Cabinet approves ₹8500 crore incentive scheme for coal gasification projects

Subject: Environment

Section: Climate change

Context:

The Union Cabinet approved a ₹8,500 crore incentive scheme for coal gasification projects.
The adoption of gasification technology in India is expected to reduce the country’s reliance on imports of natural gas, methanol, ammonia and other essential products.

Coal gasification:

The Government is targeting to gasify100 million tonnes (MT) of coal by 2030.
In the gasification process, coal is partially oxidised by air, oxygen, steam, or carbon dioxide under controlled conditions to produce a liquid fuel known as syngas. Syngas or synthesis gas can be used for power generation and to make methanol as well.
- Syngas is a mixture consisting primarily of methane (CH4), carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2) and water vapour (H2O).
In-situ gasification of coal – or Underground Coal Gasification (UCG) – is the technique of converting coal into gas while it is still in the seam and then extracting it through wells.

Source: TH