Coal India Limited is planning to develop syngas projects near gas-based power plants, direct reduced iron (DRI) units, and fertiliser manufacturing facilities as the country faces tightening natural gas supplies and rising energy demand.
The company aims to utilize coal gasification technology to produce synthesis gas, or syngas, which can serve as an alternative fuel and industrial feedstock for sectors dependent on natural gas. Officials indicated that locating projects near major industrial consumers would help improve supply efficiency and reduce transportation costs.
Industry experts said the move reflects growing efforts to diversify India’s energy sources and reduce dependence on imported natural gas. Syngas produced from coal can be used in power generation, steel manufacturing, chemicals, and fertiliser production, making it strategically important for industrial operations.
Coal India has been expanding its focus beyond conventional coal mining by investing in cleaner coal technologies and value-added energy projects. Analysts believe syngas development could support the government’s broader energy security and industrial growth objectives.
The tightening availability of natural gas and fluctuations in global energy prices have increased interest in alternative fuel solutions across industries. Companies reliant on gas supplies have been exploring options to ensure uninterrupted operations and manage production costs.
Experts also noted that coal gasification projects may play a role in supporting domestic manufacturing while creating opportunities for technological advancement in the energy sector.
The proposed projects are expected to contribute to long-term energy planning as India seeks to balance industrial growth, fuel security, and evolving energy transition strategies.