Energy and environmental services major, Thermax is in talks with several steel companies in the eastern region for a commercial-scale high-ash coal gasification project. This project would be the first of its kind in the region.

Discussions are underway regarding the funding, to address a viability gap of approx. 30 to 40 percent of the project cost. The company will invest in this commercial-scale demonstration project, which is likely to come up in West Bengal.

Envisioned to have a capacity of 100-150 tonne of coal per day, the gasification project entails an outlay of about Rs 600 crore.

Thermax is also in conversation with Coal India, as the latter has plans to set up a coal-to-SNG project in the Eastern Coalfields command area. Thermax claims to have patented technology.  

The Ministry of Coal aims to stimulate investments and technology in coal/lignite gasification projects through policy and strategic initiatives.

The government has approved Rs 8,500 crore for viability gap funding of coal gasification projects, with a target to gasify 100 million tonne (MT) of coal by 2030.