Why coal gasification may play a pivotal role in India's energy mix

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”