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- Need - Process Overview - Technology Comparison - Products - Challenges Coal Gasification
Coal Gasification- Overview Source: https://coal.gov.in/ Shared by: hashtagEPC.com
Need for Coal Gasification: Abundant indigenous Coal Source 2 Source: GSI Coal Inventory 2020 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Proved Indicated Inferred Total Coking Thermal Total Coal Resources in India (Million tons) • It is evident that India has huge reserves of coal, it would be beneficial for India if it finds a sustainable way of using these reserves as the world including India is gradually transitioning away from coal toward cleaner fuels in the wake of climate change • The use of domestic coal reserves becomes even more important, especially when India does not have other sources of fuel – crude oil and natural gas, 82% and 45% of the requirement of those fuels is met through imports. This exposes India to the vagaries of price volatility and supply insecurity. • India will continue to depend on coal for its future energy needs at least till 2050 as per several reports. • Since coal has to be used for coming 2 to 3 decades, there is an urgent need to make use of coal as green as possible Key Takeaways India can monetize abundantly available coal reserves through gasification to cater the growing energy and chemicals needs of the country
3 Natural resources hold significant potential to contribute to development of an economy Optimal utilization of resources can result in long term economic growth Creation of new industries & services base Natural resources availability Promotion of domestic manufacturing and Industries Forex reserves and skills improvement Socio Economic Development Extraction of Natural Sources and developing ancillary industries is a capital intensive Employment and skill development Exports and Imports Exports can rapidly rise while Imports will be reduced Government Revenue Natural Resources extraction has become a very significant source of total tax revenues FDI Increase FDI inflow into the country Timely exploitation of Natural resources have helped countries in creating long term economic drivers E.g. ▪ Shale gas revolution in US ▪ Coal to Chemicals in China Need for Coal Gasification: Optimal utilization of indigenous natural resources is critical for long term economic growth and competitive advantages
China is monetising Indigenous coal resources to meet Energy, Chemical and Petrochemical demands Coal to Chemicals China ▪ Role of Coal Gasification in Methanol: China has become by far the largest producing country in the world, representing 54% of world methanol capacity (~80 MTPA) and 48% of world methanol production in 2018 ▪ China is the incremental methanol supplier to the world. Around 70% of China methanol is produced from coal ▪ China has significantly Increased Methanol Blending in fuels over the last few years which now stands at 21 MMTPA. ✓ Methanol direct blending with Gasoline (8.5 MMTPA) ▪ Direct blending now stands at 8.5 MMTPA or 9% of transport fuel demand ▪ While M15(Methanol-15%, Gasoline 85%) is the main methanol blend available in major cities and provinces. Other blends like M25, M30, M85 and M100 are also being used Methanol ▪ China produces more than 90% of its ammonia through coal gasification ▪ Higher self-reliance in energy supply and lower risk of oil and gas supply from abroad are the major drivers of coal gasification related industries ▪ China has been pushing for coal gasification in a major way by adopting proven western-developed gasifiers to gain operational experience ▪ It is the only country in the world, where large-scale coal gasification related industries play a significant role in economic development ▪ Role of Coal Gasification in Ammonia/Urea: NH3 capacity is approx. 70 MTPA (~30% of the world) and urea capacity is approx. 80 MTPA (~40% of the world). ▪ Role of Coal Gasification in Ethylene Glycol (EG): Capacity of coal-based EG is approx. 2.5 MTPA (~30% of China total). ▪ Role of Coal Gasification in Methanol to Olefin (MTO): Capacity of coal-based Olefin is approx. 13mt/a (~25% of China’s total).
