India's Ambitious Coal-to-Chemicals Initiative: Inspired by China's Model
India’s next big energy bet may come straight from China’s coal handbook
The Economic TimesImage: The Economic Times
India is looking to replicate China's coal-to-chemicals industry to enhance energy and food security while reducing reliance on foreign oil and gas. The government has pledged nearly $4 billion to develop this sector, which could process 75 million tons of coal into fertilizers and plastics by 2030. However, challenges such as coal quality and technology remain significant hurdles.
- 01India aims to process 75 million tons of coal into various products by 2030, with nearly $4 billion in government support.
- 02China produces about 80% of its urea from coal, while India currently relies on oil and gas for its urea production.
- 03Domestic Indian coal has high ash content, complicating its conversion into chemicals.
- 04The Fischer-Tropsch synthesis technology, crucial for coal conversion, is an area where India lacks expertise compared to China.
- 05Global coal demand reached historic highs last year, with projections suggesting continued high usage through 2026.
Advertisement
In-Article Ad
The closure of the Strait of Hormuz has disrupted the Asian chemicals industry, prompting India to explore a coal-to-chemicals model similar to China's. With a commitment of nearly $4 billion, the Indian government aims to process 75 million tons of coal into fertilizers, plastics, and other synthetic products by 2030. This initiative seeks to enhance energy security by reducing reliance on foreign oil and gas, while also improving food security through local fertilizer production. Currently, China produces about 80% of its urea from coal, whereas India relies on oil and gas for its urea needs. However, challenges persist, including the high ash content of Indian coal, which complicates chemical conversion, and the lack of advanced technology in this sector. The Fischer-Tropsch synthesis, essential for converting coal into usable chemicals, is an area where India still needs to develop expertise. Despite these hurdles, the project could prolong the life of the coal industry in India, which employs approximately 750,000 people and is crucial for local economies. As global coal demand remains high, India's move could have significant implications for the future of coal consumption.
Advertisement
In-Article Ad
If successful, this initiative could significantly boost local economies and job creation in coal mining regions while enhancing India's energy and food security.
Advertisement
In-Article Ad
Reader Poll
Do you support India's move towards a coal-to-chemicals industry?
Connecting to poll...
Read the original article
Visit the source for the complete story.


