Coal gasification, liquefaction of 100 MT capacity to be set up by 2030: FM

New Delhi: Coal gasification and liquefaction of 100 metric tonne will be set up by 2030, Finance Minister Nirmala Sitharaman said on Thursday while presenting the interim Budget for 2024-25. In January, the government announced a viability gap funding scheme (VGF) with an outlay of Rs 8,500 crore as financial assistance for promoting coal, lignite gasification projects.

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"Coal gasification and liquefaction capacity of 100 MT will be set up by 2030. This will also help in reducing imports of natural gas, methanol, and ammonia," said the Finance Minister in her interim Budget speech.

The government has recently approved setting up of a coal-to-SNG (Synthetic Natural Gas) project through a joint venture between Coal India and GAIL at an investment of Rs 13,052.81 crore and coal-to-ammonium nitrate project through a joint venture between CIL and BHEL for Rs 11,782.05 crore.

Coal gasification: 'Budget reflects govt's commitment to clean coal tech'

Commenting on the budget announcement, Balasaheb Darade, founder and MD of New Era Cleantech Solution, said, "The budget announcement by Finance Minister Nirmala Sitharaman today outlining the promotion of coal gasification and liquefaction capacity with a substantial outlay of 100 metric tons by 2030, underscores the government’s commitment to clean coal technologies for its energy and chemicals self-sufficiency in a sustainable and affordable manner."

"Coal gasification and liquefaction will enhance energy security under the Atmanirbhar Bharat framework. The focus on boosting domestic production and curbing imports of various commodities such as natural gas, hydrogen, urea, methanol, ammonia, DME/LPG, will lead to significant forex savings," said Darade.

The budget announcement, coupled with the Union Cabinets's recent unveiling of an Rs 8,500 crore incentive scheme for coal gasification, is poised to catalyse substantial growth in the coal-to-chemicals sector, added Darade. New Era CleanTech Solution leads one of India's pioneering 5 MMPTA private sector clean coal gasification projects.

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