India will implement a coal-gasification program to produce synthetic gas and reduce the country's reliance on imported fuels [1].
This shift aims to secure energy independence by substituting imported liquefied natural gas, compressed natural gas, and piped natural gas with domestically produced syngas. By converting coal into gas, India also intends to eliminate the need for imported urea and ammonia, which are critical for the agricultural sector [1, 2].
Union Minister Ashwini Vaishnaw said the government is prioritizing the transition of domestic coal into cleaner industrial uses. The Union Cabinet approved the scheme on May 13, 2024 [1, 2].
The project carries a total cost of 375 billion rupees, which is approximately $3.92 billion [1]. This investment is designed to build the infrastructure necessary to scale the production of syngas across the country.
To meet its energy goals, the government has set a target to reach a coal-gasification capacity of 100 million tonnes per annum by 2030 [2]. This capacity increase is intended to stabilize the supply of petrochemical inputs and reduce the volatility associated with global fuel markets.
The process of coal-gasification allows the government to leverage its vast domestic coal reserves more efficiently. By transforming solid fuel into a gaseous state, the country can integrate this energy into existing gas grids, potentially replacing the need for foreign energy shipments [1, 2].
“India will implement a coal-gasification program to produce synthetic gas and reduce the country's reliance on imported fuels.”
This initiative represents a strategic pivot toward energy sovereignty. By converting coal into syngas, India is attempting to decouple its industrial and agricultural sectors from the price swings of the international LNG and fertilizer markets. While it utilizes coal—a carbon-intensive resource—the shift toward gasification is framed as a move toward cleaner industrial application compared to traditional coal combustion.
