Surface coal gasification projects planned for West Bengal, Odisha, Chattisgarh, Maharashtra and Tamil Nadu
The Ministry of Coal has signed MoUs with five leading PSUs for Coal gasification projects to set up four large scale coal-to-chemical projects through surface coal gasification route, an investment of Rs.35,000 crore.
Coal India Limited (CIL) signed three separate Memorandums of Understanding (MoU), one each, with three major PSUs of the country Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL) and GAIL (India) Limited.
In addition, NLC India Limited (NLCIL) also signed an MoU with BHEL.
To come up at an aggregated estimated cost of Rs.35,000 crores, the proposed surface coal gasification (SCG) projects are to be set up in West Bengal, Odisha, Chattisgarh, Maharashtra and Tamil Nadu.
Coal is converted into syngas through SCG route. This can be subsequently processed for downstream production of value-added chemicals which are otherwise produced through imported natural gas or crude oil at enormous cost.
As the country’s four major PSUs huddle together, the move aims to reduce forex outflow, promoting self-reliance and capitalization of indigenous resources.
Another upside will be employment generation with direct employment of around 1,200 personnel and indirect employment to the tune of over 20,000 persons.
With renewables and cleaner energy sources steadily gaining ground, alternative use of coal through diversification assumes greater importance for the future.
With the country endowed with 344 billion tonnes (BT) of coal resources, with 163 BT, proven coal to chemicals through SCG appears a safe bet subject to commercial viability.
The Coal Ministry is on a mission mode and is fast tracking utilization of coal. It has a target to achieve 100-million-ton (MT) coal gasification by 2030.
The Ministry has also taken initiatives for allocating Rs.6,000 crores to support CPSEs by incentivizing implementation of the five coal gasification plants.
While CIL, the country’s largest energy producer, has identified SCG as one of its business diversification avenues, IOCL and GAIL bring to the table their decades of experience in taking up large-scale chemical and process plants.
BHEL has conducted pilot studies with their Pressurized Fluidized Bed Combustion technology and customized it to suit the requirements of high-ash Indian coal. The CIL and BHEL initiative will lead to commercialization of home-grown coal gasification technology.
The synergy and partnership of all the four corporate giants will enable a perfect launch of complex SCG projects.
Speaking at the MoU signing on 12 Oct 2022, Coal Minister Pralhad Joshi said that India is likely to become Aatmanirbhar in thermal coal production in the next few months.
Forty million ton of coal stock will be available with thermal power plants by March next year. As on 1 October 2022, these plants had 24 million ton stock of thermal coal. fiinews.com
