India Can Cut LPG Imports By 6.3 Tonnes To Save Rs 34,200 Cr By Blending 20% DME; What Are The Challenges?

After the supply disruption faced due to the conflict in West Asia, India, the world's second-largest LPG importer, is mulling cutting its dependence on imports by blending the domestic gas with 20 per cent dimethyl ether (DME).

According to a report titled 'Coal gasification for energy and chemical security', released by EY-Parthenon and New Era Cleantech Solution Ltd, DME, which is produced from coal and gasification, could be used for blending to cut LPG imports by around 6.3 million tonnes a year.

What is DME?

DME is described by the Council of Scientific and Industrial Research (CSIR) as an eco-friendly and sustainable fuel, which is synthetically produced and can be used as an alternative fuel in specially designed compression ignition (CI) engines (diesel engines).

CSIR states, "Under normal atmospheric conditions, DME is a colourless gas. It is used extensively in the chemical industry and as an aerosol propellant, solvent, fuel, and refrigerant."

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"DME exhibits comparable calorific value and similarity of its thermal efficiency to traditional fuels; It is a clean-burning fuel with low emissions and low particulate matter," CSIR added.

DME is produced from coal gasification, biomass gasification or waste-derived syngas through two major production pathways and natural gas reforming.

India needs to scale up production through

The report calls DME a partial substitute for LPG. According to news agency PTI, the Bureau of Indian Standards (BIS) has already notified standards for mixing DME with LPG, permitting 20 per cent blending.

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At present, India has a limited pilot-scale domestic DME production, and hence a clear blending policy and scaling up the production through investments would be required.

Balasaheb Darade, MD, New Era Cleantech, said, "A clear blending policy will be key to unlocking investments and scaling domestic DME production."

For countries with coal reserves, production remains possible domestically. Currently, China has the biggest DME production capacity, around 90 per cent.

With PTI Inputs