India's LPG Supply Challenges and DME as a Viable Alternative
India faces a significant energy supply challenge due to disruptions in the Strait of Hormuz, vital for LPG imports. With a 50% increase in LPG import bills, the government is exploring dimethyl ether (DME) as a potential substitute to ensure energy self-sufficiency and lower costs.
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India imports 60% of its LPG through the Strait of Hormuz, facing supply disruptions due to geopolitical tensions. The total LPG import bill for financial year 2024-25 reached $26.8 billion, a 50% increase over six years.
To mitigate this, India is diversifying sources and developing dimethyl ether (DME) as an alternative to LPG. DME can be produced from biomass and offers lower carbon emissions compared to LPG. The production process involves gasifying biomass at 800°C to create syngas, which is then converted to methanol and finally dehydrated to produce DME.
This method has demonstrated high efficiency and potential cost savings in domestic production. Transitioning to DME could reduce costs by approximately Rs 200 per cylinder, addressing both economic and environmental concerns.
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