Date : 14/10/2023

Relevance: GS Paper 3- Economy - Methanol Economy

Keywords: NITI Aayog, LPG, Methyl tert-butyl ether (MTBE), Low Carbon Liquid

Context-

NITI Aayog has prepared a comprehensive plan advocating the adoption of methanol as the preferred cooking fuel in households as well as commercially. NITI Aayog believes it can be used to power rail, road, and shipping. Besides that, it reckons it can partially replace LPG for cooking. Blending 15% methanol in gasoline can result in at least a 15% reduction in the import of gasoline/crude oil.

What is Methanol?

Methanol, also known as methyl alcohol or wood alcohol, is a colorless, flammable liquid and the simplest alcohol. It is commonly used for various applications, and it offers several benefits.

Applications:

1. Fuel: Methanol is used as an alternative fuel or fuel additive. It is often blended with gasoline to enhance combustion and reduce emissions. It's also used in the production of biodiesel.
2. Renewable Energy Carrier: Methanol can be produced from renewable sources like biomass and used as a potential energy carrier or fuel in fuel cells and other energy applications.
3. Solvent: Methanol is a versatile solvent employed in various industrial processes, including chemical manufacturing, pharmaceuticals, and the production of paints, varnishes, and coatings.
4. Antifreeze: In automotive applications, particularly in windshield washer fluid, methanol is used as an antifreeze.
5. Chemical Feedstock: Methanol is a crucial feedstock for the production of various chemicals, including formaldehyde, acetic acid, and methyl tert-butyl ether (MTBE).
6. Green Methanol: Green methanol, produced from renewable sources and without polluting emissions, serves as a low-carbon liquid fuel and is a promising alternative to fossil fuels, particularly in sectors like maritime transport.

Benefits:

1. Lower Production Costs: Methanol can be produced at a lower cost compared to other alternative fuels, making it economically viable for various applications.
2. Lower Flammability Risk: Methanol has a lower risk of flammability compared to gasoline, enhancing safety in specific applications.
3. Environmental Benefits: When produced from green hydrogen and with carbon capture technologies, methanol can help reduce greenhouse gas emissions and air pollutants, making it more environmentally friendly, especially as a fuel or energy source.
4. Emission Control: Methanol can assist in meeting stringent emission limits, such as the Tier III regulation for nitrogen oxide (NOx) emissions, by adding water to the combustion process.
5. Handling and Transportation: Methanol is relatively easy to handle and transport under normal temperature and pressure conditions. It's also compatible with existing infrastructure, simplifying its adoption in various industries.
6. High Octane and Horsepower: Methanol can provide high octane ratings and equivalent horsepower to super high-octane gasoline, making it suitable for high-performance engines.
7. Versatile Use: Methanol can be used in various ways as an engine fuel, including in dedicated methanol engines and as part of alcohol blends. It's also suitable for use in shipping, aviation, fuel reforming using engine waste heat, and industrial electricity generation.

Some Initiatives to boost the Methanol Economy

The NITI Aayog's 'Methanol Economy' program is a strategic initiative in India with several key objectives and potential benefits:

Key Objectives:

1. Reducing Oil Import Bill: The primary goal is to reduce India's dependence on imported crude oil and petroleum products. This is achieved by blending methanol with gasoline, which can result in a substantial reduction in the import of gasoline and crude oil. A 15% methanol blend can lead to at least a 15% reduction in imports.
2. Greenhouse Gas Emissions Reduction: The program aims to reduce greenhouse gas (GHG) emissions. The use of methanol as a fuel can significantly lower GHG emissions compared to traditional fuels like gasoline and diesel. This reduction is estimated at 20% in terms of particulate matter, nitrogen oxides (NOx), and sulfur oxides (SOx), which can lead to improved urban air quality.
3. Utilizing Local Resources: Methanol can be produced from various feedstocks, including coal reserves and municipal solid waste. By converting these local resources into methanol, India can make more efficient use of domestic energy resources and waste materials, contributing to sustainability and reducing environmental impacts.
4. Fuel Diversification: The program promotes the use of methanol in various sectors, including road transport, rail, marine, energy production (e.g., DG sets and boilers), tractors, commercial vehicles, and retail cooking. This diversification can enhance energy security by reducing reliance on a single type of fuel.
5. Job Creation: The Methanol Economy program is expected to create a significant number of jobs, estimated at close to 5 million, through methanol production, application, and distribution services. This has the potential to stimulate economic growth and employment opportunities.
6. Consumer Savings: The program aims to save consumers money by blending 20% Di-methyl Ether (DME), a derivative of methanol, in liquefied petroleum gas (LPG). This blending can result in savings of Rs 50-100 per cylinder for consumers, making clean cooking fuel more affordable and accessible.

