Methanol Economy

WHY IN NEWS?

The govt is considering a NITI Aayog proposal to introduce fuel with 15% methanol content.

WHAT IS METHANOL ECONOMY?

Methanol is the future of fuel in India. The methanol economy is a future economy in which methanol and dimethyl ether(DME) replace fossil fuels as a means of energy storage, transportation fuel, and raw material for synthetic hydrocarbons and their products. Across the world, methanol is emerging as a clean, sustainable transportation fuel of the future.

NEED OF SHIFT

• Hydrocarbon Fuels have adversely affected the environment with Green House Gas Emissions (GHG).
• Urban Transport contributes to close to 40% towards urban air pollution. Almost 30% pollution in cities like Delhi is from automobiles and the growing number of automobiles on the road will further worsen the pollution.
• India needs around 2900 cr litres of petrol and 9000 cr litres of diesel per year currently, the 6th highest consumer in the world and will double consumption and become 3rd largest consumer  by 2030.
• Our import bill on account of crude stands at almost 6 lac crores. Crude oil imports drain our foreign exchange, putting enormous pressure on our currency & thereby weakening our bargaining power with the rest of the world.

WHAT IS UNIQUE ABOUT METHANOL?

• It is the cleanest fuel known to mankind. Methanol is the simplest form of alcohol — a single carbon solution — since it has no carbon carbon bond they do not emit particulate matter making the fuel clean.
• Methanol Economy is the “Bridge” to the dream of a complete “Hydrogen-based fuel systems”.
• Methanol is a scalable and sustainable fuel, that can be produced from a variety of feedstocks like Natural Gas, Coal, Bio-mass, Municipal Solid waste and CO2.
• Ethanol is made largely from plant-based sources, such as sugarcane and vegetable oil. A land-constrained country like India can ill-afford this.
• But unlike this, methanol can be derived from a variety of renewable, non-renewable and abundantly available feedstock.
• If the percentage of methanol is under 15 per cent, even existing engines can run the fuel. It is only higher share of blending that needs engine modification.
• Methanol burns efficiently in all internal combustion engines, produces no particulate matter, no soot, almost nil SOX and NOX emissions (NEAR ZERO POLLUTION).
• The gaseous version of Methanol – DME (Di Methyl Ether) can blended with LPG and can be excellent substitute for diesel in Large buses and trucks.
• Methanol 15 (M15) in Petrol will reduce Pollution BY 33% & Diesel replacement by methanol will reduce by than 80%.

METHANOL AS AN ENDURING SOLUTION TO HUMAN ENERGY NEEDS?

• Methanol has the potential to be an enduring solution to human energy needs is because the belched out C02 (greenhouse gas emission) both from using Methanol and while producing Methanol can be tapped back to produce Methanol. Thereby a seamless loop of CO2 sequestration cycle is created to perpetually burn fuels without polluting the environment at all. C02 from steel plants, Thermal Power plants, Cement Plants etc. can be tapped in large quantities to produce Methanol.

SIGNIFICANCE OF METHANOL ECONOMY

• Methanol is a clean burning drop in fuel which can replace both petrol & diesel in transportation & LPG, Wood, Kerosene in cooking fuel.
• The gaseous version of Methanol can blended with LPG and can be excellent substitute for diesel in large buses and trucks.
• It can also replace diesel in Railways, Marine Sector, Gensets, Power Generation and Methanol based reformers could be the ideal complement to Hybrid and Electric Mobility.
• The development of methanol based technology could turn energy-importing India into an energy exporting country. Besides, if about 20% of crude oil imports are substituted by methanol, vehicular pollution can be slashed by 40%.
• Methanol demand is growing at a robust 6 to 8 % annually.
• Methanol Economy can be one of the best ways to mitigate the Environmental hazards of a growing economy.
• Methanol production can be an effective waste management method and effectively use the 1 million tonnes of biomass India produces every month to generate fuel.

• India by adopting Methanol can have its own indigenous fuel at the cost of approximately Rs. 19 per litre at least 30% cheaper than any available fuel.
• Methanol is not only a clean fuel, it is light and can be easily carried to hilly areas.
• Adopting methanol would mitigate the ever-rising fuel price, including that of LPG.
• Methanol can be stored economically over a long time and command a higher value in the commodities market.

Potential - India’s potential to produce methanol is huge.

