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Kemira Commences Iron Phosphate Pilot Production in Helsingborg, Sweden

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Kemira commenced pilot operations for iron phosphate production at its facility in Helsingborg, Sweden. The development marks a significant milestone in the company’s expansion into battery materials and strengthens its efforts to build a more resilient and sustainable battery value chain in Western markets. Iron phosphate serves as a key chemical precursor and building block for producing lithium iron phosphate (LFP) batteries. These batteries are increasingly used in electric vehicles (EVs), energy storage systems and industrial applications. As global demand for LFP batteries continues to rise, manufacturers are seeking materials that offer strong safety, durability and cost competitiveness. Consequently, reliable regional supplies of critical battery materials are becoming increasingly important.

Bridging Laboratory Development and Industrial Production

Kemira’s new pilot facility provides an important link between laboratory-scale research and potential commercial-scale manufacturing. The plant allows the company to produce larger quantities of iron phosphate for customer testing, product qualification and process development. The pilot operation will help Kemira evaluate the technical and commercial requirements for a potential full-scale iron phosphate production facility.

Building a Localized Battery Materials Supply Chain

Peter Ersman, EVP, New Ventures and Services, Kemira, said the Helsingborg pilot plant represents an important step in the company’s battery materials strategy. With the facility now operational, Kemira aims to become one of the early European producers of iron phosphate focused on serving Western battery markets. As demand for battery materials increases, the company sees an opportunity to help develop a more localized, resilient and sustainable supply chain.

Strengthening LFP and pCAM Supply Chains

Through its iron phosphate initiative, Kemira aims to support precursor cathode active material (pCAM) supply chains and contribute to a more balanced battery materials ecosystem across Western markets. The company brings established expertise in inorganic chemistry, iron-based chemistries, industrial process development and scale-up technologies. Therefore, iron phosphate production represents a natural extension of Kemira’s existing technical capabilities.

Focus on Customer Qualification and Process Validation

Following the start of pilot operations, Kemira will focus on customer qualification, product validation and manufacturing process development. These activities will provide valuable insights into product performance and production scalability. Based on successful customer qualifications and continued market development, Kemira will subsequently assess the potential for investment in commercial-scale iron phosphate production. As per the press release, the Helsingborg pilot plant therefore represents an important step toward developing localized battery-material capabilities and supporting the rapidly evolving Western LFP battery supply chain.

VA Tech Wabag Bags Repeat RIL Jamnagar ETP Contract

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VA Tech Wabag bagged an advanced Effluent Treatment Plant (ETP) contract from Reliance Industries Limited (RIL) for the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat. The domestic order falls under WABAG’s ‘Medium’ order classification, representing a contract value of ₹100 crore to ₹250 crore. The company will execute the project over 13 months, deploying advanced chemical and biological treatment processes along with low-temperature sludge drying technology.

Advanced ETP to Support RIL’s Green Energy Complex

WABAG will undertake the design, engineering, supply, erection and commissioning of the ETP. The treatment system will combine chemical and biological processes to treat industrial effluent effectively. In addition, the project will incorporate a low-temperature sludge drying system, supporting efficient sludge management and improving overall treatment performance. The project further strengthens WABAG’s presence in advanced industrial wastewater treatment and supports the water-management requirements of RIL’s large-scale green energy operations.

Contract Adds to WABAG’s Record Order Book

The RIL order strengthens WABAG’s domestic industrial order pipeline at a time when the company is reporting strong order-book momentum. As of June 30, 2026, WABAG’s outstanding order book stood at approximately ₹19,400 crore, its highest level to date. Therefore, the latest contract provides further visibility for the company’s near-term execution and revenue pipeline. The order also complements WABAG’s strong first-quarter FY27 performance, when the company reported consolidated revenue of ₹886.8 crore.

Long-Standing Partnership with Reliance Industries

The latest ETP contract also reinforces WABAG’s long-standing relationship with Reliance Industries. The partnership dates back several decades, with WABAG’s first major startup project in Jamnagar during 1996–1997. Since then, the companies have collaborated on multiple water and wastewater treatment projects. The latest order expands the scope of this relationship beyond earlier desalination-focused repeat orders. This time, WABAG will deliver an advanced chemical and biological effluent treatment solution for RIL’s green energy complex.