Methanol Economy Research Programme (MERP): Launched by the Department of Science and Technology (DST) in 2015, focuses on developing novel technologies for methanol production from different feedstocks, such as high ash coal, carbon dioxide, and biomass. The programme also supports research on methanol utilization in direct methanol fuel cells, methanol engines, and methanol blending with LPG.

Methanol Cooking Fuel Programme: Launched by Assam Petrochemicals in 2018, which is the first canister-based methanol cooking fuel programme in Asia. The programme aims to provide a clean, cost-effective, and pollution-free cooking medium to households by replacing LPG, kerosene, and wood charcoal with methanol stoves. The programme has been scaled up to 10 states in India with a target of reaching 1 lakh households.

Challenges:

1. Lack of Domestic Natural Gas Resources: India can explore alternative feedstocks for methanol production, such as high ash coal and low-grade biomass. Research and development efforts can focus on improving the efficiency and environmental sustainability of these processes.
2. High Ash Coal and Low-Grade Biomass: India can invest in advanced technologies for coal and biomass conversion to methanol to reduce emissions and processing costs. Additionally, sourcing low-ash coal from other regions or countries may be considered.
3. Lack of Infrastructure and Policy Support: Develop the necessary infrastructure for methanol production, distribution, and utilization, including pipelines, blending facilities, and standards for vehicles and appliances. Introduce policies and incentives to support methanol producers and consumers.
4. Lack of Awareness and Acceptance: Conduct public awareness campaigns to educate the population about the benefits and safety measures of methanol use. Address safety and environmental concerns through stringent regulations and safety protocols.

Solutions:

1. Developing Novel Catalysts and Processes:

• Collaborate with research institutions, industry experts, and government agencies to enhance methanol production efficiency and sustainability.
• Conduct environmental impact assessments to ensure eco-friendly processes.

2. Promoting Methanol as Marine Fuel:

• Partner with maritime industries to establish guidelines and standards for methanol use in ships.
• Educate stakeholders on the advantages of using methanol to reduce emissions and comply with international regulations.

3. Introducing Methanol-Based Fuel Cells:

• Invest in fuel cell technology and infrastructure to support methanol fuel cells.
• Ensure that methanol fuel cells are reliable, cost-effective, and suitable for a broad range of applications beyond electricity generation.

4. Encouraging Methanol-Powered Vehicles:

• Collaborate with automobile manufacturers to develop engines and fuel injection systems compatible with methanol.
• Promote the benefits of methanol-powered vehicles, including reduced greenhouse gas emissions and improved air quality.

5. Expanding Distribution Network and Infrastructure:

• Invest in a comprehensive distribution network with proper storage and dispensing facilities for methanol.
• Ensure strict safety measures for handling and transporting methanol.

6. Creating Awareness and Incentives:

• Launch educational campaigns to inform the public about the advantages of methanol-based fuels and appliances.
• Consider offering incentives such as tax breaks, subsidies, or discounts to encourage consumer adoption and stimulate demand.

Conclusion

These solutions require a concerted effort involving government agencies, industry players, and the public to overcome the challenges and promote the Methanol Economy in India.

Source - The Hindu Business Line