Coal India (CIL) and GAIL have signed a joint venture (JV) agreement on 06 August, 2024 to set up a coal-to-synthetic natural gas (SNG) plant to be located in the Raniganj area of Eastern Coalfields, West Bengal.

The plant using surface coal gasification (SCG) technology aims to produce 80,000 Nm3 per hour of SNG, targeting 633.6 million Nm3 annually. The requirement of 1.9 million tonne of coal will be fiulfilled by CIL.

The Ministry of Coal, in collaboration with the Ministry of Power and Natural Gas has facilitated the landmark JV agreement.

Surface coal gasification (SCG) technology converts coal into valuable synthesis gas, which can be used as an alternative to natural gas, feedstock for downstream chemicals production, and power generation.

CIL aims to establish two coal gasification plants in pursuit of achieving its target of 100 million tonne (MT) coal gasification by 2030.  The need for more coal gasification projects to minimise carbon emissions has been highlighted, with necessary support, including financial assistance for viable gap funding from the government.

Bids for financial incentives of Rs 8,500 crore under three categories for coal/lignite gasification project have been floated.