India could reduce its dependence on imported cooking gas by blending up to 20% dimethyl ether, or DME, into LPG, according to a report by EY-Parthenon and New Era Cleantech Solution Ltd.
The fuel, produced from coal gasification, could act as a substitute for part of LPG imports at a time when the country is dealing with supply constraints linked to the conflict in West Asia.
A 20% DME-LPG blend could displace about 6.3 million tonnes of LPG imports every year and save as much as USD 4.04 billion, or around Rs 34,200 crore, annually. The Bureau of Indian Standards has already notified standards allowing up to 20% DME-LPG blending in India, though domestic DME production is still limited at the pilot scale.
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A step ahead in energy security
Balasaheb Darade, managing director of New Era Cleantech, said, “A clear blending policy will be key to unlocking investments and scaling domestic DME production.” The report argued that DME can be produced from coal gasification and could help build a homegrown fuel stream for household and industrial use.
Government exploring options amid crisis
In a separate development earlier this month, Union minister Nitin Gadkari said the government was exploring an 8% DME blend in LPG to cut imports.
Speaking in Nagpur, he said the proposal was under active consideration and that a meeting with concerned ministries was scheduled to take it forward.
What is dimethyl ether (DME)?
Dimethyl ether, or DME, is a simple organic compound with the formula C₂H₆O, also written as CH₃OCH₃. At room temperature, it is a colorless gas. In industry, it is used as an aerosol propellant and refrigerant, and it has also emerged as an alternative fuel because it can be produced from feedstocks such as methanol, natural gas, coal, or biomass. Its handling is often compared to propane because it must be stored under pressure.
In the LPG context, DME matters because it can be blended with cooking gas and may help reduce import dependence. That is why it is being discussed not just as a chemical, but as a potential fuel substitute in India’s energy mix.
