The government has reportedly approved a key proposal to convert coal into gas. Key players, including Coal India, BHEL, GAIL, and Indian Oil, have officially signed agreements to participate in the initiative, a report by CNBC Awaaz said.
Latest Update On Coal Gasification Initiative
The report stated that the government will provide financial incentives to promote coal gasification, committing to offer capital support for the setup of essential plants and machinery.
Reportedly, several private firms, such as Adani Enterprises and Deepak Fertilizer, have already expressed interest in this initiative. Public Sector Undertaking (PSU) projects will receive capital support of Rs 1,350 crore per plant.
In addition to this, private enterprises will receive capital assistance amounting to Rs 1,000 crore.
The report said that an official notification regarding this is expected soon.
What Is Coal Gasification?
Coal gasification, the process of transforming coal into gas, entails the controlled oxidation of coal through oxygen, steam, or carbon dioxide, all without direct combustion.
Utilising the liberated energy for diverse applications, this approach emerges as a sustainable energy solution.
Internationally, this technique is utilised to produce a variety of valuable products, including methanol, ammonia, ethanol, and electricity.
National Coal Gasification Mission
The government has already launched the National Coal Gasification Mission to achieve coal gasification and liquefaction of 100 MT of coal by 2030. In line with the Mission document, Coal India has signed MOUs with BHEL, GAIL and IOCL to take up coal gasification projects in the country.
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