Coal Gasification Incentive Scheme

Coal Gasification Incentive Scheme Latest News

Recently, the Union Minister unveiled India’s roadmap to reduce dependency on imported petroleum, ammonia, and fertilizers, highlighting the ₹8,500 crore coal gasification incentive scheme.

About Coal Gasification Incentive Scheme

• It was approved on January 24, 2024, for promotion of coal and lignite gasification projects for PSUs and private sector with an outlay of ₹ 8,500 crore.
• It aims to achieve 100 million tonnes of coal gasification by 2030, leveraging India’s abundant domestic coal reserves to promote sustainable industrial development.
• It encourages participation from both public and private sector players to establish coal gasification projects across the country.
• This initiative is a key component of India’s clean coal transition strategy.
• Significance: It is expected to reduce environmental impact, enhance energy security, and drive economic growth through technological innovation and infrastructure development.
• Category of Projects
  • Category I: PSU-led projects
  • Category II: Private and PSU projects
  • Category III: Demonstration and small-scale projects

What is Coal Gasification?

• It is a thermo-chemical process that converts coal into syngas,
• A synthetic gas composed mainly of carbon monoxide (CO), hydrogen (H₂), carbon dioxide (CO₂), methane (CH₄), and water vapour (H₂O).
• Coal is reacted at high temperatures (1000–1400°C) with a controlled amount of oxygen and steam, producing syngas.
• Process of Coal Gasification
  • Preparation: Coal is finely crushed to increase surface area.
  • Gasification reactor: The powdered coal is fed into a reactor with limited oxygen/air and steam.
  • Chemical reactions: Coal breaks down into syngas components due to partial oxidation.
  • Gas cleaning: Impurities like tar, sulfur, and dust are removed from raw syngas.

Source: ET

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