Indian government-run miner Coal India Limited (CIL) and domestic steelmaker ArcelorMittal Nippon Steel Limited (AMNS) have inked a memorandum of understanding (MoU) to explore the use of synthetic gas (syngas) from a planned coal gasification facility to be built by the coal miner for use at steelmaker's pellet plant at Paradip in the eastern state of Odisha, according to a CIL regulatory filing on Thursday, August 13.
CIL proposes to construct the coal gasification facility close to AMNS' pellet plant at Paradip along with carbon capture, utilization and storage (CCUS) technology, the filing said.
Under the terms of the MoU, both the companies will assess the technical and commercial feasibility of the proposed project, examine implementation modalities and facilitate the preparation of a preliminary feasibility report (PFR) to evaluate its viability.
Coal gasification converts coal into syngas and steelmakers use this as a cleaner fuel and chemical reducing agent. It replaces imported natural gas and is injected into blast furnaces to reduce reliance on expensive, imported coking coal.
