Methanol is a hydrogen carrier fuel. It is produced from high ash coal, agricultural residues, carbon dioxide emitted from thermal power plants and natural gas. It is cheaper than petrol, diesel and ethanol.
Methanol (CH3OH) is a better alternative to fossil fuels, which helps in reducing net carbon emissions by reducing pollutant emissions. This is the best way to fulfil India's commitments set in COP-21.
The government is working on a plan to use methanol as a fuel for inland waterway transport and military trucks as part of a strategy to reduce dependence on imported fuel. Under this, NITI Aayog is facilitating the conversion of inland waterways at Haldia, Varanasi and Allahabad.
NITI Aayog plans to replace 20% of crude oil imports with methanol, which will help reduce pollution levels in the country by 40%. The project will be implemented through Deccan ScandiNAOS India, a 70:30 joint venture between Deccan Water Treatment and ScandiNAOS.
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