Mixing 20 Percent DME in LPG Could Save ₹34,200 Crore Annually: Report

As per a recent report, mixing 20 percent dimethyl ether (DME) produced from coal gasification with cooking gas (LPG) could lead to an annual reduction of approximately 6.3 million tons in LPG imports. This could result in foreign exchange savings of about ₹34,200 crore each year.

The process of coal gasification converts coal into syngas, which is then transformed into DME. DME is a clean-burning fuel that serves as a domestic alternative to imported LPG. The report is considered significant in light of the disruptions in LPG supply to India following the outbreak of war in West Asia.

According to the report titled 'Coal Gasification for Energy and Chemical Security' by EY-Parthenon and domestic coal gasification company New Era Cleantech Solutions Limited, DME produced from coal gasification could partially replace LPG imports. The report further stated that a 20 percent blend could reduce LPG imports by approximately 6.3 million tons annually. The Bureau of Indian Standards (BIS) has already notified standards allowing up to a 20 percent DME-LPG blend in India.

The report indicates that DME is emerging as a clean fuel alternative. Currently, DME production is only at the pilot level in India. The Managing Director of New Era Cleantech, Balasaheb Darade, mentioned that a clear blending policy will be crucial to attract investment and boost domestic DME production.

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