In India’s 1st, Ministry Starts Underground Coal Gasification Project Converting It to H2, CO and CO2 for Industries' Uses

Ministry of Coal initiates India’s First Ever Pilot project for Underground Coal Gasification in Jharkhand

Initiative aims to Revolutionize the Coal Industry by using in-situ coal gasification to convert it into valuable gases such as methane, hydrogen, carbon monoxide and carbon dioxide for industrial applications


Under the strategic direction of the Ministry of Coal, Eastern Coalfields Limited (ECL) has embarked on an innovative pilot project for Underground Coal Gasification (UCG) at the Kasta coal block in Jamtara District, Jharkhand.

This groundbreaking initiative aims to revolutionize the coal industry by using in-situ coal gasification to convert it into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide. These gases can be utilized for industrial applications, including producing synthetic natural gas, chemical feedstocks for fuels, fertilizers, explosives, and more.

This project represents a significant milestone for Coal India Limited (CIL) and its subsidiaries, positioning India as a leader in adopting advanced coal gasification technology. As the pilot project progresses, it aims to establish new standards and enhance energy security while promoting sustainable development.

In December, 2015, the Ministry of Coal approved a comprehensive policy framework for UCG in coal and lignite-bearing areas. In alignment with this policy, Coal India selected the Kasta coal block to implement UCG technology tailored to Indian geo-mining conditions. Managed by ECL in collaboration with CMPDI Ranchi and Ergo Exergy Technologies Inc. (EETI) from Canada, this project spans two years and comprises of two phases.

In India’s 1st, Ministry Starts Underground Coal Gasification Project Converting It to H2, CO and CO2 for Industries' Uses


Underground Coal Gasification (UCG) is a fascinating process that unlocks the energy potential of coal reserves located deep underground. A suitable coal seam is identified, typically at depths where traditional mining is challenging and wells are drilled into the coal seam from the surface. Oxygen or air is injected into the coal seam through one well, while another well collects the produced gases. The injected oxygen reacts with the coal, initiating gasification. Oxygen or air is injected into the coal seam through one well, while another well collects the produced gases. The injected oxygen reacts with the coal, initiating gasification. The high temperatures (around 1,000°C) cause the coal to undergo chemical reactions, releasing gases.

In India’s 1st, Ministry Starts Underground Coal Gasification Project Converting It to H2, CO and CO2 for Industries' Uses
The primary gases produced during UCG include — Synthetic Gas or 'Syngas', a mixture of hydrogen (H₂) and carbon monoxide (CO); Methane (CH₄); Carbon Dioxide (CO₂); and other Hydrocarbons, depending on coal composition.

The collected gases are extracted through the second well. These gases can be used for various purposes as mentioned below:
  • Syngas can fuel gas turbines or combined-cycle power plants.
  • Syngas serves as a feedstock for chemicals.
  • Hydrogen Production:Valuable for clean energy applications.
  • Heat Generation: Methane can be used for heating.
Moreover, UCG reduces environmental impact compared to traditional coal mining:
  • No Surface Mining: Minimizes land disturbance.
  • Reduced Emissions: Syngas can be cleaner than burning coal directly.
  • Carbon Capture: CO₂ can potentially be captured and stored.
Besides this, other companies invloved in UCG projects in the country include ONGC and Neyveli Lignite Corporation Limited (NLC). These organizations have jointly identified several sites for studying the suitability of Underground Coal Gasification (UCG). Location of sites are Tadkeshwar in Gujarat, Hodu-Sindhari & East Kurla in Rajasthan, and Surkha in Bhavnagar district, Gujarat.

Coal India Limited (CIL) is driving India's coal gasification mission. They have identified five surface coal gasification projects which include Shilpanjal Pariyojana (West Bengal), Project Utkarsh (Maharashtra), Dankuni (West Bengal), Ashoka (Jharkhand), Mahamaya SCG (Chhattisgarh). Two tenders have been issued in the build-own-operate model.

Apart from India, it's worth noting that China, with significant coal reserves, has been actively pushing for coal gasification. They adopt proven western-developed gasifiers to gain operational experience.

These initiatives demonstrate the growing interest in cleaner energy solutions and the efficient utilization of coal resources.
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