NTPC Limited has invited expression of interest (EoI) from Indian and global companies to set up methanol manufacturing facilities at its power projects across India.
The setting up of these facilities will be subject to approvals from the state and central governments.
The facilities will be developed in an aggregator mode on a build, own, and operate (BOO) basis.
The last date to submit the bids is March 31, 2020. The bids will be opened on the same day.
These facilities are proposed to be set up as part of creating a ‘methanol economy,’ an initiative of NITI Aayog of India. Besides reducing India’s oil import bill, the initiative will also help cut greenhouse gas emissions and convert Indian coal reserves and municipal solid waste into methanol.
The tender document says the initiative will help India reduce oil import dependence by using methanol as a substitute.
NTPC will facilitate the setting up of the composite facility at identified NTPC power projects. The company will also provide flue gas, land, electricity, and water within the plant’s premises.
The successful bidder will build, own, and operate the facility to produce methanol from CO2 hydrogeneration by capturing CO2 from flue gas and hydrogen generation. The company will have to source all raw materials except flue gas and arrange its project finances.
The government has been promoting the use of alternatives to oil like methanol and ethanol in automobiles. The Ministry of Road Transport and Highways has exempted electric vehicles running on ethanol or methanol from permit requirements.
In November last year, NTPC entered into a foreign currency loan agreement with the Japanese government’s financial institution, the Japan Bank for International Co-operation. NTPC will utilize the loan for funding its capital expenditure for flue gas desulphurization and renewable energy projects.