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E-methanol offers a viable path for reducing emissions in hard-to-abate sectors such as shipping and chemical manufacturing.

What is e-methanol (or electro-methanol)?

  • It is a low-carbon energy produced by combining green hydrogen with captured carbon dioxide.
  • E-methanol production typically involves three key steps:
    • Green hydrogen generation: Renewable energy-powered water electrolysis creates the hydrogen feedstock.
    • CO2 capture: Carbon dioxide is captured from industrial flue gases (e.g. steel mills or cement plants) or directly from the air, reducing overall emissions at the source.
    • Methanol synthesis: The hydrogen and CO2 are combined in a catalytic reactor under pressure, yielding methanol with minimal by-products.
  • Benefits: Can be used without a change in infrastructure; Stable (can be stored at room temperature and ambient pressure); versatile (can be used as other fuels).
  • Applications: Apart from the shipping industry, its derivatives gasoline and kerosene provide solutions for road and air transport.
  • Challenges: E-methanol remains significantly more expensive than fossil-based methanol due to high renewable electricity costs and production inefficiencies.

‘Methanol Economy’ Programme in India (by NITI Aayog)

  • Aim: Reducing India's oil import bill, greenhouse gas (GHG) emissions, and converting coal reserves and municipal solid waste into methanol.
    • Methanol is a low carbon, hydrogen carrier fuel produced from high ash coal, agricultural residue, CO2 from thermal power plants and natural gas.
  • Benefits:
    • It will create close to 5 million jobs through methanol production/application and distribution services.
    • Rs 6000 crore can be saved annually by blending 20% DME (Di-methyl Ether, a derivative of methanol) in LPG.
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