Coal Gasification: India’s vast coal reserves, estimated at 378 billion tonnes, present significant opportunities for energy production. With around 80% of this coal used in thermal power plants, the Ministry of Coal is focusing on sustainable utilization amid the country’s shift towards cleaner energy solutions. The Coal Gasification Mission, launched in 2020, aims to gasify 100 million tonnes of coal by 2030, aligning with Prime Minister Narendra Modi’s vision for energy independence by 2027.
Coal Gasification Process
Coal gasification converts coal into synthesis gas (syngas), consisting primarily of carbon monoxide and hydrogen. This process helps reduce India’s reliance on imports, particularly in oil, gas, fertilizer, and petrochemical sectors, by converting coal into usable products like methanol and ammonia. The initiative supports partial import substitution and promotes cleaner coal utilization.
Government Initiatives and Financial Support
On January 24, 2024, the Cabinet Committee on Economic Affairs approved a scheme for equity investments by Coal India Limited (CIL) with BHEL and GAIL to form joint ventures. This scheme, with an ₹8,500 crore financial outlay, includes incentives for Government PSUs and the private sector to stimulate market development and establish new economic value chains. The Ministry also offers rebates in revenue shares and long-term coal allotments for gasification plants.
Ongoing and Future Projects
Several significant projects are underway, including:
- CIL-BHEL JV in Odisha: Producing ammonium nitrate, costing ₹11,782 crores.
- CIL-GAIL JV in West Bengal: Converting coal into synthetic natural gas with an investment of ₹13,052.8 crores.
- NLCIL Lignite to Methanol Project: Developing clean energy products from lignite.
- WCL Coal-to-Ammonium Nitrate Project: Focusing on ammonium nitrate production.
Additionally, India’s first pilot project for Underground Coal Gasification (UCG) at the Kasta coal block in Jharkhand marks a significant step in adopting advanced technologies.
Conclusion
The Ministry of Coal’s coal gasification scheme represents a transformative leap towards sustainable energy production. With substantial financial backing and innovative projects, this initiative promises to enhance energy security, reduce import dependency, and generate economic growth. The government remains committed to promoting coal gasification, ensuring its success, and paving the way for a sustainable energy future.
