NEW DELHI, Nov. 15 (UPI) -- State-owned Oil India is planning to launch a second coal liquefaction pilot project to convert coal into petrol and diesel.
Several countries are working on coal liquefaction projects as an alternative fuel technology in light of spiraling crude oil prices, The Business Line newspaper said Wednesday.
"Oil India will get down to commercial coal liquefaction only after analyzing the results from the yearlong second pilot project," said M.R. Pasrija, chairman and managing director of the company.
He said global crude prices would be taken into account when the company plans its first commercial coal liquefaction project.
South African petrochemical firm Sasol Ltd. has said it plans to invest $6 billion in the coal liquefaction business in India.
Pasrija said Oil India established its first pilot coal liquefaction plant at its research and development center in Dulaijan in the northeastern state of Assam.
He said the second pilot plant will help in identifying proper coal liquefaction technology that would suit India.
Assam coal is considered to be the best for coal liquefaction due to its composition -- 90 percent is directly convertible into fuel.
The state is estimated to have about 900 million tons of coal reserves. Pasrija said that given the current global crude prices, India should venture into this technology.
