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What is Coal Gasification?

Nov. 12, 2026

The government's ₹37,500-crore coal gasification scheme attracted only two applications in its second round, with experts citing financing constraints, uncertain demand and logistical costs.

About Coal Gasification:

  • It is a thermo-chemical process that converts coal into syngas.
  • Contrary to what the name of the process suggests, coal gasification does not burn coal directly.
  • It heats crushed coal with limited oxygen and steam at very high temperatures (typically around 800–1,600°C) and pressure, producing syngas.
  • Syngas typically contains:
    • Carbon monoxide (CO)
    • Hydrogen (H₂)
    • Methane (CH₄)
    • Carbon dioxide (CO₂)
    • Water vapor (H₂O)
    • Trace gases (e.g., sulfur compounds)
  • Syngas can then be converted into:
    • Methanol
    • Ammonia
    • Urea
    • Synthetic Natural Gas (SNG)
    • Hydrogen
    • Liquid fuels and chemicals
  • Process of Coal Gasification:
    • Preparation: Coal is finely crushed to increase surface area.
    • Drying: Moisture is removed from the coal.
    • Pyrolysis: Coal is heated in the absence of oxygen to release volatile gases.
    • Oxidation: A controlled amount of oxygen or air is added to partially combust the coal, generating heat.
    • Reduction: Steam reacts with hot carbon to form syngas through water-gas reactions.
  • Advantages of Coal Gasification:
    • Fuel Flexibility: Can utilize low-grade coal and waste coal.
    • Cleaner Combustion: Lower SOx, NOx, and particulate emissions than direct coal combustion.
    • Feedstock for Chemicals: Syngas can be converted into ammonia, methanol, or synthetic fuels.
    • Power Generation: Integrated Gasification Combined Cycle (IGCC) plants convert syngas to electricity more cleanly.
    • Hydrogen Production:
      • Provides a source of hydrogen for fuel cells and other industrial applications.
      • With carbon capture and storage, coal-based hydrogen production can have substantially lower carbon emissions.

Source: Coal gasification scheme receives only 2 applications in second round