Axis Energy Ventures is preparing to enter the underground coal gasification (UCG) segment and is close to acquiring critical technology for the initiative. Chairman and Managing Director Kataru Ravi Kumar Reddy confirmed that the company is “about to acquire” the required technology, signalling a major strategic diversification beyond renewables.
Secures Coal Blocks for UCG Development
Axis Energy recently emerged as one of the winners in the coal block allocation for UCG projects. The Ministry of Coal awarded Axis Energy two coal blocks—the dip extension of Belpahar and Tangardihi East mines located in Odisha. These “dip extension” zones represent deeper sections of existing mines where conventional coal extraction is not economically viable. Therefore, converting coal into gas through UCG offers a practical alternative.
Technology Acquisition to Drive Execution
Although Axis Energy has limited prior experience in underground coal gasification, the company is relying on advanced technology acquisition to bridge the gap. While details of the technology remain confidential, Reddy expressed strong confidence in its effectiveness. He added that the company expects gas production from these mines to begin within the next 2–3 years, indicating a relatively fast-track implementation plan.
Strong Renewable Portfolio Supports Expansion
Axis Energy, backed by Brookfield Asset Management, is already a major player in renewable energy. The company currently operates 1.5 GW of commissioned wind and solar projects, has 8 GW under development, and a robust pipeline of 30 GW. Axis has formed joint ventures with Brookfield to execute multiple large-scale energy projects, strengthening its financial and operational capabilities.
₹30,000 Crore Investment Planned for UCG Projects
UCG projects are capital-intensive, and Axis Energy is planning to invest approximately ₹30,000 crore in this venture. Reddy described underground coal gasification as “the need of the hour,” particularly in the context of India’s growing energy demand.
The company plans to utilize the produced gas for multiple applications, including:
*Power generation to meet peak electricity demand
*Ammonia production for industrial use
*Learning from Past Coal Gasification Projects
India’s experience with coal gasification has been mixed. For instance, the Talcher project—developed by Coal India, GAIL, Rashtriya Chemicals and Fertilizers, and Fertilizer Corporation of India—was conceived in 2007, with a joint venture formed in 2015. However, the project is still under development. Underground coal gasification is even more complex than surface gasification, making execution a key challenge.
Government Push for Advanced Coal Technologies
Despite the challenges, the Ministry of Coal remains optimistic about UCG’s potential. The ministry highlighted that the technology can unlock energy from deep or otherwise unworkable coal seams, significantly expanding India’s usable energy resources. By incorporating UCG into coal block auctions, the government aims to future-proof mining assets. This approach enables operators to adopt cleaner and more efficient energy production methods alongside conventional mining.
Outlook: A High-Risk, High-Reward Energy Bet
With strong backing, ambitious investment plans, and upcoming technology acquisition, Axis Energy is positioning itself at the forefront of advanced coal utilization. As reported by thehindubusinessline.com, if successfully executed, the project could not only diversify the company’s energy portfolio but also contribute to India’s evolving energy mix by tapping previously inaccessible coal reserves.
