India completes $3.9 billion push to convert coal into gas in order to reduce import fuel dependence

Ashwini Vaishnaw, India's Information Minister, said that the?cabinet of India approved a scheme worth 375 billion rupees ($3.92 billion), which will boost coal gasification, reduce reliance on imported fuels, and redirect domestic coal to a cleaner industrial use.

The Cabinet decision encourages the conversion of coal to synthetic gas, which can be used for power generation, fertiliser, and petrochemical applications, among others.

Vaishnaw, a Vaishnaw official, said on Wednesday that this would help reduce India's imports liquefied gas (LNG), ammonia, urea and methanol.

India's gas imports are being affected by the Middle East conflict.

As part of their efforts to reduce?emissions, several countries, such as the United States and China are exploring?coal-gasification technologies.

Vaishnaw stated that India has a coal reserve of 401 billion tons, and a lignite reserve of 47 billion tons. The country aims to gasify 75 million metric tonnes of coal per year.

The government will provide financial assistance to the tune of 20% of the costs of?plants and?machinery.

Power producers are becoming more interested in this sector. NTPC, a state-owned power producer, is looking to enter the coal gasification industry. It plans to produce between 5 and 10 millions tonnes of synthetic gas per year over the next 3-4 years.

In 2024, India approved a coal gasification incentive program worth 85 billion rupees. $1 = 95.7770 Indian Rupees (Reporting and Editing by Bernadettebaum)

(source: Reuters)