Metro India News | new delhi

NTPC is set to establish a coal-to-synthetic natural gas (SNG) facility at Talaipalli in Chhattisgarh with an estimated investment of around Rs 10,000 crore, a senior company official said. The project aims to leverage domestic coal reserves while promoting cleaner energy technologies.

The 5 lakh tonnes per annum SNG facility will be spread over 150 acres and consume approximately 25 lakh tonnes of high-ash coal sourced from NTPC’s captive mines at Talaipalli. The company is exploring technology partnerships for coal beneficiation, gasification, water-gas shift, and methanation processes to produce synthetic natural gas at a cost of around USD 12 per million British thermal unit (MMBTU).

In October 2025, NTPC had signed an agreement with Engineers India Limited to develop the coal-to-SNG facility, although details on the location were not disclosed at that time. NETRA, the company’s R&D wing, is actively leading the project under NTPC’s broader vision of “greening the coal” and advancing carbon capture and utilisation technologies.

The technology aspect is expected to be finalised in the last quarter of FY26, after which NTPC will begin preparations for land, power, and water requirements. The company is also in advanced stages of discussions with international partners for technology tie-ups.

Coal gasification is seen as a strategic step to utilise domestic coal sustainably, reduce dependence on imported fuels, and lower emissions. The synthetic gas produced from the process can be used not only for SNG but also to produce energy fuels like methanol and ethanol, as well as ammonia for fertilisers and petrochemicals, potentially offering commercial benefits to NTPC.

This project marks a significant move by the energy giant toward cleaner energy solutions while maximising the value of domestic coal resources.