India's Push for Coal Gasification: Reducing Import Reliance and Harnessing Coal Reserves
Key Ideas
  • Indian government promotes coal gasification to reduce import reliance on oil, methanol, and ammonia.
  • Coal gasification projects aim to conserve foreign exchange and utilize the country's vast coal reserves efficiently.
  • Incentives like revenue share rebate, sub-sector creation for syngas production, and long-term coal allotments are provided to promote coal gasification.
  • The Coal Gasification Mission targets gasifying 100 million tonnes of coal by 2030 for import substitution and cleaner energy production.
The Indian government has expressed its commitment to promoting coal gasification projects as a means to reduce the country's heavy reliance on imports, particularly for oil, methanol, and ammonia. By converting coal into synthesis gas, these projects offer the potential to not only lower import dependency but also conserve foreign exchange, especially in key sectors like oil, gas, fertilizer, and petrochemicals. The Ministry of Coal highlighted the benefits of gasification, emphasizing its role in partially substituting oil and gas imports while ensuring cleaner utilization of India's significant coal resources. To incentivize coal gasification, the government has introduced measures like a 50% rebate in revenue share for commercial auction policies related to gasification coal, the creation of a dedicated sub-sector for syngas production, and the provision of long-term coal allotments to gasification plants. The launch of the Coal Gasification Mission in 2020 further underscores the government's strategic focus on gasifying 100 million tonnes of coal by 2030. This concerted effort aims to not only reduce import dependency but also promote sustainable energy practices and leverage the country's abundant coal reserves efficiently.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2024 AdvanceH2, LLC. All rights reserved.