Sops planned to raise Methanol output from coal

NEW DELHI: The government is betting big on methanol to meet India's rising energy demand and is working on offering incentives to attract investments in production of methanol from domestic coal, besides setting up research projects that will be scaled up in line with growing consumption.

NITI Aayog member VK Saraswat told ET that the Department of Science and Technology is pumping in Rs 100 cr to run three research and technology projects that will facilitate commercial production of methanol from coal.

"Methanol is one of the energy options that can be simultaneously pursued along with ethanol and electric vehicles to meet our growing need for cleaner fuel in the country," Saraswat said.

"We are working on incentives, ranging from viability gap funding or subsidy on raw material, that can be given to attract private investment in the sector," Saraswat said.

The Aayog plans to prepare three detailed project reports on production of methanol, conversion of engines to adopt this fuel and infrastructure required for distributing and blending the fuel by March to kick-start the process. According to Saraswat, like other countries India will have to pursue a mix of energy options to meet its requirement and each technology will find its own use depending on its maturity level, cost effectiveness and sustainable requirement.

"Our focus is to adopt technologies that not only help reduce our carbon footprint and greenhouse gas emissions but also reduce our dependence on imported fuel. Hence, all efforts should be made to ensure that we use indigenously developed technology, be it in case of electric vehicles or methanol-run hybrid vehicles," he said.

Saraswat is pushing methanol economy and has suggested a road map to cut the oil import bill by $100 b by 2030 through use of methanol for cooking and transportation.