Ratul Puri on Coal Gasification and India’s Energy Security

This article is authored by Ratul Puri, chairman, Hindustan Power

When discussing the creation of an energy-secure India, the conversation often centres around two contrasting factors. One is the country's traditional dependence on coal, while the other is its ambitious push toward clean, renewable energy. However, for a growing nation of more than 1.4 billion people, a nuanced approach is required to maintain a balance between economic growth and India's global climate commitments.

Solar and wind energy continue to set new growth benchmarks, but another part of the industrial challenge remains. Agriculture, heavy manufacturing, and chemical refineries cannot operate efficiently on solar power alone because these sectors require high-temperature energy. At the same time, many clean energy components are imported, making the country vulnerable to trade disputes, geopolitical developments, and disruptions in global markets.

It is in this context that India's historic coal resources need to be considered. The Union Minister for Coal and Mines recently noted that coal gasification will be important for supporting energy security, reducing imports, and encouraging industrial growth. India has estimated coal reserves of almost 400 billion tonnes, placing it among the countries with the largest reserves globally. Coal continues to have a major role in India's energy generation, accounting for 55% of its energy mix and nearly 74% of electricity generation. In addition, annual coal demand of around one billion tonnes is expected to rise considerably by 2047. At the same time, India continues to make progress toward its net-zero commitment for 2070.

The government is also promoting coal gasification as a method of converting coal into syngas. With total investment exceeding ₹85,000 crore, India has set a target of achieving 100 million tonnes of coal gasification capacity by 2030. Through gasification, coal is converted into syngas, which can be used in the production of cleaner fuels, fertilisers, chemicals, and hydrogen. This approach provides a way to make more efficient use of domestic resources.

With around 83% of crude oil, 50% of natural gas, and more than 90% of fertilisers and methanol being imported, the Central Government has placed energy security among its strategic priorities. According to Ratul Puri, this is where coal gasification can provide a realistic energy transition strategy that addresses the gap between rapid industrial growth and the move toward a low-carbon future. Coal gasification forms part of India's broader effort to make greater use of its substantial coal reserves while strengthening energy security. The coal gasification mission could potentially help save the country ₹60,000 crore to ₹90,000 crore every year through import substitution, while supporting the development of a low-carbon chemicals and fertiliser economy.

Coal gasification transforms solid coal into synthetic gas, or syngas, which consists of carbon dioxide, carbon monoxide, hydrogen, and methane. The process involves reacting coal at extremely high temperatures with controlled amounts of steam and oxygen instead of completely combusting the coal.

Syngas can also serve as a foundation for several value-added industrial applications. In agriculture, it can be processed into ammonia and subsequently used to manufacture affordable domestic urea fertilisers. In transportation, syngas can be converted into methanol, which can be used for fuel blending and help reduce dependence on imported oil. Gasification can also support domestic production of important chemicals used in products such as paints, plastics, and pharmaceuticals.

Gasification gives India an opportunity to use its abundant coal reserves while reducing foreign exchange outflows associated with imports of natural gas, fertilisers, and chemicals. Producing essential commodities domestically can also help stabilise input costs and strengthen local supply chains against disruptions in international markets.

Although gasification remains a fossil-fuel-based process, it can serve as an ecological bridge when compared with conventional coal combustion. Because gasification takes place inside a controlled and sealed chemical reactor, sulphur, particulate matter, and other byproducts can be captured more easily and efficiently than removing them from the chimneys of traditional power plants.

Gasification also produces concentrated CO₂ streams, making the technology suitable for integration with Carbon Capture, Utilisation and Storage (CCUS) systems. Captured carbon can either be stored safely deep underground or reused to manufacture commercial products, including solid carbonates and synthetic fuels. Through carbon management and the integration of biomass into gasification reactors, the net carbon footprint associated with heavy industries can potentially be reduced.

Converting coal into value-added industrial products can help protect India's critical manufacturing base while supporting the Make in India mission. For Chairman Ratul Puri, the future role of coal in India extends beyond its traditional function of fuelling power grids. Instead, it can contribute to a self-reliant and diversified industrial ecosystem, supporting India's efforts to remain energy-secure, increasingly competitive, and progressively greener in the global economy.

About Ratul Puri:-

Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy generation. Over the years, Ratul Puri has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.