New Era Cleantech Solution is at the forefront of a revolution in India's energy sector. Founded by Gopi Latpate and Balasaheb Darade, two visionary entrepreneurs with extensive experience in government policy and venture capital, the company is setting up one of India's first dedicated coal gasification plants. This ambitious project, deeply rooted in the Atmanirbhar Bharat (self-reliant India) initiative, promises to not only enhance energy security but also foster sustainable practices and reduce carbon emissions.
New Era's advanced technology converts coal into clean syngas, powering chemicals, fertilizers, and much more. But their commitment goes beyond energy. Through carbon capture and multi-feed strategies, they're minimizing their environmental footprint. This, coupled with thousands of local jobs created, paints a vibrant picture of a sustainable future for India.
TheCSRUniverse spoke to Mr. Balasaheb Darade, Founder and Managing Director, New Era Cleantech Solution, to understand the visionary initiatives shaping India's energy sector. In this exclusive interview, Mr. Darade sheds light on the inception of one of India's pioneering dedicated coal gasification plants. With a rich background in government policy and venture capital, he provides valuable insights into the project's alignment with the Atmanirbhar Bharat initiative, its potential impact on energy security, and broader implications for sustainable practices and reduced carbon emissions.
Join us in this enlightening conversation as we unravel the transformative journey led by New Era Cleantech Solution.
Q&A
Q. Tell us about New Era Cleantech Solution and its sustainability initiatives.
A. New Era Cleantech Solution's mission to establish coal gasification in India is multifaceted, focusing on various aspects of sustainable technology, including hydrogen production, carbon capture utilization and storage (CCUS), and gasification. We signed a Memorandum of Understanding (MoU) with the Maharashtra government at the World Economic Forum in Davos in January 2023. This project has been accorded "Ultra mega project" status by the Maharashtra government, highlighting its pivotal role in the region's industrial development. New Era Cleantech Solution is formed by a very competent team coming from diverse backgrounds such as Government policy, entrepreneurs, venture capital and scientists.
The Maharashtra Industrial Development Corporation (MIDC) has dedicated a substantial 1,650 acres of land for the project, that is expected to generate thousands of direct and indirect job opportunities in the Vidarbha area, which stands as a significant positive impact on the local economy. To ensure a consistent and secure coal supply for the project, New Era Cleantech Solution has adopted a comprehensive approach. This strategy encompasses various options, including exploring coal linkage with Western Coalfield Ltd (WCL)/ Coal India Limited and submitting an Expression of Interest (EOI) for an upcoming coal linkage auction tailored specifically for new gasification plants. At New Era Cleantech Solution, our gasification process offers a cleaner alternative to conventional coal burning, and we're committed to environmental responsibility. A significant part of our feasibility study focuses on Carbon Capture, Utilization, and Storage (CCUS). We're actively collaborating with the government to capture and repurpose carbon dioxide emissions, not only reducing our environmental impact but also creating opportunities for carbon credits, enhancing our project's economic viability. This holistic approach combines chemical production with responsible emissions management, making our project both environmentally friendly and economically sustainable. These elements position New Era Cleantech Solution to make a significant contribution to India's efforts to reduce carbon emissions and transition towards cleaner and more sustainable energy solutions.
Q. Tell us more about Coal Gasification and how will it contribute towards energy security and renewable energy?
A. India faces the challenge of meeting its energy needs without having sufficient oil or natural gas resources. However, the country possesses vast coal reserves. To address this situation, we are actively pursuing cleaner ways to utilize coal, primarily through coal gasification coupled with Carbon Capture, Utilization, and Storage (CCUS).
In India's energy transition journey, the demand for energy is projected to be substantial, creating opportunities for growth in both conventional and renewable energy sectors. We are actively contributing to this transition through coal gasification, following a practical and phased approach to meet our current and future energy needs while advancing toward cleaner and more sustainable energy sources.
