With extensive global experience, including projects in the Middle East, Dastur Energy offers comprehensive solutions for plant design, operational efficiency, and economic feasibility.
India stands at a pivotal point in its energy transition, with the opportunity to enhance energy access and ensure abundance. Balancing affordability and sustainability is key. India can establish a secure, efficient energy ecosystem while leveraging its expanding economy and growing consumer base while emerging as a global energy leader. Let us know more from Atanu Mukherjee.
What are the key technical and financial challenges in scaling up coal gasification efforts in India to meet the 110 MTPA target?
Scaling up coal gasification in India presents two primary challenges: feedstock quality and securing high-quality coal used in traditional gasification. Managing this effectively is crucial to ensure operational stability. Additionally, commercial viability requires large-scale plants with capacities of at least one million tons per annum. While government support through viability gap funding (VGFs) of ₹8,000-₹8,500 crore has aided early adoption, long-term success will depend on overcoming technical and operational hurdles. Localising gasification technology is key to reducing capital costs by 35-50 percent, enhancing competitiveness. Dastur Energy has been a leading proponent of gasification in India, contributing to projects like JSPL’s gasification plant and collaborating with global technology providers to adapt solutions for Indian coal. The company supports ‘Make in India’ initiatives, focusing on technology adoption, large-scale implementation, and cost optimisation. With extensive global experience, including projects in the Middle East, Dastur Energy offers comprehensive solutions for plant design, operational efficiency, and economic feasibility. Partnering with policymakers and industry stakeholders, the company is instrumental in shaping the gasification landscape in India, aiming to position the country as a global leader in coal gasification within the next decade.
How will forming the Carbon Capture Financing Corporation (CCFC) help lower the cost of CCUS deployment and attract global capital?
Dastur Energy has pioneered in advancing carbon capture systems in India, significantly contributing to the development of India’s carbon capture policy framework in collaboration with NITI Aayog in 2021-22. Now in its advanced stages, this policy is expected to bring down the cost of CO2 capture and encourage large-scale carbon capture adoption. To address this, the Carbon Capture Financing Corporation (CCFC) is proposed as a quasi-sovereign financial institution that will combine government support with international capital to reduce financing costs. By accessing green bonds and sovereign funds at low coupon rates, CCFC can lower the cost of CCUS deployment and provide financial support per ton of CO2 captured. This institutional mechanism will ensure funding is efficiently allocated to the most impactful projects, particularly large-scale initiatives like gasification, which offers low-cost capture potential. Dastur Energy’s expertise in carbon capture technologies, economic modelling, and industry advisory positions it as a key contributor to CCUS deployment.
What are the major challenges in integrating renewable energy while maintaining energy affordability and stability for industries?
While renewables offer low-carbon energy, their variability and intermittency present operational challenges. Industry requires reliable power to maintain energy availability at competitive costs, which remains essential for economic growth. Storage solutions like battery storage are key, but they can be costly and unlikely to scale without support. Therefore, a balanced energy mix comprising gas-based power, solar, wind, and other renewables, supported by grid infrastructure, is crucial for industrial growth. New and existing energy infrastructure will need to adapt to growing demand from diverse sectors.