Coal gasification projects in Budget 2022-23

Coal Gasification project announced in Union Budget gives rise to questions

Coal gasification projects in Budget 2022-23

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• The story: The government announced "coal gasification projects" in Budget 2022-23. The Delhi-based non-profit Centre for Science and Environment (CSE) has raised concerns considering environmental impact of it.
• What is coal gasification: It is the process of producing syngas — a mixture consisting primarily of carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2), natural gas (CH4), and water vapour (H2O)—from coal and water, air and/or oxygen. This gas is then used instead of piped natural gas, methane and others for deriving energy.

1. In-situ gasification of coal – or Underground Coal Gasification (UCG) – is the technique of converting coal into gas while it is still in the seam and then extracting it through wells.
2. Production of Syngas - It produces Syngas which is a mixture consisting primarily of methane (CH4), carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2) and water vapour (H2O).
3. This syngas can be used to produce a wide range of fertilizers, fuels, solvent and synthetic materials.

• Significance: Steel companies use coking coal in their manufacturing process. Most of the coking coal is imported and is expensive. To cut costs, plants can use syngas, which comes from coal gasification plants in the place of coking coal. It is primarily used for electricity generation, for the production of chemical feedstocks. The hydrogen obtained from coal gasification can be used for various purposes such as making ammonia, powering a hydrogen economy.
• What are the concerns: According to the CSE, the process of coal gasification is not attractive from a climate change point of view. It produces more carbon dioxide than a conventional coal-powered thermal power plant. One unit of electricity generated by burning gasified coal generates 2.5 times more carbon dioxide than what would result when burning the coal directly. The syngas process converts a relatively high-quality energy source (coal) to a lower quality state (gas) and consumes a lot of energy in doing so means the efficiency of conversion is also low.
• What other countries do: Coal gasification is prominent in China. Five per cent of China’s total coal consumption is from its gasifier. It also has the biggest number of coal gasification projects in the world due to the support of the Chinese Government through its 9th-12th Five-Year Plans. Other Asian countries such as Japan are focusing on more efficient power generation cycles; for instance, coupling gasification with fuel cells. The US has some coal gasification plants running. The Queensland Parliament passed legislation August 24, 2017, which places a moratorium on all activities relating to underground coal gasification.
• Summary: While pursuing the growing needs of energy demand for development, India has to keep the environment in mind. There are commitments made at COP-26 by India, that need to be honoured. Although India is clear on that it won't phase out coal in a hurry, still perception does matter.
• EXAM QUESTIONS: (1) Explain the importance for moving to a clean energy system, for developing countries like India. Why is it a challenge? (2) What do you understand by ‘coal gasification’? How it is not environment friendly? Explain technically. (3) What are the problems for China and India in dumping coal completely? Explain.

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