In response to the disruption in gas supply caused by the West Asia conflict, state-owned Coal India Limited (CIL) intends to establish coal-to-syngas production units either at pithead locations or near to consumer sectors such fertiliser units, gas-based power plants and direct-reduced iron.
More than 80% of India’s coal comes from Coal India Ltd (CIL), and the company has already begun planning to build coal-to-syngas facilities. According to sources, CIL plans to establish coal-to-syn-gas facilities to meet the demand for syn-gas in gas-based power plants, DRIs, or fertiliser plants. This move aligns with the National Mission on Coal Gasification and the government’s goal of improving domestic chemical and feedstock security.
Syngas will be generated from coal by developers or consortia, according to the company’s plans, and these facilities will be developed on either a Build-Own-Operate (BOO) or Build-Operate-Maintain (BOM) basis.
Clean fuels, fertilisers, chemicals, and electricity may all be made from syngas, making it a very useful feedstock.
According to sources, Coal India Ltd had already put out a call for bids to find companies interested in developing coal-to-syngas facilities on a BOO or BOM basis. In these projects, developers or consortia will use coal to make syngas, and there are two models that have been suggested.
In the first scenario, many industrial users will gather near the CIL mine pit head locations to establish a syngas production facility.
Our main objective is to set up syngas hubs on the available CIL property, ideally at the heads of pits, so that we can distribute syngas to surrounding industrial clusters. By reducing the need to transport coal and opening up a dedicated pipeline network for the economically viable receipt of syngas by businesses, this strategy hopes to drastically reduce logistics costs.
The second concept involves the corporation locating the syngas factory next to an existing gas-powered power station, DRI plant, fertiliser unit, or big industrial user.
By situating the syngas plant close to the main end-use facility, this strategy aims to maximise operating efficiency and supply reliability.
The model’s final goal is syngas production close to the end user’s plant. Through the optimisation of pipeline transport route, the system guarantees a devoted and continuous supply of syngas to a single anchor industrial. Thanks to this tight connectivity, production can be customised to match the individual needs of the off-taker.
To keep this program going and find people to take it on, CIL is also trying to find businesses that will buy its syngas and use it as fuel or feedstock on an ongoing basis.
The coal giant has also sent out an EOI to gauge interest in syngas, identify preferable supply models, and gauge commercial expectations from possible off-takers.
The main goal of the expression of interest is to find companies that could use the syngas from the coal-to-syngas facilities that CIL or its designated SPV, JV, or BOM have set up.
IMage Credit: Aludecor
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