NEW DELHI: Coal India Limited (CIL) and GAIL (India) Limited (GAIL) signed an agreement on Tuesday to set up a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology.
The plant, to be located in the Raniganj area of Eastern Coalfields Limited, West Bengal, aims to produce 80,000 Nm3 per hour of Synthetic Natural Gas (SNG), with an annual production target of 633.6 million Nm3.
This will require 1.9 million tonnes (mts) of coal, which will be supplied by CIL.
“The Ministry of Coal, in collaboration with the Ministry of Power and Natural Gas, has facilitated a landmark joint venture agreement between two leading Maharatna CPSEs, Coal India Limited (CIL) and GAIL (India) Limited (GAIL) today. This agreement marks a major step towards setting up a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology,” said the coal ministry in a press note.
Coal India Limited (CIL), a state-owned entity, aims to establish two Coal Gasification Plants in pursuit of achieving its target of 100 Million Tonnes (MT) coal gasification by 2030. This initiative aligns with India's dual objectives of self-reliance and energy independence.
M. Nagaraju, Additional Secretary of the Coal Ministry, emphasized that coal gasification is a top priority for the government. He noted that India's vast coal reserves should be utilized in a gainful and environmentally friendly manner.
Nagaraju stressed the need for more coal gasification projects to minimize carbon emissions and highlighted that the government is providing all necessary support, including financial assistance for viable gap funding.
“Request for Proposals (RFPs) for inviting eligible bidders (public and private) for financial incentives of Rs. 8500 crores under three categories for Coal/lignite gasification project has been floated on 15.05.2024 for which last date of submission is 11 November 2024,” said M. Nagaraju.
S K Gupta, Chairman and Managing Director of GAIL, complimented the CIL and GAIL teams and expressed the need for further government support to advance the project.
Pankaj Jain, Secretary of the Petroleum Ministry, highlighted the importance of alternative uses of coal for environmentally friendly ventures like coal gasification to meet the country's emission targets.
He emphasized that Surface Coal Gasification (SCG) technology converts coal into valuable synthesis gas, which can be used as an alternative to natural gas, feedstock for downstream chemicals production, and power generation.