We want to make coal gasification a commercial reality in India: New Era Cleantech MD

We have signed an MoU (Memorandum of Understanding) with the Maharashtra state government at the World Economic Forum in Davos earlier this year. Prior to that, this project was sanctioned by the Maharashtra state Cabinet with a mega project status. And we have been allocated around 1,600-acre land by Maharashtra Industrial Development Corporation (MIDC). We are now waiting to receive coal linkage for our project. Our DFR is in process. And we have been actively looking for technologies in the ecosystem for carbon capture and blue hydrogen.

About three years. Our environmental clearance is also in process. We expect to operationalise the plant in about three-to-four years.

We are still in the process of finalising a technology. We are looking at Japanese technologies, we are looking at American technologies, and also Chinese. So, we have MoUs signed with various technology providers. And our team has been doing simulation studies. After coal sample data is available, we will be able to finalise a technology for coal gasification.

And on Carbon Capture, Utilisation, Sequestration and Storage (CCUS) side as well, we have been looking at technologies nationally and internationally. What I can say is carbon capture and blue hydrogen are definitely focus areas for us.

Along with our coal gasification project, we’re also planning on putting in place a Centre of Excellence, an Innovation Centre, where we can invite global players, academia and corporates to work on clean coal and energy transition technologies, such as coal gasification, CCUS and blue hydrogen.

Apart from coal gasification, we are also looking to focus on clean coal refineries. Because there are so many products that can be derived from coal. Coal-to-liquids. Coal-to-chemicals. Coal-to-petrochemicals. So, we’re going to have a multi-product strategy. We think that Atmanirbhar Bharat cannot be sculpted without coal gasification. This is vital for India’s energy security and energy transition.

India does not have enough oil or natural gas to meet its energy needs. The only resource that we have is coal. So, the solution is to find cleaner ways to use the natural resource that we have. That is, by using CCUS. Coal gasification is an important step in India’s energy transition journey. It can be leveraged to put in place the infrastructure required for large-scale deployment of green hydrogen even before green hydrogen becomes viable. We can use coal gasification and CCUS to make blue hydrogen, which can later be replaced with green.

As far as we are concerned, we are keeping a multi-feed strategy. For example, gasifying coal with bamboo pellets. There is technology available for it. And we have access to bamboo and forests because of our location. So, we are planning to use biomass, MSW etc as feedstock. We are very clear about the fact that we not only need to meet the current demand but also look into the future. We are focused on energy transition. And we want to use cleaner technologies.

In India’s energy transition journey, because demand is going to be so huge, there is room for robust growth in both conventional energy and renewable energy sectors. For example, if we have enough green hydrogen and we put it into syn gas, we get ethanol. Green hydrogen plus CO2 makes methanol. We are going to aid the transition journey (through coal gasification). We need to go about the transition in a practical and phased manner.

For at least 20-30 years.

Yes, in a way. JSPL has a coal gasification plant but it is for captive use. And Reliance is doing petcoke gasification for its captive use.

My quick answer to that question is that I see things moving now. And I feel that things will be moving faster going forward. And us coming into the picture and setting up a coal gasification plant will give confidence to other companies, including the public sector. So, it is a journey that we need to undertake together. There needs to be more public-private partnerships in these areas.

So whatever policies are already in place, they need to be executed. That’s one. Secondly, the PLI/VGF scheme that we have been hearing about so far would be very welcome. But we need PLI schemes not just on the coal gasification side, but also on the CCUS side. And an offtake guarantee on the coal side. If the Prime Minister has announced a target of gasifying 100 million tonnes of coal by 2030, then that quantity needs to be reserved, kept aside, for the coal gasification industry. To begin with, at least 20 percent of that 100 MT should be reserved. That will give a lot of confidence to private players in the sector. And we want more and more private sector players to come into this sector because the opportunity is huge. If we are to achieve the target by 2030, then plants have to be announced by at least 2025. So, we have a limited window. People who wait will miss out on that opportunity.

Initially, it will be coal-to-syn gas. Then there are so many products that can be derived from syngas: Blue Hydrogen, chemicals like DME (Di-Methyl Ether), methanol, ammonia, ammonium nitrate, acetic acid, etc. Our teams are currently studying the feasibility. But we will have a multi-product strategy.

Chemicals. Fuels. Energy. Fertilizers. Petrochemicals. Di-Methyl Ether can be a replacement for LPG for both cooking and transportation purposes.

Since we don’t have enough of natural gas, so, this is also a project of strategic importance to the country in terms of energy security, especially considering what is happening right now globally. And we think there is enough demand. So, we will be competitive.

We want to be a key player in India’s energy transition story. As a company, we wish to make coal gasification a commercial reality in India, alongwith CCUS. And also move towards using coal as feedstock in refineries. We think coal-based refineries will be the future.