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
