Financial Daily from THE HINDU group of publications
Saturday, Feb 18, 2006
Financial Daily from THE HINDU group of publications Saturday, Feb 18, 2006 |
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Corporate
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Announcements Underground coal/lignite gasification tech — GAIL gets board nod to get licence from Canadian firm Richa Mishra
New Delhi , Feb 16 GAIL (India) Ltd has received the approval of its board for acquiring licence agreements for underground coal or lignite gasification technology from the Canada-based Ergo Exergy Technologies. GAIL proposes to initiate further discussions with the Canadian firm for formalising the agreement. GAIL had earlier entered into an MoU with the Canadian company as technology partner having experience and expertise in the area of underground coal or lignite gasification for jointly developing such projects. It is planning to set up a lignite insitu (under ground) gasification plant for producing power, a company official said. An integrated gasification combined cycle pilot power plant is proposed to be set up at Barmer, Rajasthan. GAIL and the Rajasthan Government have already signed an MoU to jointly evaluate insitu lignite gasification potential in Barmer. The State Government has earmarked two locations for GAIL to conduct pre-feasibility studies, the official said. Once the pre-feasibility is completed, GAIL and Ergo Exergy will implement a pilot project. The project is expected to take 12 months to commence production. The gas from the project will be used for a 5 MW power project, which will be scaled to 750 MW if the pilot project is successful. Further, the cost per million British thermal units (BTU) of such synthetic gas would be less than the price of imported natural gas. Underground coal or lignite gasification (UCG) is a process to extract synthetic gas (syngas) from coal/lignite reserves, which cannot be mined economically.
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