What is Coal Gasification? Govt Approves ₹37,500 Crore Scheme to Boost Coal Gasification

The central government of India has approved a massive ₹37,500 crore incentive scheme to convert the 75 million tonnes of coal into syngas to promote Surface level coal and lignite Gasification Projects and move toward energy self-reliance. 

India is pivoting from traditional coal combustion toward advanced gasification technology. It aims to utilize India's vast coal reserves approx 401 billion tonnes to produce high-value chemicals and fuels known as syngas which will  help to reduce oil imports. 

What is Coal Gasification?

Coal gasification is a thermo-chemical process that converts coal or lignite into Synthesis Gas (Syngas). It uses steam and Oxygen(O2) to break down coal at high temperatures without burning it.Syngas is composition of Carbon Monoxide (CO) and Hydrogen (H2). 

In the coal gasification process, coal or lignite reacts with Oxygen(O2) and steam under pressure and temperature. This controlled reaction breaks down the carbon material into its gaseous components. And the syngas is produced by cleaning of impurities such as SO2 (sulphur). 

 It can be further processed into 

• Fertilizers: Urea and Ammonia.

• Chemicals: Methanol, Acetic Acid, and Olefins.

• Clean Fuels: Synthetic Natural Gas (SNG), Dimethyl Ether (DME), and Hydrogen.

• Electricity: Via Integrated Gasification Combined Cycle (IGCC) for higher efficiency.

Key Highlights of the ₹37,500 Crore Scheme

The scheme is designed to bridge the financial gap for capital-intensive gasification projects, mobilising an estimated ₹2.5 to ₹3.0 lakh crore in total investment to convert approximately 75 million tonnes of basic coal and lignite coal into syngas. 

India’s target is to gasify100 Million Tonnes (MT) of coal by 2030 and reduce reliance on imported LNG, urea, and methanol to reduce the import bill.  Generate nearly 50,000 direct and indirect jobs across 25 upcoming projects in coal-bearing regions.

Total Financial Outlay 

Significance of the Coal Gasification: 

India currently imports over 50% of its natural gas and nearly 90% of its methanol by converting domestic coal into these products, India can insulate its economy from global price volatility and supply chain disruptions.

• Gasification allows for the removal of impurities like sulfur(SO2) and mercury before the gas is used, making it cleaner than direct coal burning and helping in the lower greenhouse gas emmission.

• The process produces a concentrated stream of CO2, which is significantly easier and cheaper to capture and store (CCS) compared to flue gases from traditional power plants.

• Technological advancement for indigenous technologies by aligning with global innovation and promoting India's manufacturing base under the Make in India initiative.

The Ministry of Coal has approved a ₹37,500 crore financial outlat to promote prolong coal linkage tenures to 30 years, aiming to create a sustainable industrial ecosystem. It is about transitioning a traditional resource into a modern, adaptable feedstock for a more sustainable and self-sufficient India.

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