Coal Gasification- Advantages 5 • Strategic importance due to abundant availability of indigenous coal resource • Reduce dependence on imported energy sources, chemicals and feedstock for a variety of products • Widespread implementation & promotion of technology can make India “Atmanirbhar” in several value-added products • Mega coal to chemicals plant complexes at coal pit-heads can bring in regional economic prosperity as well as help meeting the gaps in interior states of the country • To promote initiatives for sustainable, gainful & maximum utilization of national coal reserves • CO2 and other polluting gases can be separated, captured in cheaper way and utilized for other industrial uses Reduce dependence on Imports Self Reliance- Atmanirbhar Bharat Low Carbon Emissions
Recently, coal gasification has gained momentum with series of key events and govt. initiatives 6 GOI announced its first coal gasification-based fertilizer plant at Talcher, expected to be commissioned by 2023-24. Sep’18 NCCCR&D has been launched at IISc by the Department of Science & Technology (DST). Government allows 100% FDI in coal mining Aug’19 CIL Announced 3 coal gasification project for coal to Methanol. PM’s Impetus to Clean Coal Gasification Sep’19 MoC announces to incentivize gasification/liquification through rebate in revenue share for commercial block auctions. May’20 GOI forms a steering committee under NITI Aaayog to look into coal gasification. Aug’20 India aims for 100 million tons (MT) coal gasification by 2030 with investments worth over Rs. 4 lakh crores Sep’20 MOC constitutes Task Force and Expert Committee to Prepare Road Map for Coal based Hydrogen Production Sep’21
National Coal Gasification Mission 7 100 MT Coal Gasification Target by 2030 • Indian government aims for 100 million ton (MT) coal gasification by 2030, with investments worth over Rs. 4 trillion. • In order to encourage the use of clean sources of fuel, the government has provided a concession of 20% on revenue share under commercial coal block auctions. • A Steering Committee has been constituted regarding Surface Coal Gasification under the chairmanship of Dr. V.K. Saraswat and members from the Ministry of Coal. • CIL has also planned to set up at least 3 gasification plants (besides Dankuni) on BOO basis through global tendering and has signed an MoU with GAIL for marketing synthetic natural gas.
Other factors and challenges slowing investments- To be addressed by Govt. and Industries 8 • Low Grade, high ash coal • Large Quantity of fines due to improper mining • Monetisation of Coal fines • Variation in quality due to unavailability of dedicated source • Inadequate coal beneficaiton facilities Coal Related • Availability of proven gasification technology suitable for Indian poor-quality Coal • Costly & Complex coal feed preparation technology • High technology cost affects Syngas & downstream products costs & Project viability • Costly large capacity Cryogenic ASU plants required for Oxygen gas supply • Lack of experienced EPC / LSTK and O&M Manpower contractor • Due to demand / price fluctuations, only poly-generation route configuration is viable Technology Related • Coal gasification is yet to get recognition as “New Business Opportunity” • Recognition of coal gasification as Infrastructure sector • Modification in ‘Coal Distribution Policy’ to accommodate Coal Gasification including Producer Gas Plants using coal • Declaration of a separate Sector for facilitate allocation of coal • Earmarking coal sources/blocks to supply right quality of coal • Fixation of Norms by a scientific institute for coal allocation to accommodate support units and considering type of gasifier, washability characteristics of coal, coal specifications & grade Reduce dependence on Imports • Huge quantity of waste, black water generation • Costly waste treatment for ZLD • Costly systems for CO2, H2S removal • Ash storage and disposal Environment Related Key Challenges
Suggested Key Initiatives by the Govt to make Coal Gasification a Success 9 ‘Dedicated, closeby Coal Mines’ to be earmarked for Coal Gasification Projects (to be awarded through Auction Linkage) for better Coal Quality consistency , sustained Supply & closer Mining & Transportation Cost control. Viability gap funding, Infrastructure status Financial Incentives from Govt to support very high Capex of Gasification Projects needed to improve Viability of ‘Energy Security’ (Clean) Projects. Level playing field Exemption from currently applicable Cess / Duties on Coal Feedstock prices to be provided for Environment - friendly Coal Gasification Projects due to its Clean Technology adaptation ‘National Policy on Coal Gasification & Liquefaction’ should be urgently formulated and promulgated for faster and smooth implementation of Coal Gasification based Projects. Schemes for ‘Blending Methanol, DME with Gasoline & LPG’ respectively to be implemented at the earliest. Policy framework for all by products of coal gasification.
