Industry observers and experts welcome the initiatives being taken by Indian companies to generate synthesis gas (or syngas) from non-coking coal.
Producing syngas and byproducts from non-coking or low-grade coal has became a strong ecological imperative to reduce dependence on crude oil imports, says Ravi Uppal, of Jindal Steel and Power (JSPL).
JSPL is in the process of setting up a coal-to-liquid (CTL) plant adjoining its integrated steel manufacturing project at Angul, Odisha. Other companies like Reliance and the Tatas have also announced plans for CTL plants, reports indicate.
Extracting syngas, an admixture of carbon monoxide and hydrogen, from gassification of non-coking coal will involve one of the single largest investments in Indian industry, sources said.
Industry observers feel that it is a risk which Indian companies must take considering the rising energy prices and fuel shortages in the country.
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