The Case for Building India’s Coal Chemistry Capability
Subject: Science & Technology
Background
- India managed the Hormuz crisis through:
- Diplomatic engagement.
- Diversification of crude oil imports.
- Fiscal interventions.
- Flexible refinery operations.
- However, dependence on imported LPG remains a major energy security concern.
Importance of Refinery Flexibility
- India has diversified its crude oil suppliers over the last two decades.
- Indigenous R&D enabled refineries to process crude oils with varying density, sulphur content, and viscosity.
- During the crisis:
- Non-Hormuz crude imports increased from 55% to 70% within weeks.
- Engineers optimized refinery operations without affecting product quality or safety.
- Demonstrates the importance of scientific capability and technological self-reliance.
LPG Production During the Crisis
- Under the LPG Control Order, refineries maximized domestic LPG production.
- Output increased from 35 TMT/day to 54 TMT/day within five days.
- Demand management and expanded import infrastructure helped address shortages.
Need for Long-Term Energy Security
- Refinery flexibility alone cannot eliminate LPG import dependence.
- India needs indigenous alternative fuels to reduce exposure to geopolitical disruptions.
Dimethyl Ether (DME) – Prelims Important
- DME is a clean-burning fuel similar to LPG.
- Produced through coal gasification:
- Coal → Syngas → DME.
- Can be blended with LPG using existing cylinders and distribution infrastructure.
- Bureau of Indian Standards (BIS) permits up to 20% DME blending with LPG.
- A 20% blend can:
- Replace 6.3 million tonnes of LPG imports annually.
- Save about ₹34,000 crore in foreign exchange each year.
- India has abundant coal reserves, making DME a strategic domestic fuel.
Role of CSIR
- CSIR–National Chemical Laboratory (NCL) developed indigenous methanol-to-DME technology.
- Centre for High Technology (CHT) under the Ministry of Petroleum & Natural Gas approved scaling up the pilot technology.
- Highlights the importance of collaboration between research institutions, government, and industry.
Government Initiatives
- Union Cabinet approved a ₹37,500 crore scheme for coal and lignite gasification.
- Target:
- 100 million tonnes of coal gasification annually by 2030.
- Key features:
- Incentives up to 20% of plant and machinery cost.
- 30-year coal linkage to ensure long-term investment certainty.
- Objective: Enhance energy security and reduce import dependence.
Challenges
- Indian coal has high ash content, making gasification more complex.
- Limited domestic coal gasification capacity.
- Requires advancements in:
- Process engineering.
- Metallurgy.
- Catalysis.
- Industrial technology.
- Large investments and effective implementation are essential.
Way Forward
- Develop indigenous coal chemistry and gasification technologies.
- Scale up DME production to reduce LPG imports.
- Strengthen collaboration between research institutions, industry, and government.
- Build long-term technological capability to enhance India’s energy security and strategic resilience.
