NTPC announced plans to set up a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh, involving an estimated investment of around ₹10,000 crore. The project marks a significant step in NTPC’s efforts to develop cleaner fuel alternatives while leveraging domestic coal resources.
Technology Tie-Ups Underway for Key Processes
Alongside project planning, NTPC is actively seeking technology partnerships for critical processes such as coal beneficiation and gasification. These tie-ups will support the production of synthetic natural gas and help optimise efficiency and emissions performance across the value chain. At the same time, the company aims to build a robust technology framework for large-scale commercial deployment.
Focus on Cost-Competitive and Cleaner Fuel
NTPC is targeting an SNG production cost of around $12 per million British thermal units (MMBTU). This cost benchmark aligns with the company’s broader strategy to offer cleaner alternatives to conventional fuels while supporting India’s energy transition goals. In this context, NTPC signed an agreement with Engineers India Limited (EIL) in October last year to jointly develop the coal-to-SNG project. While the company had initially withheld details, it has now confirmed that the facility will use high-ash Indian coal sourced from its captive mines.
NETRA to Lead Project Under ‘Greening the Coal’ Vision
NTPC’s R&D arm, NETRA, is spearheading the project as part of the company’s wider vision of “greening the coal” and advancing carbon capture and utilisation (CCU) technologies. The facility will be located at the Talaipalli area in Chhattisgarh and will involve a capital investment of approximately ₹10,000 crore.
Project Scale, Capacity and Timeline
The proposed plant will have a capacity of 5 lakh tons per annum of SNG and will be spread across 150 acres. To support operations, the facility will consume around 25 lakh tonnes of coal per year, sourced from NTPC’s Talaipalli mines. According to the company, the technology selection is expected to be finalised in the last quarter of FY26. The coal-to-SNG process will involve multiple stages, including coal beneficiation, coal gasification, water-gas shift reactions, and methanation.
Coal Gasification Gains Momentum in India
In recent years, coal gasification has emerged as a key enabler for the sustainable utilisation of India’s domestic coal reserves. By converting coal into cleaner gaseous fuels, the process helps reduce dependence on imported energy while also supporting emissions reduction efforts. As a result, India increasingly considers coal gasification a transitional technology in its evolving energy mix.
Commercial Opportunities Beyond SNG
Beyond synthetic natural gas, NTPC is also exploring commercial opportunities from the project. Industries can use the syngas produced through coal gasification to manufacture methanol and ethanol as energy fuels, as well as ammonia for fertilisers and petrochemical applications. As reported by livemint.com, consequently, the project could serve as a multi-product platform, enhancing value creation while supporting cleaner energy pathways.
