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India bets on coal gasification.

To reduce its dependence on imported fuel, India has followed in the footsteps of China and Indonesia by approving a $3.9 billion plan to convert its vast coal reserves into natural gas.

Báo Cần ThơBáo Cần Thơ18/06/2026

An ambitious goal

Unlike conventional coal-fired power generation, coal gasification converts this resource into syngas instead of direct combustion. This centuries-old process heats and reacts coal with oxygen and steam to produce syngas, primarily composed of CO and hydrogen. The syngas is then purified and converted into various feedstocks for fertilizers, methanol, syngas, hydrogen, and dimethyl ether (DME), which can be used as a substitute for liquefied petroleum gas (LPG).

India's only commercial-scale coal gasification plant is located in the state of Odisha. Photo: CNA

Atanu Mukherjee, CEO of the energy transition consulting firm Dastur Energy (USA), argues that coal gasification is a way to restore energy rather than completely ending dependence on imported fuels, given the large and diverse industrial demand.

Experts say coal gasification technology remains a niche sector because these projects are expensive, technically complex, and slow to scale. However, the technology is attracting renewed interest as economies dependent on oil and gas imports seek solutions to mitigate the impact of fossil fuel shocks.

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Taking China as an example, Mukherjee said that the process of building coal gasification plants in the country is a “long road” and requires “10 to 15 years” to reach large-scale deployment. Nevertheless, China continues to invest in 13 new coal-to-gas conversion projects, as Beijing seeks to develop domestic coal production and reduce its reliance on imported natural gas. These projects have the potential to supply the equivalent of 12% of the East Asian nation's gas supply. In February, Indonesia also announced the launch of six coal gasification projects with a $9.8 billion investment to produce DME to replace LPG supply.

Despite possessing the world's fifth-largest coal reserves, India remains an economy heavily reliant on imported fuel. Last month, New Delhi approved a $3.9 billion plan to support coal gasification. Officials expect the program to attract significant private investment and believe it will enhance energy security, improve the efficiency of domestic coal use, and reduce dependence on imported fuels, fertilizers, and chemical raw materials. India launched its National Coal Gasification Mission in 2021, setting an ambitious target of gasifying 100 million tonnes of coal per year by 2030.

Too many challenges

Analysts believe that New Delhi's efforts are urgent given that disruptions to shipping through the Strait of Hormuz threaten the supply of crude oil, LPG, and fertilizer raw materials to import-dependent economies like India.

However, India's ambition to convert coal into gas will face a series of challenges. The main obstacle is that gasifying high-ash coal can reduce efficiency and requires specially designed gasifiers. According to a report by the NITI Aayog research institute, Indian coal typically contains 30-45% ash, while the ash content in coal from China or Indonesia is less than 20%.

Using water for coal gasification presents another challenge. Depending on the end product and gasification technology, the coal gasification process may require a significant amount of water. However, in India, this challenge is even more difficult than the challenge of high ash content in coal.

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Besides technical limitations, India also faces many difficulties in scaling up coal gasification. Currently, New Delhi has only one commercially operational coal gasification plant, with a gasification capacity of nearly 2 million tons of coal per year. Therefore, to achieve its 2030 target, India needs dozens of such plants. It is known that building a commercial coal gasification plant typically costs between $2 billion and $4 billion.

TRI VAN (According to CNA)

Source: https://baocantho.com.vn/an-do-dat-cuoc-vao-khi-hoa-than-a207489.html

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