Pakistan’s decision to establish its first coal-to-urea project is both timely and strategically important. Domestic natural gas reserves are declining, LNG imports are becoming increasingly expensive and unpredictable, and fertiliser remains critical for the country’s food security.

At the same time, Pakistan possesses one of the world’s largest lignite deposits, with about 175 billion tons of coal in the Thar coalfield. Converting even a small portion of this resource into fertiliser can reduce import dependence, strengthen agriculture and create long-term industrial value.

The decision to move from gas-based to coal-based urea production therefore makes sound economic and strategic sense. The more important question now is whether Pakistan will choose the technology best suited to its own coal.

The project is currently in the Front-End Engineering Design (FEED) stage, where technology options are evaluated before final investment decisions are made. Choices made at this stage will influence the plant’s efficiency, operating costs, environmental performance and water requirements throughout its expected operating life of 25 to 30 years.

The method best suited for Thar’s deposits needs to be used for the coal-to-urea project

This deserves careful attention because Thar coal is unlike the coal used in many other countries. It typically contains 40–50 per cent moisture, has a relatively low calorific value of 2,500–4,500 kcal/kg, high volatile matter and comparatively high sulphur content. These characteristics make technology selection especially important.

Several technologies are available for converting coal into ammonia and urea. Among them, Coal Water Slurry (CWS) Gasification has become one of the most widely adopted technologies for large fertiliser and coal-chemical plants, particularly in China.

In this process, finely ground coal is mixed with about 65pc coal, 34pc water and around 1pc additives to produce a stable, pumpable slurry. The slurry is then fed into a pressurised gasifier, where coal is converted into synthesis gas containing hydrogen and carbon monoxide.

Hydrogen is subsequently used to manufacture ammonia, while carbon dioxide generated during the process is combined with ammonia to produce urea. In fact, approximately 0.73 tons of carbon dioxide are consumed in producing every ton of urea, converting a substantial portion of the carbon into a useful product rather than treating it solely as a waste stream.

Coal is often associated with pollution, but modern gasification technologies are fundamentally different from conventional coal combustion. Commercial CWS gasification plants achieve carbon conversion efficiencies of 98–99pc, sulphur removal efficiencies exceeding 99pc and particulate removal efficiencies approaching 99.9pc.

Reported NOx emissions are around 450 mg/Nm³, significantly below Pakistan’s National Environmental Quality Standards limit of 1,200 mg/Nm³, while sulphur oxide emissions remain well within regulatory limits because sulphur is removed during gas cleaning before the gas is utilised.

Water management is another critical consideration because the Thar region is naturally water-scarce. Modern CWS fertiliser plants typically recycle between 85-95pc of their process water, and several operate close to Zero Liquid Discharge (ZLD) standards. Compared with older coal-processing technologies, they can reduce freshwater consumption by 60–70pc, providing significant environmental and economic benefits over the life of the plant.

International experience also offers valuable lessons. During the past two decades, China has commissioned dozens of world-scale coal-based fertiliser and chemical complexes using Coal Water Slurry Gasification. These plants successfully produce ammonia, urea, methanol and hydrogen from domestic coal while maintaining high operational reliability. Their experience demonstrates that lower-grade coal can be converted into high-value industrial products when the appropriate technology is selected.

Coal Water Slurry Gasification, however, is not the only available option. Dry-Feed Entrained-Flow Gasification, Fixed-Bed Gasifiers and Circulating Fluidised Bed (CFB) technologies each have their own strengths and limitations. They differ in capital investment, operating efficiency, water consumption, fuel flexibility and environmental performance.

That is precisely why the FEED stage presents an opportunity that should not be overlooked. Before the technology is finalised, an independent techno-economic comparison should be undertaken using six measurable criteria: compatibility with Thar coal, water consumption, water recycling potential, environmental performance, capital expenditure and lifecycle operating cost. The objective should not simply be to identify the technology with the lowest initial cost, but the one capable of delivering the greatest value throughout the project’s operating life.

The purpose of raising these issues is not to question Pakistan’s first coal-to-urea project. On the contrary, the project deserves strong national support because it has the potential to strengthen fertiliser security, reduce import dependence, create value from indigenous resources and contribute to long-term industrial development.

Pakistan’s first coal-to-urea project will establish an important benchmark for future coal-based industries. The decision to use Thar coal has already been made. The remaining challenge is to ensure that the technology selected is the one best aligned with Pakistan’s unique coal resource, environmental conditions and long-term national interest. If that decision is made wisely, the project can demonstrate how one of the world’s largest lignite reserves can be transformed into sustainable industrial growth through sound engineering, responsible environmental management and informed technology choices.

is an Energy, Infrastructure and Public-Private Partnership (PPP) specialist with more than four decades of professional experience in Pakistan’s oil & gas, energy, transportation and infrastructure sectors.

The writer is an energy, infrastructure and public-private partnership specialist

Published in Dawn, The Business and Finance Weekly, July 27th, 2026