Jindal Steel to More Than Double Coal Gasification Capacity by 2030
Jindal Steel plans to increase coal gasification capacity to 11 million tonnes by 2030 to boost industrial value and energy self-reliance.
In a strategic move to bolster industrial value addition and support India's journey toward energy self-reliance, Jindal Steel has announced ambitious plans to significantly scale up its Jindal Steel coal gasification capacity. The company aims to increase its current capacity of 4.5 million tonnes to approximately 11 million tonnes or more by the end of 2030.
These plans were revealed by Naveen Ahlawat, President and Head of Sustainability and Decarbonisation, and Head of Marketing – Carbon to Chemicals at Jindal Steel, during the Coal Gasification India Conference 2026. The expansion aligns with the National Coal Gasification Mission, under which the Indian government intends to gasify 100 million tonnes of coal by 2047.
Driving Energy Self-Reliance and Economic Value
According to Ahlawat, the shift toward coal gasification is not just about production volume but about extracting greater economic value from domestic resources. By converting coal into synthesis gas (syngas), India can produce a wide array of industrial products, which in turn reduces the need for expensive imports.
The benefits of this transition include:
- Reduced Forex Outflow: Producing chemicals such as methanol, ethanol, and ammonium nitrate domestically helps lower foreign exchange spending.
- Fertilizer Security: Syngas can be used to manufacture urea, potentially decreasing the country's dependence on imported fertilizers.
- Synthetic Natural Gas: The process enables the creation of synthetic natural gas using indigenous coal reserves.
Ahlawat emphasized that such energy independence is crucial for insulating India from external geopolitical disruptions, specifically mentioning the crisis in West Asia, as the nation strives to become a developed economy by 2047.
Leveraging India's Massive Coal Reserves
The scale of the opportunity is underscored by India's vast natural resources. The country currently produces nearly one billion tonnes of coal annually and possesses reserves of approximately 300 billion tonnes—a supply that could potentially last for 300 years.
Ahlawat noted that as coal supplies to power plants normalize, it will create a stable environment for industrial value addition. "If production gets normalised, power generation will be perfectly alright," he stated, adding that stabilized supplies from Coal India would be highly beneficial for gasification efforts.
Innovation at the Angul Plant
Jindal Steel is already a pioneer in this field, operating a coal gasification-based direct reduced iron (DRI) plant in Angul, Odisha. Ahlawat highlighted that this facility has been functioning for over 12 years and is described as the world's only coal gasification-based DRI plant.
The company is currently advancing the second phase of its two-million-tonne DRI plant, with commissioning expected by the end of next year. Once this phase is complete, the company will focus on:
- Improving system integration.
- Reducing carbon intensity.
- Enhancing the reliability and efficiency of gasifiers.
- Exploring the conversion of captured carbon dioxide into valuable downstream chemicals.
Overcoming Challenges: The Quest for Quality Coal
Despite the optimistic outlook, the sector faces a primary hurdle: the availability of high-quality coal. To mitigate this risk, Jindal Steel is implementing a two-pronged strategy.
First, the company is leveraging new dedicated linkages for coal gasification plants being introduced by the Ministry of Coal. Second, Jindal Steel is pursuing backward integration by utilizing its own mines. By blending coal from its own mines with suitable-quality coal from nearby sources, the company aims to optimize plant performance and ensure a steady supply chain.