RIL in $6-8 b coal-to-oil project
Jyoti Mukul
Monday, 14 January , 2008, 09:19
Last Updated: Monday, 14 January , 2008, 09:38
sify.com
New Delhi: Reliance Industries Ltd (RIL) is venturing into synthetic fuels through a $6-8 billion project that will turn coal into oil.
Globally, this is called coal-to-liquid, or CTL, technology. RIL aims to produce about 80,000 barrels of oil per day through the process.
The Rs 30,000 crore project will consume about 30 million tonnes of coal annually. India has 248 billion tonnes of coal reserves of which 93 billion tonnes are proven reserves.
Coal-to-liquids technology converts synthesis gas into hydrocarbons, which can be converted into petrol, diesel, naphtha, chemicals and even electricity.
RIL has tied up with two American companies - Texas-based KBR and Utah-based Headwaters CTL, LLC - for technology.
Sources said RIL has sought three coal blocks from the government for the CTL project. The company is likely to make a presentation to the Union ministry of coal next week.
An RIL spokesperson refused to comment. Since the project requires large quantities of coal and involves open-cast mining, RIL is simultaneously pursuing underground coal gasification (UGC) projects, which are more feasible, according to a source.
For this, India's biggest private-sector refiner is in talks with British oil giant BP plc. RIL has already reached an understanding with the governments of Gujarat and Rajasthan and was also pursuing UGC projects in Madhya Pradesh, where it has been awarded blocks for coal bed methane.
Sources said RIL has sought allocation of three blocks from the government - Bankhui, Sakhigopal B and Alaknanda in the Talcher district of Orissa, which contain about 1,600 million tonnes of geological reserves.
The Union Budget had last year increased the ambit of captive coal mining to include both coal gassification and liquefaction, which allowed private companies to seek coal blocks for such projects.
Before that, only power, steel & iron and cement industries were allowed entry. Globally, such projects are not unusual. South Africa, the world?s leading coal miner, has produced coal-derived fuels since the 1950s.
The country currently meets nearly one-third of its gasoline and diesel needs through coal. Sasol, the South African petrochemicals giant, announced in October 2007 that it is considering investing $6 billion for CTL projects in Assam. |
