India's state-owned power giant NTPC Limited is making a massive push into cleaner coal technology with a planned investment of approximately ₹10,000 crore to establish a coal-to-synthetic natural gas (SNG) facility. The project will be located in the Talaipalli area of Chhattisgarh, a senior company official confirmed to PTI.
Project Details and Strategic Vision
This ambitious initiative is part of NTPC's broader strategy to "green" coal and advance carbon capture technologies. The facility aims to produce SNG at a targeted cost of around $12 per million British thermal units (MMBTU), offering a cleaner alternative to conventional fuels and aligning with India's national energy transition goals.
The 5 lakh tonnes per annum SNG plant will require about 150 acres of land and will consume roughly 25 lakh tonnes of coal annually. This coal will be sourced from NTPC's own captive mines in Talaipalli, which contains high-ash Indian coal. The project is being spearheaded by NETRA, the research and development wing of NTPC.
Technology Partnerships and Timeline
NTPC is actively seeking international technology collaborations for the complex processes involved, including coal beneficiation and gasification. The company is currently in advanced discussions with multiple global partners. According to the official, the technology selection for the project is expected to be finalized by the last quarter of the financial year 2025-26 (FY26).
The process of converting coal to SNG involves several critical stages: coal beneficiation, coal gasification, water gas shift, and methanation. Once the technology tie-ups are secured, NTPC will commence preparations for other project requirements such as land allocation, power, and water supply.
Broader Significance and Commercial Potential
Coal gasification has emerged as a crucial technology for the sustainable utilization of India's vast domestic coal reserves. It helps reduce dependence on imported fuels and can lead to lower emissions compared to conventional coal burning. The synthetic gas (syngas) produced can be a versatile feedstock.
Beyond producing Synthetic Natural Gas, the syngas from this facility can be used to create other valuable products, opening avenues for commercial benefits. These include energy fuels like methanol and ethanol, ammonia for fertilizers, and various petrochemicals.
This project builds upon a foundational agreement signed between NTPC and Engineers India Limited (EIL) in October of last year to develop the coal-to-SNG facility. The latest announcement provides concrete details on location, scale, and investment, marking a significant step forward in India's quest for energy security and a sustainable fossil fuel pathway.
