Coal India Plans Coal To Syngas Units To Support Industrial Fuel Security

State owned Coal India is planning to set up coal to syngas production units at mine pitheads or near major user industries, as India looks to strengthen domestic fuel and feedstock security amid global gas supply disruptions. The move comes at a time when geopolitical tensions in West Asia have increased concerns over the availability and cost of imported gas.

Coal India, which accounts for more than 80 percent of India’s domestic coal output, has already initiated steps to develop coal to syngas facilities. The plan is aligned with the National Mission on Coal Gasification and the government’s broader vision to improve domestic chemical, fuel and industrial feedstock security.

Syngas is a versatile industrial feedstock that can be used in clean fuels, fertilisers, chemicals and power generation. Coal India plans to develop these facilities through Build Own Operate or Build Operate Maintain models, where developers or consortia will produce syngas from coal.

Under the first proposed model, syngas production facilities will be developed at Coal India mine pithead areas. These hubs will supply syngas to nearby industrial clusters through dedicated pipeline networks. This approach is expected to reduce logistics costs by cutting down coal transportation and enabling industries to access syngas more economically.

Under the second model, the company plans to set up syngas production units close to existing gas based power plants, direct reduced iron plants, fertiliser units or other large industrial consumers. This will allow on site generation and direct supply to anchor users, improving operational efficiency and supply reliability.

Coal India has floated expressions of interest to identify prospective bidders for developing the facilities and potential industrial off takers willing to use syngas under long term arrangements.

The company is also expanding its coal gasification strategy through joint ventures with Maharatna public sector companies. Its venture with BHEL is developing a coal to ammonium nitrate project in Lakhanpur, Odisha, while its venture with GAIL is working on a coal to synthetic natural gas project in Bhadarpur, West Bengal.

The initiative could support India’s industrial energy security while creating new value from domestic coal resources.