Coal India, BHEL Join Hands for Coal-to-Chemicals Project in Odisha

Kolkata, February 28: Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) have announced plans to establish a joint venture (JV) for a coal-to-chemicals project in Odisha. The JV company will initially set up a Coal to 2000 tons per day (TPD) Ammonium Nitrate Plant using BHEL's in-house developed Pressurized Fluidized Bed Gasification (PFBG) technology.

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Equity Shareholding and Project Cost

CIL will hold a 51% stake in the JV, while BHEL will hold the remaining 49%. The project, to be undertaken by CIL's subsidiary Mahanadi Coalfields Limited (MCL) in Jharsuguda district of Odisha, has an estimated project cost of Rs 11,782 crore. The debt-equity ratio for the project is set at 70:30.

State-of-the-Art Coal to Ammonium Nitrate Plant

The JV will commence with the construction of a state-of-the-art Coal to Ammonium Nitrate Plant, utilizing BHEL's PFBG technology. CIL, playing a pivotal role in the project, has pledged to guarantee the off-take of a minimum of 75% of the production.

Development of Coal to Syngas Island/Gasification Plant

In addition to the Coal to Ammonium Nitrate Plant, the JV will also develop a coal to Syngas Island/gasification plant on a lump sum turnkey basis. This project will leverage BHEL's esteemed PFBG technology, following a detailed feasibility report (DFR) and meticulous scrutiny.

CIL's MoU with GAIL for Coal-to-Synthetic Natural Gas Project

Separately, CIL has signed a Memorandum of Understanding (MoU) with GAIL for setting up a Coal-to-Synthetic Natural Gas project at Sonepur Bazari area of Eastern Coalfields Limited (ECL) in Burdwan district. The estimated project cost for this venture is Rs 13,052 crore.

The joint venture between CIL and BHEL marks a significant step in India's efforts to diversify its energy sources and promote sustainable industrial development. The coal-to-chemicals project in Odisha and the coal-to-synthetic natural gas project in Burdwan are expected to contribute to the nation's energy security and economic growth.