Coal India Expands into Gasification, Renewable Energy, and Critical Minerals

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Narendra Jijhontiya

Coal India Expands into Gasification, Renewable Energy, and Critical Minerals

New Delhi, September 20 (Daily Kiran) : Coal India Limited (CIL) is transforming from a traditional coal mining company into a diversified energy and technology-focused organization. The company’s initiatives in coal gasification, efficient power generation, renewable energy, and battery energy storage systems (BESS) are laying the groundwork for this major shift.

CIL’s business development portfolio is organized around five interconnected sectors. These include coal gasification, coal-to-chemicals, thermal power, renewable energy and storage, critical minerals, and advanced materials.

The portfolio already features several national projects. Notable investments include approximately ₹69,346 crores in four coal-to-chemicals initiatives, the 2×800 megawatt Chandrapura ultra-supercritical expansion, around 550 megawatts of operational solar capacity, grid-level BESS projects, and opportunities related to critical minerals and downstream materials.

Coal gasification involves converting coal into synthesis gas or syngas, which can be used to produce synthetic natural gas (SNG), ammonia, urea, ammonium nitrate, methanol, and other chemicals. This technology not only enhances the chemical value derived from coal but also helps reduce import dependency.

CIL’s major coal-to-chemicals initiatives include Talcher Fertilizers Limited, India Coal Gasification and Chemicals Limited, Coal Gas India Limited, and the CIL-BPCL Chandrapura coal-to-SNG project.

These initiatives focus on adapting processes to the high-ash Indian coal, optimizing operations, localizing critical equipment, and improving advanced process control, digital twins, predictive maintenance, and management of water, ash, and emissions. Decisions on project replication will be made after verifying operational data and commercial performance.

Underground coal gasification (UCG) is being explored as a potential method to convert coal that is deep underground or otherwise unmineable into syngas. Since this technology has not yet been commercially proven globally, CIL is working on a phased pilot project at the Kasta West Block of Eastern Coalfields Limited (ECL).

In collaboration with Damodar Valley Corporation (DVC), CIL is implementing a 2×800 megawatt ultra-supercritical brownfield expansion project in Chandrapura, Jharkhand. The proposed joint venture will have equal stakes from both entities, with DVC assisting in power sales. Future efforts will focus on high-efficiency power generation, predictive maintenance, flexible plant operations, emissions control, water recycling, and scientific use of ash.

According to the company, CIL has already commissioned about 550 megawatts of solar capacity, with various solar project developments underway, including rooftop, ground-mounted, captive, inter-state, and market-connected projects. CIL is pursuing two models: captive solar projects aimed at reducing electricity costs and carbon footprints, and utility-scale projects for commercial renewable energy production.

CIL is also developing a 20 megawatt AC grid-connected floating solar project at Chilwa Tal in Gorakhpur. This floating solar option is suitable for water bodies, requiring less land.

The BESS initiatives by CIL facilitate the integration of renewable energy into the grid, peak demand management, grid flexibility, and improved transmission capacity. The company’s initiatives include the TGGENC0 Choutuppal project in Telangana. Additionally, CIL is developing an 80 megawatt/320 megawatt-hour BESS portfolio across four locations in Odisha, which will feature a four-hour storage duration.

CIL is also exploring opportunities related to critical minerals, essential for batteries, electric vehicles, renewable energy systems, electronics, advanced manufacturing, aerospace, and defense. According to the company, opportunities in India include graphite assets in Madhya Pradesh and Chhattisgarh, as well as rare earth elements (REE) and rare metals in Andhra Pradesh and Maharashtra.

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