The Coal Gasification Financial Incentive Scheme, launched in January 2024, encourages coal gasification projects with ₹8,500 crore funding. It targets 100 million tonnes of coal gasification by 2030. The scheme offers incentives to both private and public companies, supporting cleaner energy through syngas production while reducing environmental impact.
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Coal Ministry advances clean energy via CGPDPA under Coal Gasification Incentive Scheme.
It was launched in January 2024, to encourage companies to build coal gasification plants.
It offers financial incentives to make these projects economically viable.
The scheme has a total budget of ₹8,500 crore and targets 100 million tonnes of coal gasification by 2030.
Recently, the Ministry of Coal signed the Coal Gasification Plant Development and Production Agreement (CGPDPA) with selected companies under Category II of the Coal Gasification Financial Incentive Scheme.
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Category II includes both private companies and government PSUs. Selected applicants receive a lump-sum incentive of 15% of the project’s capital expenditure (capex) or ₹1,000 crore, whichever is lower, paid in two installments. |
Coal gasification transforms coal into a gas called syngas (synthetic gas) in a special high-temperature, high-pressure vessel called a gasifier. Oxygen and steam react with coal to produce this gas, which can be used to make electricity, chemicals, fertilizers, or even hydrogen.
Unlike burning coal directly, gasification is cleaner because it produces fewer pollutants like sulfur dioxide and particulate matter. It also allows for carbon capture and utilization, where carbon dioxide (CO2) is trapped and converted into useful products, reducing greenhouse gas emissions.
Coal gasification aligns with the National Coal Gasification Mission, which promotes sustainable coal use while meeting energy demands. India depends heavily on coal, contributing 79% of total energy generation in FY24, so cleaner technologies like gasification are vital for balancing energy needs with environmental goals.
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PRACTICE QUESTION Q. Which of the following statements about coal gasification technology are correct?
How many of the above statements are correct? A) Only one B) Only two C) Only three D) All four Answer: C Explanation: Statement 1 is correct: Coal gasification is the process of producing syngas—a mixture consisting primarily of carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2), methane ( CH4), and water vapour (H2O)—from coal and water, air and/or oxygen. While other gases are present, carbon monoxide and hydrogen are the primary components. Statement 2 is incorrect. The gasification reaction "usually occurs at high temperatures from 800 to 1900°C and high pressure, because the reaction is more energy efficient under these conditions." Statement 3 is correct: Unlike direct coal burning, gasification allows for better control of emissions, reducing pollutants like sulfur dioxide (SO₂) and nitrogen oxides (NOₓ)" and that "Carbon capture and storage (CCS) can be integrated with gasification to lower greenhouse gas emissions." Combustion of syngas is cleaner than direct coal combustion as harmful emissions are trapped during gasification. Statement 4 is correct: While high-ash Indian coal posed challenges for older gasification technologies, advancements, including co-gasification with low-ash feedstock like petcoke in fluidized bed gasifiers, now allow for the utilization of both. |
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