India's Innovative Approach to Utilizing Coal Reserves for Clean Energy Transition
Key Ideas
  • India is leveraging its substantial coal reserves through the coal gasification mission, aiming to gasify 100 million tons of coal by 2030.
  • The initiative aligns with the goal of achieving energy independence by 2027, reducing dependency on imports of oil, methanol, and ammonia.
  • The scheme for equity investments by Coal India Limited to establish joint ventures is expected to demonstrate the feasibility of gasification projects and create new economic value chains.
  • The ministry's support for coal gasification includes offering rebates on revenue share, establishing a new sub-sector for syngas production, and providing long-term coal allotments to gasification plants.
India, with substantial coal reserves, is embarking on innovative initiatives to ensure sustainable coal use and transition towards cleaner energy sources. The coal gasification mission, launched in 2020, aims to convert 100 million tons of coal into synthesis gas by 2030. This process involves converting coal into syngas, comprising carbon monoxide and hydrogen, to reduce import dependency on oil, methanol, and ammonia. The country aims to achieve energy independence by 2027 through diversifying coal usage and encouraging cleaner utilization of domestic coal reserves. To support this mission, the ministry of coal is providing significant incentives such as rebates on revenue share, creating a sub-sector for syngas production, and offering long-term coal allotments to gasification plants. Additionally, the recent approval of a scheme for equity investments by Coal India Limited to establish joint ventures is expected to boost the financial viability and technical feasibility of gasification projects, ultimately stimulating downstream markets and fostering new economic value chains.
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