India Auctions 41 Coal Mines, Pushing Underground Gasification for Cleaner Energy

The Ministry of Coal has initiated the 14th round of commercial coal mine auctions, offering 41 mines for bidding. This batch comprises 20 conventional mines and 21 Underground Coal Gasification (UCG) mines, marking the first time UCG potential sites are being auctioned. The government's focus is on utilizing deep-seated coal reserves through gasification, a technique that converts coal into syngas.

According to Coal and Mines Minister G Kishan Reddy, UCG results in less pollution and provides industries with syngas as feedstock, which can substitute imported natural gas. He highlighted that coal gasification is a significant step towards India's 'hydrogen economy,' promoting clean energy for industries.

The government has ambitious targets, aiming for 100 million tonnes of coal gasification by 2030. To support this, an outlay of ₹8,500 crore was approved last year for coal and lignite gasification projects. Furthermore, the Ministry of Environment, Forest & Climate Change has exempted pilot UCG projects from requiring environmental clearance, facilitating their development.

Vikram Dev Dutt, secretary of the coal ministry, emphasized that accelerated, efficient, and cleaner coal resource utilization is essential for India to become a developed economy. So far, 133 mines have been auctioned across 12 rounds, attracting an expected ₹41,000 crore in investments and creating over 370,000 jobs.

Impact This development is significant for the energy sector, potentially driving investment in coal companies and new gasification technologies. It signals a strategic shift towards more efficient and potentially cleaner coal utilization, which could impact the demand for natural gas imports and spur growth in sectors that can utilize syngas or contribute to the hydrogen economy. The government's proactive policy support and exemptions for pilot projects indicate a strong push, making it a key development for investors in the energy and industrial materials space. Rating: 7/10.

Difficult terms: Coal gasification: A process that converts coal into a synthesis gas (syngas) composed primarily of carbon monoxide and hydrogen. Underground Coal Gasification (UCG): An in-situ process that converts coal into syngas while it is still underground. This method is used for deep-seated or unmineable coal seams. Syngas: Synthesis gas, a fuel gas mixture consisting primarily of hydrogen (H2), carbon monoxide (CO), and carbon dioxide (CO2). Feedstock: Raw material used in an industrial process. Hydrogen Economy: An economy where hydrogen is used as the primary energy carrier. It is seen as a clean fuel alternative to fossil fuels. Viksit: A Hindi word meaning 'developed' or 'developed country'. Lignite: A soft, brown, combustible sedimentary rock formed from naturally accumulated carbonaceous material; it is the lowest rank of coal.