India is exploring coal gasification to reduce its heavy reliance on imported coking coal and LNG for its growing steel sector. By converting domestic coal into syngas, the country aims to stabilize its raw material supply chain and protect against global price volatility caused by geopolitical conflicts and weather disruptions. However, this strategy creates a conflict with climate goals. Reports indicate that syngas-based direct reduced iron production is more carbon-intensive than conventional methods, potentially increasing the sector's overall emissions while providing economic security through import substitution.