Key Technologies for Industrial Effluent Treatment

The Jamnagar ETP will incorporate multiple treatment technologies to address industrial wastewater and sludge management requirements. Key features include chemical effluent treatment for targeted removal of contaminants, biological treatment for effective wastewater purification, low-temperature sludge drying for efficient sludge management, integrated design, engineering, supply, erection and commissioning. As reported by sahi.com, these technologies will enable the project to address complex industrial effluent treatment requirements while supporting efficient water and sludge management.

Aarti Industries Commissions Calcium Chloride, Diethyl Aniline Manufacturing and Multipurpose Plant

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Aarti Industries commissioned Phase I of its Zone IV project at Jhagadia, Gujarat, marking a significant step in its specialty chemicals expansion strategy. The company commissioned the first phase on September 7, 2026, bringing Calcium Chloride, PEDA and part of its Multipurpose Plant (MPP) into commercial operation. The manufacturing platform strengthens Aarti Industries’ downstream integration and flexible manufacturing capabilities. Moreover, it creates a foundation for commercialising high-value and niche products across several growing end-use markets.

Zone IV Adds New Specialty Chemical Manufacturing Capabilities

Phase I incorporates three key manufacturing components, enabling the company to expand its product portfolio and serve a wider range of applications.

PEDA Expands Downstream Agrochemical Capabilities

PEDA (2-Phenyl Ethyl Diethyl Aniline) extends Aarti Industries’ existing ethylation platform further downstream. The facility builds on the company’s established 2,6-Diethyl Aniline capabilities and supports the development of value-added products for the agrochemical industry.

Calcium Chloride Strengthens Energy and Additives Portfolio

The new Calcium Chloride facility expands Aarti Industries’ Energy & Additives portfolio. The product serves applications across oilfield and energy-related markets, thereby broadening the company’s presence in these sectors.

Multipurpose Plant Enables Flexible Production

The Multipurpose Plant (MPP) provides Aarti Industries with a flexible manufacturing platform for commercialising pilot-validated processes. The facility can help the company scale new chemistries more efficiently while responding faster to changing customer requirements. Its flexible design also allows production across multiple chemical applications.

Zone IV Targets High-Value End-Use Industries

The commissioning of Phase I is expected to support Aarti Industries’ expansion across several
high-value markets.

The new facilities will cater to applications in:

Agrochemicals

Pharmaceuticals

Coatings

Polymers

Energy and additives

Several products planned under the broader Zone IV project are expected to be manufactured in India for the first time, creating additional opportunities for import substitution and domestic value creation.

Flexible Manufacturing Platform to Support Future Growth

According to Suyog Kotecha, Chief Executive Officer, Aarti Industries, the company conceived Zone IV as a flexible manufacturing platform aimed at strengthening integration and expanding its portfolio of niche products. The company plans to progressively commercialise all manufacturing blocks within Zone IV during the current fiscal year. The broader Zone IV platform comprises multiple chemistry blocks designed to support diverse chemical processes. Therefore, it can strengthen the company’s integrated R&D, process development, scale-up and commercial manufacturing ecosystem.

Aarti Industries Strengthens Specialty Chemicals Strategy

The commissioning of Zone IV Phase I represents an important milestone in Aarti Industries’ long-term specialty chemicals strategy. By combining downstream integration, flexible manufacturing and new chemistry platforms, the company is positioning Zone IV to support the development and commercialisation of higher-value products. At the same time, the project can enhance Aarti Industries’ ability to serve customers across multiple industries and respond to evolving global demand. As reported by scan X, Zone IV is expected to become an important building block in the company’s strategy to expand its specialty chemicals portfolio, strengthen manufacturing capabilities and create new high-value growth opportunities.

