What is Coal Gasification?
Coal gasification is a process that transforms coal into synthetic natural gas (SNG), which can be utilised for various purposes such as power generation, heating, and chemical production.
This process offers several advantages over traditional coal combustion — reducing emissions, enabling carbon capture, and unlocking new fuel and chemical products from coal's carbon content.
Local air pollution is reduced as the produced gas is purified before use, removing sulphur and particulates at the source.
Gasification facilitates the capture and utilisation of CO₂ and other greenhouse gases emitted during the process, enabling near-zero emissions.
Converts coal into liquid fuels such as diesel or gasoline — reducing dependence on oil imports in coal-rich nations like China and South Africa.
Integrated Gasification Combined Cycle (IGCC) produces electricity more efficiently and with lower emissions than conventional coal combustion.
Syngas can be processed to produce hydrogen for transportation, electricity generation, industrial processes, and heating.
Gaseous products of gasified coal can be converted into ammonia — an essential input for fertiliser production to grow crops.
How does it work?
Coal gasification is a crucial thermo-chemical process that is significantly more efficient than traditional pulverised fuel combustion — converting the chemical energy in coal into a versatile, cleanable synthesis gas.
Coal feed
Coal is fed into a high-temperature pressurised container with steam and a limited amount of oxygen to produce a gas.
Syngas production
The resulting gas — known as synthesis gas or syngas — mainly consists of carbon monoxide and hydrogen.
Gas cleaning
The gas is cooled, removing undesirable components such as carbon dioxide and sulphur before further use.
Processing
The cleaned gases can be further processed to produce synthetic methane, left as hydrogen, or used directly as a fuel.
Power generation (IGCC)
Syngas is burned in a gas turbine to produce electrical energy. The hot exhaust gas is recovered to create steam, driving a steam turbine — an Integrated Gasification Combined Cycle (IGCC).
Case Studies
and Projects.
Coal gasification projects are advancing across Asia, the Americas, and beyond — demonstrating commercial viability and driving cost reductions at scale.
World-scale DME gasification plant
In 2022, Indonesian President Joko Widodo initiated the construction of a US$2.3 billion coal gasification plant to reduce the country's liquefied petroleum gas (LPG) imports and optimise its coal resources.
The plant is designed to use 6 million tonnes of low-rank coal to produce 1.4 tonnes of dimethyl ether (DME) annually, reducing Indonesia's LPG import by 1 Mt per year, according to state coal miner Bukit Asam (PTBA).
Nakoso IGCC: 43% net thermal efficiency
The Nakoso IGCC plant began commercial operations in April 2021. Its efficiency has been substantially enhanced to reach 43% net thermal efficiency on a lower heating value (LHV) basis.
The global average for CO₂ emissions from coal-fired power plants is 0.90 kgCO₂/kWh at 38% efficiency. The IGCC achieves 0.7 kgCO₂/kWh — with the added benefit of easier CO₂ separation and capture from the flue gas stream than a conventional pulverised fuel plant.
Four large-scale gasification projects launched
In October 2022, WCA Member Coal India Limited signed three separate MoUs with Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL), and GAIL (India) Limited to set up four large-scale coal gasification projects.
The projects are expected to generate around 1,200 direct jobs and indirect employment for over 20,000 persons. India's Ministry of Coal has targeted 100 Mt of coal to be gasified by 2030.
50%+ efficiency — outperforming conventional plants
The US Department of Energy estimates that a coal gasification plant employing IGCC can achieve an efficiency of 50% or more — significantly outperforming conventional coal power plants that typically hover around 30%.
This efficiency gain translates directly into lower CO₂ emissions per unit of electricity generated, and opens the door to pre-combustion carbon capture at lower cost than post-combustion alternatives.