Jindal Steel & Power Ltd (JSPL) has resumed operations in its direct reduced iron (DRI) plant based on coal gasification process in Odisha’s Angul district. The facility, which has a production capacity of 1.80 MTPA, had halted its operations due to scarcity of coal, media reported. “The DRI plant was not operational for long due to the scarcity of coal. Now, Coal India Ltd and Mahanadi Coalfields Ltd have started selling coal in adequate quantity, therefore, gasification & DRI operations have resumed,” the steel and energy producer said.
JSPL set up the plant in Angul district to ensure availability of chemical and thermal energy required to produce DRI at an affordable price. The production of DRI reduces the impact of coal on the environment, in the long run, the company said. The coal gasification process (CGP) converts high-ash coal into synthesis gas or syngas. It is the first plant of its kind in the world where syngas is used in making DRI. Syngas has replaced costlier natural gas being used by other DRI manufacturers across the globe. Syngas is used as a reductant in converting iron ore and iron pellets into DRI or sponge iron, the company said.
Read EquityPandit’s Nifty Outlook for the Week