Leo Puri to Lead Asian Paints as Chairman from 2027

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Asian Paints appointed Leo Puri as its chairman-designate, effective January 23, 2027, marking a significant leadership transition for India’s leading paint manufacturer. The company has also appointed Puri to its board of directors for a five-year term. His board tenure will run until September 2031, following which he will succeed R. Seshasayee as chairman.

Leo Puri Brings Extensive Financial Sector Experience

Puri brings extensive experience across India’s financial and investment sectors. During his career, he has held senior leadership positions at JPMorgan Chase, UTI Asset Management and global private equity firm Warburg Pincus. He currently serves as India Advisory Chair at global private equity firm Apax and as Chairman of Fortis Healthcare. In addition, Puri serves as the Lead Independent Director of Dr. Reddy’s Laboratories and as an independent director at Spain-based travel technology company Amadeus IT Group. His broad experience across financial services, private equity and corporate governance is expected to add significant strategic expertise to Asian Paints’ leadership.

Leadership Change Comes Amid Intensifying Competition

Puri will take charge at a crucial period for Asian Paints. The Indian decorative paints market has witnessed increasing competition as well-funded conglomerates and new entrants expand their presence. In particular, the Aditya Birla Group and JSW Group have increased investments in the decorative paints segment. Consequently, established players such as Asian Paints face growing pressure to sustain revenue growth, market share and profit margins. Against this backdrop, Puri’s financial and strategic expertise could prove valuable as Asian Paints navigates an increasingly competitive market.

Asian Paints Prepares for a New Leadership Era

The appointment of Leo Puri as chairman-designate signals a planned leadership transition at Asian Paints. By bringing an experienced financial-sector leader onto its board, the company is positioning itself to address evolving market dynamics while continuing to pursue long-term growth. As reported by reuters.com, Puri is expected to succeed R. Seshasayee as chairman on January 23, 2027, beginning a new phase in the leadership of one of India’s largest paint companies.

HEG Advanced Materials Demerger Poised to Add ₹4,000 Crore in Market Value

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The demerger of the Advanced Materials business of LNJ Bhilwara Group company HEG is expected to unlock substantial shareholder value and strengthen the market position of both resulting listed entities. According to leading brokerages tracking the company, the combined market capitalisation of the two listed companies could rise to around ₹18,000 crore from the current ₹14,000 crore. This represents a potential value unlocking of approximately 30% following the restructuring.

HEG to Separate Graphite Electrode Business

Under the proposed restructuring scheme, HEG Advanced Materials will retain its growth-oriented businesses. These include battery materials, graphene, battery energy storage and green power. Meanwhile, the company’s established graphite electrode business will be transferred to a newly formed entity, HEG Graphite. The new company is expected to be listed on the BSE and NSE approximately 45 days after completion of the demerger, with the listing likely to take place in the second half of October. The separation will allow the two businesses to pursue distinct growth strategies while enabling investors to independently value HEG’s advanced materials and graphite electrode operations.

One-to-One Share Entitlement for Investors

The restructuring scheme also provides a straightforward shareholding arrangement for existing investors. Under the proposed one-for-one share entitlement, shareholders will receive one share of HEG Graphite for every one share held in HEG Advanced Materials. As a result, existing shareholders will retain exposure to both businesses following the demerger, while the separate listings could provide greater visibility into the individual value and growth prospects of each entity.

Demerger Could Enhance Shareholder Value

The proposed restructuring marks a significant step in HEG’s strategy to create focused businesses around its traditional graphite operations and emerging advanced materials portfolio. Furthermore, the separate listing of HEG Graphite could improve business transparency and provide investors with a clearer basis for valuing the company’s graphite electrode operations. At the same time, HEG Advanced Materials can focus on higher-growth opportunities across battery materials, graphene, energy storage and green power. As reported by thehindubusinessline.com, the demerger could provide a potential 30% value-unlocking opportunity, while positioning both businesses to pursue their respective growth strategies more independently.

