Dastur Energy to set up blue hydrogen unit with Coal India.

Dastur Energy, a division of consultancy major M N Dastur, has given a presentation to the ministry of coal for setting up a blue hydrogen plant with Coal India (CIL). Sources said that the plan is to set up a commercial scale demonstration plant in the east.

“The presentation was given to the expert committee of hydrogen of the coal ministry,” added sources. M N Dastur has an agreement with Gas Technology Institute (GTR) of the US, which has the coal-to-hydrogen technology called blue hydrogen. Dastur is also in talks with JSPL and Dalmia Cement Bharat for coal gasification, methanol derivatives and carbon dioxide to methanol projects.

The president & CEO of Dastur, Atanu Mukherjee, though did not offer any comment on this but he made it clear that coal is the cheapest option of getting hydrogen. “We have told the Centre about this,” he added.

Generally, one kilogram of hydrogen costs Rs. 400 while generating the gas from coal would take Rs. 110 per kg. Mukherjee pointed out that coal gasification is the cheapest option of green energy in India.

“We are still dependent on import for natural gas and there is no significant new findings as well. The shale gas if we see there are some findings but as of now, there is no operational field. On the other hand, we have enough coal. The best option is to convert coal to usable fuels. We have a really cheap option in coal,” he added. Besides coal, he added that bamboo and rice husk could also be options for gasification. Coal gasification with carbon capture technology could be applicable for India.

Mukherjee added that gas would be expensive in India. “In normal time, gas in India would be not less than $12 a kg, which used to be just $3 in the US. Now, though gas is selling at a higher price internationally following the Ukraine crisis,” he added.

ET