India’s first indigenous coal-to-ammonium nitrate project started in Odisha

Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL) have signed an agreement for India’s first indigenous 'coal-to-ammonium nitrate' project in Lakhanpur, Odisha.

This MoU was signed in New Delhi (Delhi) in the presence of Union Minister G. Kishan Reddy (Ministry of Coal and Ministry of Mines) and Coal Secretary Vikram Dev Dutt.

This project, designed as a 2,000 tonnes per day (TPD) ammonium nitrate production facility, is an important milestone for India’s energy and chemical sectors.

This is India’s first coal gasification project in which indigenously developed gasification technology by Bharat Heavy Electricals Limited (BHEL) will be used.

'Coal-to-ammonium nitrate' project

This project involves an estimated investment of about ₹25,000 crore, with financial assistance of ₹1,350 crore from the Ministry of Coal.

The Engineering, Procurement and Construction (EPC) work is being carried out through 'Lump Sum Turnkey' (LSTK) packages; the contracts for LSTK-1 and LSTK-2 have been awarded to Bharat Heavy Electricals Limited (BHEL), while LSTK-3 and LSTK-4 have been awarded to Larsen & Toubro (L&T).

In this process, coal is converted into 'synthesis gas' (syngas), which is used to produce chemicals, fuels and fertilizers.

The Ministry of Coal has provided financial assistance of ₹1,350 crore under a special financial incentive scheme to promote coal gasification. Large 'Lump Sum Turnkey' (LSTK) packages have been awarded to BHEL and Larsen & Toubro to complete the project in different phases.

Main stages of the process of producing ammonium nitrate from coal

Coal gasification (syngas production): Coal is processed with oxygen and steam in a gasifier, producing syngas. This syngas mainly consists of a mixture of hydrogen and carbon monoxide.

Ammonia synthesis: Hydrogen produced in the gasification stage is combined with nitrogen (this nitrogen is usually obtained from an 'Air Separation Unit' or ASU), producing ammonia.

Nitric acid production: A portion of ammonia is oxidized and then absorbed in water, producing nitric acid.

Ammonium nitrate production: Liquid ammonia and nitric acid are reacted together, producing an ammonium nitrate solution.

Finishing and prilling: The ammonium nitrate solution is concentrated and then converted into solid pellets (prills) through a 'prilling tower'. After that, they are dried and cooled.

Technology: 'Pressurized Fluidized Bed Gasification' (PFBG) technology is often used.

Main units: This plant includes a coal-to-ammonia unit (CGAU), nitric acid unit (NU), and ammonium nitrate unit (ANU).

Output: Ammonium nitrate in prill form, which generally contains about 34% nitrogen.

Gopalpur, Odisha: India’s largest green ammonia plant

Avaada Group and Casale are building India’s largest green ammonia plant in Gopalpur, Odisha, with a planned capacity of 1,500 tonnes per day (TPD).

The objective of this plant is to help achieve India’s 'net zero' targets. It will run entirely on renewable energy and will prove to be a major step towards green ammonia production in Odisha.

ACME Group is also working on another major green ammonia project in Gopalpur, Odisha, in collaboration with Japan’s IHI Corporation, with an annual production capacity of about 0.4 million tonnes.