Coal India to build four Surface Coal Gasification projects with BHEL, IOCL, GAIL
Coal-to-chemical projects; 100 million tons gasification by 2030; to reduce imports significantly
Demand for coal is likely to rise in future
Coal India Limited (CIL) will join hands with three other major PSUs — Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL) and GAIL (India) — for setting up four Surface Coal Gasification (SCG) projects. CIL is slated to sign the required Memorandums of Undertaking (MoU) on 27 September 2022.
The SCG projects will convert coal to syngas which will be processed for downstream production of value-added chemicals such as di-methyl ether, synthetic natural gas and ammonium nitrate. This will reduce the imports of natural gas and crude oil.
The projects could lead to direct and indirect employment of 23,000.
The Ministry of Coal has set a target for achieving 100 million tonne coal gasification by 2030.
CIL is currently the single-largest coal producer in the world. Its share price stands at 222.85, up 33% from around 167 a year ago.
BHEL – 58, up 1.49% vs 56.25 a year ago.
IOCL – 67.45, down 14.2% vs 78.63 a year ago.
GAIL – 86, down 15.63% vs 101.7 a year ago.
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