Driving India’s Energy Transition: Key Takeaways from the 3rd CGAI International Conference

The Coal Gasifiers Association of India (CGAI) recently organized the 3rd CGAI International Conference on Coal Gasification: Opportunities, Challenges & New Technologies at Lyfe Hotels, Bhubaneswar, Odisha. Bringing together industry leaders, technology providers, policy makers, and research experts, the event highlighted the critical role of modern gasification technologies in reducing carbon footprints and promoting sustainable industrial growth.

Government Policy Push & The New VGF Scheme

A major focus of the conference was the Government of India’s updated Viability Gap Funding (VGF) Scheme to accelerate clean coal adoption. Key takeaways from the financial framework include:

  • Dedicated Coal Targets: Allocation of 100 MT of coal earmarked exclusively for gasification projects.
  • Financial Backing: A scheme outlay of ₹37,500 crores (~US $4.0 billion), offering up to ₹5,000 crores in project-level support.
  • High-Value Products: Target production of 75 million tons of processed coal into essential derivatives like Urea, Methanol, Synthetic Natural Gas, DME, and Ammonium Nitrate.

Upgrading Producer Gas Plants & Industrial Decarbonization

India currently houses over 100 low-tech producer gas units seeking modernization. Transitioning these facilities with advanced syngas intensification technologies offers a efficient, cleaner alternative to imported Heavy Fuel Oil (HFO) for heating applications across the steel and process manufacturing sectors.

Additionally, discussions emphasized Odisha’s growth as a Green Hydrogen hub. With its combination of deep-sea ports, strategic industrial clusters, and 100% electricity duty exemptions, the state presents an ideal ecosystem for integrating Carbon Capture, Utilization & Storage (CCUS), Underground Coal Gasification (UCG), and hydrogen production.

Building a Sustainable Industrial Future

As industrial energy demands grow, adopting high-efficiency, low-emission gasification systems remains vital. Through proactive policy support, technological upgrades, and collaborative industry efforts, modern gasification is set to lead India toward a cleaner and self-reliant energy future.