Draft Guidelines for Underground Coal Gasification (UCG)
( UPSC Prelims)
News Context
Draft Guidelines for Underground Coal Gasification (UCG) concerning the development of mining and mine closure plans for UCG blocks, among other aspects, have been issued.
Key Guidelines
To guarantee a scientifically sound mine closure, companies must keep an escrow account with the Coal Controller Organization (CCO). The CCO, part of the Ministry of Coal, is responsible for gathering and managing coal production data from both private and public sector coal mines. Additionally, the CCO serves as the appellate authority for resolving disputes between consumers and owners related to the declaration of grade and size of coal.
About Coal Gasification
Thermochemical process that transforms coal into syngas—a blend of carbon monoxide (CO), hydrogen (H₂), carbon dioxide (CO₂), methane (CH₄), and other gases.
● Syngas can be utilized for electricity production, energy-efficient fuel cell technology, and the creation of downstream products such as methanol, ammonium nitrate, Synthetic Natural Gas (SNG), and Ammonia (for Urea/fertilizers), among others.
○ The process involves partial oxidation at high temperature and pressure.
● Challenges for Coal Gasification Technology include significant upfront investment, the unsuitability of high ash coal in India for gasification, uncertain supply, and high input cost.
Coal Gasification Financial Incentive Scheme (CGFIS): Initiated in 2024, aiming to achieve 100 million tonnes of coal gasification by 2030.