Date : 18/07/2023

Relevance: GS Paper 3: Environmental Pollution, Renewable Resource of Energy

Keywords: Coal gasification, National Green Hydrogen Mission, Hydrogen economy

Context-

• The Ministry of Coal in India is considering a Comprehensive Scheme- National Coal Gasification Mission- to promote coal gasification, aiming to achieve 100 Million Tonnes (MT) of coal Gasification by FY 2030.
• A Steering Committee, chaired by Dr. V.K. Saraswat, has been formed to oversee the implementation of the National Mission.

The key points of the scheme are as follows:

• Initiative: The scheme aims to capitalize on natural resources and demonstrate coal gasification's financial and technical feasibility. It seeks to attract both government-owned Public Sector Undertakings (PSUs) and the private sector to invest in and innovate in the coal gasification sector.
• Selection Process: Entities for the coal/lignite gasification scheme will be selected through a competitive and transparent bidding process. Eligible government PSUs and private sector entities will receive budgetary support from the government to undertake coal gasification projects.
• Significance: This initiative holds the potential to reduce carbon emissions and promote sustainable practices, contributing to global commitments towards a greener future. It can help alleviate the environmental burden associated with coal usage.

Coal Gasification:

• Process: Coal gasification involves partially oxidizing coal with air, oxygen, steam, or carbon dioxide to produce a fuel gas. This gas, known as syngas, can be used as an alternative to piped natural gas or methane for energy production. There is also a technique called Underground Coal Gasification (UCG), where coal is converted into gas while it is still in the seam and then extracted through wells.
• Syngas Production: Syngas consists primarily of methane, carbon monoxide, hydrogen, carbon dioxide, and water vapor. It has various applications, including the production of fertilizers, fuels, solvents, and synthetic materials.
• Significance: Coal gasification can help steel companies reduce costs by replacing expensive imported coking coal with syngas. It is also used for electricity generation and the production of chemical feedstocks. The hydrogen obtained from coal gasification can be used in ammonia production and powering a hydrogen economy

Advantages of Coal Gasification:

• Pollution Reduction: Coal gasification helps address local pollution problems and can reduce pollution caused by burning coal directly.
• Utilization of Chemical Properties: Gasification allows for the utilization of the chemical properties of coal in various applications.
• Cleaner Option: Compared to traditional coal burning, coal gasification is considered a cleaner option.
• Chemical Energy Production: Coal gas can be converted into chemical energy and used in the production of iron, methanol, urea, and other chemicals.
• Carbon Capture and Storage: Coal gasification enables the separation and capture of carbon dioxide, allowing for potential carbon capture and storage (CCS) technologies.

Disadvantages of Coal Gasification:

• Carbon Intensity: Some studies suggest that coal gasification may produce more CO2 emissions than traditional coal plants, resulting in higher carbon intensity.
• Water Intensive: Coal gasification is a water-intensive process, which can pose challenges in regions already facing water shortages
• Efficiency: The coal gasification process converts coal, a relatively high-quality energy source, into a lower-quality gas form. This conversion consumes a significant amount of energy, resulting in low conversion efficiency.

Need for Promoting Coal Gasification Projects in India:

• Aatmanirbhar Bharat (Self-Reliant India): Promoting coal gasification projects can contribute to India's vision of becoming self-reliant and creating employment opportunities in the sector.
• Import Reduction: The implementation of coal gasification is expected to significantly reduce imports by 2030, leading to enhanced energy security and economic development.
• Self-Sufficiency in Coal Sector: The government aims to achieve self-sufficiency in the coal sector to meet the country's fuel demands.
• Technological Advancements: Adoption of new technologies and building digital infrastructure will be crucial for the sector's development, improving productivity, safety, and cost-effectiveness.
• Increasing Hydrogen Demand: As India's hydrogen demand is expected to rise, coal gasification can play a role in producing hydrogen, which is currently being produced from natural gas.

Steps Taken by the Government:

• Concession on Revenue Share: The government has provided a 20% concession on the revenue share of coal used for gasification to incentivize the use of cleaner fuel sources.
• Gasification Plants by CIL: Coal India Limited (CIL) plans to set up gasification plants through global tendering and has signed an MOU with GAIL for marketing synthetic natural gas.
• National Coal Gasification Mission: The Ministry of Coal is establishing the National Coal Gasification Mission to create awareness, develop an implementable roadmap, and achieve the target of 100 MT coal gasification by 2030.

Conclusion

The government should conduct a comprehensive evaluation of the environmental, economic, and social implications of coal gasification projects to ensure sustainable development. Continued investment in research and development can drive advancements in coal gasification technology, making it more efficient and environmentally friendly. Emphasize the development of a diversified energy mix that includes renewable energy sources, energy efficiency measures, and sustainable alternatives to coal-based energy production. Learn from global experiences and best practices in coal gasification and hydrogen economy implementation to ensure sustainable development in the sector.

Overall, the government's focus on coal gasification aims to harness the nation's coal reserves efficiently, promote sustainability, and meet the growing demand for energy and chemicals.

Source : PIB