Methanol is a clear and colourless liquid produced from natural gas, coal and wide range of renewable feed stocks. Also known as wood alcohol, methanol is naturally occurring and biodegradable. The Indian government is promoting coal gasification to convert high ash coal into methanol that can be used as cooking gas, with an aim to cut down dependence on West Asian countries for LPG imports. Coal with high ash content can be converted into methanol and can be used for cooking gas purpose as methanol is substitute for LPG. Experts believe that India’s LPG imports will rise over the next three years to 16-17 MT as the government pushes for making available cooking gas cylinders to the poor and wean them away from polluting fuels. We import 60 per cent of our LPG needs and we can save billions of dollars by converting high ash coal into methanol and use it for cooking gas purpose. Methanol economy promises to help India mitigate its petroleum import costs and at the same time counter problems associated with global warming. “India is in the cusp of a gigantic transformation towards a developed nation. The country can use its abundant coal reserves to produce methanol through gasification. Abundant non-edible biomass can also be gasified to produce methanol,” According to the latest estimate, methanol production could cut India’s huge crude oil imports bill, which is pegged at Rs 6 lakh crore per annum. The world’s largest coal miner, Coal India Ltd (CIL), is likely to set up a coal-based methanol plant in West Bengal. There is excessive ash content at several coal mines in states like West Bengal, Odisha and Jharkhand, which are not in much demand amongst the coal-based power plants. Smartgen is in association with suitable technology partners to explore business opportunities in this segment.

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