India's Energy Future Hinges on Clean Coal and Critical Minerals

The Indian energy system will continue to rely on coal for the next two decades, with the phase-down of this fossil fuel being dependent on the import of critical minerals for clean energy and battery storage. The Economic Survey 2023-24 highlights the need for adopting new technologies such as carbon capture, coal gasification, and super-critical power plants to reduce emissions and enhance sustainability.

Coal will remain the cornerstone of the Indian energy system for the next 20 years, with the reduction in its usage reliant on the import of critical minerals essential for clean energy and battery storage, according to the Economic Survey presented on Monday.

The Economic Survey 2023-24, tabled in Parliament, underscores the importance of carbon dioxide removal technologies and carbon capture, utilization, and storage to lower emissions from coal usage.

The report highlights that the coal phase-down will significantly depend on the import of critical minerals unless there is investment in domestic technologies that promote the reuse and recycling of these minerals. The adoption of gasification technology could revolutionize India's coal sector, reducing its dependence on natural gas, methanol, and ammonia imports, and decreasing emissions.

Coal currently generates 70% of India's electricity and is crucial for industries such as steel, sponge iron, cement, and paper. The Centre has launched several initiatives to promote cleaner coal technologies, including a mission to gasify 100 million tonnes of coal by 2030. Additional measures like extracting coal bed methane, exploring coal to hydrogen, and employing super-critical technologies aim to enhance sustainability and reduce emissions.