Coal Gasification & Energy Security: UPSC Mains Notes

Coal Gasification & Energy Security: UPSC Mains Notes

In News: ₹37,500 Crore Coal Gasification Scheme

  • The Strait of Hormuz disruption reinforced the importance of reducing India’s dependence on imported energy resources. The Union Cabinet approved a ₹37,500 crore scheme to promote surface coal and lignite gasification.

Coal Gasification: Process & Dimethyl Ether (DME)

  • Coal gasification converts coal into synthesis gas, which can subsequently produce Dimethyl Ether.
  • Dimethyl Ether is a clean-burning fuel that can directly substitute a portion of conventional LPG.
  • The Bureau of Indian Standards has approved blending up to 20 percent DME with LPG.
  • DME blending requires no additional cylinder or pipeline distribution infrastructure.

Need for Coal Gasification

  • Energy security requires reducing India’s structural dependence on imported LPG during global supply disruptions.
  • A 20 percent DME blend could replace nearly 6.3 million tonnes of annual LPG imports.
  • The proposed blend could save nearly ₹34,000 crore in annual foreign exchange expenditure.
  • India’s large coal reserves provide abundant domestic feedstock for long-term fuel production.
  • Indigenous scientific capability strengthens national resilience against future energy market volatility.

Challenges of Coal Gasification

  • High ash content in Indian coal reduces gasification efficiency compared with cleaner international coal.
  • Domestic gasification capacity remains significantly below the ambitious national production targets.
  • Coal chemistry requires sustained technical expertise, industrial discipline and long-term investment commitments.

Government Initiatives for Coal Gasification

  • The Union Cabinet approved a ₹37,500 crore scheme promoting surface coal and lignite gasification.
  • The scheme targets 100 million tonnes of annual coal gasification capacity by 2030.
  • Eligible projects receive incentives up to 20 percent of plant and machinery costs.
  • The scheme extends coal linkage tenure to thirty years for eligible gasification projects.
  • CSIR National Chemical Laboratory developed indigenous technology for converting methanol into Dimethyl Ether.
  • The Centre for High Technology approved scaling up the indigenous DME pilot technology.

Way Forward

  • Technology Scaling: Indigenous DME technology should rapidly progress from pilot projects to commercial-scale deployment.
  • Capacity Expansion: India should strengthen domestic gasification capacity through sustained industrial investment and technological advancement.
  • Research Ecosystem: Stronger collaboration among research institutions, government and industry should accelerate coal chemistry innovation.
  • Energy Transition: Domestic DME production should gradually reduce dependence on imported LPG and strengthen long-term energy security.

Source: The Hindu

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