NLC India is venturing into the establishment of a state-of-the-art Rs 4,350 crore lignite-to-methanol plant.

NLC India’s Chairman and Managing Director, M Prasanna Kumar, is poised to make significant contributions to both the energy sector and the economy.

Kumar revealed today that upon commencement of methanol production, the plant is projected to save Rs 1,000 crore annually in crude oil imports. The plant's estimated production capacity is set at 400,000 tonnes of methanol, utilizing 2.5 million tonnes of lignite.

Assuring the project's financial viability, the government has pledged Rs 600 crore in viability gap funding, a figure that Kumar anticipates could potentially increase to Rs 1,000 crore, subject to certain conditions being met.

Notably, Air Products of the USA serves as the technology partner for the project, with the Government of India-owned Engineers India Ltd overseeing project management.

The lignite-to-methanol process involves the gasification of lignite into synthesis gas (syn gas), a high-temperature mixture of carbon monoxide and hydrogen. This syn gas serves as a crucial building block for producing various chemicals, including methanol.