Vishnu Chemicals and DCX Chrome Collaborate to Build Chromium Metal Plant in Visakhapatnam

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Vishnu Chemicals Limited (VCL) entered into a definitive Joint Venture Agreement (JVA) with DCX Chrome SAS, France (DCX) to establish a greenfield manufacturing facility for high-purity chromium metal in Visakhapatnam (Vizag), Andhra Pradesh. The strategic partnership brings together VCL’s strong position in chromium chemicals and DCX’s expertise in high-purity aluminothermic chromium metal and specialized chromium powders. Through the joint venture, both companies aim to strengthen India’s domestic manufacturing capabilities for advanced engineering materials and reduce dependence on imports.

6,000 MTPA Chromium Metal Plant to Come Up in Vizag

Both partners will hold an equal 50% equity stake in the proposed joint venture company. The facility is planned with an installed production capacity of 6,000 metric tons per annum (MTPA) and will focus entirely on manufacturing high-purity chromium metal. Importantly, the project will help address India’s dependence on imported high-purity chromium metal, particularly for applications requiring advanced materials with stringent performance and quality specifications.

Combining Technology with Reliable Raw Material Supply

DCX Chrome will contribute its proprietary process technology and metallurgical expertise in aluminothermic chromium production. As a result, the proposed facility will have access to technology designed to manufacture high-purity chromium metal for demanding applications, including those requiring stringent aerospace standards. Vishnu Chemicals, producer of chromium chemicals in India, will support the joint venture with a reliable supply of chrome oxide green, a key raw material for chromium metal production. Consequently, the collaboration creates an integrated manufacturing model that combines technology, raw material security and domestic production capabilities.

Strengthening India’s Advanced Materials Manufacturing

The proposed chromium metal plant aligns with India’s broader objective of developing domestic manufacturing capabilities for strategically important materials. By establishing production within India, the joint venture is expected to reduce dependence on imported chromium metal, strengthen domestic supply-chain security, support the Atmanirbhar Bharat initiative, enable local access to high-purity engineering materials, support strategic aerospace and defence requirements and create high-skilled employment opportunities in Andhra Pradesh. The project is expected to contribute to the industrial development of Visakhapatnam and the wider Andhra Pradesh region by creating opportunities for skilled engineering, manufacturing and operational talent.

Chromium Metal Targets High-Growth Industrial Applications

High-purity chromium metal plays an important role in several advanced engineering and industrial applications. The facility is therefore positioned to serve a range of high-value end markets such as aerospace and aircraft engines, oil and gas industry and nuclear energy and gas turbines.

Vishnu Chemicals Expands Its Specialty Chemicals Footprint

The joint venture represents another strategic step in Vishnu Chemicals’ efforts to expand beyond its established chromium chemical operations and participate in higher-value advanced materials markets. By combining its domestic market position and raw material capabilities with DCX Chrome’s specialized metallurgical technology, VCL aims to establish a stronger presence in the high-purity chromium metal value chain. At the same time, DCX Chrome gains a strategic manufacturing platform in India, enabling it to serve growing demand from aerospace, energy, oil and gas and chemical process industries.

Leadership Highlights Long-Term Strategic Partnership

Krishna Murthy Cherukuri, Chairman and Managing Director, Vishnu Chemicals Limited, said the partnership represents an important milestone in the company’s specialty chemicals expansion and India’s manufacturing ambitions. He highlighted that the collaboration with DCX Chrome will combine complementary capabilities while contributing to India’s objective of greater self-reliance in advanced materials.

Siddartha Cherukuri, Joint Managing Director, Vishnu Chemicals Limited, described the agreement as a long-term strategic partnership rather than simply a joint venture. He emphasized that VCL’s domestic leadership, combined with DCX Chrome’s metallurgical expertise, creates a strong platform for future growth in high-performance materials.

Fernando Accioly, CEO, DCX Chrome SAS, said the company is pleased to partner with Vishnu Chemicals to establish the state-of-the-art facility in Visakhapatnam. He noted that the project will combine DCX Chrome’s aluminothermic technology and more than 80 years of industrial expertise with VCL’s operational capabilities and raw material supply. According to Accioly, the investment represents an important milestone in DCX Chrome’s growth strategy and reflects the company’s confidence in the long-term global demand for high-purity chromium metal.

