NTPC to invest ₹10,000cr in coal-to-SNG facility in Chhattisgarh
What's the story
State-owned power giant NTPC has announced its plan to set up a coal-to-synthetic natural gas (SNG) facility in Chhattisgarh. The project will be developed at an estimated cost of ₹10,000 crore. The company is looking for technology partnerships for processes such as coal beneficiation as well as gasification to produce SNG.
Cost estimation
NTPC's SNG production cost target
NTPC aims to produce SNG at a cost of around $12 per million British thermal units (MMBTU). The company had earlier signed an agreement with Engineers India Limited (EIL) in October 2025, for the development of this facility. The project will utilize high-ash Indian coal from the NTPC's captive mines.
Project leadership
NETRA's role in SNG project
The project is being led by NETRA, NTPC's R&D wing. This initiative falls under the company's larger vision of 'greening the coal' and promoting carbon capture and utilization technologies. The facility will be set up at Talaipalli in Chhattisgarh and will spread over an area of 150 acres. It will consume 25 lakh tons of coal sourced from NTPC mines at Talaipalli.
Project progress
Technology finalization and project preparations
The technology for the project is expected to be finalized by the last quarter of FY26. NTPC is in advanced stages of various international tie-ups for this purpose. After finalizing the technology, the company will start preparations for other requirements such as land, power, and water supply to set up this facility.
Environmental impact
A sustainable solution for domestic coal reserves
Coal gasification is being seen as a key enabler for the sustainable utilization of domestic coal reserves. It can help reduce dependence on imported fuels and lower emissions. The syn gas produced from coal gasification can be used to make energy fuel (methanol and ethanol), ammonia for fertilizers, as well as petrochemicals.