Lockdown constraints amid second wave of Covid-19 a downside risk for electricity demand: ICRA
Lockdown constraints amid second wave of Covid-19 a downside risk for electricity demand: ICRA
29 Jul 2024
In an ambitious step towards clean energy solutions, India has set a target to gasify 100 million tonnes of coal by 2030. The initiative is part of the country's broader strategy to enhance energy independence and maximise the utility of its abundant coal reserves, estimated at 378 billion tonnes, of which about 199 billion tonnes are considered proven. As stated by the Ministry of Coal, the effort is in line with PM Narendra Modi's vision for an energy-independent India by 2027.
Currently, coal is the cornerstone of India's energy sector, with nearly 80% of its power used in thermal power plants. However, the launch of the Coal Gasification Mission in 2020 marked a turning point towards adopting cleaner technology to harness this resource. Coal gasification converts coal into synthesis gas, or 'syngas', a mixture of primarily carbon monoxide and hydrogen, through a thermochemical process. This shift not only offers a cleaner way to use coal but also reduces India's heavy dependence on imported commodities such as oil, methanol, and ammonia.
The push for coal gasification is expected to reduce oil imports, which are currently 83%, and significantly reduce the 90% methanol and 13-15% ammonia imported by the country. These changes are expected to conserve foreign exchange and lead to partial import substitution in the oil, gas, fertiliser, and petrochemical sectors.
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