization. As we proceed with our capacity expansion, we will continue to focus on closed furnace technology, allowing us to further leverage CO gas for energy in briquetting and power generation.
IMFA Group, as we understand, has a solar power plant at Therubali. Do you have plans to add more renewable energy-based capacity?
Yes, IMFA has 4.55-mw capacity solar power. In addition, we are actively pursuing 50 mw of hybrid renewable (solar and wind) energy for our future needs.
Assuming that battery energy storage systems (BESS) gets economically viable, do you see the possibility of industrial captive power plants relying on cleaner renewable energy-based BESS?
At this point in time, adopting battery energy storage systems (BESS) does not present a feasible option for our industry. However, we are open to integrating BESS in our energy portfolio provided it is reliable and cost-effective.
The government is giving thrust to the renovation and modernization (R&M) of existing coal-based power plants. Moreover, sustainable renewable energy is getting established for round-the-clock power with hybrid concepts such as solar and wind/solar and pumped storage projects.
Do you think that over the years, industrial consumers could rely more on grid power? What policy changes could drive this possibility?
Investing in captive power plants requires substantial financial outlay. For industrial users with high power demands, an economical and stable power supply is crucial. If the grid can meet these requirements efficiently, switching to it poses no issue.
All industrial photographs seen in this interview are those of IMFA’s captive power plants.
