Business
Coal India to Support Fertiliser and Power Plants with Syngas
Coal India Limited is planning to establish coal-to-syngas production facilities at pithead locations and near key industrial consumers such as fertiliser plants, steel units, and gas-based power stations. The move comes amid concerns over disruptions in global gas supplies linked to tensions in West Asia.
State-owned Coal India Limited (CIL) is planning to set up coal-to-syngas production units either at pithead locations or near user industries such as fertiliser units, direct-reduced iron (DRI) plants, and gas-based power stations, amid concerns over disruptions in global gas supplies due to tensions in West Asia.
Sources said the company, which accounts for more than 80 per cent of India’s domestic coal production, has already initiated steps toward developing such facilities.
The proposed projects are aligned with the government’s National Mission on Coal Gasification and India’s broader strategy to strengthen domestic chemical and feedstock security by reducing dependence on imported natural gas and other fuels.
Syngas, or synthesis gas, is a mixture primarily consisting of hydrogen and carbon monoxide and is widely used in power generation, fertiliser manufacturing, and industrial processes. Officials indicated that CIL intends to cater to demand from gas-based power plants, DRI facilities, and fertiliser industries that rely heavily on imported or constrained gas supplies.
The initiative comes at a time when geopolitical tensions in West Asia and concerns over disruptions in energy trade routes have heightened focus on energy security and indigenous fuel alternatives.
Industry experts believe coal gasification could help India diversify its energy mix, improve utilisation of domestic coal reserves, and reduce vulnerability to fluctuations in global gas markets. However, environmental and technological considerations are also expected to remain key aspects of the transition toward large-scale coal gasification projects.
