NTPC to foray into coal gasification with 5-10 MT annual production goal

The state-run power giant aims to produce up to 10 million tonnes of synthetic gas annually at $10-$12 per mmBtu, while also expanding its nuclear energy capacity to 30 GW by 2047

State-owned power generator NTPC Ltd is planning a foray into coal gasification, aiming to produce a minimum 5-10 million tonnes (MT) of the synthetic gas annually in three-four years, a top company official said.

 

The cost of gas production is expected to be around $10-$12 per million British thermal units (mmBtu).

 

The official said the gas price determined by NTPC would be competitive with the delivered cost of liquefied natural gas (LNG) and the company sees no challenge in securing buyers.

 

The gas produced would be either sold in the domestic market or utilised by the firm’s own plants. NTPC would use its own coal to produce synthetic gas.

It would also explore bringing on board a technology consultant for the coal gasification initiative and is planning to float tenders this financial year itself.

To promote coal gasification projects, the government has approved financial incentives of ₹8,500 crore with the aim to gasify 100 million tonnes of coal by 2030.

 

The coal gasification initiative also supports the government’s plan to increase the share of natural gas to 15 per cent by 2030 in the country’s energy mix from the current 6 per cent.

 

Nuclear energy projects

 

As NTPC targets at least 30 gigawatt (Gw) nuclear energy capacity by 2047, it is looking for land in 16 states for setting up plants, the official said.

 

This includes Madhya Pradesh, Rajasthan, Gujarat and Haryana, among others. The capacity of each of these nuclear projects would be between 700 megawatt (Mw) and 1,600 Mw.

 

The company expects the use of pressurised heavy water reactor (PHWR) technology for the plants.

NTPC recently made a debut into the nuclear power generation domain.

 

In September, Prime Minister Narendra Modi laid the foundation stone for a 2,800 Mw nuclear power project in Banswara, Rajasthan, to be set up jointly by NTPC and Nuclear Power Corporation (NPCIL). The project houses four PHWRs of 700 Mw capacity each.

India aims to achieve 100 Gw of nuclear power generation capacity by 2047 compared to the current 8 Gw.