Why in news?
The Indian government has launched major coal gasification missions with goals for 100 million tons by 2030 and incentives over ₹8,500 crore, supporting scores of new projects through Letters of Award and financial incentives.
 
Notable projects include:

• CIL-BHEL JV for ammonium nitrate production in Odisha.
• CIL-GAIL JV for synthetic natural gas in West Bengal.
• Coal-to-ethanol demonstration by New Era Cleantech in Maharashtra using CCUS.
• India’s first pilot for Underground Coal Gasification at Kasta, Jharkhand.

 
These initiatives aim to reduce import dependency, boost job creation, and transform the coal sector with advanced technology adoption.
 
Coal gasification technology
Coal gasification is a technology that converts coal into synthetic gas (syngas)—a mixture of carbon monoxide, hydrogen, and carbon dioxide—primarily used for cleaner power generation, production of chemicals, and as a feedstock for fuels and fertilizers.
 
Core Process and Technology
Coal gasification involves reacting coal with oxygen and steam under high temperature and pressure to produce syngas.

Key technologies include:

• Integrated Gasification Combined Cycle (IGCC): Converts syngas into electricity with significantly lower emissions compared to traditional coal combustion.
• Underground Coal Gasification (UCG): Directly converts coal to syngas within the coal seam, reducing the need for mining and surface disposal.

Advantages

• Cleaner emissions: Syngas can be purified to remove pollutants before combustion, reducing local air pollution, SOx, NOx, and mercury emissions.
• Carbon capture potential: Facilitates capture and utilization of CO₂ and other greenhouse gases during the process, enabling further environmental benefits when integrated with carbon capture, usage, and storage (CCUS) technology.
• Resource flexibility: Produces diverse outputs such as synthetic natural gas (SNG), hydrogen for industrial use, ammonia for fertilizers, and liquid fuels like diesel.

Drawbacks

• High carbon footprint: Despite lower local pollution, coal gasification processes often emit more CO₂ than conventional methods, posing climate risks unless mitigated by CCUS.
• Energy and water intensive: These installations require substantial energy and water inputs, making them resource-heavy compared to other technologies.
• Cost and investment: Projects are capital-intensive, needing policy support, subsidies, and public-private partnerships to be commercially viable.

Applications

• Electricity generation: IGCC plants using syngas for cleaner power generation are rapidly expanding.
• Fertilizer and chemical production: Syngas is widely used to produce ammonia, methanol, and other chemicals.
• Fuel synthesis: Coal-to-liquid (CTL) technologies produce transportation fuels like diesel and gasoline, crucial for countries with rich coal resources but limited oil reserves.

Coal gasification represents a strategic transition for energy security and chemical production, especially in India, but must be scaled with robust emissions controls and support for sustainable technologies.

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