20% DME-LPG Blend Could Save India ₹34,200 Crore Annually
20% DME-LPG blend can cut imports by 6.3 MT, save nearly ₹34,200 cr: Report
Business Standard
Image: Business Standard
A report indicates that blending 20% dimethyl ether (DME) with LPG could reduce India's LPG imports by 6.3 million tonnes annually, saving approximately ₹34,200 crore (around $4.04 billion USD). This strategy aims to enhance energy security amid supply constraints caused by geopolitical tensions.
- 01Blending 20% DME with LPG could save India ₹34,200 crore annually.
- 02This blend can reduce LPG imports by 6.3 million tonnes each year.
- 03The initiative is crucial due to current LPG supply constraints in India.
- 04DME is produced from coal gasification, offering a domestic alternative to imported LPG.
- 05A clear blending policy is essential for scaling up domestic DME production.
Advertisement
In-Article Ad
A recent report by EY-Parthenon and New Era Cleantech Solution Ltd highlights the potential of blending 20% dimethyl ether (DME) with Liquefied Petroleum Gas (LPG) to significantly reduce India's LPG imports by 6.3 million tonnes annually. This shift could save the country approximately ₹34,200 crore (around $4.04 billion USD) in foreign exchange. The report underscores the importance of DME, which is produced from coal gasification, as a clean-burning substitute for imported LPG, particularly in light of supply constraints exacerbated by geopolitical tensions in West Asia. The Bureau of Indian Standards has already approved standards for this blending, indicating a move towards energy security. Balasaheb Darade, Managing Director of New Era Cleantech, emphasized that a robust blending policy is vital for attracting investments and boosting domestic DME production, which currently operates on a limited pilot scale. With most global DME production occurring in China, India aims to leverage its coal reserves to produce DME domestically, thereby reducing reliance on imports and lowering emissions associated with conventional fuels.
Advertisement
In-Article Ad
This initiative could significantly reduce India's dependency on imported LPG, leading to lower energy costs for consumers and enhanced energy security.
Advertisement
In-Article Ad
Reader Poll
Do you support the blending of DME with LPG to reduce imports?
Connecting to poll...
More about EY-Parthenon
Read the original article
Visit the source for the complete story.




