Coal India diversifying into aluminium and solar to decarbonise operations as part of the Govt’s net zero carbon emission goal

Coal India Limited (CIL), an Indian government-owned coal mining and refining corporation, is reportedly striving to decarbonise its operations, following the government’s energy transition push and net zero carbon emission target by 2070. Therefore, CIL is diversifying into aluminium production, solar power generation and coal gasification. The news came on Monday, June 20, after two officials aware of the matter said, while adding that the company is waiting for certain clearances to begin an integrated greenfield aluminium project in Odisha. As per the report, Odisha Chief Minister Naveen Patnaik has also approved the project.

Stressing on the energy transition and diversification process, Union coal secretary Anil Kumar Jain recently said: “CIL is diversifying; they are getting into coal gasification, they are looking at aluminium...they are looking at non-coal businesses."

The two officials as mentioned above have also cited that no estimated timeline for project completion can be given now. But it has come to the report that Coal India has already applied for a bauxite block at Sijimali or Kutrumali in Odisha, expressing interest for an equity partner.

Initially, Coal India had planned to build the project in collaboration with National Aluminium Company Limited (NALCO), wherein Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India, would hold 74 per cent of the share and NALCO the rest. Alumina and coal required for the project would have supplied by NALCO and MCL, respectively. But in August 2021, this plan was dropped; instea an integrated greenfield aluminium project was proposed, including bauxite mining, alumina refining, and aluminium and associated coal preparation plant.

In October, Coal India had also given approval to the pre-feasibility study for the project conducted by Mahanadi Coalfields.

CIL aims to achieve 3,000 MW solar power capacity by FY2030, as part of which the company has installed 8.436 MW of renewable energy capacity in January.