Simultaneously, international price fluctuations, particularly in oil and chemical markets, carry significant economic implications. They generate inflationary pressures, and these cost increases are often transferred to consumers, affecting overall economic stability. Additionally, the underutilization of India's unexplored coal reserves for coal-to-chemicals manufacturing represents a missed economic opportunity. By tapping into these reserves, India can reduce its dependence on imports, which aligns with the "Aatmanirbhar bharat" (self-reliant India) mission and strengthens the domestic economy.
Moreover, the substantial import of chemical feedstock, accounting for around 40% of India's total import bill, exerts considerable pressure on foreign exchange reserves and the balance of payments, which has broader economic ramifications. Addressing these economic challenges is essential for fostering self-reliance and improving overall economic stability in India.
Coal gasification in India is a pivotal step towards achieving energy security and aligning with the Atmanirbhar Bharat initiative, emphasizing self-reliance. The government's goal of establishing 100 metric tons of coal gasification projects by 2030 underscores its commitment to reducing dependence on imports for essential resources.
Q. How does the gasification technology produce clean and economically attractive chemical feedstock? How is that environmental-friendly?
A. Gasification technology generates clean and economically attractive chemical feedstock by capitalizing on its unique capabilities. In our case at New Era Cleantech Solution, our primary aim is to build a self-sustaining ecosystem using coal gasification, which is the heart of our pioneering "Blue refinery" strategy. With a substantial annual capacity of 5 million metric tons, coal gasification plays a central role in this transformative process. It begins with coal subjected to extremely high temperatures, resulting in the conversion of coal into syngas. The syngas then undergoes refinement in a gas processing unit, effectively eliminating impurities like CO2 and H2S.
What distinguishes this approach is the versatility of the processed syngas. It can be effectively utilized to craft intermediary products, including methanol, hydrogen, and ammonia. These adaptable building blocks serve as the fuel source for a diverse array of downstream chemical and petrochemical processes. For instance, methanol can be further processed into valuable products like MEG and acetic acid, while hydrogen and ammonia play essential roles in the manufacturing of nitric acid, ammonium nitrate, and numerous other vital chemicals. In essence, coal gasification serves as a catalyst, producing syngas, which serves as the cornerstone for subsequent refining processes, ultimately contributing to the production of a wide range of chemical and petrochemical products. This innovative "Blue refinery" approach not only maximizes coal utilization but also significantly contributes to the production of essential chemicals and fuels, thereby advancing India's pursuit of self-reliance and energy security.
Q. How's coal gasification cost-effective to what extent will it decarbonize the industrial, power, fertilizer, and chemical sectors?
A. In the Indian context, coal has historically offered relative price stability compared to natural gas and oil, potentially insulating the country against international price volatility especially by global events such as the Russia-Ukraine conflict. Coal gasification emerges as a cost-effective and promising strategy with the potential to significantly reduce carbon emissions across various sectors. By harnessing the abundant domestic coal reserves, coal gasification produces a versatile syngas, which can be used for cleaner power generation in Integrated Gasification Combined Cycle (IGCC) plants, leading to reduced emissions and progress in decarbonizing the power sector. Syngas and hydrogen also find applications in industrial processes, replacing fossil fuels and contributing to emissions reduction in sectors like steel and cement manufacturing. In the fertilizer and chemical industries, gasification enables the production of cleaner ammonia and chemical feedstock, lowering carbon footprints. Furthermore, coal gasification can be integrated with carbon capture and utilization (CCU) technologies to store or repurpose CO2 emissions, enhancing its decarbonization and environmental sustainability.
Q. Syngas can be treated to produce fuels like gasoline and diesel (big sources of pollution), however, every country is working to do away with gasoline and diesel. What's your take?
A. Syngas is primarily favoured for petrochemical production rather than as a source for gasoline and diesel due to its composition, versatility, and environmental benefits. Composed of carbon monoxide and hydrogen, syngas is exceptionally adaptable, enabling the synthesis of a wide array of petrochemicals, including methanol and ammonia, critical components in plastics and chemicals manufacturing. Moreover, its use often leads to reduced carbon emissions, aligning with the industry's growing emphasis on cleaner and more sustainable practices, making it a preferred resource for the petrochemical sector.
