Govt issues LOAs to 3 cos for coal gasification

The government has issued Letters of Award (LOAs) to selected applicants under Category II of the Rs 8,500-crore Coal Gasification Incentive Scheme.

The LOAs were presented by Vikram Dev Dutt, Secretary, Ministry of Coal, to Jindal Steel & Power Limited, New Era Cleantech Solution Private Limited, and Greta Energy Limited.

The Coal Gasification Incentive Scheme has the ambitious target of reaching 100 million tonnes of coal gasification by 2030. This initiative is designed to accelerate technological advancements in coal gasification, significantly reduce carbon emissions, bolster energy security, and create a foundation for a more sustainable energy landscape.

The Scheme envisages allocation of Rs 1,000 crore per project or 15 per cent of capex, whichever is lower.

Jindal Steel & Power Limited has been awarded Rs 569.05 crore in financial incentives for its 2MMTPA coal gasification project in Angul, Odisha. The Rs 3,793 crore project will convert coal into Direct Reduced Iron (DRI) through coal gasification while also setting up a carbon capture and utilization plant designed to capture 30 TPD of CO2 for conversion into valuable products.

New Era Cleantech Solution Private Limited will get a financial incentive of Rs 1,000 crore for its coal gasification project in Bhadravati, Chandrapur, Maharashtra. With a total project cost of Rs 6,976 crore, it aims to produce 0.33 MMTPA of Ammonium Nitrate and 0.1 MMTPA of Hydrogen. Additionally, the project will implement Carbon Capture, Utilization, and Storage (CCUS) technology, where captured CO2 will be utilized for methanol production. The proposed CO2-to-methanol plant will have a capacity of 3,000 TPD (1.0 MMTPA).

Greta Energy Limited has been awarded Rs 414.01 crore of financial incentive for its coal gasification project at MIDC Bhadravati, Chandrapur, Maharashtra. With a total investment of Rs 2,763 crore, the project aims to produce 0.5 MTPA of DRI.