Sindh pushes ahead with coal-to-fertiliser plant in Thar

KARACHI: A coal gasification plant is being planned in Thar to utilise surplus coal for fertiliser production, officials told The News on Saturday.

MFTC Coal Gasification & Manufacturing (Pvt) Ltd and Sino Sindh Resources (Pvt) Ltd/Shanghai Electric recently signed a memorandum of understanding (MoU) for the project. It will be the first fertiliser venture based on Thar coal, designed not only to contribute to the country’s energy needs but also to support the agriculture sector.

According to Sindh Coal Authority officials, a feasibility study confirmed the project’s potential to convert surplus coal into gas and fertiliser.

The Sindh government has already introduced a ‘coal to gas and coal to liquids policy’ to convert Thar’s coal into synthetic gas at a cost lower than imported gas or coal. It promotes diverse project models, private sector ventures, public-private partnerships and public-sector initiatives, while encouraging future private investment. It also emphasises collaboration between local engineering firms and foreign companies to ensure technology transfer and capacity building, with the aim of indigenising Pakistan’s energy sector.

Earlier provincial government attempts to advance such projects did not succeed.

Experts, however, remain cautious. They point to the Thar Underground Coal Gasification project, which despite its innovative promise, was derailed by funding shortages, technical difficulties, environmental concerns and questions of transparency. These challenges have raised doubts about the long-term viability of underground coal gasification in Pakistan.

A report by the Policy Research Institute for Equitable Development (PRIED) noted that while coal gasification appears more efficient and less polluting than conventional coal burning, in practice it is plagued by high costs, technical complexity, heavy energy and water use, and additional pollutant emissions requiring treatment and disposal. The Thar project was ultimately discontinued due to these hurdles.

The report also argues that the financial and environmental challenges of coal gasification cannot be ignored, recommending a shift towards renewable energy such as solar power as a more sustainable alternative.

Manzoor Ahmed, an analyst at PRIED, said Pakistan’s continued investment in coal power generation is worrying given global moves away from coal, its environmental risks, financing constraints and technical problems in coal mining and power plant operations. “Cost analysis of such projects also raises questions over their financial viability, as globally many have already been shut down,” he added.

Officials insisted that safeguards are in place. “All environmental aspects have been carefully considered in this project,” one official said, adding that efforts are under way to secure investment from international partners, implement environmental regulations, and expand renewable energy alongside coal initiatives.