The Business Bytes
New Delhi, June 24, 2024 (TBB Bureau): In a significant stride towards revolutionizing the coal industry, Eastern Coalfields Limited (ECL), a subsidiary of Coal India, has embarked on an innovative pilot project for Underground Coal Gasification (UCG) at the Kasta coal block. This initiative, part of a strategic move by the Ministry of Coal, was officially announced on Monday.
“This first-ever groundbreaking initiative aims to revolutionize the coal industry by using in-situ coal gasification to convert coal into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide. These gases can be utilized to produce synthetic natural gas, chemical feedstocks for fuels, fertilizers, explosives, and other industrial applications,” the Ministry of Coal stated.
The Ministry is promoting coal gasification projects, recognizing their potential to transform coal into various high-value chemical products. UCG offers a significant advantage by accessing coal resources that are economically unviable through traditional mining methods, representing a potential game-changer for the industry.
This pilot project marks a crucial milestone for Coal India Limited (CIL) and its subsidiaries, positioning India as a leader in adopting advanced coal gasification technologies. In December 2015, the Ministry of Coal approved a comprehensive policy framework for UCG in coal and lignite-bearing areas, aligning with which Coal India selected the Kasta coal block to implement UCG technology tailored to Indian geo-mining conditions.
Managed by ECL in collaboration with CMPDI Ranchi and Ergo Exergy Technologies Inc. (EETI) from Canada, this project spans two years and comprises two phases. The first phase, which commenced on June 22, 2024, involves preparing a Technical Feasibility Report through borehole drilling and core testing. The second phase will focus on coal gasification at a pilot scale.
This ambitious R&D project, funded by the CIL R&D Board, exemplifies collaboration between Eastern Coalfields Ltd and Ergo Exergy as sub-implementing agencies. The successful execution of this pilot project is expected to create transformative opportunities for India’s energy sector, showcasing the sustainable and efficient use of the country’s coal resources.
The Coal Ministry emphasized that this project represents a significant step towards harnessing India’s coal resources in a more sustainable and efficient manner, potentially setting a global benchmark for UCG technology implementation.