Coal Gasification- Process Unit 10 Coal/ Petcoke/ Other carbon feedstock
Suitability of Gasification Technologies to Indian coal 11 550 °C 1350 – 1600 °C 800 – 1100 °C Feedstock 5-50 mm Feedstock < 5 mm Suitable for high ash Indian coals (>35% Ash) Best Suitable for Petcoke/Coal blends Or Coal (<30% Ash) Feedstock < 0.1 mm FIXED BED LURGI SASOL SEDIN ENTRAINED FLOW GE Shell E-Gas Chinese Slurry Feed Chinses Dry Feed FLUIDISED BED U-GAS HTW
Specifications of available technologies 12 Parameter Lurgi GE SHELL Gasification type Fixed Bed Entrained flow Entrained flow Type of feed Coal 100% Coal, 100% Petcoke, Petcoke &coal blend 100% Coal, 100% Petcoke, Petcoke &coal blend Type of syngas cooling Syngas cooler Syngas cooler, bottom quench Syngas cooler, bottom quench Feed type Dry feed Slurry Dry feed Wall Jacketed Refractory Membrane Wall Pressure(bar) 30 65, 85 40-45 Outlet syngas Temp ~550 0 C ~1500 0 C (SG)/ ~240 0 C (quench) ~1600 0 C (SG)/ ~210 0 C (quench) Feed size suitability 5-50 mm <100 µm <100 µm Ash range 25% to 35% <30% <30% Minimum Ash/Flux required - 2-3 % 8 % H2/CO ratio ~1.6 ~0.6 ~0.5 No. of gasifiers 114 >100 >23 No. of burners no burners single multi burner
Gasification Products 13 Coal/Petcoke Gasification Syngas CO Methanol H2 CO Chemicals Acetic Acid Formaldehyde DME Ethylene Propylene MMA VAM Refinery Fuel Cell Ammonia Polypropylene Phenol Acrylic Acid Oxy Alcohol Acrylonitrile Polyethylene EVA Methyl Chloride Methylene Dichloride Chloroform Carbon Tetrachloride PMMA Fischer Tropsh Liquid Diesel Naptha Wax
Methanol Market Overview Market Overview ▪ Global Capacity (2021): 161 MMTPA. ▪ Expected CAGR: 4.5 -5% ▪ Production level is at 67% of the capacity. ▪ Asia and China are the major supplier as well as consumer of Methanol. 127 133 136 147 153 161 85 88 92 98 102 107 50 100 150 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 Capacity Production Indian Market ▪ Indian demand is mainly met through import. Total demand is approx. 2.5 million tons, out of which around 90% is being import. ▪ Installed Capacity: 4.74 Lakh tons ▪ Major Import are from Middle East countries – Qatar and UAE 177 260 272 176 1,802 2,034 2,248 2,449 - 500 1,000 1,500 2,000 2,500 3,000 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 000’ Tons Indian Market Production Consumption Top Producer of Methanol In India Company Location Capacity (MTPA) GNFC Bharuch, GJ 160000 Deepak Fertilizers Taloja, MH 10000 Rama Petrochemicals Patalganga, MH 60000 RCF Trombay, MH 49500 Assam Petrochemicals Namrup, AS 40000 National Fertilizers Nangal, AP 19500 Total 429000
Benefits of meeting the needs of Fuels, Chemicals through Methanol & Downstream value chain of Coal Gasification 15 of Foreign exchange saved by Indigenous production over the project life of 20 years >15000 0 Direct and In-direct Employment Generation Supply security for Enhanced Energy , Fertilizer & Chemicals Revenue to the Govt. over the project life as Taxes, Duties, Coal Royalty etc. ✓ Clean Technology: 99% Recovery of Sulphur in coal as saleable Sulphur; CO2 in ready to capture form ✓ Methanol 15 (M15) in petrol will reduce pollution by 33% and diesel replacement by methanol will reduce by more than 80 %. 220 Bn $
▪NITI Aayog's 'Methanol Economy' programme is aimed at reducing India's oil import bill, greenhouse gas (GHG) emissions, and converting coal reserves and municipal solid waste into methanol. ▪Blending of 15% methanol in gasoline can result in at least 1-5% reduction in the import of gasoline/crude oil, which will bring down GHG emissions by 20%, thereby improving the urban air quality. ▪Creation of 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. This will help the consumer in saving between INR 50-100 per cylinder. ▪ Under R&D, work is in progress to set up coal-to-methanol plants in the country using indigenous technology, which is being developed by BHEL (Hyderabad and Trichy), Thermax, and IIT Delhi. ▪An R&D project has also been sanctioned by the Department of Biotechnology to IISc Bengaluru and Praj Industries Pune to produce methanol from biomass. Phase-I of the production of syngas from biomass was demonstrated in January 2019. NITI Aayog’s Methanol Economy Program
