CTL project to help meet India’s growing energy needs

The Indian government is initiating a coal-to-liquid (CTL) project to meet the rapidly growing need for liquid fuel in the country, President Pratibha Patil said. In her address to a joint sitting of Parliament in February, Patil announced that as coal is the main source of energy in India, the government has allocated 158 blocks with reserves of almost 40 billion tons to public and private sector companies in power, cement and sponge iron for captive use. A new Coal Distribution Policy has also been put in place and an electronic auction process has been introduced to make coal available to all. Coal-abundant India has been pushing for the US$6-8 billion CTL project to reduce its dependence on imported oil. The project is expected to produce 80,000 barrels per day (about four million tons a year) of crude oil. An Inter-Ministerial Group has recommended Strategic Energy Technology Systems Ltd., a joint venture between India’s Tata Group and South Africa’s Sasol, as well as Jindal Steel and Power Ltd., to help with production. (February 11, 2009)