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According to the latest press release by the Press Information Bureau, the Ministry of Coal has launched a pioneering initiative with the first Underground Coal Gasification (UCG) pilot project in India. Following comprehensive UCG policy guidelines, Coal India has appointed Eastern Coalfields Limited (ECL) to spearhead this two-phased project. Situated at the Kasta coal block in Jamtara, Jharkhand. UCG pilot projet is believed to be environmentally viable and, if successfully executed, will revolutionize the coal gasification industry.

Eastern Coalfields Limited (ECL) primarily operates in West Bengal, but it also extends its operations into the neighboring state of Jharkhand. The company's mining activities in Jharkhand include areas like the Kasta coal block in Jamtara District. For the first time, this initiative aims to transform the coal industry by employing in-situ gasification, which converts coal directly into valuable gases such as methane, hydrogen, carbon monoxide, and carbon dioxide. These gases will be used to produce synthetic natural gas, and serve as chemical feedstocks for creating fuels, fertilizers, explosives, and other industrial products.

Underground Coal Gasification enables to utilize coal reserves that are otherwise economically inaccessible through conventional mining. This pilot marks a significant achievement for Coal India Limited (CIL) and its subsidiaries, positioning India at the forefront of advanced coal gasification technology.

Managed by ECL in partnership with CMPDI Ranchi and Canada’s Ergo Exergy Technologies Inc. (EETI), the project is set to run over two years and will unfold in two phases.

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The first phase, which started on June 22, 2024, focuses on preparing a Technical Feasibility Report through borehole drilling and core testing. The subsequent phase will concentrate on scaling up coal gasification. Funded by the CIL R&D Board, this collaborative R&D effort between Eastern Coalfields Ltd and Ergo Exergy as sub-implementing agencies is poised to open transformative opportunities for India’s energy sector, promoting sustainable and efficient use of national coal resources.