Eastern Coalfields Commissions UCG Pilot Project at Kasta

25 Jun 2026 CW Team

Underground coal gasification converts coal deposits directly into combustible gases while the coal remains underground through controlled gasification processes. The process yields a synthesis gas comprising methane, hydrogen, carbon monoxide and carbon dioxide, which can be processed into synthetic natural gas, transportation fuels, fertilisers, chemicals and explosives. Processing and purification infrastructure will determine the range of final products and efficiency. The technology, therefore, offers an alternative to conventional mining and surface combustion for deriving industrial feedstocks.

A key advantage of the technology is its ability to access coal seams that are deep or geologically challenging and would otherwise be uneconomical to mine. This approach can reduce the need for extensive surface mining and associated infrastructure while enhancing domestic energy security by unlocking additional reserves. The ministry indicated that a successful demonstration could improve the economic viability of untapped deposits and support strategic resource utilisation.

If the pilot delivers expected results, it may open opportunities for India’s energy, chemical and fertiliser industries by providing domestic feedstock and reducing import dependence. Observers noted that wider adoption would align with government aims to promote advanced clean coal technologies and diversified energy portfolios. The Kasta initiative positions India among countries exploring underground gasification as a strategic industrial and energy solution. Stakeholders will evaluate environmental impacts and economic feasibility during the pilot.

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Eastern Coalfields, a subsidiary of Coal India Limited, has launched India’s first underground coal gasification pilot at the Kasta coal block in Jamtara district, Jharkhand. The project was developed under the strategic guidance of the Ministry of Coal and is intended to demonstrate the commercial and technological potential of underground coal gasification. Company officials described the initiative as a step towards advanced coal utilisation and maximising value from domestic coal reserves. Underground coal gasification converts coal deposits directly into combustible gases while the coal remains underground through controlled gasification processes. The process yields a synthesis gas comprising methane, hydrogen, carbon monoxide and carbon dioxide, which can be processed into synthetic natural gas, transportation fuels, fertilisers, chemicals and explosives. Processing and purification infrastructure will determine the range of final products and efficiency. The technology, therefore, offers an alternative to conventional mining and surface combustion for deriving industrial feedstocks. A key advantage of the technology is its ability to access coal seams that are deep or geologically challenging and would otherwise be uneconomical to mine. This approach can reduce the need for extensive surface mining and associated infrastructure while enhancing domestic energy security by unlocking additional reserves. The ministry indicated that a successful demonstration could improve the economic viability of untapped deposits and support strategic resource utilisation. If the pilot delivers expected results, it may open opportunities for India’s energy, chemical and fertiliser industries by providing domestic feedstock and reducing import dependence. Observers noted that wider adoption would align with government aims to promote advanced clean coal technologies and diversified energy portfolios. The Kasta initiative positions India among countries exploring underground gasification as a strategic industrial and energy solution. Stakeholders will evaluate environmental impacts and economic feasibility during the pilot.

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