The government announced that Eastern Coalfields, a subsidiary of Coal India, has initiated its first-ever pilot project for underground coal gasification (UCG) in Jharkhand. UCG is a technique that converts coal still in the ground into a combustible gas, which can be used for various purposes, including power generation.

In a statement, the coal ministry explained that, under its strategic direction, Eastern Coalfields (ECL) has launched an innovative pilot project for UCG at the Kasta coal block in Jamtara district, Jharkhand. This move demonstrates the Centre's proactive efforts to diversify within the coal mining sector.

The initiative is designed to revolutionise the coal industry by converting coal in-situ into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide. These gases can then be used to produce synthetic natural gas, chemical feedstock for fuels, fertilizers, explosives, and other industrial applications.

The coal ministry emphasized its full commitment to promoting coal gasification projects, recognizing their potential to transform coal into various high-value chemical products.

Coal India selected the Kasta coal block to implement UCG technology suited to the country's geo-mining conditions. Managed by ECL in collaboration with CMPDI Ranchi and Ergo Exergy Technologies Inc (EETI) from Canada, this project is set to span two years and comprises two phases. The first phase, which began on Saturday, involves preparing a technical feasibility report through borehole drilling and core testing. The second phase will focus on coal gasification at a pilot scale.

The successful execution of this pilot project is expected to create transformative opportunities for the country's energy sector.