Page 48 - Policy Economic Report - June 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

launched by Hon’ble PM on World Environment Day, 2024 to promote mass plantation. This will help
combat rising temperature, desertification and challenges facing biological diversity.

Ministry of Coal initiates India’s First Ever Pilot project for Underground Coal Gasification in Jharkhand

Under the strategic direction of the Ministry of Coal, Eastern Coalfields Limited (ECL) has embarked on an
innovative pilot project for Underground Coal Gasification (UCG) at the Kasta coal block in Jamtara District,
Jharkhand. This underscores the Ministry’s proactive diversification efforts within the coal sector. This
first ever groundbreaking initiative aims to revolutionize the coal industry by using in-situ coal gasification
to convert it into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide. These
gases can be utilized to produce synthetic natural gas, chemical feedstocks for fuels, fertilizers, explosives,
and other industrial applications. The Ministry of Coal is fully committed to promoting coal gasification
projects, recognizing their potential to transform coal into various high-value chemical products.

Underground Coal Gasification offers a significant advantage by providing access to coal resources that
are economically unviable through traditional mining methods. This pilot project represents a significant
milestone for Coal India Limited (CIL) and its subsidiaries, positioning India as a leader in adopting
advanced coal gasification technologies.

In December, 2015, the Ministry of Coal approved a comprehensive policy framework for UCG in coal and
lignite-bearing areas. In alignment with this policy, Coal India selected the Kasta coal block to implement
UCG technology tailored to Indian geo-mining conditions. Managed by ECL in collaboration with CMPDI
Ranchi and Ergo Exergy Technologies Inc. (EETI) from Canada, this project spans two years and comprises
of two phases.

The first phase, which commenced on June 22, 2024, involves preparing a Technical Feasibility Report
through borehole drilling and core testing. The second phase will focus on coal gasification at a pilot scale.
This ambitious R&D project, funded by the CIL R&D Board, exemplifies collaboration between Eastern
Coalfields Ltd and Ergo Exergy as sub-implementing agencies. The successful execution of this pilot project
is expected to create transformative opportunities for India's energy sector, showcasing the sustainable
and efficient use of the country's coal resources.

Ministry of Coal to provide unwavering support for the successful implementation of this pioneering
initiative and looks forward to its positive impact on India's energy landscape. This strategic initiative led
by Eastern Coalfields Limited (ECL) represents a significant advancement in coal gasification technology,
enhancing energy security and promoting sustainable development. As the pilot project progresses, it
aims to establish new standards in coal resource utilization, contributing to India's journey towards energy
self-reliance. The Ministry remains dedicated to fostering innovation and efficiency in the coal sector,
paving the way for a resilient and environmentally sustainable energy future for the nation.

**************************

JUNE 2024 Page | 47