Jindal Steel First in India to Use Coal Gasification in 2026

A New Era for Indian Steel Manufacturing

Jindal Steel & Power (JSP) announced on April 6, 2026, that it has become the first company in India to successfully deploy coal gasification technology across its entire steel production value chain. This strategic implementation at its Angul plant in Odisha marks a significant milestone for the Indian steel industry, establishing a clear path toward reducing reliance on imported fuels and enhancing energy security. By leveraging domestically available coal, the company is setting a new benchmark for cost-efficiency and sustainable operations in a sector critical to national infrastructure.

Understanding Coal Gasification Technology

Coal gasification is a process that converts coal into synthesis gas, or syngas, a mixture primarily composed of carbon monoxide and hydrogen. This syngas serves as a clean and versatile fuel, capable of replacing expensive and often price-volatile imported energy sources such as natural gas, LPG, propane, and coking coal. The technology allows for the use of high-ash Indian coal, which is abundant in the country but less suitable for traditional steelmaking processes. By transforming this domestic resource into a high-value fuel, JSP addresses both economic and logistical challenges while promoting self-reliance.

Comprehensive Integration Across Operations

Jindal Steel's application of this technology is not limited to a single process but is integrated across three critical areas of its steelmaking operations. First, the company established India's first coal gasification-based Direct Reduced Iron (DRI) plant. Here, syngas is used as a reducing agent to convert iron ore into DRI, a key raw material for steel production in electric arc furnaces. Second, in a move described as a global first for the steel industry, JSP has deployed syngas in its galvanising and colour coating line furnaces. Third, the company has introduced syngas injection into its blast furnace, a measure that significantly reduces the consumption of imported coking coal and lowers the carbon emissions per tonne of steel produced.

The Angul Plant: A Technological Showcase

The cornerstone of this initiative is JSP's integrated steel plant in Angul, Odisha. The facility houses the world's largest coal gasification plant for steelmaking, which was first commissioned in 2014. It features a technical collaboration with Germany's Lurgi, pairing its proven gasifier technology with a Midrex shaft furnace to produce 1.8 million tonnes of DRI annually. The gasification unit itself has a capacity of 225,000 Normal Meter Cubed per Hour (Nm³/h). This long-term investment has positioned the Angul plant as a 'Technology Demonstrator,' showcasing how large-scale, integrated steel plants can operate efficiently using local resources.

Economic Advantages and Supply Chain Resilience

The strategic shift to syngas offers substantial economic benefits. By substituting imported fuels, JSP insulates its operations from global energy price fluctuations and potential supply chain disruptions. The company had previously faced challenges due to shortages of natural gas and LPG. The adoption of coal gasification provides a stable, cost-effective, and domestically sourced energy supply, strengthening the company's financial performance and operational stability. This move reduces the outflow of foreign exchange, contributing to India's broader economic objectives.

Alignment with National Policy and Vision

JSP's initiative is in direct alignment with the Government of India's National Coal Gasification Mission, which aims to gasify 100 million tonnes of coal by 2030. The company's success provides a practical and scalable model for other industrial players to follow. Management has emphasized that this technology is crucial for achieving an 'AatmaNirbhar Bharat' (self-reliant India) in the energy sector. By pioneering this technology, JSP not only enhances its competitive edge but also contributes to a national strategy for sustainable industrial growth.

Management's Outlook on a Greener Future

Company leadership has been vocal about the transformative potential of coal gasification. P.K. Biju Nair, Executive Director at the Angul operations, highlighted that syngas can replace a wide range of imported products, including methanol, ammonia, and LNG. He noted that combining gasification with Carbon Capture, Utilisation and Storage (CCUS) technology will further lower the emission intensity of steel production. This would strengthen the competitiveness of Indian steel exports, particularly in markets with stringent environmental regulations like the Carbon Border Adjustment Mechanism (CBAM) in Europe.

Environmental Impact and Future Expansion

While based on coal, the gasification process is a cleaner way to utilize the fuel compared to direct combustion. It significantly reduces the carbon footprint per tonne of steel relative to the conventional blast furnace route. Looking ahead, JSP plans to build on this success. The company intends to establish another coal gasification plant at its facility in Raigarh, Chhattisgarh, and aims to expand the Angul plant's total capacity from 6 MTPA to 25.2 MTPA by 2030. The long-term vision is to produce at least 50% of its steel through the greener DRI and electric arc furnace route.

Conclusion

Jindal Steel's full-scale implementation of coal gasification technology is a landmark achievement for India's manufacturing sector. It demonstrates a viable strategy for leveraging the nation's abundant coal reserves in an economically efficient and environmentally responsible manner. By reducing import dependency, cutting costs, and lowering emissions, JSP has created a powerful blueprint for the future of steelmaking in India and beyond.