Indian refiners could use petcoke to produce urea, methanol and ammonia rather than selling it outright: Dastur Energy CEO

Industry experts have proposed that Indian refineries divert petroleum coke (petcoke) — currently sold outright as a by-product — into gasification plants to...

What Happened

Industry experts have proposed that Indian refineries divert petroleum coke (petcoke) — currently sold outright as a by-product — into gasification plants to produce urea, methanol, and ammonia domestically.
A dedicated policy mechanism for channelling refinery petcoke towards gasification was emphasised as essential for making this transition economically viable.
The proposal situates petcoke gasification as a substitute for coal gasification, leveraging India's large refining capacity to reduce import dependence on fertiliser feedstocks and clean fuel precursors.
The Reliance refineries at Jamnagar already operate gasification reactors designed to run on petcoke, with flexibility for a 35% coal and 65% petcoke blend — providing a proven domestic precedent.
The approach connects to the government's broader coal/petcoke gasification mission targeting 100 million tonnes of gasification by 2030.

Static Topic Bridges

Petroleum Coke (Petcoke) — What It Is and Why It Matters

Petcoke is a carbon-rich solid by-product generated during the oil refining process, specifically from the coking unit that upgrades heavy crude residues. It has a very high calorific value (~8,000 kcal/kg) but also a high sulphur content. India's refineries — including those of Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Reliance — produce significant volumes of petcoke. IOCL alone accounted for about 15% of India's petcoke production as of 2023. Fuel-grade petcoke is widely used in cement kilns and power plants, but its combustion releases large amounts of SOx, NOx, and particulate matter.

The Supreme Court imposed restrictions on petcoke use as a direct fuel in the National Capital Region owing to severe air pollution concerns.
Petcoke combustion releases more CO₂ per unit of energy than coal, making it one of the dirtiest fossil fuels by emissions intensity.
India is one of the largest importers of petcoke in Asia-Pacific despite domestic refinery production, reflecting demand from industry exceeding domestic refinery output.

Connection to this news: By converting petcoke from a directly combusted fuel into a feedstock for gasification, the proposal shifts petcoke from being an air pollutant to a precursor for industrial chemicals, mitigating environmental harm while adding value.

Gasification — The Technology

Gasification is a thermochemical process that converts carbon-containing materials (coal, petcoke, biomass, municipal solid waste) into synthesis gas (syngas) — primarily hydrogen (H₂) and carbon monoxide (CO) — by reacting them with controlled amounts of oxygen and steam at high temperatures (700–1600°C). Syngas is a versatile intermediate: it can be converted into ammonia (via Haber-Bosch process), methanol (via catalytic synthesis), urea (ammonia + CO₂), or used directly as fuel gas. Gasification is distinct from combustion — it is a partial oxidation process that produces a combustible gas rather than releasing energy directly as heat.

Petcoke gasification produces syngas with higher carbon content per unit than coal gasification, making it energy-dense but requiring sulphur removal steps.
India's National Mission on Coal Gasification targets 100 million tonnes of coal gasification by 2030, with a total outlay of Rs 85,000 crore.
Talcher Fertilizers Ltd (Odisha): key national project using coal blended with petcoke for ammonia/urea production — 2,200 MTPD ammonia + 3,850 MTPD urea (1.27 MMTPA) targeted; approximately 71% complete as of early 2026, with commissioning targeted for December 2027.

Connection to this news: Redirecting refinery petcoke into gasification pipelines extends the same policy logic (reducing import dependence, valorising domestic resources) from coal to a currently underutilised refinery stream.

Urea, Methanol, and Ammonia — Import Dependence and Policy Context

India is one of the world's largest consumers of urea (for fertilisers) and is heavily import-dependent for methanol and ammonia. Approximately 90% of India's methanol is imported; ammonia imports are significant for fertiliser plants lacking captive production. Urea is heavily subsidised under the Nutrient Based Subsidy (NBS) scheme and the Urea Subsidy scheme; reducing import dependence for urea feedstock directly reduces the fiscal burden on the government. India's Methanol Economy Programme (NITI Aayog) envisions blending methanol in petrol (M15 blend) and using it as a marine and cooking fuel substitute.

India imports over 88% of its crude oil and over 90% of its methanol requirements.
Urea subsidy is one of India's largest fertiliser expenditure items; domestic production from domestically sourced feedstock would reduce this.
Ammonia is the key feedstock for all nitrogen fertilisers; India's fertiliser plants depending on imported LNG face cost volatility.
Methanol is a potential blending fuel (petrol blending, cooking fuel) and shipping fuel, relevant to India's energy transition targets.

Connection to this news: Petcoke-to-chemicals gasification directly addresses three import-substitution priorities simultaneously — ammonia, urea feedstock, and methanol — using a by-product that refineries currently sell at low margins or struggle to monetise.

Key Facts & Data

Petcoke is a carbon-rich solid by-product of oil refining; very high calorific value (~8,000 kcal/kg) with high sulphur content.
India is one of the largest importers of petcoke in Asia despite domestic production.
Supreme Court has restricted petcoke's direct use as a fuel in the National Capital Region due to air pollution.
India imports over 90% of its methanol requirements and significant volumes of ammonia.
National Mission on Coal Gasification: 100 million tonnes target by 2030; Rs 85,000 crore outlay.
Talcher Fertilizers Ltd: 2,200 MTPD ammonia + 3,850 MTPD urea planned from petcoke-blended coal gasification; ~71% complete (early 2026).
Reliance Jamnagar refineries already operate petcoke gasification reactors (35% coal / 65% petcoke blend flexibility).
Gasification converts petcoke into syngas (H₂ + CO) — feedstock for ammonia, urea, methanol, and hydrogen.
Petcoke combustion emits SOx, NOx, and particulate matter at higher rates than coal; gasification with sulphur capture is significantly cleaner.
Petroleum Coke Market global size estimated at USD 24.80 billion in 2025.