New Delhi: NTPC Limited, India’s largest power generating company under the Ministry of Power, is set to venture into coal gasification, a move aimed at producing cleaner fuel while also supplying feedstock for fertilizers and synthetic fuels. The initiative is expected to expand NTPC’s marketing potential and support the country’s energy transition.
Coal Gasification Project to Begin This Fiscal Year
A source close to the development told PTI that NTPC plans to start its coal gasification project in the current fiscal year. The company aims to develop a complete ecosystem over the next four years. The gas produced will be used internally as fuel and sold to other industrial users to maximize profitability while enhancing the availability of clean fuel in India.
Production Targets and Cost
NTPC Mining Limited (NML), a wholly-owned subsidiary of NTPC, plans to produce 100 million tonnes of coal annually by 2030. For its coal gasification project, NTPC targets a production of 5-10 million tonnes of gas from coal sourced from its captive mines. The cost of producing gas from coal is estimated at USD 10-12 per MMBtu (Million British Thermal Unit), a standard unit for measuring energy content in fuels.
Tenders and Technical Collaborations
The company is expected to float tenders within FY26 to engage technical consultants for the coal gasification projects. These consultants will help NTPC build the required infrastructure and processes for large-scale gas production.
Alignment with National Coal Gasification Mission
The initiative aligns with the National Coal Gasification Mission, which considers coal gasification a cleaner alternative to conventional coal combustion. Gasification allows the chemical properties of coal to be utilized efficiently. The mission targets achieving 100 million tonnes of coal gasification by 2030.
Applications of Syngas from Coal
The syngas produced through coal gasification has multiple applications, including:
- Production of synthetic natural gas (SNG)
- Energy fuels such as methanol and ethanol
- Ammonia for fertilizer production
- Petrochemical feedstock
Expansion into Nuclear and Renewable Energy
Apart from coal-based initiatives, NTPC is expanding its portfolio into nuclear and renewable energy. The company is collaborating with Nuclear Power Corporation of India Ltd (NPCIL) to set up the Mahi Banswara Rajasthan Atomic Power Project at a total cost of Rs 42,000 crore. Prime Minister Narendra Modi laid the foundation stone for the project on September 25, 2025.
About NTPC
NTPC (National Thermal Power Corporation Limited) is India’s largest power-generating public sector undertaking, operating under the Ministry of Power. It produces electricity from diverse sources including thermal, solar, and hydro, and is expanding into clean energy initiatives like coal gasification and nuclear power projects to support India’s growing energy needs.
