NLC India and Reliance Industries to Explore Underground Lignite Gasification in Gujarat

NLC India Ltd (NLCIL) is set to partner with Reliance Industries Ltd to explore the development of an underground lignite gasification project in Gujarat. The collaboration aims to enhance domestic gasified fuel supplies in the context of global fuel challenges.

The partnership involves assessing the feasibility of converting lignite reserves through underground gasification, tapping into NLCIL's existing lignite blocks in Gujarat. This step could potentially secure a stable supply of synthesis gas for industrial needs and mitigate dependency on imported liquefied natural gas (LNG).

The project holds promise in addressing India's domestic gas shortage, which has been intensified by ongoing global fuel crises. For NLCIL, this move aligns with their broader goal of optimizing lignite resources and diversifying their portfolio, which includes a planned lignite-to-methanol plant in Tamil Nadu.

The government recently approved a significant scheme to boost surface coal and lignite gasification, underpinning India's strategy to achieve a national target of gasifying 100 million tonnes of coal by 2030. This initiative is also part of the country's drive towards energy security and self-reliance in key imports.

(With inputs from agencies.)