India is the world's third-largest energy consumer and is largely reliant on imports. About 80% of the nation’s needs for crude oil and 50% of its needs for natural gas are imported. It imported about ten percent of the coal it used in 2022–2023. The installation of renewable electricity capacity has advanced quickly in recent years, with a target of 500 GW by 2030 and a current capacity of about 180 GW.
Hydropower was one of the renewable energy sources that accounted for almost sixteen percent of the total power generated in 2022–2023. In the foreseeable future, renewable energy sources are unlikely to play a significant role in supplying the growing global energy demand. As a result, for the foreseeable and intermediate future, the nation will be dependent on traditional energy sources. We must investigate and utilize every available energy source.
The goal of the Coal Gasification Scheme, unveiled during the Finance Minister’s February Budget speech, is to gasify 100 million tons of coal by 2030. It's a positive move, all the same. Additionally, the government has authorized up to 15% of the total cost of funding for projects in the public and private sectors. Coal gas produced by coal gasification, also known as synthetic natural gas, can be used as a fuel or as an input to make chemicals like methanol and ammonia. Power can also be produced from coal gas.
Compared to traditional coal-based power plants, a combined cycle power plant based on coal gasification offers much-improved efficiency. Coal gas’s composition can be changed to meet the needs of downstream users who plan to utilize it as feed, fuel, or both. Existing pipes can also be used to move coal gas. As a result, the strain on railroads – a significant coal carrier will be lessened. The history of coal gasification technology is extensive. China and South Africa are leading the way in the use of coal gasification in the production of chemicals and fertilizers. In Talcher and Ramagundam, India, two sizable coal gasification-based fertilizer facilities were put into operation in 1980. For several reasons, these plants sadly did not perform properly. The coal that was supplied to these facilities had more ash than what was needed for gasifier design. An additional gasifier may have been installed to solve the issue. However, ongoing power outages and subpar operations from other equipment compounded the problems. The facilities were not profitable since there was not enough money invested to fix these issues.
The upcoming fiscal year is probably when it will be put into service. Improved equipment design and the most recent developments in coal gasification technology should ensure the new plant’s success. The high cost of the rival fuel, natural gas, will make it a feasible option as well. The benefit is that urea will be produced using a significant portion of the carbon dioxide produced throughout the process.
The gasification scheme’s driving force, Coal India Ltd (CIL), and others are hoped to conduct due diligence on the kind of feed coal to be utilized, the gasification technology to be employed, the composition and heat value of the gas produced, and their partnerships with downstream users.