NTPC Bets ₹10,000 Cr on Chhattisgarh Coal-to-SNG Project
Overview
State-owned NTPC Limited will invest approximately ₹10,000 crore to establish a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh. The project aims to utilize high-ash Indian coal from captive mines, targeting a production cost of USD 12 MMBTU. This initiative by NTPC's R&D wing, NETRA, aligns with 'greening the coal' efforts and aims to reduce import dependency.
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NTPC Invests ₹10,000 Crore in Chhattisgarh Coal-to-SNG Facility
NTPC Limited is embarking on a significant capital expenditure of approximately ₹10,000 crore to construct a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh. A senior company official confirmed the planned investment, underscoring the scale of the state-owned energy giant's ambition in diversifying its energy portfolio.
Project Scope and Objectives
The facility, slated for Talaipalli, Chhattisgarh, will have an annual production capacity of 5 lakh tonnes of SNG. It will occupy 150 acres and consume an estimated 25 lakh tonnes of coal sourced directly from NTPC's captive mines at Talaipalli. The project is driven by NTPC's R&D division, NETRA, which is focused on 'greening the coal' and advancing carbon capture technologies. The company is actively pursuing technology tie-ups for crucial processes like coal beneficiation and gasification.
Strategic Importance and Future Outlook
This venture aims to produce SNG at a target cost of around USD 12 million British thermal units (MMBTU). Coal gasification is viewed as a critical technology for the sustainable use of domestic coal reserves. Beyond SNG, the syn gas produced can serve as a feedstock for producing other valuable products, including methanol, ethanol, and ammonia for fertilizers, thereby reducing India's reliance on imported fuels and contributing to the petrochemical industry.
Technology and Approvals
NTPC has announced an agreement with Engineers India Limited (EIL) for developing the coal-to-SNG facility. Technology finalization, including coal beneficiation, gasification, water gas shift, and methanation, is expected within the last quarter of the fiscal year 2025-26. Following technology finalization, NTPC will proceed with securing land and ensuring power and water supply for the project.
