Thermax plans commercial-scale trial on high-ash coal gasification project

Energy and environmental services major, Thermax Ltd, said on Friday that it is in discussion with several steel companies in the eastern region for a commercial-scale high-ash coal gasification project.

This project will be the first of its kind in the eastern region.

Thermax is also in dialogue with Coal India on coal gasification technology.

CIL has plans to set up a coal-to-SNG (Synthetic Natural Gas) project in the Eastern Coalfields Limited command area. In this domain, Thermax claims to have patented technology.

"We are currently in talks with steel companies for a project that will pioneer high-ash coal gasification in the eastern region. Deliberations are going on regarding the funding, which is facing a viability gap of approximately 30-40 per cent of the project cost," Thermax MD and CEO Ashish Bhandari said.

 

Although the government is expected to provide viability gap funding of around 15 per cent, companies will need to address the remaining funding gap, he said.

"We have also committed to investing in this commercial-scale demonstration project. He added that the viability gap is minimal in the steel industry compared to other use cases like power and anticipates that the first demonstration project might be established in West Bengal," Bhandari said.

The gasification project is envisioned to have a capacity of 100-150 tonnes of coal per day, with an estimated cost of about Rs 600 crore.

Bhandari expects greater clarity soon from the government regarding funding and execution details for such projects.

The Ministry of Coal aims to stimulate investments and technological advancements in coal/lignite gasification projects through strategic initiatives and policy frameworks, aligning with India's vision for a cleaner and energy-efficient future.

The government has approved Rs 8,500 crore for viability gap funding of coal gasification projects, with a target to gasify 100 million tonnes (MT) of coal by 2030.

CIL has plans to set up a coal-to-SNG (Synthetic Natural Gas) project in the Eastern Coalfields Limited (ECL) command area through a joint venture with GAIL, and a coal-to-ammonium nitrate project in the Mahanadi Coalfields Limited (MCL) command area through a joint venture with BHEL.

Meanwhile, Thermax held a roadshow in Kolkata showcasing cleaner energy technologies.

Bhandari said the revenue mix from the energy transition mix is growing and it will become 60 per cent over the next six years.

The Pune-based company recorded a consolidated operating revenue of Rs 2,324 crore in the third quarter of FY 2023-24, 13 per cent higher as compared to Rs 2,049 crore in the corresponding quarter of the previous fiscal year.