Ahmedabad: State-owned NLC India Ltd (NLCIL) has partnered with Reliance Industries Ltd (RIL) to explore the feasibility of an underground lignite gasification project in Gujarat, aimed at boosting domestic gasified fuel production amid ongoing global energy supply challenges.

According to a Business Standard report, the two companies have signed an agreement to evaluate the technical and commercial viability of converting lignite reserves into synthesis gas through underground gasification technology. Sources cited by the daily said NLCIL’s two lignite blocks in Gujarat are being considered for the proposed project, with preliminary technical studies already underway.

Reliance Industries has been brought on board due to its expertise in gasification technologies. If the project proves successful, it could help ease India’s domestic gas shortage by providing an alternative source of synthesis gas for industrial applications and reducing dependence on imported liquefied natural gas (LNG).

Underground lignite gasification involves converting lignite deposits in situ into synthesis gas, a mixture of hydrogen, carbon monoxide and other gases, which can be used as fuel or as feedstock for the chemical and fertiliser industries. NLCIL has been exploring ways to monetise its lignite resources through such value-added projects.

Earlier this month, the Union Cabinet approved a ₹37,500-crore incentive scheme to promote coal and lignite gasification projects, targeting the gasification of around 75 million tonnes of coal and supporting India’s broader goal of gasifying 100 million tonnes by 2030. DeshGujarat