GAIL, Coal India sign pact for coal gasification project

Thursday, 10 January 2008, 20:30 IST
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New Delhi: State-owned gas transportation and marketing company GAIL India and public sector coal major Coal India (CIL) will set up a 24-billion surface coal gasification project. The new plant will produce synthesis gas for use as feedstock to produce fertilisers. Gasification converts coal, petroleum or biomass into carbon monoxide, hydrogen and oxygen. The resulting gaseous mixture is synthesis gas or syngas, which can be used as a fuel. "The MoU was signed here Jan 10 by A. K. Purwaha, GAIL's director for business development, and CIL's Director (Technical) N. C. Jha," GAIL informed Bombay Stock Exchange in a statement Thursday. The two companies will form a joint working group to evaluate detailed feasibility report prepared by GAIL for the project, according to the statement. The signing of MoU follows a recent pact between GAIL and RCF for the use of the gas produced by the gasification project. Describing this MoU as highly synergetic, GAIL Chairman U. D. Dubey expressed confidence that the commitment of the two companies would undoubtedly see the project through.
Source: IANS