Pune-Based NCL’s DME Technology: A Beacon for India’s Energy Independence

Pune, 13th March 2026: Energy security has now become an emergency. More than 80% of India’s fossil energy is imported. Unfortunately, global chokepoints are threatening these energy supplies today. LPG, a widely used cooking fuel especially promoted in rural India under the Pradhan Mantri Ujjwala Yojana, has seen sharp price escalation due to the recent disruption in supply chains. In this context, the quest for an indigenous, sustainable, and eco-friendly LPG alternative has become paramount.

Dimethyl Ether (DME), one such promising contender, is a clean-burning fuel with the potential to revolutionize cooking fuel and other sectors.

The Power of DME: Clean Burning and Versatile DME, a synthetic fuel, boasts several advantages over conventional options. It burns cleaner, emitting minimal amounts of soot, nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter. Furthermore, DME exhibits thermal efficiency that is comparable to traditional fuels, making it a viable substitute.

Beyond Clean Fuel: A Boon for LPG Reliance and Industrial Applications DME can be blended with Liquefied Petroleum Gas (LPG) over a wide range, potentially reducing India’s dependence on LPG imports. The Bureau of Indian Standards (BIS) has established IS 18698:2024 for up to 20% blending of DME with LPG for domestic, commercial, and industrial use. It is noteworthy that substituting up to 8% LPG with DME does not require any change in the existing infrastructure such as the cylinders, gaskets, regulators, hose, and burners. In 2024, India imported 21 million tons of LPG. A mere 8% substitution of LPG with DME would amount to annual forex savings of INR 9500 Crore. Interestingly, replacing 8% LPG by DME to cater to the 10.5 Crore gas connections under the PM Ujjwala Yojana would amount to 1300 ton per day DME production capacity.

DME can also be used as certified automotive fuel (IS 16704:2018). It can replace ozone-depleting chlorofluorocarbons (CFCs) as a propellant in aerosols. Furthermore, DME serves as a valuable chemical building block. It can be a key intermediate in the production of essential chemicals like lower olefins, dimethyl sulfate, and methyl acetate.

Atmanirbhar Bharat: Self-Reliance Through Domestic Production Domestic production of DME from methanol is the fastest way to reduce dependence on imported LPG. Methanol supply chains are already more diversified and hence resilient than LPG. In the near future, we can harness our massive coal reserves and ample dry biomass to produce methanol through gasification and subsequent conversion into DME. This offers a pathway towards achieving complete self-reliance on cooking as well as transportation fuels. Simultaneously, DME can also be produced from captured carbon dioxide, a potential game-changer in the fight against climate change.

From Lab to Life: Scaling Up the Innovation CSIR-NCL has developed a patent-protected DME production process technology that utilizes an indigenously invented highly active, selective, and cost-effective catalyst, ensuring efficient conversion of methanol to DME. Under the leadership of Dr. Thirumalaiswamy Raja, Chief Scientist, Catalysis Division, the research team began integrating catalyst chemistry with reactor engineering—an approach that later became the hallmark of this technology. The novel operational philosophy of CSIR-NCL’s technology allows production of DME at 10 bar pressure with minimal opex penalty so that it can be directly filled in LPG cylinders. This technology has already been successfully scaled up to a pilot capacity of 250 kg per day.

CSIR-NCL has further developed a burner prototype that can work on flex mode, from 100% LPG to 100% DME and all the compositions in between. This patented burner design has been tested for its efficiency at the LPG Equipment Research Centre (LERC), Bangalore.

The Road Ahead: From Research to Commercialization CSIR-NCL in collaboration with a processing engineering partner is ready to scale up the technology to an industrial scale demonstration plant of 2.5 ton per day within 6-9 months. The demo plant would clear the way for setting up commercial plants of 500-100 ton per day capacity. CSIR-NCL is keen to explore partnerships with major oil PSUs and bioenergy companies for commercial scale production.

A Beacon of Hope for a Sustainable Future CSIR-NCL’s DME technology offers a compelling vision for a cleaner and more sustainable future. By harnessing this innovation, India can achieve energy independence, reduce reliance on fossil fuels, and contribute to a cleaner environment. The widespread adoption of DME has the potential to transform various sectors, from transportation and cooking to power generation and chemical production. With continued research, development, and collaboration, DME can pave the way for a more sustainable and prosperous future for India and the world.