NLC India's Rs 4,350 Crore Methanol Plant Wins on Both Sides

NLC India is strategically advancing towards sustainable energy production with the development of a cutting-edge Rs 4,350 crore lignite-to-methanol plant. This forward-thinking initiative is poised to revolutionize the energy sector and contribute significantly to the economy. Once operational, the plant is expected to produce 400,000 tonnes of methanol annually, utilizing 2.5 million tonnes of lignite, thereby saving an impressive Rs 1,000 crore worth of crude imports each year.

The project has garnered support from the government, with an anticipated Rs 600 crore viability gap funding. Air Products, a prominent USA-based company, serves as the technology partner for the project, while Engineers India (EIL), a Government of India-owned entity, assumes the role of the project manager. In the intricate process of converting lignite to methanol, the plant employs gasification techniques, transforming lignite into synthesis gas (syngas) through the introduction of an oxidant like oxygen or steam.

NLC has undertaken a meticulous tendering process, with bids already submitted for the lignite to syngas package, and the project is expected to be awarded by the end of January 2024. Simultaneously, bids for the syngas to methanol project are being accepted until December 30, 2023, with the commencement of project work expected by March of the following year.

Notably, NLC's recent acquisition of the North Dhadu coal block in Jharkhand, secured through a commercial auction in August, underscores the company's commitment to expanding its coal production. Originally targeting three million tonnes per annum (mtpa) from the block, NLC now envisions reaching production levels of four to five mtpa, showcasing its dedication to meeting the growing energy demands of the nation.

News by Rahul Yelligetti