India’s first coal-gasification fertilizer plant

  • Category
    Miscellaneous
  • Published
    29th Sep, 2018

Context

  • Prime Minister Narendra Modi launched commencement of work for India’s first coal-gasification based fertilizer plant with pet coke blending that will come up in Talcher, Odisha.
  • The coal gasification based fertilizer plant is being developed by Talcher Fertilizers Limited (TFL).
  • TFL is a joint venture company of GAIL (India) Limited, Coal India Limited, Rashtriya Chemicals & Fertilizers Limited and Fertilizer Corporation of India Limited.

About

  • For the plant, TFL has been allotted captive coal mine in Talcher region to ensure steady supply of the feedstock.
  • On completion, the plant will have the capacity of producing 1.27 Million Metric Tonnes Per Annum (MMTPA) of Neem coated prilled urea using coal and pet-coke as feedstock.
  • The plant will also produce 2.38 million metric standard cubic meter per day (MMSCMD) natural gas equivalent syngas from coal, leading to reduction in import bill of liquefied natural gas (LNG) by more than Rs 1,620 crore per annum.

Significance

  • The coal-gasification based fertilizer plant will use gas produced from coal, thus reducing dependence on urea and gas imports.
    a. In an attempt to reduces import of urea and deepens the market for natural gas, government, as a policy priority, has also been reviving sick fertiliser units.
  • It will promote alternative use of domestic coal in environment friendly manner, thereby supporting India’s commitments under COP-21 Paris Agreement.
  • Pollutants like Carbon Dioxide produced by this plant will be recycled for production of urea and other by – products.
    a. The government wants to step up urea production. India’s urea production capacity is expected to go up from the current 25 million tonnes to 34 million tonnes by 2021-22, according to government estimate.
  • Gas-based fertiliser units will also add to the customer base of gas trading and energy infrastructure firms such as Gail India Ltd.
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