India Coal Giant Will Invest $3 Billion for Renewables, and Build 1.6-GW Coal-Fired Plant

State-owned Coal India Limited (CIL) has announced plans to invest about $3 billion to build as much as 4.5 GW of renewable energy generation capacity. The memorandum of understanding, signed May 7 with major ammonia producer AM Green, is expected to significantly increase India’s green hydrogen and ammonia production capabilities.

The joint effort, announced by AM Green on May 9, comes just after CIL said it was partnering with Damador Valley Corp. on construction of a two-unit, 1,600-MW coal-fired ultra supercritical plant in Jharkhand. CIL, considered the largest government-owned coal mining company in the world, said the new plant is part of a continuing diversification of its business diversification portfolio, which now includes thermal power generation and renewable energy.

CIL and AM Green signed a formal, non-binding MoU for a long-term supply and sourcing of renewable energy on Wednesday. The companies said their strategy includes 2,500 MW to 3,000 MW of solar power generation capacity, and 1,500 MW to 2,000 MW of wind energy. The groups said possible sites for wind projects would be considered in the southern part of India, while solar farms could be built in areas with more potential for solar output, such as the states of Gujarat and Rajasthan.

Officials said the renewable energy deal aligns with India’s goal of achieving net-zero carbon emissions by 2070. CIL officials have said it’s part of their company’s commitment to reducing the carbon footprint of its operations.

AM Green will integrate the wind and solar energy from CIL power stations with hydro pumped storage energy to supply energy for its facilities. AM Green produces ammonia, hydrogen, and other chemicals at its plants.

“We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts,” said Anil Chalamalasetty, founder of Hyderabad-based Greenko Group and AM Green. “We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world.”

P M Prasad, CIL’s chairman, said, “While coal remains our mainstay in meeting India’s expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future. This is in consonance with our commitment to become the country’s integrated energy provider.”

AM Green is supported by Greenko, one of India’s leading energy transition solutions providers. The company has set a target of producing 5 million tons per annum (MTPA) of green ammonia by 2030. The company said that production would be equal to about 1 MTPA of green hydrogen, and represents about 20% of India’s target for green hydrogen production under the government’s National Green Hydrogen Mission.

Still Committed to Coal

CIL officials have said that while the company is investing in renewable energy, it remains committed to its traditional coal operations, as coal continues to be the country’s main power generation resource in a country that has struggled with its electricity supply. Government officials have said India plans to increase its coal-fired generation capacity by another 80 GW by 2032, up from the current 222 GW. The government also has said it wants to increase renewable energy capacity to at least 500 GW by 2030, up from the current 172 GW.

Prasad in a statement said both coal and renewable energy will be focuses for CIL. “While coal remains our mainstay in meeting India’s expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future,” he said.

The collaboration with Damodar Valley, announced in late April, is a brownfield project that expand the existing two-unit, 500-MW Chandrapura Thermal Power Station. Coal for the power plant will be sourced from CIL’s subsidiary coalfields.

CIL last year said it plans to invest about 670 billion rupees ($8 billion) to build coal-fired power plants close to its mines. Government officials in September of last year said 4.7 GW of new generation was already approved, with most of the new power stations sited in Odisha state, on India’s east coast.

India has about 235 GW of coal-fired power generation capacity, from about 300 power stations, according to government data. The country receives about 75% of its electricity from burning coal.

—Darrell Proctor is a senior editor for POWER.