NEW DELHI: Government on Thursday approved Rs 8,500 crore as '
viability gap funding
' to make
coal-to-gas projects
viable, a move that will provide an alternative method to exploit the country's vast
coal reserves
for fuelling
economic growth
with a lower carbon footprint.
Announcing the decision taken by the Cabinet, Union coal minister Pralhad Joshi said adoption of coal-to-gas technology will help reduce the country's dependence on imported natural gas, methanol, ammonia and other essential industrial products.
He said a project planned by Coal India Ltd and GAIL will become operational in the next five years. "The country's proven coal reserve is good enough for more than 100 years and more areas being explored. Syngas (coal gas) is far less polluting than burning coal and can be used for making other products," Joshi said adding government is targeting to gasify 100 million tonnes of coal by 2030.
Syngas comes in liquid form and is obtained by partially oxidising coal with air, oxygen, steam, or carbon dioxide under controlled conditions. It can be used as fuel in gas-fired power stations or make methanol for various industrial applications.
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