Q. If it's utility in agriculture, energy and chemical industries, can we say that it has no environmental effects?
A. Coal gasification, coupled with Carbon Capture, Utilization, and Storage (CCUS), offers significant utility in fertilizers, energy and chemical industries. At New Era Cleantech, we are adopting a multi-feed strategy, such as gasifying coal with agri waste residue briquette and pellets as well which is feasible due to our location being close to biomass sources. Additionally, we're exploring the use of biomass and municipal solid waste (MSW) as feedstock. Our focus is not only on meeting current energy demands but also on preparing for the future, with a strong commitment to cleaner technologies.
Q. Share your views on India’s Carbon Market and Carbon Credit Trading Scheme. What are some of the ways to ensure that the carbon market is fair and equitable?
A. New Era Cleantech Solution is playing a pivotal role in shaping the Indian Carbon Credit Policy, actively participating in the Product Advisory Committee on the carbon credit market. This endeavor underscores the imperative for a multi-stakeholder approach involving various key players, including the government, industry, and international alliances, to ensure the success of this policy. New Era Cleantech is deeply engaged in collaborative efforts, being a proactive member of significant initiatives such as the G20, the US-India Sustainability Platform, NITI Aayog, and other programs focused on decarbonization, carbon capture and storage (CCS), and the energy transition. Furthermore, the call for collaboration and cluster development is exemplified by President Biden's announcement of seven clusters for hydrogen development. Similarly, identifying specific industrial clusters is critical for ensuring more effective and cost-efficient development in the realm of decarbonization and sustainable energy practices. Effective regulations, international collaboration, continuous improvements, and public education will play an integral role to the success of the carbon market. These efforts collectively contribute to reducing emissions and advancing sustainability while ensuring a transition to a low-carbon economy.
Q. What kind of focus is needed in research & development for achieving our net zero emission targets?
A. Achieving India's net-zero emission targets demands focused research and development efforts across several critical areas. First and foremost, there's a need for advancements in renewable energy technologies, energy efficiency measures, and energy storage solutions to ensure the reliable and affordable supply of clean energy. Research should also prioritize carbon capture, utilization, and storage (CCUS) technologies to capture emissions from challenging industrial sectors. Additionally, electric mobility and sustainable transportation, alongside biofuels and green hydrogen, play a pivotal role in reducing emissions in the transportation sector. Efforts must extend to decarbonizing heavy industries, promoting sustainable agriculture, enhancing climate resilience, and developing effective policies and market mechanisms to drive emission reductions. Public awareness, data analytics, and international collaboration, including India's engagement in the Global Biofuel Alliance, are vital components of the research agenda to accelerate India's transition toward a net-zero emissions future.
Q. Isn't achieving the 1.5 degree Celsius global climate target by 2100 a distant dream? To what extent have we been able to succeed so far in this regard?
A. Achieving the global climate target of limiting warming to 1.5 degrees Celsius by 2100 is an ongoing journey. The international community has indeed made significant progress in confronting climate change, exemplified by agreements like the Paris Agreement, substantial efforts to cut emissions through the adoption of renewable energy, energy efficiency improvements, and carbon pricing mechanisms. Balancing the Human Development Index and climate concerns is indeed a complex challenge, requiring us to find a delicate equilibrium between sustainability and economic growth. New Era Cleantech is committed to operating within this space, striving to ensure that the imperative for sustainability and achieving net-zero targets doesn't impede necessary development and growth. It's essential to foster an environment where both the well-being of humanity and environmental conservation can coexist harmoniously.
The increasing utilization of technologies such as Carbon Capture, Utilization, and Storage (CCUS) in large developing economies like India can play a crucial role in accelerating the transition to a more sustainable future. These innovations are pivotal in mitigating emissions and supporting global climate objectives.
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