Coal to Liquid Plans Affected by Lower Crude Prices - India Renewable Energy Consulting – Solar, Biomass, Wind, Cleantech
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India imports 78% of its fuel needs and its integrated energy policy sees CTL technology as an option. India is worried that the financial slowdown will result in lower crude oil prices and affect its ambitious coal-to-liquid, or CTL, energy security programme.

CTL involves the conversion of coal into liquid fuels such as diesel and petrol, a process that is economically viable only when crude prices are high.

The government plans to award the Bankhui, Sakhigopal B and Alaknanda coal blocks in Talcher district of Orissa that can support production of 3.5 million tonnes of oil and petroleum products. The total cost of the project is estimated at $8 billion (Rs38,960 crore).

Private sector firms such as Tata Sons-Sasol, Jindal Steel and Power Ltd, Reliance Industries Ltd, Reliance-Anil Dhirubhai Ambani Group, Essar Oil Ltd and Adani Group have previously expressed interest in the project.

Some of the companies are still confident of the project’s economic viability.

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