Technology enables the production of the clean-burning fuel from methanol and allows blending with LPG without major infrastructure changes
Researchers at Pune-based CSIR-National Chemical Laboratory (CSIR-NCL) have identified dimethyl ether (DME) as a potential domestic substitute for liquefied petroleum gas (LPG), amid concerns about supply disruptions linked to the ongoing crisis in West Asia.
The laboratory said its scientists have developed a patent-protected technology to produce DME using an indigenously designed catalyst that enables efficient conversion of methanol into the fuel.
The technology, developed by researchers under the Council of Scientific and Industrial Research (CSIR), can produce DME at around 10 bar pressure, allowing it to be directly filled into conventional LPG cylinders.
Pilot-scale Production
The production process has already been scaled up to a pilot capacity of 250 kilograms per day. CSIR-NCL said it is currently working with a processing engineering partner to establish an industrial-scale demonstration plant with a capacity of 2.5 tonnes per day, which is expected to be built within six to nine months.
If the demonstration facility proves successful, it could open the door for commercial plants with capacities ranging from 100 to 500 tonnes per day. The laboratory is also exploring partnerships with oil public sector undertakings and bioenergy companies to scale up production.
Energy Security Push
India currently imports more than 80 per cent of its fossil fuel requirements, leaving the country exposed to global supply disruptions.
LPG, widely used as a cooking fuel and promoted among rural households through the Pradhan Mantri Ujjwala Yojana, has recently faced price pressures because of supply chain disruptions tied to tensions in West Asia, a major global energy hub.
Against this backdrop, researchers say DME, a synthetic clean-burning fuel, could serve as a viable and environmentally friendly alternative while strengthening India’s energy security.
DME burns more cleanly than conventional fuels, producing minimal soot, nitrogen oxides (NOx), sulphur oxides (SOx) and particulate matter. It also offers thermal efficiency comparable to traditional fuels, making it suitable for both household and industrial use.
LPG Blending Framework
India has already created regulatory provisions for blending DME with LPG. The Bureau of Indian Standards has introduced IS 18698:2024, which permits blending of up to 20 per cent DME with LPG for domestic, commercial and industrial applications.
Researchers noted that blending up to 8 per cent DME with LPG would not require modifications to existing infrastructure, including cylinders, regulators, hoses or burners.
India imported around 21 million tonnes of LPG in 2024. Scientists estimate that replacing 8 per cent of LPG consumption with DME could generate annual foreign exchange savings of roughly Rs 9,500 crore.
Meeting this target for about 10.5 crore LPG connections under the Ujjwala scheme would require DME production capacity of around 1,300 tonnes per day, the statement said.
Wider Industrial Applications
Beyond its potential as a cooking fuel, DME has several industrial uses. It can be used as an automotive fuel under IS 16704:2018, serve as an aerosol propellant replacing ozone-depleting chlorofluorocarbons (CFCs), and act as a chemical intermediate for producing lower olefins, dimethyl sulfate and methyl acetate.
The laboratory said domestic production of DME from methanol could help reduce India’s reliance on imported LPG, as methanol supply chains are considered more diversified and resilient.
In the future, methanol used for DME production could also be sourced from India’s coal reserves and biomass through gasification. Scientists also highlighted the potential to produce DME from captured carbon dioxide, which could support climate mitigation efforts.
The research was led by Thirumalaiswamy Raja, chief scientist in the Catalysis Division at CSIR-NCL. The team has also developed a prototype burner capable of operating across fuels from 100 per cent LPG to 100 per cent DME and intermediate blends and has tested its efficiency at the LPG Equipment Research Centre in Bengaluru.
