NLC India and Reliance Industries Collaborate on Underground Lignite Gasification in Gujarat
NLC India, Reliance Industries to jointly explore developing underground lignite gasification project in Gujarat
Image: The Economic Times
NLC India Ltd and Reliance Industries Ltd will jointly explore an underground lignite gasification project in Gujarat to enhance domestic gas supplies amid a global fuel crisis. This initiative aims to convert lignite reserves into synthesis gas, potentially reducing reliance on imported liquefied natural gas (LNG).
- 01NLC India holds two lignite blocks in Gujarat for the gasification project.
- 02The project aims to address domestic gas shortages exacerbated by the global fuel crisis.
- 03Underground lignite gasification converts lignite into synthesis gas for industrial use.
- 04NLCIL is also developing a lignite-to-methanol plant in Neyveli, Tamil Nadu, estimated at ₹4,394 crore.
- 05The Union Cabinet approved a ₹37,500 crore scheme to promote coal and lignite gasification projects in India.
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NLC India Ltd (NLCIL) and Reliance Industries Ltd (RIL) have entered into a partnership to explore the development of an underground lignite gasification project in Gujarat. This initiative is part of efforts to enhance domestic gas supplies amid a global fuel shortage. NLCIL, a state-run entity, holds two lignite blocks in Gujarat that are being assessed for their feasibility in gasification. The project aims to convert lignite reserves into synthesis gas, which can be utilized in various industrial applications, thereby reducing dependence on imported liquefied natural gas (LNG). Additionally, NLCIL is planning a lignite-to-methanol plant in Neyveli, Tamil Nadu, projected to cost ₹4,394 crore. This aligns with the Indian government's recent approval of a ₹37,500 crore scheme to promote coal and lignite gasification, targeting the gasification of 100 million tonnes of coal by 2030. The collaboration with Reliance is expected to leverage their expertise in gasification technologies, potentially accelerating project development and mitigating technical risks.
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The project could enhance local energy security by providing an alternative source of gas, reducing reliance on imports.
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