Coal_Gasification_Overview_1712844563.pdf

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Coal_Gasification_Overview_1712844563.pdf

  • 1. - Need - Process Overview - Technology Comparison - Products - Challenges Coal Gasification
  • 3. Need for Coal Gasification: Abundant indigenous Coal Source 2 Source: GSI Coal Inventory 2020 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Proved Indicated Inferred Total Coking Thermal Total Coal Resources in India (Million tons) • It is evident that India has huge reserves of coal, it would be beneficial for India if it finds a sustainable way of using these reserves as the world including India is gradually transitioning away from coal toward cleaner fuels in the wake of climate change • The use of domestic coal reserves becomes even more important, especially when India does not have other sources of fuel – crude oil and natural gas, 82% and 45% of the requirement of those fuels is met through imports. This exposes India to the vagaries of price volatility and supply insecurity. • India will continue to depend on coal for its future energy needs at least till 2050 as per several reports. • Since coal has to be used for coming 2 to 3 decades, there is an urgent need to make use of coal as green as possible Key Takeaways India can monetize abundantly available coal reserves through gasification to cater the growing energy and chemicals needs of the country
  • 4. 3 Natural resources hold significant potential to contribute to development of an economy Optimal utilization of resources can result in long term economic growth Creation of new industries & services base Natural resources availability Promotion of domestic manufacturing and Industries Forex reserves and skills improvement Socio Economic Development Extraction of Natural Sources and developing ancillary industries is a capital intensive Employment and skill development Exports and Imports Exports can rapidly rise while Imports will be reduced Government Revenue Natural Resources extraction has become a very significant source of total tax revenues FDI Increase FDI inflow into the country Timely exploitation of Natural resources have helped countries in creating long term economic drivers E.g. ▪ Shale gas revolution in US ▪ Coal to Chemicals in China Need for Coal Gasification: Optimal utilization of indigenous natural resources is critical for long term economic growth and competitive advantages
  • 5. China is monetising Indigenous coal resources to meet Energy, Chemical and Petrochemical demands Coal to Chemicals China ▪ Role of Coal Gasification in Methanol: China has become by far the largest producing country in the world, representing 54% of world methanol capacity (~80 MTPA) and 48% of world methanol production in 2018 ▪ China is the incremental methanol supplier to the world. Around 70% of China methanol is produced from coal ▪ China has significantly Increased Methanol Blending in fuels over the last few years which now stands at 21 MMTPA. ✓ Methanol direct blending with Gasoline (8.5 MMTPA) ▪ Direct blending now stands at 8.5 MMTPA or 9% of transport fuel demand ▪ While M15(Methanol-15%, Gasoline 85%) is the main methanol blend available in major cities and provinces. Other blends like M25, M30, M85 and M100 are also being used Methanol ▪ China produces more than 90% of its ammonia through coal gasification ▪ Higher self-reliance in energy supply and lower risk of oil and gas supply from abroad are the major drivers of coal gasification related industries ▪ China has been pushing for coal gasification in a major way by adopting proven western-developed gasifiers to gain operational experience ▪ It is the only country in the world, where large-scale coal gasification related industries play a significant role in economic development ▪ Role of Coal Gasification in Ammonia/Urea: NH3 capacity is approx. 70 MTPA (~30% of the world) and urea capacity is approx. 80 MTPA (~40% of the world). ▪ Role of Coal Gasification in Ethylene Glycol (EG): Capacity of coal-based EG is approx. 2.5 MTPA (~30% of China total). ▪ Role of Coal Gasification in Methanol to Olefin (MTO): Capacity of coal-based Olefin is approx. 13mt/a (~25% of China’s total).