Strategic Move Towards Domestic Chromium Metal Production

The proposed 6,000 MTPA greenfield chromium metal plant in Visakhapatnam marks a significant development in India’s advanced materials manufacturing landscape. By bringing together Vishnu Chemicals’ chromium chemical expertise and DCX Chrome’s specialized chromium metal technology, the joint venture aims to establish a domestic manufacturing base capable of serving critical industries. As per the press release, as demand for high-performance materials continues to grow across aerospace, defence, nuclear energy, oil and gas, gas turbines and chemical processing, the project could play an important role in strengthening India’s position in the global advanced materials supply chain.

Yara Sluiskil Unveils Europe’s Largest Carbon Capture Facility

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Europe’s largest industrial carbon capture facility officially inaugurated at Yara’s production site in Sluiskil, the Netherlands. The project marks a major milestone in industrial decarbonisation and establishes the first complete cross-border carbon capture and storage (CCS) value chain for capturing, transporting and permanently storing CO₂. The facility demonstrates how large-scale carbon capture can help energy-intensive industries reduce emissions while maintaining production and strengthening Europe’s industrial competitiveness.

Yara Facility to Capture 800,000 Tons of CO₂ Annually

Yara Sluiskil, one of Europe’s largest ammonia and fertilizer production facilities, can now capture and liquefy up to 800,000 tonnes of CO₂ every year from its ammonia production operations. Following capture, the liquefied CO₂ will be transported by ship to Norway. There, the Northern Lights CO₂ transport and storage system will permanently store the captured carbon dioxide beneath the seabed. By capturing these emissions, the project will also help Yara avoid carbon-related costs on the captured volumes.

With appropriate framework conditions in place, the project is expected to capture and permanently store approximately 12 million tonnes of CO₂ over 15 years. Consequently, it could make a significant contribution to Europe’s climate targets while supporting the transformation of carbon-intensive industries.

CCS Supports Industrial Decarbonisation

The project highlights the growing role of carbon capture and storage technology in reducing emissions from hard-to-abate industrial sectors. CCS can help energy-intensive industries—including fertilizer, ammonia, cement and waste management—lower their carbon emissions while continuing to manufacture essential products in Europe. Svein Tore Holsether, President and CEO of Yara International, said the Sluiskil facility demonstrates that large-scale industrial decarbonisation is already possible. He also emphasized the need for Europe to reduce emissions while retaining industrial capacity, jobs and critical value chains within the region.

Cross-Border CO₂ Infrastructure Connects Europe

A key feature of the project is its cross-border CO₂ value chain. Instead of storing captured carbon at the production site, the project connects industrial CO₂ capture in the Netherlands with permanent offshore storage in Norway. This approach demonstrates how shared infrastructure can enable industrial companies across Europe to access permanent CO₂ storage. Moreover, cooperation across national borders and industrial value chains can accelerate the development of Europe’s emerging carbon management infrastructure.

Investment in Europe’s Industrial Competitiveness

European Commissioner for Climate, Net Zero and Clean Growth, Wopke Hoekstra highlighted the importance of practical climate solutions that can deliver measurable emissions reductions while supporting industrial competitiveness. The Sluiskil project demonstrates how technological innovation and international cooperation can work together to create a lower-carbon industrial base. For energy-intensive industries, CCS can therefore provide a pathway to reduce emissions without necessarily relocating production outside Europe. This could help preserve jobs, manufacturing capacity and strategic industrial value chains within the region.

Northern Lights Advances Europe’s Carbon Management Market

The project also represents an important milestone for Northern Lights, the CO₂ transport and storage partnership responsible for permanently storing the captured emissions offshore in Norway. Tim Heijn, Managing Director of Northern Lights, said the project brings to reality the agreement signed with Yara in 2023. He noted that the collaboration demonstrates the viability of CO₂ capture, cross-border transport and permanent storage for European industry. The project provides an important building block for the development of Europe’s wider carbon management market, showing how industry and governments can collaborate to establish the infrastructure required for industrial decarbonisation.

