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L&T, UAE eye Rs 4,400 cr NLC project

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New Delhi: Industry group Larsen & Toubro and UAE energy services firm Petrofac express interest in developing Indian state-run NLC $CMD Prasanna Kumar Motupalli of NLC India said the lignite-to-methanol plant in Neyveli, Tamil Nadu, is worth Rs 4,400 crore.

New Delhi: Industry group Larsen & Toubro and UAE energy services firm Petrofac express interest in developing Indian state-run NLC $CMD Prasanna Kumar Motupalli of NLC India said the lignite-to-methanol plant in Neyveli, Tamil Nadu, is worth Rs 4,400 crore.

Four companies have expressed interest in developing the project and are bidding, Motupalli said in an interview. The public sector company may be able to finalize and award the project by the end of next month, he added.

Four companies have expressed interest in developing the project and are bidding, Motupalli said in an interview. The public sector company may be able to finalize and award the project by the end of next month, he added.

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In October last year, Engineers India Limited (EIL), the project management consultant for the development, launched a global tender for the project, which is expected to have an annual capacity of around 400,000 tonnes.

“In terms of lignite to methanol or coal to methanol projects, NLC is at the top so far and we are actively seeking to award lignite to methanol projects. The lignite to methanol project has been tendered, the technical cooperation has been completed and we expect that by the end of July we will be able to The bid has been won and at the same time the site preparation activities at Neyveli have also started. Once the bid is won, the activities will start at the earliest,” he said. “Four companies have expressed interest and are actively processing offers for this tender. One is global, with Petrofac and L&T in the UAE, and two more” parties are there. This will be an EPC (Engineering, Procurement and Construction) contract. We provide the technology and they will supply and install the system,” added Motupalli. The project is expected to be commissioned in 2027. L&T has been in the gasification business since 2004 and according to the company website, 11 gasification projects have been executed and commissioned so far. Petrofac recently announced a partnership with OCI Global, a global supplier of ammonia, fertilizers and methanol for the transportation and agriculture sectors, to implement OCI’s gasification-based green methanol project program.

The lignite-to-methanol project plan of NLC (formerly Neyveli Lignite Corporation of India Ltd) is part of its diversification plan, as the company has traditionally been engaged in lignite mining and building lignite power plants.

The company recently established a wholly-owned subsidiary, NLC India Renewables Ltd, to run its renewable energy business. The proposed lignite-to-methanol plant fits into the government’s plan for coal gasification, a sustainable way of using the fuel to meet its ambitious net-zero emissions plans. In November 2021, the government launched the National Coal Gasification Plan with an ambitious target of gasifying 100 million tonnes of coal by 2030. However, the plan has yet to progress and the Center is also considering a new set of incentives for coal companies to gasify, including refunding goods and services tax (GST) paid on coal procured for gasification.

In lignite-to-methanol or coal-to-methanol plants, coal or lignite is first gasified into synthesis gas, commonly called syngas, by mixing pulverized coal or lignite with an oxidizing agent such as oxygen or steam.

Syngas is a mixture of carbon monoxide and hydrogen used to produce a range of chemicals including methanol. According to experts, lignite has a lower ash content than coal and is therefore more suitable for gasification than coal.

Methanol is a low-carbon hydrogen carrier fuel considered as a sustainable alternative to gasoline and diesel. According to NITI Aayog, India’s methanol economy will create nearly five million jobs through methanol production, application and distribution services.

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