GAIL (India) Ltd and Coal India Ltd (CIL) have entered into an understanding for setting up a surface coal gassification project.
NEW DELHI: GAIL (India) Ltd and Coal India Ltd (CIL) have entered into an understanding for setting up a surface coal gassification project for production of synthesis gas for fertiliser production.
As part of the memorandum of understanding (MoU), GAIL and CIL will jointly develop a surface coal gassification project for production of synthesis gas to be used as feedstock for fertiliser production.
Setting up of the coal gassification plant would entail an investment of around Rs 2,400 crore. A joint working group of the two companies would evaluate a detailed feasibility report, prepared by GAIL, and evaluate viability in terms of techno-economic feasibility of the project.
According to UD Choubey, chairman and managing director, GAIL, the MoU signing follows the gas major entering into a similar understanding with Rashtriya Chemicals and Fertilisers for use of this gas.
GAIL had earlier carried out a study by Udhe India for examining the potential of the project and it is estimated that the project will consume around 5,000 tonne a day of coal to produce 7.76 million standard cubic metre a day of synthesis gas (equivalent to 3,000 tonne per day of ammonia) for production of 3,500 tonne per day of urea.
GAIL will focus on the production and marketing of synthesis gas which will be in line with its core function of gas handling, said an official statement.
Coal can be gassified through in-situ gassification in the seams and on the surface.
CIL plans to expand its business from just coal production to development of surface coal gassification process, production of synthesis gas for marketing and distribution to entities for production of ammonia for use in production of explosives and fertilisers.
m_jyoti@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}