State-run Coal India (CIL) is planning to set up a coal-gasification project with a predicted funding of Rs 5,800 crore in the Dankuni coal complex in West Bengal. The project, which is now in the planning stage, will convert 1.5 million tonnes (MT) of the gas into different products and reduce emissions. Binay Dayal, CIL’s director, technical on the occasion of a webinar on coal gasification organized with the aid of the Union coal ministry on Monday stated that tenders for the project are likely to be floated in September itself, and it is anticipated to be complete by January 2025.
Prime Minister Narendra Modi had said that Rs 20,000 crore can be invested in coal gasification initiatives by 2030 for eco-friendly utilization of the fuel, which is abundantly available in the country. With this technology, coal can be gasified to show it into a clean syngas or synthesis gas—a mixture of hydrogen and carbon monoxide — which constitutes the basic building block of the chemical industry and transformed right into an extensive range of downstream products.
Between 2022 and 2026, CIL is also making plans to invest another Rs 25,000 crore to build six different coal gasification projects with a cumulative capacity of 6 MT. CIL stated that since imports from Gulf nations are in all likelihood to pose price challenges for products from those units, some support from the government will be required to make these projects viable. Long-term contracts from oil and gas marketing agencies for assured offtake of the products could be beneficial, specialists pointed.
Talcher Fertilizers—a joint venture between CIL, GAIL, Rashtriya Chemicals and Fertilizers Ltd and Fertilizer Corporation of India Ltd—is also presently building a 2.5 MT coal gasification unit with an expected investment of Rs 13,277 crore. The project was anticipated to be complete by September 2023, however, the construction process has faced delays because of coronavirus disruptions. The turnkey tender for the construction of this project was provided to China-based Wuhuan Engineering.
The newly released public sale for commercial coal mining offers discounts to potential bidders for coal gasification projects. Currently, Jindal Steel and Power makes use of coal gasification technology to produce steel in its Angul plant. US-based global industrial gas company Air Products is also eyeing a $10 billion investment opportunity in Indian coal gasification projects.
