Oil and Natural Gas Corporation (ONGC), along with CSIR–National Chemical Laboratory (CSIR-NCL), is set to launch an industrial pilot project to produce dimethyl ether (DME) in Pune as an alternative to liquefied petroleum gas (LPG), primarily for industrial use, according to sources familiar with the development.
According to the officials aware of the matter, the pilot project is expected to run for three years. The first year is primarily dedicated for setting up the plant for the pilot.
“The pilot will run for three years, first year will be for setting up the plant. The operation cost will be taken care by ONGC. The aim is to have 2.5 tonne capacity for the industrial pilot,” said the source. The research will be primarily done by the NCL Pune team.
The pilot project will also test the commercial viability of DME production and its application as a substitute for LPG in industrial heating and processing. Based on the success of the pilot project, further decisions will be taken regarding the industrial deployment of the same.
Scientists at Pune’s CSIR-NCL have created a homegrown technology to manufacture DME that can be used as a clean-burning fuel. The development comes amid ongoing global energy uncertainties and rising fuel costs, underscoring the importance of strengthening domestic energy capabilities.
At a time when there is a growing concern over the LPG supply and a fear of energy crisis, due to the West Asia crisis, India is exploring all possible measures to diversify their source countries for the energy import, primarily LPG and also to enhance the domestic production of the same.
To mitigate geopolitical supply risks arising due to the West Asia crisis, Indian government mandated refineries and petrochemical complexes to maximize LPG production. As per the government, by adopting measures like diverting alternate streams (such as propane, butane, and propylene) to the LPG pool, domestic production has surged by up to 40%.
“We can increase the production only up to a certain level. It won’t be possible to enhance the production to a large extent immediately as we have limited number of wells only. We have to enhance minutely, thus, exploring alternate sources is the viable option,” said the source.
The ONGC-NCL collaboration is expected to focus on scaling up production, optimising costs, and assessing operational challenges in real-world industrial settings. The pilot will also evaluate long-term supply chains, and the team aims to expand the approach to commercial facilities with capacities ranging from 100 to 500 tonnes per day.