Business Line reported that Neyveli Lignite Corporation has expanded its search area for the right pelletisation technology from Germany to Australia and Japan, as it seeks to increase the use of lignite for power production.

The state owned company is speeding up its efforts to set up India’s first pilot plant in Tamil Nadu using suitable overseas technology to convert lignite into pellets.

If successful, this could give a significant boost to India’s power generation capacity, as the country’s vast lignite resources could be used in more significant scoops for meeting domestic energy needs.

Pelletisation essentially seeks to convert lignite into pellets that can compete with coal in terms of calorific value and ability to be transported to longer distances.

Lignite’s use in power production is handicapped by the fact that it has a much shorter spontaneous heating time compared to coal.

And hence, this raw material cannot be transported beyond 100-odd km by rail or road, necessitating power units to be set up in the vicinity of the pit heads.