CIL will develop 6 coal gasification projects with 10 MTPA coal capacity: Joshi

• This will promote cleaner use of coal while shifting it from an 'Energy commodity' to a 'Chemical feedstock, said Joshi

• Under the first phase, Talcher Fertilizers is currently building a 2.5 MT coal gasification unit and CIL is setting up a coal gasification project in Dankuni coal complex

New Delhi: After chairing a review meeting on surface coal gasification on Wednesday, Minister for Coal Pralhad Joshi said that Coal India Ltd (CIL) will develop six coal gasification projects with 10 MTPA coal capacity. "This will promote cleaner use of coal while shifting it from an 'Energy commodity' to a 'Chemical feedstock,'" said Joshi in a tweet after the meeting. The six projects are coming up at Talcher Fertilizers Ltd (TFL), West Bengal's Dankuni Coal Complex, Eastern Coalfields Ltd (ECL), Central Coalfields Ltd (CCL), South-Eastern Coalfields Ltd (SECL) and Western Coalfields Ltd (WCL).

Under the first phase, Talcher Fertilizers is currently building a 2.5 MT coal gasification unit with an estimated investment of Rs 13,277 crore. And Coal India is setting up a coal gasification project in Dankuni coal complex in West Bengal at an estimated investment of Rs 5,800 crore. The rest of the projects are in the pipeline.

What is coal gasification?

Gasification of coal is a process in which coal is partially oxidated by air, oxygen, steam or carbon dioxide under controlled conditions to produce a fuel gas, known as Syn Gas. It is considered as a cleaner option as compared to burning of coal. Syn Gas produced from coal gasification can be utilised for generation of power, producing Synthetic Natural Gas (SNG), energy fuel (methanol and ethanol), production of urea for fertilisers and production of chemicals such as Acetic Acid, Methyl Acetate, Acetic Anhydride, DME, Ethylene and Propylene, Oxo chemicals and Poly Olefins.

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The backdrop

While launching commercial coal mine auction in June this year, Prime Minister Narendra Modi had said that India will invest around Rs 20,000 crore in four major projects for conversion of 100 million tonne (MT) of coal into gas by the end of 2030. The PM had said these reforms will make the eastern and central region of the country the pillars of development. In line with the policy, the commercial coal mine auction, the first tranche of which concluded in November 2020, also offered discounts to bidders for coal gasification projects. Currently, Jindal Steel and Power uses coal gasification to produce steel in its Angul plant. 

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