100 Million Tonnes Target for Coal Gasification by 2030

The Ministry has prepared a National Mission document to achieve 100 MT Coal Gasification by 2030. Coal gasification is considered as cleaner option compared to burning of coal.

Technological advancements are offering greater coal recovery, flexibility in mining operations, increased productivity, greater safety and lowering cost. Companies need to adopt new technologies and build digital infrastructure to support the current and future requirements.

India's hydrogen demand is likely to increase to 11.7 million tonnes by 2030 from 6.7 million tonnes per year as of now. Refineries and fertilizer plants are the largest consumers of hydrogen, which is being produced from natural gas. It can be produced through coal in the processes during coal gasification.

Steps taken by the Government to achieve Target

Policy initiatives: To ensure availability of coal at reasonable price for coal gasification plants, a provision has been made for 50% rebate in revenue share for all future commercial coal block auctions for the coal used in gasification purpose provided the coal quantity used for gasification is at least 10% of total coal production. Further, separate auction window under NRS sector has been created for making coal available for new coal gasification plants.

Identification of projects: In was felt to establish financial and technical viability of gasification projects. Accordingly few gasification projects were planned to be set up and based on their operational success, subsequent stages of expansion in this sector would be planned. In line with this strategy, implementation of several coal gasification projects have been taken up.

Coal Gasification based fertilizer plant at Talcher (Odisha)

Talcher Fertilizer Ltd (joint venture of CIL, GAIL, RCF and FCIL), is engaged in setting up of an integrated coal gasification based urea plant wherein high ash coal from nearby Talcher coalfields blended with Pet-coke shall be utilized to produce 1.27 Million Metric Tonnes Per Annum (MMTPA) neem-coated Urea. Currently, the project is under construction stage.