Coal Gasification

Why in news? The Ministry of Coal has signed Coal Mine/Block Production and Development Agreements (CMDPAs) for four coal blocks with embedded provisions for Underground Coal Gasification (UCG) for the first time.
Coal Gasification
•  Coal gasification is a process that converts coal into syngas (synthetic gas) by heating it with oxygen/steam without complete combustion. 
•  Syngas mainly contains hydrogen (H₂) and carbon monoxide (CO) along with some amount of carbon dioxide and methane. It can be used to produce fuels, chemicals, and fertilizers. 
•  Coal gasification is cleaner than direct coal burning due to lower emissions and compatibility with carbon capture, utilization, and storage (CCUS).

Underground Coal Gasification (UCG)
•  UCG converts coal into syngas in situ (within the coal seam) without physically mining it.
•  It enables extraction of energy from deep, thin, or uneconomical coal reserves.
•  The latest CMDPAs integrate UCG provisions, allowing simultaneous conventional mining and gasification. 
•  UCG helps unlock previously inaccessible coal reserves, expanding India’s usable resource base. 
•  Syngas produced can be used as a feedstock for fertiliser production including urea and ammonia. 
•  In the chemicals and petrochemicals sector, UCG syngas can replace imported natural gas and naphtha as a base feedstock, enabling domestic production of methanol, dimethyl ether (DME), and synthetic fuels
•  This reduces dependence on imported natural gas, fertilizers, and petrochemicals. (At present, India is dependence on imports—approximately 83% of crude oil, 50% of natural gas, and over 90% of methanol and fertilizers—making energy security a strategic priority.)
•  UCG is considered a future-ready technology that aligns with cleaner energy pathways.
India’s Coal Reserves
•  India has ~400 billion tonnes of coal reserves, among the largest globally. 
•  Coal contributes about 55% of India’s total energy mix and ~74% of electricity generation. 
•  India’s coal demand is ~1 billion tonnes annually, expected to rise further.
National Coal Gasification Mission.
•  The Government has launched the National Coal Gasification Mission. 
•  The mission targets 100 million tonnes of coal gasification by 2030. 
•  An incentive scheme worth ₹8,500 crore has been introduced to promote adoption. 
•  Investments worth ₹64,000 crore+ are already in the pipeline. 
•  The policy push aligns with India’s Net Zero target by 2070 and energy security goals.