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Key Points

India is making significant strides in transforming its coal sector through innovative gasification technology. The government has approved a massive Rs 8,500 crore incentive scheme to promote cleaner fuel production and reduce carbon emissions. Major public sector companies like Coal India and GAIL are leading the charge by establishing joint ventures for synthetic natural gas production. These initiatives align with India's vision of achieving sustainable and inclusive growth by 2047.

Key Points: Coal India GAIL Boost Syngas Production for Green Future

  • Government approves Rs 8,500 crore incentive for coal gasification projects
  • Coal India and GAIL sign landmark joint venture for synthetic natural gas
  • Innovative technology converts coal into cleaner chemical feedstocks
  • Private sector companies receive major financial incentives for green projects
3 min read

Govt sees coal gasification as big step for cleaner fuels

India's coal sector transforms with innovative gasification technology, targeting cleaner energy and reduced carbon emissions by 2047

"Coal gasification transforms solid coal into syngas - unlocking cleaner fuels and reducing emissions - Coal Ministry"

New Delhi, May 20

The Ministry of Coal has stepped up efforts to promote coal gasification as part of the government's policy to switch to cleaner fuels, greener technologies, and a long-term vision for sustainable and inclusive growth.

"Coal gasification transforms solid coal into syngas - a mix of carbon monoxide, hydrogen, and carbon dioxide - unlocking cleaner fuels, chemicals like methanol and ammonia, and reducing emissions," the Coal Ministry said on Tuesday.

The Ministry sees coal gasification as "a step toward energy self-reliance and a cleaner industrial future" as it produces cleaner fuels, chemical feedstocks and lower emissions.

Coal is one of the most abundant natural resources in the country. Coal gasification technology enables conversion of coal into syngas (synthetic gas), which can be used to produce downstream products like methanol, ammonium nitrate, synthetic natural gas (SNG) and fertilisers, etc. Coal gasification technology provides an alternative use of coal, promoting environmental sustainability to align with the vision of developed India 2047, a senior official said.

The government has approved an outlay of Rs 8,500 crore as financial incentive, for promotion of coal gasification projects for both government PSUs as well as private sector companies.

Leading Maharatna public sector companies Coal India Limited and GAIL (India) Limited (GAIL) have signed a landmark joint venture agreement for setting up a Coal to Synthetic Natural Gas plant using surface coal gasification technology.

The plant to come up in the Raniganj area of Eastern Coalfields Limited in West Bengal is expected to produce 80,000 Nm3 per hour of SNG. The annual production is slated at 633.6 million Nm3 per hour, which will require 1.9 million tonnes (mts) of coal to be supplied by Coal India Ltd (CIL). The synergy and partnership of the two corporate giants is a big step towards achieving the goals of the National Coal Gasification Mission, which facilitates the utilisation of the chemical properties of coal.

Earlier this year, the Ministry of Coal announced that it has issued Letters of Award (LOAs) to applicants selected under Category II of the Rs 8,500 crore Coal Gasification Incentive Scheme aimed at reducing the country’s carbon emissions and strengthening energy security.

Jindal Steel and Power Limited’s 2MMTPA coal gasification project at Angul in Odisha, has been awarded Rs 569.05 crore in financial incentives. The Rs 3,793 crore project will convert coal into Direct Reduced Iron (DRI) through coal gasification while also setting up a carbon capture and utilisation plant designed to capture 30 TPD of CO2 for conversion into valuable products.

New Era Cleantech Solution Private Limited has been given a financial incentive of Rs 1,000 crore for its coal gasification project in Bhadravati, Chandrapur, Maharashtra. Greta Energy Limited has also been awarded Rs 414.01 crore of financial incentive for its coal gasification project at Bhadravati with a total investment of Rs 2,763 crore.

- IANS

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Reader Comments

R
Rajesh K.
This is a smart move by our government! India has abundant coal reserves and using them more efficiently through gasification makes perfect sense. Cleaner fuel + energy security = win-win 🇮🇳 Hope they implement this quickly across coal-rich states like Jharkhand and Odisha too.
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Priya M.
While I appreciate the initiative, I'm concerned about the environmental impact in West Bengal where the first plant is coming up. Gasification is cleaner than burning coal directly, but we must ensure strict monitoring of emissions and proper waste disposal. The ₹8500 crore investment should include strong environmental safeguards.
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Amit S.
Finally some forward thinking! We've been too dependent on imported oil and gas. Converting our own coal into SNG and fertilizers will save billions in foreign exchange. Kudos to CIL and GAIL for this JV. Hope to see more such projects in coal belt areas - can create jobs and boost local economies.
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Sunita R.
The carbon capture part in Jindal's Odisha project sounds promising 👏 But I wonder - why not invest more in solar and wind alongside this? We need a balanced energy mix. Still, good to see India developing homegrown solutions rather than just copying Western models.
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Vikram J.
As someone from Raniganj, I welcome this project but hope the government ensures fair compensation for land acquisition and proper rehabilitation. Too often, local communities bear the brunt while corporates reap benefits. The 633.6 million Nm3 SNG production sounds impressive, but what about the people living there?
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Neha T.
The technology sounds promising but implementation will be key. Remember how many 'clean coal' projects failed in the past? Hope they've learned from those mistakes. The ₹8500 crore incentive is substantial - hope it's used wisely and not just goes to big corporates' pockets. More transparency in fund allocation please!

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