Coal India Ltd to ink MoU with Three Major PSUs for Coal to Chemical Products

The Ministry of Coal will oversee the signing of three significant Memorandums of Understanding (MoU) by Coal India Limited (CIL) on September 27, 2022, in New Delhi, to facilitate the establishment of coal-to-chemical plants using the Surface Coal Gasification (SCG) route.

For the establishment of four SCG projects, CIL would collaborate with three other significant PSUs in the nation, Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL), and GAIL (India).

Coal is transformed into syngas via the SCG method, which can then be processed to produce value-added chemicals later on. Alternatively, these are made using imported natural gas or crude oil. Di-methyl ether, synthetic natural gas, and ammonium nitrate are the anticipated byproducts.

The benefits of the proposed projects include decreased foreign exchange expenditure and the creation of 23,000 direct and indirect jobs.

The Ministry of Coal has set a goal to achieve 100 million tonnes of coal gasification by 2030 with the dual goals of self-reliance and energy independence.

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