Government Finalizes Details of New Policy for Coal Gasification-Based Urea Production

Government Aims to Finalize New Policy on Coal Gasification-Based Urea Manufacturing

The Indian government is on track to finalize a new policy for coal gasification-based urea manufacturing within a month, as per an official statement. This move is expected to boost the country's self-reliance and save foreign exchange, considering its heavy dependence on imported natural gas.

Coal Secretary Vikram Dev Dutt highlighted that the Ministry of Chemicals and Fertilisers has been working on the new urea policy for some time. The policy has gained a sense of urgency due to the current situation, with inputs from the Ministry of Coal suggesting that coal gasification to urea should also be included in the new policy. The policy is now at an advanced stage and is expected to be finalized within a month.

Coal gasification-based urea manufacturing involves converting raw coal and pet coke into syngas (hydrogen and carbon monoxide) through high temperature oxidation. This hydrogen is then combined with nitrogen from the air to synthesize ammonia, which is subsequently reacted with carbon dioxide to produce urea. This process replaces natural gas as a feedstock, reducing dependence on imports.

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A domestic coal-gasification firm, New Era Cleantech Solution, had earlier written to the government, seeking parity for coal-based urea projects with gas-based plants. The company, which is developing a 5 MMTPA coal gasification project in Chandrapur, Maharashtra, emphasized the need for suitable offtake assurance mechanisms and earmarking of capacities for the coal-gasification route.

New Era Cleantech Solution Pvt Ltd plans to set up a 1.27 MMTPA coal gasification-based urea project at Bhadravati in Chandrapur district of Maharashtra. The government's push to diversify feedstock sources for urea production, reduce reliance on imported natural gas, and leverage India's vast domestic coal reserves through cleaner gasification technologies is expected to benefit the company's project.