Coal Gasification

May 9, 2025

The Ministry of Coal has signed the Coal Gasification Plant Development and Production Agreement (CGPDPA) with selected applicants under Category II of the Coal Gasification Financial Incentive Scheme.

What is Coal Gasification?

  • Coal gasification is a thermo-chemical process that converts coal into syngas, a synthetic gas composed mainly of Carbon Monoxide (CO), Hydrogen (H₂), Carbon Dioxide (CO₂), Methane (CH₄), and Water Vapour (H₂O).
  • Coal is reacted at high temperatures (1000–1400°C) with a controlled amount of oxygen and steam, producing syngas.

Process of Coal Gasification

  • Preparation: Coal is finely crushed to increase surface area.
  • Gasification reactor: The powdered coal is fed into a reactor with limited oxygen/air and steam.
  • Chemical reactions: Coal breaks down into syngas components due to partial oxidation.
  • Gas cleaning: Impurities like tar, sulfur, and dust are removed from raw syngas.

Ex-situ vs In-situ Gasification

Aspect

Ex-situ Gasification

In-situ Gasification

Location

Above ground in controlled gasifiers

Underground, in coal seams

Process

Coal is extracted and gasified in reactors

Oxygen and steam are injected into the coal seam to generate syngas underground

Application

Suitable for shallow reserves

Ideal for deep or unmineable coal seams

Efficiency

More energy is used in mining and handling

More energy-efficient for deeper deposits

About the Financial Incentive Scheme (Launched January 24, 2024)

  • Total outlay: ₹8,500 crore.
  • Target: Achieve 100 million tonnes of coal gasification by 2030.
  • Aim: To efficiently utilise India’s domestic coal reserves for sustainable industrial development.
  • It promotes both public and private sector participation for setting up coal gasification infrastructure.
  • Aligned with India’s goal of a clean coal transition, energy security, and reduction of import dependency.

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