NTPC will set up a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh, with an estimated investment of around ₹10,000 crore, a senior company official told news agency PTI.
The company is simultaneously seeking technology tie-ups for various processes, like coal beneficiation and gasification, to produce synthetic natural gas (SNG), the official said.
NTPC aims to produce SNG at a cost of around $12 million British thermal unit (MMBTU), with an effort to develop cleaner alternatives to conventional fuels which is in line with India’s energy transition goals.
NTPC announced that it has signed an agreement with Engineers India Limited (EIL) in October last year, with an objective of developing a coal-to-synthetic natural gas (SNG) facility.
Though, the energy giant did not disclose any more details of the proposed project, including the location, it revealed that the facility would use high-ash Indian coal from the company's captive mines.
NETRA, the R&D wing of NTPC, is actively leading the project under its broader vision of ‘greening the coal’ and advancing carbon capture and utilisation technologies, PTI reported.
According to the senior official, the facility will be set up at Talaipalli area in Chhattisgarh, with an investment of around ₹10,000 crore.
The 5 lakh tonnes per annum SNG project would be spread over an area of 150 acres and consume 25 lakh tonnes of coal sourced from NTPC mines at Talaipalli, the news agency reported.
The technology for the project is expected to be finalised within the last quarter of FY26, the official said, adding that coal-to-SNG process involves several stages, including coal beneficiation, coal gasification, water gas shift and methanation of coal.
NTPC is currently in advanced stages of multiple international tie-ups. Once that part is finalised, the company will start preparations for other requirements like land, power and water.
NTPC may also look for commercial benefits from the project as the syn gas produced from coal gasification can be used in producing synthetic natural gas (SNG), energy fuel (methanol & ethanol), ammonia for fertilisers and petro-chemicals, the news agency reported.
Editorial Context & Insight
Original analysis and synthesis with multi-source verification
Methodology
This article includes original analysis and synthesis from our editorial team, cross-referenced with multiple primary sources to ensure depth, accuracy, and balanced perspective. All claims are fact-checked and verified before publication.
Primary Source
Verified Source
mint - news
Editorial Team
Senior Editor
Emma Watson
Specializes in Business coverage
Quality Assurance
Fact-Check Editor
Fact-checking and editorial standards compliance