  • 6. Coal Gasification- Advantages 5 • Strategic importance due to abundant availability of indigenous coal resource • Reduce dependence on imported energy sources, chemicals and feedstock for a variety of products • Widespread implementation & promotion of technology can make India “Atmanirbhar” in several value-added products • Mega coal to chemicals plant complexes at coal pit-heads can bring in regional economic prosperity as well as help meeting the gaps in interior states of the country • To promote initiatives for sustainable, gainful & maximum utilization of national coal reserves • CO2 and other polluting gases can be separated, captured in cheaper way and utilized for other industrial uses Reduce dependence on Imports Self Reliance- Atmanirbhar Bharat Low Carbon Emissions
  • 7. Recently, coal gasification has gained momentum with series of key events and govt. initiatives 6 GOI announced its first coal gasification-based fertilizer plant at Talcher, expected to be commissioned by 2023-24. Sep’18 NCCCR&D has been launched at IISc by the Department of Science & Technology (DST). Government allows 100% FDI in coal mining Aug’19 CIL Announced 3 coal gasification project for coal to Methanol. PM’s Impetus to Clean Coal Gasification Sep’19 MoC announces to incentivize gasification/liquification through rebate in revenue share for commercial block auctions. May’20 GOI forms a steering committee under NITI Aaayog to look into coal gasification. Aug’20 India aims for 100 million tons (MT) coal gasification by 2030 with investments worth over Rs. 4 lakh crores Sep’20 MOC constitutes Task Force and Expert Committee to Prepare Road Map for Coal based Hydrogen Production Sep’21
  • 8. National Coal Gasification Mission 7 100 MT Coal Gasification Target by 2030 • Indian government aims for 100 million ton (MT) coal gasification by 2030, with investments worth over Rs. 4 trillion. • In order to encourage the use of clean sources of fuel, the government has provided a concession of 20% on revenue share under commercial coal block auctions. • A Steering Committee has been constituted regarding Surface Coal Gasification under the chairmanship of Dr. V.K. Saraswat and members from the Ministry of Coal. • CIL has also planned to set up at least 3 gasification plants (besides Dankuni) on BOO basis through global tendering and has signed an MoU with GAIL for marketing synthetic natural gas.
  • 9. Other factors and challenges slowing investments- To be addressed by Govt. and Industries 8 • Low Grade, high ash coal • Large Quantity of fines due to improper mining • Monetisation of Coal fines • Variation in quality due to unavailability of dedicated source • Inadequate coal beneficaiton facilities Coal Related • Availability of proven gasification technology suitable for Indian poor-quality Coal • Costly & Complex coal feed preparation technology • High technology cost affects Syngas & downstream products costs & Project viability • Costly large capacity Cryogenic ASU plants required for Oxygen gas supply • Lack of experienced EPC / LSTK and O&M Manpower contractor • Due to demand / price fluctuations, only poly-generation route configuration is viable Technology Related • Coal gasification is yet to get recognition as “New Business Opportunity” • Recognition of coal gasification as Infrastructure sector • Modification in ‘Coal Distribution Policy’ to accommodate Coal Gasification including Producer Gas Plants using coal • Declaration of a separate Sector for facilitate allocation of coal • Earmarking coal sources/blocks to supply right quality of coal • Fixation of Norms by a scientific institute for coal allocation to accommodate support units and considering type of gasifier, washability characteristics of coal, coal specifications & grade Reduce dependence on Imports • Huge quantity of waste, black water generation • Costly waste treatment for ZLD • Costly systems for CO2, H2S removal • Ash storage and disposal Environment Related Key Challenges
  • 10. Suggested Key Initiatives by the Govt to make Coal Gasification a Success 9 ‘Dedicated, closeby Coal Mines’ to be earmarked for Coal Gasification Projects (to be awarded through Auction Linkage) for better Coal Quality consistency , sustained Supply & closer Mining & Transportation Cost control. Viability gap funding, Infrastructure status Financial Incentives from Govt to support very high Capex of Gasification Projects needed to improve Viability of ‘Energy Security’ (Clean) Projects. Level playing field Exemption from currently applicable Cess / Duties on Coal Feedstock prices to be provided for Environment - friendly Coal Gasification Projects due to its Clean Technology adaptation ‘National Policy on Coal Gasification & Liquefaction’ should be urgently formulated and promulgated for faster and smooth implementation of Coal Gasification based Projects. Schemes for ‘Blending Methanol, DME with Gasoline & LPG’ respectively to be implemented at the earliest. Policy framework for all by products of coal gasification.
