Coal gasification converts coal into synthesis gas (syngas — CO + H₂) through partial oxidation with steam and oxygen. India's coal gasification programme is driven by three strategic objectives: reducing crude oil imports by producing coal-derived methanol for petrol blending; producing coal-derived ammonia and urea to reduce natural gas dependence in fertilisers; and creating industrial hydrogen from domestic coal reserves rather than imported LNG. The Ministry of Coal's 100 MT/year gasification target by 2030 represents one of the world's most ambitious gasification programmes.
Pre-combustion CCS on coal gasification is technically well-proven at demonstration scale — the Dakota Gasification plant in the US has been capturing CO₂ from coal gasification and piping it for CO₂-EOR in Canada since 2000. India's gasification CCUS opportunity is therefore not a technology development challenge but a commercial and policy design challenge: how to integrate CCS into the coal gasification programme cost-effectively and create the regulatory and financing conditions for investment.
Ministry of Coal gasification target by 2030 — one of the world's largest gasification programmes
Coal gasification projects under various stages of development across India
CO₂ capture rate achievable in pre-combustion gasification CCS vs. ~85% for PCC
Duration of Dakota Gasification CO₂-EOR project (USA-Canada) — proof of commercial longevity
Pre-combustion CCS on coal gasification operates on the high-pressure, high-concentration CO₂ stream produced after the water-gas shift reaction (CO + H₂O → CO₂ + H₂). This stream — typically 35–45% CO₂ at elevated pressure — can be captured using physical solvent processes (Selexol, Rectisol) at significantly lower energy cost than post-combustion amine scrubbing. The resulting CO₂ stream is already at elevated pressure, reducing compression requirements before transport and injection.
IGCC — Integrated Gasification Combined Cycle — integrates coal gasification into power generation with pre-combustion CCS and hydrogen-fired gas turbines. IGCC achieves 90%+ CO₂ capture at higher power generation efficiency than conventional coal PC + CCS. Capital cost is currently 30–40% above conventional coal PC, but for new capacity additions the total cost of electricity including CCS is competitive with other low-carbon options.
The Ministry of Coal's gasification programme creates a unique window for CCS integration that will not remain open indefinitely. If India's 23 coal gasification projects under development proceed without CCS integration, they will lock in 25–30 years of unabated coal gasification emissions — eliminating a significant CCUS opportunity and creating stranded asset risk when carbon pricing and CBAM coverage of gasification products eventually arrives. NCM is actively engaging with MoC and the projects' developers to advocate for CCS-readiness design requirements in all new gasification projects above 1,000 TPD coal input.
The financial case for CCS integration in coal gasification is stronger than in most other sectors. Pre-combustion CCS on gasification has the lowest levelised cost of carbon capture of any point-source CCS application — USD 30–50/tonne CO₂ for optimally designed integrated gasification plants, compared to USD 80–120/tonne for post-combustion PCC on coal power. This low capture cost, combined with the methanol or blue hydrogen co-product revenue and India Carbon Market credit potential, creates a compelling commercial case for CCS integration from day one in all major coal gasification developments.
NCM's coal gasification CCUS advisory integrates pre-combustion capture design with product market development — because the commercial viability of CCS in coal gasification depends on identifying the highest-value co-products (methanol, blue hydrogen, urea) and structuring offtake agreements that support the integrated project economics. Our advisory evaluates Selexol, Rectisol, and emerging physical solvent alternatives against each project's specific CO₂ stream composition and pressure profile.
NCM is also engaged in policy advocacy with the Ministry of Coal for CCS-readiness requirements in the gasification licensing framework — ensuring that all new gasification projects above 1,000 TPD include space, infrastructure, and integration points for future CCS installation, at minimal incremental capital cost during construction.
Whether you are a government body seeking policy advice, an industrial company facing CBAM exposure, or an investor seeking CCUS project opportunities — our team is ready to engage.