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Coal gasification (UPSC-RAS) {Geography}

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  • Coal gasification is the conversion of coal into syngas (synthesis gas) by heating it at high temperatures (700–1,500°C) in a low-oxygen environment with steam or controlled amounts of oxygen/air.
  • [Coal does not burn in this process - it breaks down chemically into gas form.]

 Process of coal gasification-

1. Feed coal - Coal/lignite , steam and oxygen fed into a gasifier reactor.

2. Gasification - Partial oxidation at high heat breaks coal into raw syngas.

3. Gas clean-up - Sulphur, mercury & impurities removed before downstream use.

4. End products -Syngas used for electricity, fuels, chemicals & fertilisers.

  • Syngas composition - H₂ (hydrogen) · CO (carbon monoxide) · CH₄ (methane) · CO₂ (carbon dioxide)
  • Underground coal gasification (UCG) - Gasification happens in-situ in unmined coal seams underground - oxidising agent is injected and syngas is piped to surface. Being piloted in Jharkhand.

Benefits –

  1. Cleaner than combustion Sulphur & mercury removed before use; lower particulate emissions than direct coal burning.
  2. Versatile outputs - Syngas can change into  electricity, methanol, ammonia, urea, synthetic natural gas, hydrogen, liquid fuels.
  3. Higher energy efficiency - More efficient power generation vs traditional coal combustion plants.
  4. Hydrogen pathway - H₂ separable from syngas  a bridge feedstock toward future hydrogen economy.
  5. Steel sector synergy-  Syngas as DRI (direct reduced iron) reductant  reduces dependence on coking coal imports.
  6. Import substitution - Domestic syngas replaces expensive LNG, urea & ammonia imports.

Indian perspective-

Policy & schemes

A. National Mission on Coal Gasification –

  1. ₹37,500 Cr scheme (May 2026) 75 MT target, 20% capex subsidy, max ₹5,000 Cr/project.
  2. 50% rebate on revenue-share for coal used in gasification (commercial blocks).
  3. Technology- agnostic; indigenous tech encouraged.

B. Strategic rationale

  1. India's LNG/urea import bill: ₹2.77 lakh Cr (FY2025).
  2. Atmanirbhar Bharat  produce locally from domestic coal.
  3. Energy security amid geopolitical volatility.
  4. Reduce ecological footprint of coal use.
  5. Expected investment - ₹2.5 lakh Cr; large-scale employment.

Key projects & players-

  • 7 major gasification projects worth ₹64,000 Cr underway.
  • Talcher Fertilizer Plant (first coal-based fertilizer plant).
  • Jindal Steel Angul world's largest syngas-based steel plant.
  • Coal India Ltd (CIL) coal-to-methanol projects.
  • BHEL technology for India's high-ash coal to methanol.
  • UCG pilot in Jharkhand; NLC India expanding ecosystem.

Challenges -

  1. Carbon emissions remain a concern CO₂ capture needed for net-zero alignment.
  2. High capital intensity of gasification plants India's coal has high ash content  technology adaptation required (BHEL working on this).
  3. Global price cycles affect project economics Regulatory coordination MoEFCC, DGMS, CGWB approvals needed for UCG.

Source :- DD News