Next week, Coal India Limited (CIL) will sign agreements for the establishment of four Surface Coal Gasification (SCG) projects with Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL), and GAIL (India).
According to a formal announcement made on Friday by the Ministry of Coal, the Memorandum of Understanding (MoU) between the government-run businesses would be inked on September 27, 2022, in New Delhi. Together, these PSUs will establish coal-to-chemical operations using the Surface Coal Gasification (SCG) method.
Coal is transformed into syngas via the SCG method, which may then be processed to produce value-added chemicals later on. Alternatively, they are made using imported natural gas or crude oil. Di-methyl ether, synthetic natural gas, and ammonium nitrate are the anticipated byproducts.
The benefits of the planned projects include decreased foreign exchange expenditure and the creation of 23,000 direct and indirect jobs, according to a statement from the Ministry of Coal.
The Ministry of Coal has set a goal to achieve 100 million tonnes of coal gasification by 2030 in order to achieve the twin goals of self-reliance and energy independence, it added.