Is Coal Gasification Another Step Forward for India's Net-Zero Vision?

Researched by Industrial Info Resources (Sugar Land, Texas)--Owing to the net-zero carbon emissions drive, nations across the globe are focusing upon transitioning to low-carbon technologies. While many countries are heavily investing in solar and wind energy to achieve energy transition targets, India is capitalizing on its coal reserves by implementing coal gasification to advance toward its net-zero goal.

Currently the fifth-largest economy of the world, India is projected to establish itself as the third-largest over the next five years. The nation looks forward to embracing opportunities in the coal gasification sector as it seeks to diversify its energy mix. As a process that converts solid coal into a gaseous mixture known as syngas (synthesis gas) through a series of chemical reactions, coal gasification can significantly help achieve net-zero emissions.

According to India's Ministry of Coal, the nation boasts a substantial coal resource base, with 344 billion tons of coal, including 163 billion tons of proved reserves. The National Coal Gasification Mission (NCGM) is aimed at achieving 100 million tons of coal gasification by the year 2030.

In 2022, Nirmala Sitharaman, the finance minister of India, addressed the need for greater investments to help in gasification of coal, as reported by the Times of India.

Last month, India's cabinet endorsed proposals to offer incentives totaling US$1.02 billion for initiatives aimed at coal gasification, announced Shri Pralhad Joshi, the minister of coal and mines.

Additional investments are expected to come up soon. Industrial Info is tracking two projects geared at new coal gasification capacity in India. These two projects (GAIL India Limited's Talcher plant and Paradeep Phosphates' development in Paradip) together account for US$762 million in spending. Also, slightly more than US$100 million is being driven by small-scale gasification projects ranging from US$1 million to US$10 million. These smaller developments are coming up across steel mills in India and are aimed at substituting a portion of their natural gas requirements for internal usage.

As the leading investor, GAIL India is adding a unit to its coal gasification plant in Talcher, Odisha. This project is under construction and is expected to reach its completion by June 2025. Paradeep Phosphates Limited is also adding units to its coal gasification plant, with the project planned to kick off by May 2024 and be completed by December 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the GAIL India project report and click here for the Paradeep Phosphates project report.

Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).