The recent inauguration of the first Indigenous High Ash Coal Gasification Based Methanol Production Plant in Hyderabad has put Bharat Heavy Electricals Limited (BHEL) in the spotlight. This government-owned engineering firm has successfully demonstrated the capability to manufacture methanol from high ash Indian coal.
Methanol: A Game Changer in Energy Production
Methanol, used as a motor fuel and a generator of clean power globally, is predominantly derived from natural gas. However, in India, there’s a dearth of natural gas reserves. Consequently, producing methanol using imported natural gas leads to substantial foreign exchange outflows and proves to be economically disadvantageous due to high costs.
The solution lies in capitalizing on India’s abundant coal reserves. But the high-ash content of Indian coal posed another problem. Conventional technology could not effectively process such coal. However, BHEL overcame this hurdle by creating a facility which can produce 0.25 TPD (Ton per Day) Methanol from high ash Indian coal using a 1.2 TPD Fluidized bed gasifier. The purity of the generated methanol ranges between 98% – 99.5%.
The ‘Methanol Economy’ Program
This endeavour aligns perfectly with NITI Aayog’s ‘Methanol Economy’ program. The goal is to reduce India’s oil import bills, minimize greenhouse gas emissions, and convert coal reserves and municipal solid waste into methanol. Moreover, this will boost India’s coal gasification mission and promote coal-to-hydrogen production for Hydrogen Mission.
Methanol ranks high as a low-carbon, hydrogen-carrier fuel produced from high ash coal, agricultural residue, CO2 from thermal power plants, and natural gas. It offers the most efficient route towards fulfilling India’s commitment to COP 21 (Paris Agreement).
Methanol vs Petrol and Diesel
Although methanol is slightly lower in energy content than petrol and diesel, it can efficiently replace these fuels in the transport sector. Additionally, methanol can be used in the energy sector and for retail cooking, thereby replacing LPG partially, kerosene, and wood charcoal.
Environmental and Economic Impact of Methanol Usage
Blending 15% methanol with gasoline can minimize the import of gasoline/crude oil by 15%. Further, this blend can slash down GHG emissions by 20%, thereby enhancing urban air quality. The methanol economy could potentially generate nearly five million jobs and save INR 6000 crores per annum by blending 20% Di-methyl Ether, a derivative of methanol, in LPG.
Steps in Promoting Methanol Economy
The Bureau of Indian Standards has given the green signal for 20% DME blending with LPG, and Ministry of Road, Transport and Highways has issued a notification for M-15, M-85, M-100 blends. Assam Petrochemicals launched Asia’s first canister-based methanol cooking fuel programme in October 2018, aligning with the Prime Minister’s vision of promoting clean, economical, and pollution-free cooking mediums.
Investments are being made in setting up methanol plants based on high ash coal, DME plants, and a natural gas-based methanol production plant. Seven cargo vessels and three boats are also being constructed to use methanol as a marine fuel.
The Path Ahead
With proven reserves of 125 billion tonnes of coal and 500 million tonnes of biomass generated every year, India has enormous potential in ensuring energy security based on alternate feedstock and fuels. However, there is a need to give the methanol economy more attention. The adoption of methanol-based technology can transform India from an energy-importing country into an energy-exporting nation.
