• Applications: Used in shipping fuel, plastic production, manufacturing fuel cells etc.

Challenges in e-Methanol Adoption

• High Cost: Not yet price-competitive with fossil fuels; price parity expected around 2035.
• Scale of Production: Infrastructure for large-scale green methanol is nascent.
• CO2 Sourcing: Sustainable and reliable CO2 capture remains a technological challenge.
• Storage and Distribution: Needs new or adapted logistics infrastructure.

India’s Methanol Economy Programme

• About: Launched by NITI Aayog, the Methanol Economy Programme aims to reduce oil import bills, curb pollution and promote cleaner alternatives of fuel. 
• Key Pillars: Production of methanol from coal, biomass, and municipal waste can be used in LPG blend, power generation, and transportation which eventually helps in reducing India’s oil import bill & greenhouse gas (GHG) emissions.
  • The program targets a 10% reduction in crude oil imports by 2030 by substituting it with methanol.
• Government Initiatives and Progress:  The Department of Science and Technology (DST) has initiated the Methanol Economy Research Programme (MERP) to support research and development in methanol production and utilization.
  • Blending of 15% methanol in gasoline (M15) has been notified, and test standards are being developed.
  • National Policy on Biofuels 2018 recognizes methanol and DME (dimethyl ether) as alternative fuels.

Source: TH