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The company now targets an additional production of 1.50 MTPA of steel in the financial year ending March 2021. Photo: Bloomberg
The company now targets an additional production of 1.50 MTPA of steel in the financial year ending March 2021. Photo: Bloomberg

JSPL resumes operations in coal gasification plant in Odisha’s Angul district

  • The facility, which has a production capacity of 1.80 MTPA, had halted its operations due to scarcity of coal
  • JSPL set up the plant in Angul district to ensure availability of chemical and thermal energy required to produce DRI at an affordable price

Jindal Steel & Power Ltd (JSPL) has resumed operations in its direct reduced iron (DRI) plant based on coal gasification process in Odidha’s Angul district. The facility, which has a production capacity of 1.80 MTPA, had halted its operations due to scarcity of coal, according to a company press release issued on Tuesday.

“The DRI plant was not operational for long due to scarcity of coal. Now, Coal India Ltd and Mahanadi Coalfields Ltd have started selling coal in adequate quantity, therefore, gasification & DRI operations have resumed," the steel and energy producer said.

JSPL set up the plant in Angul district to ensure availability of chemical and thermal energy required to produce DRI at an affordable price. The production of DRI reduces the impact of coal on the environment in the long run, the company said.

The coal gasification process (CGP) converts high-ash coal into synthesis gas, or syngas. “It is the first plant of its kind in the world where syngas is used in making DRI. Syngas has replaced costlier natural gas being used by other DRI manufacturers across the globe. Syngas is used as a reductant in converting iron ore and iron pellets into DRI or sponge iron," JSPL said.

“Our CGP & DRI plants are again working on full potential on purchased coal and match the vision of Honourable Prime Minister Narendra Modi, who invited gasification technology suppliers to set up environment-friendly plants in India based on Swadeshi coal," JSPL Managing Director VR Sharma said.

Sharma also said the operations and success of this plant depend on regular availability of coal. The company now targets an additional production of 1.50 MTPA of steel in the financial year ending March 2021 through the CGP and DRI routes, Sharma added.

At 10:11 am, shares of JSPL were up a 0.5% at 178.80 on the BSE today.

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