A Major Step Towards Industrial Decarbonisation

The inauguration of the Yara Sluiskil carbon capture facility marks a significant development in Europe’s transition towards lower-carbon industrial production. With the ability to capture up to 800,000 tons of CO₂ annually and potentially store around 12 million tonnes over 15 years, the project demonstrates the scale at which CCS can contribute to industrial emissions reduction. As per the press relese, as Europe continues to balance climate ambitions with industrial competitiveness, the Sluiskil project provides a practical example of how carbon capture, cross-border transport and permanent CO₂ storage can work together to support a more resilient and sustainable industrial future.

Avantium Completes Purification Unit Commissioning at FDCA Plant

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Avantium N.V., developer of renewable and circular polymer materials, successfully commissioned the purification unit at its FDCA Flagship Plant in Delfzijl, the Netherlands. The facility is the world’s first commercial-scale plant for producing FDCA (furandicarboxylic acid). With the purification unit now commissioned, Avantium has successfully brought all major process units at the facility through commissioning. This marks a major milestone as the company moves closer to full plant start-up and commercial FDCA production.

All Major Process Units Successfully Commissioned

The commissioning of the purification unit follows several key milestones at the FDCA Flagship Plant. Avantium previously completed the start-up of its utility systems and sugar dehydration unit, followed by the successful commissioning of the oxidation unit. With the purification unit now operational, the company can proceed with integrated start-up activities across the facility. Consequently, Avantium is now preparing for the first production batches of FDCA, which will mark a crucial step toward commercial-scale operations.

Avantium Prepares for First FDCA Production

Hero de Jager, Interim Chief Operations Officer of Avantium, described the purification unit commissioning as an important step in the start-up of the FDCA Flagship Plant. According to the company, completing commissioning across all major process units allows the team to shift its focus toward producing the first FDCA batches. Avantium will continue to prioritize a safe and successful plant start-up while preparing to begin commercial deliveries under its existing offtake agreements.

Commercial FDCA Sales Expected by End-2026

For the remainder of 2026, Avantium will focus on completing the integrated start-up of the FDCA Flagship Plant and producing its first batches of FDCA. The company’s key priorities include completing the full plant start-up, producing the first commercial-scale FDCA batches, completing product qualification activities, preparing for commercial sales and initiating deliveries under existing offtake agreements. Avantium expects commercial deliveries to begin towards the end of 2026, subject to successful plant start-up and completion of product qualification.

FDCA Technology Moves Towards Commercial Validation

The successful start-up of the plant is expected to provide important commercial-scale validation of Avantium’s FDCA technology. In turn, this could support the company’s ongoing licensing discussions and help accelerate the wider adoption of its renewable polymer technology. FDCA is an important building block for producing PEF (polyethylene furanoate), a next-generation polymer that can offer renewable and recyclable alternatives for applications traditionally served by fossil-based materials.

Full Production Ramp-Up Expected Within 24 Months

Although the commissioning milestone brings Avantium closer to commercial production, the company expects the facility to require time to reach its full design capacity. Avantium currently expects the ramp-up to full design capacity to take approximately 24 months following plant start-up. Therefore, the successful commissioning of all major process units represents an important foundation for the next phase of the project. As per the press release, as integrated start-up and qualification activities progress, Avantium is moving closer to establishing commercial-scale production of FDCA and advancing its renewable and circular polymer materials platform.

ONGC Completes Hundredth Crude Offloading from Cluster-7 FPSO

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Oil and Natural Gas Corporation Limited (ONGC) achieved a significant operational milestone at its Cluster-7 (C7) offshore field, located around 210 km west of Mumbai. The company completed its 100th crude offloading from the Floating Production Storage and Offloading (FPSO) vessel deployed at the field. ONGC achieved the milestone on August 29, 2026, when it transferred the crude parcel to Shipping Corporation of India’s MT Swarna Brahmaputra. The vessel will subsequently transport the crude to Hindustan Petroleum Corporation Limited’s (HPCL) Mumbai refinery. The achievement highlights ONGC’s sustained offshore production and efficient crude evacuation capabilities.

