New Delhi: NTPC Ltd is preparing to set up a 5–10 million tonnes per year coal-to-synthetic natural gas (SNG) facility as part of its plan to diversify beyond conventional power generation, according to people familiar with the development. The state-run power major will appoint a technical consultant in the current financial year to prepare the project plan and is expected to invite proposals from consultants soon.
The award of project work could begin in the next financial year, one of the people said.
Synthetic natural gas, or syngas, can be used in power generation and as feedstock for producing methanol, ammonia, and fertilisers. NTPC had earlier signed an agreement with Engineers India Ltd in October to jointly develop a coal-to-SNG facility.
The proposed facility will use high-ash coal from NTPC’s captive mines, converting it into cleaner fuel that may be used within the company or sold commercially. The production cost of the fuel is estimated to be around $10–12 per mmbtu, according to one of the persons cited.
NTPC aims to reach a total power generation capacity of 149 GW by FY32, with a growing share of renewable energy in its portfolio. Alongside, the company is also advancing its nuclear power plans, holding discussions with 16 states to identify potential sites for achieving its target of 30 GW of nuclear capacity by 2047.
The company is focusing on nuclear energy as a reliable base-load option, as the share of coal in the generation mix is expected to decline over time. It plans to deploy larger reactors of 700 MW and above to meet its target, and is open to using overseas reactor technology once the proposed legislative amendments enabling private sector participation are in place and necessary approvals are obtained.
India’s indigenous pressurised heavy water reactors currently have a capacity of 700 MW, while most modern light water reactors overseas range between 1,000 MW and above.
To support its nuclear ambitions, NTPC is also preparing its workforce for the transition. The company’s Power Management Institute has started training programmes to build a skilled, nuclear energy-ready team.
BI Bureau
