4 min readPuneUpdated: Mar 20, 2026 09:14 AM IST
The ongoing crisis in West Asia has adversely impacted India’s energy imports. India is heavily dependent on imports, importing 21 million tonnes, or about 65% of its LPG requirement in 2024. The ongoing crisis in West Asia has severely increased LPG prices, impacting the affordability and availability of fuel for everyday consumers.
An indigenous alternative may hold the key to solving such a problem. The Council of Scientific and Industrial Research – National Chemical Laboratory in Pune has developed the Dimethyl Ether (DME) technology, which can potentially be blended with Liquefied Petroleum Gas (LPG) as an alternative clean fuel.
T Raja, Chief Scientist, Catalysis Division, CSIR-NCL and the research team have developed a patent-protected production process technology for DME that utilises an indigenously developed, cost-effective catalyst, ensuring efficient conversion of methanol to DME.
Ashish Lele, CSIR-NCL Director, has described DME as a “clean-burning fuel with the potential to revolutionise cooking fuel and other sectors”.
Indigenously developed fuel alternative
LPG, a fuel used in most Indian households and industries, is stored in cylinders and primarily consists of propane and butane. However, India’s import dependence as well as fuel price fluctuations pose a serious challenge.
This is where DME can step in, serving as an indigenous, sustainable and eco-friendly alternative to LPG. Raja describes DME as a clean-burning fuel that can be produced domestically from sources such as methanol, coal, biomass, or even captured carbon dioxide. Moreover, DME can be blended with LPG and used in stoves with little to no modifications. This blending has been tested by the CSIR-NCL in collaboration with the LPG Equipment Research Centre.
Developing this technology
This technology was developed by improving both the catalyst or the material used, and the engineering design. Raja and his team developed a special catalyst that helps convert methanol into DME quickly and efficiently. Additionally, they designed the process to operate at 10 bar pressure. This allows the DME to be directly filled into cylinders, making it easier to use and transport.
Story continues below this ad
The technology has already been tested on a semi-pilot scale (about 250 kg per day). This technology was developed over the past few years of research by scientists, focusing on both the catalyst and the process design.
Sourcing methanol for DME
India currently imports methanol from countries including Iran, which could pose a challenge. However, Raja notes that methanol can be produced from several sources available domestically, such as coal, agricultural waste (biomass) or even captured carbon dioxide.
Methane is the main part of natural gas. It does not directly produce DME, but serves as a starting material. It is first converted into syngas (CO and H2), and then into methanol, which is used to produce DME. Methane can be sourced from both fossil fuels and renewable sources, DME production is flexible and future-ready.
“This means that over time, India can start producing its own methanol and reduce imports. Even in the short term, mixing a small amount of DME, say 8%, with LPG can reduce the amount of LPG India needs to import. In the long run, DME could allow India to reduce its import dependence,” Raja said.
Story continues below this ad
The cost of developing DME depends chiefly on the price of methanol used to make it. Raja estimates that the DME developed using CSIR-NCL’s technology costs 1.8 times the cost of methanol. Domestically produced methanol could thus make DME almost as affordable as LPG and even become cheaper over time, he said.
“The key objective is that cheaper domestic methanol and cheaper DME can help reduce overall fuel costs in the future. DME also brings some extra economic benefits. It can help India save around Rs 9,500 crore every year by reducing LPG imports. Since DME burns cleaner, it can also lead to lower pollution, thereby indirectly saving money and reducing environmental and health-related costs,” Raja added.
© The Indian Express Pvt Ltd