NITI Aayog is helping the Ministry for Petroleum and Natural Gas draft a Cabinet note on methanol.

What is the initiative?

• When a Cabinet note is circulated it covers all aspects and issues that may pose a challenge for Methanol Policy implementation.
• The policy will be a combined effort of the Ministry of Petroleum and Natural Gas, Fertiliser and Coal among others.
• The NITI Aayog will be a facilitator.
• It is also looking at possible international collaborations.
• This is to get help during the interim period till coal to methanol production in India reaches a level that it can meet the demand.
• There is a need to import certain quantity of methanol till then.

How is methanol a better option for India?

• Imports - Methanol is a cost-effective, non-polluting and versatile fuel.
• It can fully or partially replace petrol, diesel or liquefied petroleum gas (LPG).
• With methanol, India aims at trimming the crude oil import bill by 10% by 2022.
• It can thus reduce India’s dependence on energy imports.
• Sources - 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.
• These include agricultural biomass, urban solid waste, coal, and natural gas.
• It, significantly, includes even carbon dioxide (CO2) present in the air.

• Potential - India’s potential to produce methanol is huge.
• As, India has over -

1. 125 billion tonnes of proven coal reserves
2. 500 million tonnes of biomass (generated annually)
3. substantial quantities of stranded natural gas

• Cost - The locally generated and relatively cheaper methanol can significantly contribute to saving cost.
• The Indian Railways is considering converting its entire fleet of 6,000 diesel engines to methanol-operated locomotives.
• This could cut down the railways’ energy bill by half.
• Besides, if about 20% of crude oil imports are substituted by methanol, vehicular pollution can be slashed by 40%.
• In all, this is a positive move serving both the energy- and environment-related objectives.

What are the 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.