BCGCL, BHEL Issue Tender for 'Coal to Ammonium Nitrate' Project in Odisha

The LSTK-2 package covers the Syngas Purification Plant and the Ammonia Synthesis Gas Plant, aimed at purifying raw syngas from the coal gasifier to make it suitable for ammonia synthesis.

Bharat Coal Gasification & Chemicals Limited (BCGCL), a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), has issued a tender for the selection of an LSTK-2 contractor for its 'Coal to Ammonium Nitrate' project in Odisha. The tender, titled "Bharat Coal Gasification and Chemicals Limited, BCGCL" and identified by tender number PNMM/PC288/E/001, is now available on the CPP portal. The LSTK-2 package covers the Syngas Purification Plant and the Ammonia Synthesis Gas Plant, aimed at purifying raw syngas from the coal gasifier to make it suitable for ammonia synthesis.

Key dates include a pre-bid meeting scheduled for June 28, 2024, with queries from interested bidders due by June 21, 2024.

The joint venture marks India's first commercial-scale coal-to-ammonium nitrate plant using surface coal gasification (SCG) technology. The plant will utilize locally developed coal gasification technology by BHEL, leveraging high ash coal from the Lakhanpur Area to produce 0.66 million metric tons per annum (MMTPA) of technical grade ammonium nitrate. The project cost is estimated at ₹11782 crores, with M/s PDIL designated as the Project Management Consultant (PMC) for preparing the Detailed Feasibility Report (DFR).

BCGCL, incorporated on May 21, 2024 (CIN U23935OD2024GOI045884), represents the strategic entry of CIL and BHEL into the coal-to-chemical business, with CIL holding a 51% stake and BHEL 49%.

The project's execution follows a partial LSTK (Lump Sum Turn Key) mode, featuring four LSTK packages and 29 other offsite and utilities packages executed on an EPC (Engineering, Procurement, and Construction) mode. The LSTK packages include:

LSTK-1 Package: Coal Gasification, Air Separation Unit (ASU), Ash Handling Plant (AHP), Steam Generation Plant (SGP), Coal Handling Plant (CHP), Cooling Towers for Coal gasification (to be executed by BHEL on a nomination basis).

LSTK-2 Package: Raw Gas Purification, including CO Shift Unit, Rectisol Unit, Sulphur Recovery Unit, and Liquid Nitrogen Wash Unit.

LSTK-3 Package: Ammonia Synthesis Unit.

LSTK-4 Package: Nitric Acid, Ammonium Nitrate Plant, Prilling Tower, and Cooling Tower for Ammonia, Nitric Acid, and Ammonium Nitrate Units.

Additionally, tenders for LSTK-3 and LSTK-4 are prepared and awaiting approval from CIL, with expectations for their release shortly.

The project site spans 350 acres provided by CIL, with the produced ammonium nitrate intended for use in explosive activities for coal mining. This plant will be the first to showcase BHEL's indigenous coal gasification technology. The Ministry of Coal has introduced financial incentives to promote coal/lignite gasification projects, with this project expected to be the first to receive ₹1350 crores under Category-1 incentives.

The comprehensive approach ensures no aspect of the project is overlooked, paving the way for successful implementation and contributing significantly to India's industrial and mining sectors.