FPSO Overcomes Offshore Evacuation Challenges

Cluster-7’s considerable distance from Mumbai created several technical, economic and logistical challenges for conventional pipeline-based crude evacuation. Therefore, ONGC deployed an FPSO vessel to support crude production, storage and offshore offloading. The FPSO-based system has enabled ONGC to efficiently manage crude evacuation from the offshore field and transport the production to refineries across India.

5.3 Million Tons of Crude Delivered

The completion of 100 crude offloading operations demonstrates the consistent performance and reliability of ONGC’s FPSO-based evacuation system.

So far, Cluster-7 has delivered approximately:

100 crude parcels

5.3 million tonnes (MMT) of crude

Approximately ₹21,000 crore in revenue

Consequently, the project represents more than a decade of sustained offshore production and coordinated crude evacuation operations.

Strengthening India’s Offshore Energy Production

The Cluster-7 milestone reinforces ONGC’s efforts to maximise the potential of India’s offshore oil and gas resources. Moreover, the successful use of FPSO technology demonstrates how innovative offshore infrastructure can overcome logistical constraints and support reliable crude production. As reported by indianmasterminds.com, with continued focus on operational efficiency and resource development, ONGC is strengthening its role in India’s domestic energy supply while advancing its offshore production capabilities.

NTPC and Talcher Fertilisers Explore Coal Gasification Opportunities

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The coal ministry confirmed that Talcher Fertilisers Limited (TFL) and NTPC have submitted applications through the online portal for the government’s Scheme for Promotion of Surface Coal/Lignite Gasification Projects. The clarification comes amid reports suggesting that the ₹37,500-crore scheme had received limited interest. The coal ministry said the scheme remains at an early stage of implementation and that the first application window will remain open until September 7, 2026. The final number of applications will be determined after the prescribed application process and subsequent rounds are completed.

₹37,500 Crore Coal Gasification Scheme

The Union Cabinet approved the Scheme for Promotion of Surface Coal/Lignite Gasification Projects on May 13, 2026, with a total financial outlay of ₹37,500 crore. Through the initiative, the government aims to catalyse investments of approximately ₹2.5 lakh crore to ₹3 lakh crore across nearly 25 projects. In addition, the scheme is expected to generate around 50,000 direct and indirect jobs and support the development of 100 million tons of coal gasification capacity by 2030. The government plans to complete the targeted 25 plants within five years. Meanwhile, four projects that are already under construction are expected to be completed within a year.

Eight Companies Exploring Syngas Production

Coal Minister G. Kishan Reddy said on August 13 that eight companies, including Coal India, are exploring opportunities to produce synthesis gas (syngas). According to the minister, activity in this area is expected to accelerate over the coming months. The government currently provides incentives for surface coal gasification, while similar incentives are not yet available for underground coal gasification.

Coal Gasification to Produce Value-Added Products

Coal gasification converts coal into synthesis gas, or syngas, which can then serve as a feedstock for producing several value-added products. These include methanol, urea, ammonium nitrate, Ammonia and synthetic natural gas.

Other chemical feedstocks

Coal gasification can enable greater utilisation of India’s domestic coal and lignite resources while supporting the production of strategically important chemicals and fuels. The government has designed the scheme to accelerate the development of coal and lignite gasification capacity in India. By converting domestic resources into higher-value products such as syngas, methanol, ammonia and urea, the initiative aims to strengthen domestic manufacturing capabilities. Furthermore, greater use of domestic coal and lignite could help reduce the country’s dependence on imported feedstocks. However, the government has not yet provided an estimate of the potential import substitution of LNG or LPG through coal gasification.

Outlook for India’s Coal Gasification Industry

With applications now submitted by TFL and NTPC and several other companies exploring syngas production, the government expects participation in the coal gasification programme to gather momentum. As reported by cnbctv18.com, the success of the ₹37,500-crore coal gasification scheme will depend on the number of projects that qualify, the scale of investment mobilised and the pace at which plants move from development to commercial operation.

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