Coal gasification will be a key step in India's quest to decarbonize and limit the advancement of non-fossil-fuel based energy resources

Mr. Ravi Shekhar, Director & Head, of Eninrac Consulting says "Surface coal gasification (SCG) might evolve as a preferential alternative to substitute the burden of importing LNG in India substantially. Additionally, with coal to chemical tapping opportunity of producing methanol, ammonia and ammonium nitrate it could lead as a catalyst for India’s reduction in import volumes of these chemicals. For instance, the country imports 92% of Methanol for its consumption which has diversified end use extending from olefins to gasoline blending options. Separate auction window of coal from CIL, allocation of ear-marked land for development of SCG projects, dedicated policy for methanol blending programs such as M15, M85 and M100, incentivizing the domestic off-take of methanol and incentivizing revenue share of coal block auction may serve as the right fillip to push enhanced SCG ecosystem in the country. Essentially different models could serve as potential for SCG projects like capital grant, hybrid model and operational grant model as per interests of the industry and Government."

The syngas produced by coal gasification can be used to generate urea and a variety of products such as methanol, di-methly ether (DME), and olefins which thereby allows India to minimise imports and be self-reliant. Syngas, Carbon monoxide and hydrogen act as essential reducing agents used in steel production as they will push reduction of imports of furnace oil. India, with huge reliance on coal based power generation can benefit immensely from SCG as the synthetic gas can be used in an IGCC system to generate electricity at lower cost and be pollution free.

Surface coal gasification will offer import substitution for natural gas in the country

Apart from LNG import reduction, the surface coal gasification offers methanol, ammonia and ammonium nitrate as key products for which key policy interventions by GoI is already in place

Gasification Mission	The National Coal Gasification Mission (100 MT by 2030) document was released by Ministry of coal in September 2021 which shall act as roadmap for SCG projects in India
Preferential Auction	Ministry of Coal has provided for 50% rebate in revenue share in commercial coal block auctions for certain projects of coal gasification in India
Separate Window	The MoC, GoI has also created a separate window for auction of coal on long term basis (15 years) for both private & public sector
Stakeholder Involvement	Ministry of Coal is actively promoting the benefits of coal gasification in the country involving stakeholders from research, academia, industry and consultants
Budget Announcement	In the Budget 2022, four (4) pilot projects for coal gasification and conversion of coal into chemicals to evolve both financial and technical viability

- Communications Team