Categories: Business

Tata Steel to set up a pilot plant for methanol

Tata Steel plans to set up a 10-tonnes-per-day pilot plant at its Kalinganagar facility in Odisha to produce methanol using blast furnace flue gases. The success of this pilot plant could pave the way for significant methanol production in India. The project aims to explore the possibility of combining carbon dioxide from steel mill blast furnaces with hydrogen from electrolysers to produce methanol. This will enable Tata Steel to test the feasibility of this process and potentially pave the way for a more sustainable approach to methanol production in the country.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

Need of this development:

Atanu Mukherjee, the CEO of Dastur Energy, which specializes in carbon technologies, including carbon capture, utilisation and storage (CCUS), has expressed a very optimistic outlook on methanol’s future. Mukherjee believes that methanol will become the next big thing, much larger than bioethanol.

Dastur Energy has recently been awarded a $7.5 million (₹60 crore) contract from the US Department of Energy for a carbon capture project in Texas. The company is also involved in the Tata Steel pilot methanol plant, indicating its involvement in carbon capture and methanol production technologies.

Rationale behind the methanol plant project:

  • The methanol plant project could help India transition to a methanol economy, which would have significant benefits for the country.
  • Although the methanol plant may not use large quantities of carbon dioxide from power and steel plants, it still has the potential to reduce India’s carbon footprint by replacing traditional fuels.
  • Methanol can be produced at a cost of ₹25 per litre, which is significantly cheaper than the government-fixed price of ₹65.60 per litre for bioethanol.
  • Hydrogen can be produced at a cost of $1.5 per kg through coal gasification, and methanol produced from this hydrogen could be produced at $450 per tonne.
  • Internal combustion engines can handle a 15-25% blend of methanol in petrol and diesel without requiring any modifications.

You may also read this:

Find More Business News Here

Piyush Shukla

Recent Posts

World No Tobacco Day Awards: WHO Recognises Leaders in Tobacco Control Efforts

The World Health Organization (WHO) has honored the individuals, government agencies, researchers and organizations from…

8 hours ago

Veteran Singer Suman Kalyanpur Dies at 89, Indian Music Mourns a Legend

On 31st May 2026 Veteran playback singer Suman Kalyanpur passed away in Mumbai. She was…

8 hours ago

Satwik-Chirag Create History, Win Singapore Open 2026 Men’s Doubles Title

Indian Badminton duo Satwiksairaj Rankireddy and Chirag Shetty have won the Singapore Open 2026 men's…

9 hours ago

Important Days in June 2026: National and International Dates List

June is the sixth month of the year and consists of 30 days. The month…

9 hours ago

What Is a Bambi Bucket? How the Indian Air Force Fought the Kasauli Forest Fire

The recent forest fire incident in Kasauli, Himachal Pradesh highlighted the critical role of aerial…

9 hours ago

General NS Raja Subramani Assumes Charge as India’s New Chief of Defence Staff

General NS Raja Subramani officially took charge as the India's next Chief of Defense Staff…

10 hours ago