Now Reading: Coal India and ArcelorMittal Nippon Steel sign Odisha gasification MoU
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Coal India and ArcelorMittal Nippon Steel sign Odisha gasification MoU
Coal India Ltd and ArcelorMittal Nippon Steel India have signed an MoU to explore a coal gasification plant near the steelmaker's pellet plant in Paradip, Odisha. The project will produce synthesis gas…
The Story in Brief
Coal India Ltd and ArcelorMittal Nippon Steel India have signed an MoU to explore a coal gasification plant near the steelmaker's pellet plant in Paradip, Odisha. The project will produce synthesis gas to replace imported coking coal in steelmaking and will include carbon capture, utilisation and storage (CCUS) technology. The two companies will now assess technical and commercial feasibility and prepare a preliminary report.
The initiative aligns with the government's target to gasify 100 million tonnes of coal by 2030 and is backed by a Cabinet-approved Rs 37,500-crore incentive scheme. Coal India accounts for over 80 per cent of domestic coal output, while India relies on imports for much of its coking coal needs. The MoU was executed on Wednesday, according to a regulatory filing.
The Indian Opinion
This MoU risks being oversold as a clean-energy breakthrough. Coal gasification still emits CO₂ unless CCUS works at scale, which no Indian project has yet proved. The government's Rs 37,500-crore scheme is a big bet, but it must be judged on delivered tonnes, not signed agreements. Watch for the preliminary feasibility report, if it cannot show a credible path to commercial carbon capture, the project remains a costly experiment.
Source: rediff.com
This story was synthesised by AI from the source linked above.
