Coal India HURL Sign MoU for Sindri Coal Gasification Urea Plant

Coal India and HURL sign a non-binding MoU to explore a coal gasification-based urea project at Sindri, with the companies assessing its technical, commercial and implementation feasibility.

Coal India Limited (CIL) and Hindustan Urvarak & Rasayan Limited (HURL) have signed a non-binding Memorandum of Understanding (MoU) to explore the development of a coal gasification-based urea production project at Sindri in Jharkhand. The agreement is signed on today.

Under the MoU, the two companies will initially assess the technical, commercial and implementation aspects of the proposed project. The collaboration will also facilitate the preparation of a Preliminary Feasibility Report (PFR) to evaluate the project's viability before any further investment or implementation decisions are taken.

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The proposed project will use coal gasification technology to produce urea. The process converts coal into synthesis gas, or syngas, which can subsequently be used to produce ammonia and other industrial products, including fertilisers. The technology allows coal to be used as a feedstock for chemical production rather than being directly burned.

The proposed initiative brings together Coal India's expertise in coal production and HURL's operations in the fertiliser sector. HURL currently operates its Sindri fertiliser plant, which has an annual urea production capacity of 12.7 lakh metric tonnes.

The MoU also aligns with Coal India's broader efforts to diversify beyond conventional coal mining and explore value-added applications of coal. The company has been pursuing coal gasification initiatives to develop products such as syngas, ammonia and other chemicals.

The development comes amid efforts to expand domestic fertiliser production and reduce dependence on imported feedstocks. Coal gasification can provide an alternative feedstock route for producing ammonia and urea, although the proposed Sindri project remains at the feasibility assessment stage.

The agreement does not currently specify the project's investment size, production capacity or construction timeline. These details are expected to depend on the findings of the feasibility assessment and subsequent decisions by the two companies.

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Through the MoU, CIL and HURL will examine the technical and commercial feasibility of the proposed facility and assess the implementation requirements. The outcome of this exercise will determine the next steps for developing the coal gasification-based urea project at Sindri.