CIL, ArcelorMittal Sign MoU to Explore Syn-Gas at Paradip

Coal India and ArcelorMittal have signed an MoU to explore the use of synthesis gas from a proposed coal gasification plant at Paradip. The collaboration will assess opportunities to use syngas in steelmaking and support lower-carbon industrial processes.

Coal India Limited (CIL) and ArcelorMittal have signed a Memorandum of Understanding (MoU) to explore the use of synthesis gas, or syngas, from a proposed coal gasification plant at Paradip, Odisha. The collaboration will assess the technical and commercial potential of using syngas in industrial applications, including steelmaking.

Under the agreement, the companies will examine the feasibility of supplying syngas generated at the proposed facility for use in ArcelorMittal’s steelmaking operations. The initiative could support the development of alternative feedstock options while increasing the value derived from domestic coal resources.

Coal gasification converts coal into a gaseous mixture containing mainly carbon monoxide and hydrogen. Syngas can be used as a fuel or feedstock for producing chemicals, fuels and other industrial products. In steelmaking, it can potentially support direct reduction processes, where gaseous reducing agents are used to convert iron ore into iron.

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The proposed cooperation will involve studies covering syngas quality, production capacity, transportation requirements and possible industrial applications. The companies will also assess the economic viability of integrating the gasification facility with downstream operations.

The partnership comes as India seeks to expand coal gasification while reducing dependence on imported energy and industrial feedstocks. The government has been encouraging the development of gasification projects as part of efforts to improve the utilisation of domestic coal and create higher-value applications.

Coal India has been expanding its activities beyond conventional mining and has identified coal gasification and value-added coal products as areas for business diversification. The company is pursuing projects aimed at converting coal into alternative fuels and industrial feedstocks.

ArcelorMittal, meanwhile, has been evaluating technologies that could help reduce emissions from steel production. Alternative reducing gases, improved energy efficiency and new production processes are expected to contribute to the industry's long-term transition towards lower-carbon steel.

The location of the proposed project in Paradip could provide logistical advantages because of the region’s industrial infrastructure and port connectivity. Access to transport facilities could support the movement of coal, gasification products and industrial materials.

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However, the MoU does not constitute a final investment decision. The companies will need to complete technical and commercial assessments before determining specific supply arrangements or investments.

The proposed partnership highlights the potential for linking coal gasification with steelmaking and reflects efforts by major industrial companies to explore technologies that improve resource utilisation. It could also provide a basis for further collaboration between the coal and steel sectors as India works to strengthen domestic industrial supply chains.