The Ministry of Coal in India has launched an innovative pilot project for underground coal gasification (UCG) at the Kasta coal block in Jamtara District, Jharkhand. The initiative aims to revolutionize the coal industry by using in-situ coal gasification to convert it into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide.

Furthermore, these gases can produce synthetic natural gas and chemical feedstocks for fuels, fertilizers, explosives, and other industrial applications. The Ministry of Coal is fully committed to promoting coal gasification projects in India, recognizing their potential to transform coal into various high-value chemical products.

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In December 2015, the Ministry of Coal approved a comprehensive policy framework for UCG in coal and lignite-bearing areas. In alignment with this policy, Coal India selected the Kasta coal block to implement UCG technology tailored to Indian geo-mining conditions. Eastern Coalfields Ltd. manages the block with Central Mine Planning & Design Institute Limited, Ranchi, and Ergo Exergy Technologies Inc. (EETI) from Canada. The project will be completed within two years and will be in two phases.

Furthermore, underground coal gasification offers a significant advantage by providing access to coal resources that are economically unviable through traditional mining methods. This pilot project represents an important milestone for Coal India Limited (CIL) and its subsidiaries, positioning India as a leader in adopting advanced coal gasification technologies.
 

Construction Timeline and Entities Involved

The first phase, which commenced on June 22, 2024, involved preparing a technical feasibility report through borehole drilling and core testing. The second phase will focus on coal gasification on a pilot scale. Eastern Coalfields Ltd. and Ergo Exergy collaborated on this ambitious research and development project, which the CIL R&D Board funded. 

The successful execution of this pilot project is expected to create transformative opportunities for India's energy sector, showcasing the sustainable and efficient use of the country's coal resources. This project will play a major role in making India a leader in the global gasification market.

What is Underground Coal Gasification?

Underground Coal Gasification (UCG) is an innovative industrial process that converts coal into product gas directly within non-mined coal seams.  UCG occurs in situ, where oxidants (like air or oxygen) and steam are injected into underground coal seams. The resulting product gas—methane, hydrogen, carbon monoxide, and carbon dioxide—is extracted through surface wells drilled from the ground.

Applications

Electricity Production: The gas output can be combusted to generate electricity.

Chemical Feedstock: Hydrogen and carbon monoxide are feedstock for fuels, fertilizers, and explosives.

Synthetic Natural Gas: The gas can be converted into synthetic natural gas.

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