  • 11. Coal Gasification- Process Unit 10 Coal/ Petcoke/ Other carbon feedstock
  • 12. Suitability of Gasification Technologies to Indian coal 11 550 °C 1350 – 1600 °C 800 – 1100 °C Feedstock 5-50 mm Feedstock < 5 mm Suitable for high ash Indian coals (>35% Ash) Best Suitable for Petcoke/Coal blends Or Coal (<30% Ash) Feedstock < 0.1 mm FIXED BED LURGI SASOL SEDIN ENTRAINED FLOW GE Shell E-Gas Chinese Slurry Feed Chinses Dry Feed FLUIDISED BED U-GAS HTW
  • 13. Specifications of available technologies 12 Parameter Lurgi GE SHELL Gasification type Fixed Bed Entrained flow Entrained flow Type of feed Coal 100% Coal, 100% Petcoke, Petcoke &coal blend 100% Coal, 100% Petcoke, Petcoke &coal blend Type of syngas cooling Syngas cooler Syngas cooler, bottom quench Syngas cooler, bottom quench Feed type Dry feed Slurry Dry feed Wall Jacketed Refractory Membrane Wall Pressure(bar) 30 65, 85 40-45 Outlet syngas Temp ~550 0 C ~1500 0 C (SG)/ ~240 0 C (quench) ~1600 0 C (SG)/ ~210 0 C (quench) Feed size suitability 5-50 mm <100 µm <100 µm Ash range 25% to 35% <30% <30% Minimum Ash/Flux required - 2-3 % 8 % H2/CO ratio ~1.6 ~0.6 ~0.5 No. of gasifiers 114 >100 >23 No. of burners no burners single multi burner
  • 14. Gasification Products 13 Coal/Petcoke Gasification Syngas CO Methanol H2 CO Chemicals Acetic Acid Formaldehyde DME Ethylene Propylene MMA VAM Refinery Fuel Cell Ammonia Polypropylene Phenol Acrylic Acid Oxy Alcohol Acrylonitrile Polyethylene EVA Methyl Chloride Methylene Dichloride Chloroform Carbon Tetrachloride PMMA Fischer Tropsh Liquid Diesel Naptha Wax
  • 15. Methanol Market Overview Market Overview ▪ Global Capacity (2021): 161 MMTPA. ▪ Expected CAGR: 4.5 -5% ▪ Production level is at 67% of the capacity. ▪ Asia and China are the major supplier as well as consumer of Methanol. 127 133 136 147 153 161 85 88 92 98 102 107 50 100 150 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 Capacity Production Indian Market ▪ Indian demand is mainly met through import. Total demand is approx. 2.5 million tons, out of which around 90% is being import. ▪ Installed Capacity: 4.74 Lakh tons ▪ Major Import are from Middle East countries – Qatar and UAE 177 260 272 176 1,802 2,034 2,248 2,449 - 500 1,000 1,500 2,000 2,500 3,000 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 000’ Tons Indian Market Production Consumption Top Producer of Methanol In India Company Location Capacity (MTPA) GNFC Bharuch, GJ 160000 Deepak Fertilizers Taloja, MH 10000 Rama Petrochemicals Patalganga, MH 60000 RCF Trombay, MH 49500 Assam Petrochemicals Namrup, AS 40000 National Fertilizers Nangal, AP 19500 Total 429000
  • 16. Benefits of meeting the needs of Fuels, Chemicals through Methanol & Downstream value chain of Coal Gasification 15 of Foreign exchange saved by Indigenous production over the project life of 20 years >15000 0 Direct and In-direct Employment Generation Supply security for Enhanced Energy , Fertilizer & Chemicals Revenue to the Govt. over the project life as Taxes, Duties, Coal Royalty etc. ✓ Clean Technology: 99% Recovery of Sulphur in coal as saleable Sulphur; CO2 in ready to capture form ✓ Methanol 15 (M15) in petrol will reduce pollution by 33% and diesel replacement by methanol will reduce by more than 80 %. 220 Bn $
  • 17. ▪NITI Aayog's 'Methanol Economy' programme is aimed at reducing India's oil import bill, greenhouse gas (GHG) emissions, and converting coal reserves and municipal solid waste into methanol. ▪Blending of 15% methanol in gasoline can result in at least 1-5% reduction in the import of gasoline/crude oil, which will bring down GHG emissions by 20%, thereby improving the urban air quality. ▪Creation of 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. This will help the consumer in saving between INR 50-100 per cylinder. ▪ Under R&D, work is in progress to set up coal-to-methanol plants in the country using indigenous technology, which is being developed by BHEL (Hyderabad and Trichy), Thermax, and IIT Delhi. ▪An R&D project has also been sanctioned by the Department of Biotechnology to IISc Bengaluru and Praj Industries Pune to produce methanol from biomass. Phase-I of the production of syngas from biomass was demonstrated in January 2019. NITI Aayog’s Methanol Economy Program