India’s Coal Gasification Drive: Undertook Several Initiatives

India, with its vast coal reserves, is strategically positioning itself as a global leader in coal gasification. Recognising the potential of this technology to enhance energy security, reduce import dependency, and contribute to a cleaner energy mix, the government has embarked on a comprehensive initiative.

The Coal Gasification Mission, launched in 2020, aims to gasify 100 million tonnes of coal by 2030. This process converts coal into synthesis gas (syngas), a versatile fuel with applications in power generation, fertiliser production, and the petrochemical industry. By reducing reliance on imported oil, gas, and methanol, coal gasification offers a strategic advantage for India.

To incentivise investment and technology development, the government has introduced a financial incentive scheme worth ₹8,500 crores. The scheme provides support for various project categories, including those undertaken by government PSUs and private sector entities. Additionally, the Ministry of Coal has established a transparent bidding process for project selection.

Several pilot projects are underway, including collaborations between Coal India Limited (CIL), Bharat Heavy Electricals Limited (BHEL), and GAIL (India) Ltd. These initiatives focus on producing value-added products like ammonium nitrate, synthetic natural gas, and syngas for steelmaking.

Some of the significant projects that are underway through joint ventures and collaborations are as under:

1. CIL-BHEL JV Project in Lakhanpur, Odisha, focuses on producing ammonium nitrate with a capacity of 0.66 MMTPA, costing ₹11,782 crores, and expected commissioning by FY’29.
2. CIL-GAIL JV Project in SonepurBazari, West Bengal, aims to convert coal into synthetic natural gas with a capacity of 1.83 MMSMD and a cost of ₹13,052.8 crores, expected to be operational by FY ’29.
3. CIL-SAIL JV Project at the Durgapur Steel Plant aims to produce syngas for direct reduced iron, enhancing steel manufacturing sustainability.
4. NLCIL Lignite to Methanol Project is developing clean energy products from lignite, including syngas, diesel, and green hydrogen.
5. WCL Coal-to-Ammonium Nitrate Project targets coal gasification into ammonium nitrate with a production capacity of 0.66 MTPA.

Furthermore, the government is actively promoting the adoption of underground coal gasification (UCG) technology. The pilot project at the Kasta coal block in Jharkhand marks a significant step towards harnessing this innovative method.

India’s coal gasification journey is poised to transform the energy landscape, create new economic opportunities, and contribute to a more sustainable future. With the government’s strong support and the growing interest from the private sector, this initiative has the potential to position India as a global leader in coal gasification technology.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.