Coal India inks MoUs with 3 PSUs for chemical products

28 Sep 2022 CW Team

Easing the way for setting up of coal-to-chemicals projects through surface coal gasification (SCG), Coal India Ltd (CIL) has signed three major memorandums of understanding (MoUs) in New Delhi.

CIL will join hands with three other major public sector undertakings: Bharat Heavy Electricals Ltd (BHEL), Indian Oil Corporation Ltd (IOCL) and GAIL (India) Ltd for setting up four SCG projects.

Through the SCG route, coal is converted into syngas that can be subsequently processed for downstream production of value-added chemicals. These are otherwise produced through imported natural gas or crude oil. Envisaged end products would be dimethyl ether, synthetic natural gas and ammonium nitrate.

The upside of the projects is reduced foreign exchange outgo and direct and indirect employment generation for 23,000 persons. With the twin objectives of self-reliance and energy independence, the Union Coal Ministry has set a target for achieving 100 million tonne of coal gasification by 2030.

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