In a bid to usher in a new era of sustainable energy and reduce environmental impact, Coal India Limited (CIL) has embarked on various Surface Coal Gasification (SCG) projects across the country. These initiatives signify a crucial step towards clean coal technologies and efficient mining practices, aligning with the global push for eco-friendly solutions.
A joint venture of CIL, GAIL, RCF, and FCIL, the Talcher Fertilizer Ltd. is diligently working on an integrated coal gasification-based urea plant in Talcher, Odisha. The project aims to utilize high-ash coal from nearby Talcher coalfields blended with Pet-coke to produce 1.27 Million Metric Tonnes Per Annum (MMTPA) of neem-coated Urea. As of October 2023, construction activities have reached a commendable 51.92% physically and 46.54% financially.
CIL has set its sights on additional Coal Gasification projects at the pitheads of coal mines in Eastern Coalfields Limited (ECL), Mahanadi Coalfields Limited (MCL), and Western Coalfields Limited (WCL). The Board has approved Pre-Feasibility Reports (PFR) for a Coal to Substitute Natural Gas (SNG) Project in ECL and a Coal to Ammonium Nitrate Project in MCL. Furthermore, the WCL Board has given the green light to the PFR for a Coal to Ammonium Nitrate Project.
In addition to CIL’s endeavours, Neyveli Lignite Corporation India Limited (NLCIL) is actively pursuing the establishment of a Lignite to Methanol plant in Neyveli, currently in the tendering stage.
Recognizing the importance of private sector participation in clean coal technologies, the Ministry of Coal has implemented measures to incentivize investments. A policy has been formulated offering a 50% rebate in revenue share for future commercial coal block auctions when coal is used for gasification, with a minimum requirement of 10% of total coal production.
A separate auction window under the Non-Regulated Sector has been established to make coal accessible for new coal gasification plants, streamlining the process for private enterprises.
Acknowledging environmental concerns associated with coal gasification, the government has mandated the grant of Environment Clearance. Project proponents are required to conduct Environment Impact Assessment studies and prepare an Environment Management Plan. An expert committee under the Ministry of Environment, Forest and Climate Change (MoEF&CC) thoroughly examines these reports before any activities related to the establishment of a Coal Gasification Plant are initiated.
