State-run NLC India Ltd and Reliance Industries Ltd have partnered to explore the potential of underground lignite gasification in Gujarat, a move aimed at developing alternative energy resources from domestic fuel reserves.
The two companies have signed an agreement to jointly conduct feasibility studies for an underground lignite gasification (ULG) project in the state. The study will assess the technical, economic and environmental viability of converting lignite deposits into usable gas without conventional mining.
Underground lignite gasification is a process in which lignite, a low-grade form of coal, is converted into synthetic gas while remaining underground. The gas produced can be used for power generation, industrial purposes and the production of chemicals and fuels.
Officials said the collaboration will focus on evaluating Gujarat’s lignite reserves and determining whether the technology can be commercially deployed. If successful, the project could help utilise energy resources that are difficult or uneconomical to extract through traditional mining methods.
The partnership brings together NLC India’s experience in lignite mining and power generation with Reliance Industries’ expertise in energy and technology. The companies believe the initiative could create new opportunities for cleaner and more efficient use of domestic fuel resources.
India has been exploring advanced technologies to strengthen energy security and reduce dependence on imported fuels. Underground gasification has gained attention because it can access deep lignite reserves while potentially lowering the environmental impact associated with surface mining.
The feasibility study will examine geological conditions, resource availability, technological requirements, environmental considerations and commercial prospects. Based on the findings, the companies will decide on the next phase of the project.
The collaboration reflects growing interest in innovative energy technologies as India seeks to meet rising energy demand while balancing sustainability goals. The outcome of the study is expected to be closely watched by the energy sector and policymakers.
The successful implementation of underground lignite gasification could support India’s energy diversification efforts and provide new fuel sources for industrial growth.