• India has an installed Methanol Production capacity of 2 MT per annum.
• As per the plan prepared by NITI Aayog, using Indian High Ash coal, Stranded gas, and Biomass can produce 20MT of methanol annually by 2025.
•  India, with 125 Billion Tonnes of proven Coal reserves and 500 million tones of Biomass generated every year & the huge quantities of Stranded & Flared gases has a huge potential for ensuring energy security based on alternate feedstock and fuels.

GOVT EFFORTS IN THIS REGARD

NITI Aaayog has drawn out a road map to substitute 10% of Crude imports by 2030, by Methanol alone. This requires approximately 30MT of Methanol. Methanol & DME are substantially cheaper than Petrol and Diesel and India can look to reduce its fuel bill 30% by 2030.

• NITI Aayog’s roadmap for Methanol Economy comprises

• Production of methanol from Indian high ash coal from indigenous Technology,  in Large quantities and adopting regional production strategies and produce Methanol in large quantities @ Rs. 19 a litre.
• India will adopt Co2 capturing technology to make the use of coal fully environment-friendly and our commitments to COP21.
• Bio-mass, Stranded Gas & MSW for methanol production. Almost 40% of Methanol Production can be through these feedstocks.
• Utilization of methanol as well as DME in transportation – rail, road, marine and defence. Industrial Boilers, Diesel Gensets & Power generation & Mobile towers  are other applications.
• Utilization of methanol and DME as domestic cooking fuel-cook stoves
• Utilization of methanol in fuel cell applications in Marine, Gensets and Transportation.
• In order to promote the production and usage of clean fuel, National Institution for Transforming India (NITI) Ayog is planning to set up a Methanol economy Fund.

• Various production plants have been planned to be set up by the NITI Ayog. Two plants will be commissioned in the next 3-4 years.
• The world’s largest coal miner Coal India Limited (CIL) will set up the first coal-based methanol plant in West Bengal.
• The Namrup-based Assam Petrochemicals Limited (APL) rolled out the country’s first methanolbased cooking fuel project- ‘Green and Clean Fuel Pilot Project on Methanol Cooking Stove’.The project has been promoted by NITI Aayog.
• India is shortly going to implement Methanol 15 % blending program with Petrol and cost of petrol is expected to come down immediately by 10% and M100 program for buses and trucks is also to be implemented shortly.
• The Govt has already prepared the draft notification of M15, M100 & DME as transport fuel.
• India has successfully converted a two wheeler engine, a Genset, power weeder (agriculture equipment) and is in process of converting many IC engines to Methanol, including railways and marine.
• National Biofuel Policy set an indicative target of 20% blending of ethanol in petrol and 5% blending of methanol in diesel to be achieved by 2030.

CONCERNS

• Methanol-powered vehicles are almost totally non-polluting.However, a large amount of CO2, a potent polluter, is emitted during the process of making methanol from coal.
• This will need to be either captured and stored or used to co-generate power in methanol plants. Otherwise, it has to be recycled into methanol.
• However, the technology for this purpose needs further refinement and scaling up.
• Also, internal combustion engines now can accept methanol-doping of only up to 15% with minimal modification.
• Higher levels of blending will require changes in engine design.
• Despite these, the overall gains from the use of methanol outweigh the cost of surmounting the drawbacks.It could certainly add a new dimension to the country’s energy security.

WAYFORWARD

• India by adopting Methanol can have its own indigenous fuel at the cost of approximately 19 Rs. A litre at least 30% cheaper than any available fuel.
• Methanol fuel can result in great environmental benefits and can be the answer to the burning Urban pollution issue.
• At least 20% diesel consumption can be reduced in next 5-7 years and will result in a savings of 26000 Crores annually.
• Make in India program will get a further boost by both producing fuel indigenously and associated growth in automobile sector adding engineering jobs and also investments in Methanol based industries (FDI and Indian).
•  However, Coal and Stranded Gas linkages are import policy initiatives to be taken.
• There is the added benefit that methanol produced here can be exported to neighbouring countries like Bangladesh, Nepal and Pakistan which have comparable economies and with similar energy circumstances.
• Investing in a methanol economy might be the required push for the energy sector, considering the costs of plunging in new technology and implementing it in a nation as big as India it still is a daunting task.

Practice Question

Q. Methanol has the potential to be an enduring solution to human energy needs? Discuss the significance of methanol based economy in India? What are the challenges involved in tapping its potential?