New Delhi: In an important move to boost India’s domestic gasified fuel supply and bolster energy security, NLC India Ltd (NLCIL) and Reliance Industries Ltd (RIL) have teamed up to investigate the development of an underground lignite gasification project in Gujarat.
Sources claim that NLCIL and Reliance Industries have reached an agreement to assess the technical and practical viability of using subsurface gasification technology to turn lignite reserves into gas. The program is in line with the government’s larger initiatives to encourage cleaner use of native coal and lignite reserves and lessen reliance on imported energy resources.
According to industry experts, Reliance’s expertise in downstream gas processing and gasification technology could help expedite project execution while resolving technical issues related to underground gasification.
The partnership is part of NLCIL’s strategy to diversify beyond traditional lignite mining and electricity production. Additionally, the business is investing an estimated ₹4,394 crore to build a lignite-to-methanol factory in Neyveli, Tamil Nadu. The project, which aims to produce methanol using indigenous lignite resources, is scheduled to be finished next year.
The planned projects complement the Center’s plan for gasification of coal and lignite. A ₹37,500 crore incentive program to support coal and lignite gasification projects was approved by the Union Cabinet earlier this month. The plan aims to gasify 75 million tonnes of coal. The project is a component of India’s broader goal of gasifying 100 million tonnes of coal by 2030.
The programme is expected to enhance energy security and reduce imports of key commodities such as LNG, methanol, ammonia, and urea, while supporting the country’s long-term sustainability and industrial growth objectives.
Source – The Economic Times
