RIL, NLC India to Study Underground Lignite Gasification in Gujarat
NLC India Ltd (NLCIL) and Reliance Industries Ltd (RIL) have entered into an agreement to assess the technical and commercial viability of an underground lignite gasification project in Gujarat. NLCIL's two lignite blocks in the state are being evaluated for the proposed project, with preliminary technical studies already initiated.
Under the arrangement, Reliance Industries will contribute its expertise in gasification technologies to the feasibility assessment. The project aims to convert sub-surface lignite deposits into synthesis gas — a mixture of hydrogen, carbon monoxide, and related gases — through in-situ underground gasification, without conventional mining.
The synthesis gas produced from the project could serve as fuel or as feedstock for industrial, chemical, and fertiliser applications. If the feasibility study yields positive results, the project is expected to provide an alternative domestic source of gasified fuel and reduce dependence on imported liquefied natural gas (LNG).
Underground lignite gasification involves injecting oxidants into a lignite seam to initiate controlled combustion underground, with the resulting synthesis gas extracted through production wells. NLCIL has been pursuing value-added utilisation of its lignite resources through such technology-driven approaches.
The project aligns with the Union Cabinet's recently approved ₹37,500-crore incentive scheme to promote coal and lignite gasification in India, which targets the gasification of approximately 75 million tonnes of coal as part of the country's broader goal of gasifying 100 million tonnes by 2030.