NTPC plans to establish a 5-10 million tonne per year coal-to-synthetic natural gas (SNG) facility.

In October 2025, the company signed an agreement with Engineers India to develop the project, which will utilise high-ash coal from NTPC's captive mines and convert it into cleaner synthetic natural gas. The fuel produced could be consumed internally or sold commercially. NTPC is set to appoint a technical consultant within the current financial year to help design the facility, with project work potentially commencing in the next financial year.

Synthetic natural gas, or syngas, has a wide range of uses, including power generation and the production of chemicals such as methanol, ammonia, and fertilizers. NTPC is also aiming to expand its overall energy portfolio to 149 GW by FY32, including renewable energy and nuclear power.