Talcher Fertilizers Combines Funding for Coal Gasification-Based Urea Project, Energy News, ET EnergyWorld

0
New Delhi: Talcher Fertilizers Ltd (TFL), a joint venture of state-owned gas, fertilizer and coal companies, has blocked funds for a rupee 13,277.21 crore urea plant that will use the material first in the gasification of coal.

TFL, a joint venture of the gas company GAIL (India), Rashtriya Chemicals & Fertilizers Ltd (RCF), Coal India Ltd and Fertilizers Corporation of India Ltd (FCIL), sets up the mega urea project based on the coal gasification at Talcher in Angul district of Odisha, according to a statement released by the developers.

Sachchidanand Yadav, managing director of TFL, said a consortium of lenders led by the State Bank of India (SBI) will provide debt of Rs 9,560 crore for the project. The consortium was selected following a book-building process carried out by SBI CAPS on behalf of TFL.

The other members of the lender consortium are Punjab National Bank, Union Bank of India, Indian Bank, Bank of Maharashtra, Indian Overseas Bank, EXIM Bank, Bank of India and Canara Bank.

TFL has been mandated by the government to relaunch FCIL’s former Talcher plant by setting up a new urea plant based on coal gasification with an installed capacity of 12.7 lakh ton per year at an estimated project cost. at Rs 13,277.21 crore.

Of the cost of the project, Rs 9,560 crore will be borrowed and the balance will be financed by the promoters in the form of equity.

“The debt was guaranteed after the Cabinet Committee on Economic Affairs (CCEA) approved in April 2021 the exclusive subsidy policy for urea produced by TFL via the coal gasification route,” he said. declared.

The implementation of the Talcher project is undertaken using technology first used in India and is an important step towards ensuring the country’s energy security by harnessing the country’s vast coal reserves in a more environmentally friendly manner. the environment. -Friendly than direct fire coal projects.

Coal from blocks operated by Coal India Ltd will be partially oxidized by air, oxygen, steam or carbon dioxide under controlled conditions to produce a combustible gas. This will be used as a raw material to produce urea at the Talcher plant.

Yadav said the project will serve as a harbinger to attract huge investment to the country for coal gasification projects and pave the way for alternative use of indigenous coal, which in turn will help gasify the country. declared target of 100 million tonnes of coal by 2030..

“Coal gasification plants are strategically important because coal prices are not volatile and domestic coal is available in abundance,” the statement said. “The Talcher plant will also reduce reliance on imported natural gas for urea production, which will lead to a reduction in the LNG import bill.”

The gasification process adopted in the Talcher unit under construction will emit negligible emissions of sulfur dioxide, nitrogen dioxide and free particles compared to direct coal-fired processes, thus supporting India’s commitments in the framework of the Paris Agreement, 2016.

Share.

About Author

Comments are closed.