Shri Nitin Gadkari, Union Minister of Road Transport &
Highways, Shipping, Water Resources, River Development & Ganga Rejuvenation
made a statement on Methanol in Lok Sabha today. The following
is a note on methanol economy in India.
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.
Hydrocarbon Fuels have also adversely affected the environment
with Green House Gas Emissions (GHG). India is the third highest energy related
carbon dioxide emitter country in the world. Almost 30%pollution in cities like
Delhi is from automobiles and the growing number of automobiles on the road
will further worsen the pollution. It must be noted that the recent situation
is alarming and time has come for the Govt to present a comprehensive road map
to reduce the urban pollution in this country and stop pollution related deaths
completely.
Hon'ble Prime Minister has set a goal for our Country to reduce
the import bill by 10% by the year 2022. Crude oil imports drain our foreign
exchange, putting enormous pressure on our currency & thereby weakening our
bargaining power with the rest of the world. We need to have our own “Indian
Fuel of global relevance”
Why Methanol?
Methanol is a clean burning drop in fuel which can replace both petrol
& diesel in transportation & LPG, Wood, Kerosene in cooking fuel. It
can also replace diesel in Railways, Marine Sector, Gensets, Power Generation
and Methanol based reformers could be the ideal compliment to Hybrid and
Electric Mobility. Methanol Economy is the “Bridge” to the dream of a complete
“Hydrogen based fuel systems”.
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 can blended with LPG
and can be excellent substitute for diesel in Large buses and trucks.
METHNAOL 15 (M15) IN PETROL WILL REDUCE POLLUTION BY 33% &
DIESEL REPLACEMENT BY METHANOL WILL REDUCE BY MORE THAN 80%
Methanol can be produced from Natural Gas , Indian High Ash Coal ,
Bio-mass, MSW , stranded and flared gases and India can achieve (through right
technology adaptation} to produce Methanol @ Rs.19 a litre from Indian coal and
all other feedstock. The best part world is already moving towards renewable
methanol from C02 and the perpetual recycling of C02 into Methanol, say CO2
emitted from Steel plants, Geothermal energy or any other source of CO2,
effectively “Air to Methanol”
During the last few years, the use of methanol and DME as fuel has
increased significantly. Methanol demand is growing at a robust 6 to 8 %
annually. World has installed capacity of 120 MT of Methanol and will be about
200 MT by 2025.
Currently Methanol accounts for almost 9% of transport fuel in
China. They have converted millions of vehicles running on Methanol. China
alone produces 65% of world Methanol and it uses its coal to produce Methanol.
Israel, Italy have adopted the Methanol 15% blending program with Petrol and
fast moving towards M85 & M100, Japan, Korea have extensive Methanol &
DME usage and Australia has adopted GEM fuels (Gasoline, Ethanol &
Methanol) and blends almost 56% Methanol. Methanol has become the choice of
fuel in Marine Sector worldwide and countries like Sweden are at the forefront of
usage. Large passenger ships carrying more than 1500 people are already running
on 100% Methanol. 11 African and many Caribbean countries have adopted Methanol
cooking fuel and across the world Gensets and industrial boilers are running on
Methanol, instead of diesel.
Renewable Methanol by capturing Co2 back from the atmosphere is
becoming very popular and is seen by the world as the “Enduring Energy
Solution known to Mankind”. Methanol is a significant solution to the burning
problem of Urban pollution worldwide.
What India Can do?
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.
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 road map 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 feed stocks.
·
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 . LPG = DME blending
program.
·
Utilization
of methanol in fuel cell applications in Marine, Gensets and Transportation
Methanol
Benefits in Transportation sector:
With
Very little modifications to existing engines (vehicles) and fuel distribution
infrastructure. 15% of all vehicle fuels can be converted to Methanol & Di
Methyl Ether (DME). 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. My
Ministry has already prepared the draft notification of M15, M100 & DME as
transport fuel and is expecting a clearance from Law ministry to be notified
officially. India has had extensive discussions with Israel , which has
successfully implemented Methanol 15 (M15) blending program for Technology
transfer.
Global
engine manufactures like Volvo, caterpillar, Mercedes and in collaboration with
Indian players can manufacture these engines under the Make in India and will
result in big FDI investments. The development of this sector will bring jobs
in the engineering sector.
Methanol
Benefits in Marine Sector
Worldwide
due to emission regulations being implemented stringently by IMO (International
Maritime Organisation), marine Sector is shifting to Methanol as fuel of
choice. Being a very efficient in liquid form and practically generating no SOx
or NOx, Methanol is much cheaper than LNG and Bunker / Heavy Oil. My ministry
is preparing a road map to convert 500 barges into Methanol and a cabinet note
is being prepared to adopt Methanol in Inland Waterways system. The first barge
in India to run on Methanol will be achieved in the next 12 months. Sweden has
already about 17 boats, ferrys, barges and a 1500 passengers cruise ship
running on Methanol.
India
will convert abt 50 Nos of vessels in the Port sector and various vessels owned
by government entities to operate on Methanol. My Ministry is touch with all
global and national players to bring all this technology in India, resulting in
a massive modernization and transformation of the sector. This opportunity will
also be used to standardise all the marine regulations both sea and inland in
parity with International Maritime Organization rules and with global
standards.
Methanol
in Railways
Indian
Railways consumes about 3 billion litres a year and the annual diesel bill is
in excess of Rs. 15000 Crores. A Methanol locomotive prototype is being
implemented by Indian Railways under a grant by Department of Science &
Technology and once all 6000 diesel engines are converted to methanol (at very
minimal cost of less than 1 crore a engine), the annual diesel bill can be
reduced by 50%. Methanol conversion program in railways is complimentary to the
goals of electrification in Railways.
Methanol
& DME in Cooking fuel program (Liquid fuel and LPG – DME blending program
The cooking fuel program of Methanol liquid fuel and LPG-DME
blending is a low hanging fruit for India. A 20% blending program with LPG,
without any infrastructure modifications would result in a immediate savings of
Rs.6000 Crores a year. Lakhs of rural women will cook healthy and Methanol
supplied in canisters would ensure fuel supply in the remotest part of North
East and Himalayas.
Thus Far:
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. Focus is on augmenting Methanol
production capacity of existing producers like GNFC, RCF & Assam Petro and
through various routes of production, India will target a Methanol production
of at least 5 million tons by 2021. PSU’s like BHEL, CIL & SAIL are
contemplating to produce Methanol though the coal route and Oil PSU’s through
the stranded gas route. BHEL at Trichy, the Talcher Fertilizer plant can also
produce Methanol in Large quantities in a short period of time.
Summary:
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. Rs. 6000 Crores can be annually saved from reduced bill in LPG in the
next 3 years itself. The Methanol blending program with Gasoline will further
reduce our fuel bill by at least 5000 Crores annually in next 3 years.
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.
The
final roadmap for ‘Methanol Economy’ being worked out by NITI Aaayog is
targeting an annual reduction of 100 Billion $ by 2030 in crude imports in line
with our Hon PM’s vision. To promote this renewable, alternate fuel a “Methanol
Economy Fund” is also being contemplated. A cabinet note on Methanol in
Inland Waterways and Marine Sector and overall adaptation of “Methanol
Economy” will be moved shortly.
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NP/MS