JSPL plans to use synthesis gas for producing sponge iron

Jindal Steel and Power Limited (JSPL) will use synthesis gas from its coal gasification plant to produce sponge iron at its Angul site, chairman Naveen Jindal has said.

"We will go for manufacturing of sponge iron from synthesis gas. This is first of its kind in the world. We expect to start the process by May 15," Mr Jindal said after meeting Odisha Chief Secretary J K Mohapatra.

Stating that coal gasification has already started at the project site and the coal gasifiers are working very well, Mr Jindal said that coal will be gasified and synthesis gas will be used for making sponge iron on the DRI (direct reduced iron) route.

JSPL's DRI plant has a unique feature of using synthesis gas from coal gasification plants as reductant, he claimed, adding the DRI-gasification route has the advantage of using high ash coal which is predominantly available in the vicinity of the project site.

JSPL has signed an agreement with Lurgi Technology Company of South Africa for providing technology for coal gasification. The DRI plant has a capacity of 2 million tonnes per annum (mtpa).

JSPL's Angul steel plant, having a capacity of 6 mtpa, has already commissioned its 2 mtpa plate mill.

Sources said the JSPL has been allotted Utkal-B coal block in the state with an estimated reserve of 228 million tonnes.

It is awaiting permission from the state government to commence mining.

On the fate of the company's coal-to-liquid project, Mr Jindal said, "The coal block for the project has been de-allocated by the ministry. We will see what can be done on the project."