20% DME-LPG Blend Could Save India ₹34,200 Crore Annually
20% DME-LPG blend can cut imports by 6.3 MT, save around Rs 34,200 cr yearly: Report
The Economic TimesImage: The Economic Times
A report suggests that blending 20% dimethyl ether (DME) with liquefied petroleum gas (LPG) could reduce India's LPG imports by 6.3 million tonnes yearly, saving approximately ₹34,200 crore (around $4.04 billion USD) annually. This move is particularly significant amid ongoing LPG supply constraints due to geopolitical tensions.
- 01Blending 20% DME with LPG could cut imports by 6.3 million tonnes annually.
- 02This could save India around ₹34,200 crore (approximately $4.04 billion USD) per year.
- 03DME is produced from coal gasification and serves as a cleaner alternative to LPG.
- 04The Bureau of Indian Standards has approved up to 20% DME-LPG blending.
- 05China dominates global DME production, accounting for nearly 90% of capacity.
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A recent report by EY-Parthenon and New Era Cleantech Solution Ltd highlights that blending 20% dimethyl ether (DME) with liquefied petroleum gas (LPG) could significantly reduce India's LPG imports by approximately 6.3 million tonnes annually. This reduction could lead to foreign exchange savings of around ₹34,200 crore (about $4.04 billion USD) each year. The report emphasizes the importance of DME, produced through coal gasification, as a clean-burning fuel alternative, especially in light of current LPG supply constraints exacerbated by geopolitical tensions in West Asia. The Bureau of Indian Standards has already set standards allowing for this blending, which could help scale domestic DME production. Balasaheb Darade, Managing Director of New Era Cleantech, noted that a clear blending policy is essential for unlocking investments in DME production. Currently, domestic DME production in India is limited, and the report suggests that countries with substantial coal reserves could leverage coal gasification technologies to produce DME efficiently. DME combustion is associated with significantly lower emissions compared to traditional hydrocarbon fuels, making it an attractive option for India's energy future.
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This initiative could significantly reduce India's dependency on imported LPG, potentially stabilizing energy prices and enhancing energy security for consumers.
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