Balancing energy security, environmental concerns

Source: The post “Balancing energy security, environmental concerns” has been created based on “Balancing energy security, environmental concerns” published in “Business Line” on 20 July 2026. Balancing energy security, environmental concerns.

UPSC Syllabus: GS-3-Science and Technology

Context: Coal gasification is the process of converting coal into synthesis gas (syngas) using controlled oxygen and steam at high temperature and pressure. It enables the production of ammonia, urea, methanol, hydrogen, synthetic natural gas, and liquid fuels while reducing dependence on imported feedstocks.

Significance of Coal Gasification

1. Coal gasification can strengthen India’s energy security by reducing dependence on imported natural gas, ammonia, methanol, and urea.
2. It enables productive utilisation of India’s vast coal reserves, which include around 400 billion tonnes of coal and 47 billion tonnes of lignite.
3. The recently approved ₹375 billion incentive scheme aims to gasify 75 million tonnes of coal by 2030, thereby promoting domestic production of industrial feedstocks.
4. The scheme is expected to attract investments worth ₹2.5–3 trillion and generate nearly 50,000 direct and indirect jobs, boosting industrial growth.
5. Coal gasification supports the development of a domestic coal-to-chemicals ecosystem, thereby improving supply chain resilience during global geopolitical disruptions.
6. It also provides an alternative use for coal as India’s electricity sector gradually shifts towards renewable energy.

Environmental Concerns

1. Hydrogen production through coal gasification generates nearly twice the carbon dioxide emissions compared to natural gas-based production.
2. Replacing imported feedstocks through the coal-to-syngas route could increase annual CO₂ emissions from about 47–52 million tonnes to 106–111 million tonnes.
3. Higher greenhouse gas emissions could make it more difficult for India to achieve its climate commitments and net-zero goals.
4. Coal gasification also remains dependent on carbon-intensive fossil fuels, thereby slowing the transition towards cleaner energy sources.
5. India’s Carbon Capture, Utilisation and Storage (CCUS) ecosystem remains underdeveloped, with only a few operational projects, limiting the ability to manage additional emissions.

Challenges

1. The technology requires high capital investment and involves long project gestation periods.
2. Large-scale deployment depends on the rapid development of CCUS infrastructure, which is currently inadequate.
3. Coal gasification projects require continuous policy support, financing, and technological innovation to remain economically viable.
4. Environmental concerns and stricter climate regulations may affect the long-term sustainability and public acceptance of such projects.

Way Forward

1. India should integrate coal gasification projects with Carbon Capture, Utilisation and Storage (CCUS) to minimise carbon emissions.
2. The Government should promote research and development in cleaner coal technologies and low-carbon hydrogen production.
3. Public and private investment should be encouraged to expand CCUS infrastructure and improve technological efficiency.
4. Coal gasification should complement, rather than replace, renewable energy and green hydrogen initiatives to ensure balanced energy transition.
5. A balanced policy approach should simultaneously promote energy security, industrial growth, and environmental sustainability.

Conclusion: Coal gasification offers India a strategic opportunity to reduce import dependence, improve energy security, and promote industrial development. However, its long-term success will depend on effectively managing its carbon footprint through cleaner technologies, robust CCUS infrastructure, and a balanced transition towards a low-carbon economy.

Question: Coal gasification can strengthen India’s energy security but raises significant environmental concerns.” Discuss.

Source: Business Line