World’s First Commercial-scale e-methanol Plant Opens in Denmark

Syllabus: GS3/ Environment

In News

• Denmark has launched the world’s first commercial-scale e-methanol plant in Kasso.
  • Developed by European Energy (Denmark) and Mitsui (Japan), the plant will produce 42,000 metric tonnes of e-methanol annually.

What is Methanol?

• About: Methanol (CH₃OH) is a light, volatile, and flammable liquid alcohol. Conventionally produced from natural gas and coal, it is used in chemicals, fuels, and plastics.

• Applications: Used in shipping fuel, plastic production, manufacturing fuel cells etc.

Challenges in e-Methanol Adoption

• High Cost: Not yet price-competitive with fossil fuels; price parity expected around 2035.
• Scale of Production: Infrastructure for large-scale green methanol is nascent.
• CO₂ Sourcing: Sustainable and reliable CO₂ capture remains a technological challenge.
• Storage and Distribution: Needs new or adapted logistics infrastructure.

India’s Methanol Economy Programme

• About: Launched by NITI Aayog, the Methanol Economy Programme aims to reduce oil import bills, curb pollution and promote cleaner alternatives of fuel. 
• Key Pillars: Production of methanol from coal, biomass, and municipal waste can be used in LPG blend, power generation, and transportation which eventually helps in reducing India’s oil import bill & greenhouse gas (GHG) emissions.
  • The program targets a 10% reduction in crude oil imports by 2030 by substituting it with methanol.
• Government Initiatives and Progress:  The Department of Science and Technology (DST) has initiated the Methanol Economy Research Programme (MERP) to support research and development in methanol production and utilization.
  • Blending of 15% methanol in gasoline (M15) has been notified, and test standards are being developed.
  • National Policy on Biofuels 2018 recognizes methanol and DME (dimethyl ether) as alternative fuels.

Source: TH