EIL, NTPC Partner to Build Coal-to-SNG Facility For India

EIL, NTPC Partner to Build Coal-to-SNG Facility For India

India Manufacturing Review Team
Monday, 27 October 2025
  • NTPC & EIL collaborate to develop a facility converting high-ash Indian coal into synthetic natural gas
  • The project supports grid stability, reduces reliance on imported fuels
  • With 84 GW installed and 30.9 GW under construction, including 13.3 GW renewables

NTPC Ltd, the largest power utility/Integrated utility in India, has signed an MoU to develop a Coal-to-SNG facility with Public Sector Undertaking (PSU) Engineers India Ltd (EIL).

This facility is aimed at improving peak-hour power generation and grid stability using synthetic natural gas production and coal gasification. The EIL NTPC partnership is advancing a Coal-to-SNG project to enhance grid stability India and promote clean energy India.

The SNG facility will utilize high-ash Indian coal from NTPC's captive mines to produce synthetic natural gas as a cleaner fuel option for NTPC's gas-based power plants, as well as for in-situ power generation.

This initiative supports sustainable energy transition through coal gasification India, highlighting NTPC energy initiatives, EIL clean technology, and broader India energy infrastructure development in the power sector innovation space. Coal gasification is becoming an important technology to enable sustainable utilization of domestic coal reserves and reduce dependence on imported fuels to lower carbon emissions.

Also Read: BEML, Italy's Tesmec Partner to Launch Surface Miners

A push is being made by the central government for the use of coal gasification in chemical manufacturing as part of their agenda to reduce CO₂ emissions, and there was a Cabinet approved an ₹8,500 crore programme announced last year with the intention to draw private sector interest into coal gasification for chemical manufacturing.

NETRA, the R&D division of NTPC, is leading the "Greening the Coal" project, aiming at technology for carbon capture and utilization in a holistic and indigenous manner, with EIL.

NTPC contributes about a quarter of India’s power supply, with 84 GW of installed capacity, and an additional 30.90 GW of capacity under construction, of which 13.3 GW is renewable.

The company intends to have 60 GW of renewable energy capacity by 2032, as part of its Net Zero goals that demonstrate a long term sustainable growth strategy while encouraging advanced coal-based solutions for a cleaner future for the energy sector.

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