NTPC to Set Up Coal-to-SNG Plant in Chhattisgarh

14 Jan 2026 CW Team

State-owned power major NTPC will set up its coal-to-synthetic natural gas (SNG) facility in Chhattisgarh with an investment of around Rs 100 billion, a senior company official said.

The company is currently exploring technology tie-ups for key processes such as coal beneficiation and gasification to produce SNG. NTPC is targeting a production cost of around USD 12 per million British thermal unit (MMBTU), the official added.

In October 2025, NTPC announced that it had signed an agreement with Engineers India Limited to develop a coal-to-SNG facility, although details of the project, including its location, were not disclosed at the time. The company had said the plant would utilise high-ash Indian coal sourced from its captive mines.

The official said the project will be located at Talaipalli in Chhattisgarh and will involve an investment of around Rs 100 billion. The proposed facility will have a capacity of 0.5 million tonnes of SNG per annum, spread over about 150 acres, and will consume nearly 2.5 million tonnes of coal annually from NTPC’s Talaipalli mines.

The technology configuration for the project is expected to be finalised in the last quarter of FY26. The coal-to-SNG process includes coal beneficiation, coal gasification, water gas shift and methanation. NTPC is said to be in advanced stages of discussions for several international technology tie-ups.

Once the technology is finalised, the company will begin preparations related to land acquisition, power supply and water availability. The initiative is being led by NETRA, NTPC’s research and development arm, under its broader vision of ‘greening the coal’ and advancing carbon capture and utilisation technologies.

Coal gasification is increasingly being seen as a key enabler for the sustainable use of domestic coal reserves, helping reduce dependence on imported fuels while lowering emissions. NTPC may also explore commercial opportunities from the project, as syngas produced through coal gasification can be used to manufacture synthetic natural gas, methanol, ethanol, ammonia for fertilisers and other petrochemical products.

State-owned power major NTPC will set up its coal-to-synthetic natural gas (SNG) facility in Chhattisgarh with an investment of around Rs 100 billion, a senior company official said. The company is currently exploring technology tie-ups for key processes such as coal beneficiation and gasification to produce SNG. NTPC is targeting a production cost of around USD 12 per million British thermal unit (MMBTU), the official added. In October 2025, NTPC announced that it had signed an agreement with Engineers India Limited to develop a coal-to-SNG facility, although details of the project, including its location, were not disclosed at the time. The company had said the plant would utilise high-ash Indian coal sourced from its captive mines. The official said the project will be located at Talaipalli in Chhattisgarh and will involve an investment of around Rs 100 billion. The proposed facility will have a capacity of 0.5 million tonnes of SNG per annum, spread over about 150 acres, and will consume nearly 2.5 million tonnes of coal annually from NTPC’s Talaipalli mines. The technology configuration for the project is expected to be finalised in the last quarter of FY26. The coal-to-SNG process includes coal beneficiation, coal gasification, water gas shift and methanation. NTPC is said to be in advanced stages of discussions for several international technology tie-ups. Once the technology is finalised, the company will begin preparations related to land acquisition, power supply and water availability. The initiative is being led by NETRA, NTPC’s research and development arm, under its broader vision of ‘greening the coal’ and advancing carbon capture and utilisation technologies. Coal gasification is increasingly being seen as a key enabler for the sustainable use of domestic coal reserves, helping reduce dependence on imported fuels while lowering emissions. NTPC may also explore commercial opportunities from the project, as syngas produced through coal gasification can be used to manufacture synthetic natural gas, methanol, ethanol, ammonia for fertilisers and other petrochemical products.

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