GAIL, RCF to set up gasification plant

NEW DELHI, Jan. 2 (UPI) -- Gas Authority of India Ltd. and Rashtriya Chemicals and Fertilizer plan to jointly set up a coal gasification project for the fertilizer sector in Orissa state.

A top GAIL official said Wednesday the two state-run firms signed an agreement on the project. GAIL will execute the project that entails utilization of the coal gas in RCF's fertilizer plant in Talcher, Orissa state, the official said.

As part of the agreement, GAIL will undertake a techno-economic study for setting up a commercial coal gasification plant for the production of synthetic gas. RCF will carry out a similar study for a commercial plant to produce fertilizer using the gas from the proposed coal gasification plant, the official said.

GAIL Chairman U.D. Choubey said gas had always been a preferred feedstock for fertilizers but there was a large supply gap and so considerable efforts were initiated to look for alternative energy sources.