Rs 6,000 crore CIL plan to make methanol from coal for blending petrol
NEW DELHI: State-run Coal India is foraying into the production of methanol, or methyl alcohol, used for lacing petro and industrial solvent, from coal with a first-of-its-kind project estimated to cost Rs 6,000 crore.
The move is in line with the Niti Ayog’s push for developing a methanol economy as one of the options to reduce India’s carbon footprint in line with the Paris climate commitment and the oil import bill.
Coal India has invited bids for selecting the company which will set up the coal-to-methanol (C2M) plant based on surface coal gassification technology on BOO (build-own-operate) model.
The C2M project will be built at the company’s Dankuni coal complex, about 15 kms from Kolkata in West Bengal. The complex is run by Coal India subsidiary South Eastern Coalfields Ltd.
The unit will have the capacity to produce about seven lakh tonnes of methanol per annum for up to 15% blending with petrol. The plant will cater to methanol
requirement of West Bengal, Odisha, Jharkhand and Bihar. CIL is discussing long-term supply deals with state-run fuel retailers.
