Coal India Limited signed a Memorandum of Understanding with ArcelorMittal Nippon Steel India to explore the utilisation of synthesis gas (syngas) from a proposed coal gasification plant near AMNS’s pellet facility in Paradip, Odisha. The collaboration aims to assess the technical and commercial potential of using coal-derived syngas in steelmaking while supporting India’s efforts to advance coal gasification and reduce import dependence.
Proposed Coal Gasification Plant to Include CCUS
The proposed coal gasification facility could be developed adjacent to or at ArcelorMittal’s Paradip pellet plant. The project is expected to incorporate carbon capture, utilisation and storage (CCUS) technology. Both companies will jointly evaluate the project’s technical and commercial feasibility, examine potential implementation models and prepare a preliminary feasibility report. The assessment will help determine the project’s overall viability and identify the most suitable approach for development.
Syngas Could Support Cleaner Steelmaking
Coal gasification converts coal into synthesis gas, primarily comprising hydrogen and carbon monoxide. Steelmakers can use syngas as a fuel as well as a chemical reducing agent. Consequently, the technology could help reduce dependence on imported natural gas and coking coal, while creating additional applications for domestic coal resources.
India Pushes Coal Gasification
The proposed collaboration aligns with the government’s broader push to expand coal gasification in India. The Union Cabinet has approved a ₹37,500-crore incentive scheme aimed at promoting the gasification of 100 million tons of coal by 2030. The initiative also seeks to reduce India’s dependence on imports of LNG, urea, ammonia and methanol. Through the Paradip project, both companies are exploring how coal gasification and syngas utilisation can contribute to domestic resource utilisation, industrial efficiency and India’s energy security.
