Gail India and Rashtriya Chemicals & Fertilizers have entered into a MOU on 28 December 2007 for setting up coal gasification project by the company and utilization of the coal gas produced for setting up a fertilizer plant by Rashtriya Chemicals & Fertilizers at Talcher in Orissa.As part of MOU, the company will undertake the techno-economic study for setting up a commercial coal gasification plant for production of synthesis gas, and Rashtriya Chemicals & Fertilizers will carry out the techno-economic study for setting up a commercial plant to produce fertilizer by utilizing the synthesis gas from the proposed coal gasification plant.The project would entail an investment of around Rs 2400 crore for setting up the coal gasification plant.
The company had earlier commissioned a study by Udhe India for examining the potential of the project and it is estimated that the project will help produce 7.76 MMSCMD of synthesis gas (equivalent to 3000 tonnes per day of ammonia) and 3500 tonnes per day of urea. The company will focus on the production and marketing of synthesis gas which will be in line with its core function of gas handling.
Both the companies will also jointly evaluate the potential of coal gasification for fertilizer industry and provide assistance to each other for successful implementation of respective projects.
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