In a significant development within the chemical industry, two leading Indian state (Maharatna CPSE) entities, Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), have formally solidified their collaboration through the signing of a joint venture agreement (JVA) on 28th February 2024 in Delhi. The agreement aims to establish an ammonium nitrate plant utilizing surface coal gasification (SCG) technology.
The proposed plant, slated to be situated in the Lakhanpur area of Mahanadi Coalfields Limited, Odisha, is projected to commence operations with an initial daily production capacity of 2000 tons of ammonium nitrate. With an annual production target set at 6.60 million tons, the plant will necessitate 1.3 million tonnes (mts) of coal, which will be supplied by CIL. BHEL, on its part, will contribute its domestically developed pressurized fluidized bed gasification (PFBG) technology for the project.
This strategic collaboration between the two corporate giants marks a significant step towards the realization of the National Coal Gasification Mission, which aims to leverage the chemical properties of coal. Ammonium nitrate, a crucial ingredient in the manufacturing of bulk explosives, is extensively used by CIL in its open-cast mining operations, making the establishment of this plant a crucial step towards securing raw materials and reducing import dependency, aligning with the Atmanirbhar Bharat Abhiyaan.
Shri Amrit Lal Meena, Coal Secretary, expressed optimism regarding the project, emphasizing its role as a role model and highlighting the ministry’s prioritization of gasification. He assured full government support, including financial assistance for viable gap funding.
The JVA was signed by Shri Debasish Nanda, Director (Business Development) of CIL, and Jai Prakash Srivastava, Director (Engineering, R&D) of BHEL, representing their respective companies.
Looking ahead, CIL intends to explore alternative uses of coal for environmentally friendly ventures, such as coal gasification, after fulfilling the power sector’s requirements. SCG technology, which converts coal into valuable Syn gas, holds promise for producing synthetic natural gas and serving as feedstock for downstream chemicals production, thus reducing the reliance on imports.
Projects and Development India Limited, a Miniratna design engineering, and consultancy company, have been tasked with preparing a detailed feasibility report for the plant.
The process of acquiring the necessary land is currently underway and expected to be completed by September 2024, after which construction activities will commence. The signing ceremony of the Joint Venture Agreement was attended by senior officials from the Ministry of Coal, Ministry of Heavy Industries, as well as representatives from the partnering companies.