New Delhi, May 21: 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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