The Ministry of Coal stated on Tuesday that two prominent Maharatna public sector businesses, Coal India Limited and GAIL (India) Limited, have inked a historic joint venture agreement for the establishment of a Coal to Synthetic Natural Gas plant employing surface coal gasification technology.
It is anticipated that the facility, which would be located in the Raniganj area of Eastern Coalfields Limited in West Bengal, will generate 80,000 Nm3 of synthetic natural gas (SNG) every hour. With an expected yearly production of 633.6 million Nm3 per hour, Coal India Ltd. (CIL) will need to supply 1.9 million tonnes (mts) of coal.
“A major step towards accomplishing the objectives of the National Coal Gasification Mission, which facilitates the utilisation of chemical properties of coal, is the synergy and partnership of the two corporate giants,” the ministry stated in a statement.
Methane (CH4), the main component of SNG, is used as a feedstock to make a variety of chemicals and fertilizers. In keeping with the Atmanirbhar goal, the planned plant would help secure the raw material and lessen the nation’s reliance on natural gas imports. Additionally, as part of the effort to combat climate change, it will aid in minimizing carbon emissions from the economy.
On behalf of their respective firms, Debasish Nanda, Director of Business Development at CIL, and R K Singhal, Director of Business Development at GAIL, signed the joint venture agreement.
During the signing ceremony, M. Nagaraju, the Additional Secretary for Coal, stated that CIL and GAIL’s dedication to this project will serve as an example. “The Ministry of Coal ranks gasification as its top priority.” India has abundant coal reserves, which should be used to generate income in an environmentally responsible way, the speaker continued.
In order to reduce carbon emissions, he emphasized the necessity of planning new coal gasification plants. Additionally, he stated that all available government support, including funds for workable gap funding, is in place. On May 15, 2024, Requests for Proposals (RFPs) were released, seeking qualified bidders (public and private) to apply for financial incentives worth Rs 8,500 crore divided into three categories for coal/lignite gasification projects. The deadline for submitting RFPs is November 11, 2024.
In order to fulfill the nation’s emission target, alternative uses of coal for environmentally benign projects like coal gasification should be developed in the future, according to Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas.
