India's largest power producer, NTPC, is planning to set up a coal-to-synthetic natural gas (SNG) facility by investing 100 billion rupees ($1 billion) in Talaipalli, Chhattisgarh, Press Trust of India reported, citing a senior company official.

The project, spanning 150 acres, will convert 2.5 million tonnes of high-ash domestic coal annually, sourced from NTPC's captive mines, into 500,000 tonnes of SNG. The projected cost of SNG production is estimated at around $12 per million British thermal unit (MMBTU).

NTPC earlier announced the project through an agreement with Engineers India Limited (EIL) in October 2025, yet it had not disclosed details.

NTPC's R&D wing, NETRA, is spearheading the project as part of its broader mission of "greening the coal", in a bid to reduce reliance on imported fuels and lower emissions by adopting coal gasification.

The company may seek commercial benefits from syngas produced from coal gasification, which can be further converted into SNG, methanol, ethanol, ammonia, and other petrochemical products, said the official.

The process chain includes coal beneficiation, gasification, water-gas shift, and methanation. The company is in the advanced stages of various international partnerships, with the technology part expected by the last quarter of FY26. After that, NTPC will move forward with securing necessary infrastructure, including land, power, and water.