The Indian Institute of Chemical Technology (IICT) has entered into a Memorandum of Understanding (MoU) with BHEL, a central public sector undertaking, to jointly develop indigenous technology aimed at capturing and transforming CO2 into di-methyl ether (DME). This initiative is a significant step towards India's commitment to mitigate climate change under the Paris Agreement. The resulting cleaner fuel, DME, can be seamlessly blended with LPG, furthering sustainability efforts.

As part of the Ministry of Science and Technology's efforts to achieve the country's net-zero emissions objectives, collaboration with industry is underway to implement Carbon Capture and Utilisation (CCU) technologies. This initiative specifically targets challenging sectors like coal gasification. India aims to achieve carbon neutrality by 2070.

IICT is an institution under the Council of Scientific & Industrial Research (CSIR). The MoU between CSIR-IICT and BHEL was signed in Hyderabad. Coal gasification is a process of producing syngas — a mixture of carbon monoxide, hydrogen, carbon dioxide, methane and water vapour — from coal, water and air. Gasification installations are mainly used for electricity generation. Coal-derived syngas can also be converted into transportation fuel such as gasoline and diesel. Besides, Hydrogen produced from syngas will help in meeting the energy needs of India.

India is advancing towards cleaner coal technologies with the launch of the Coal Gasification Mission. This initiative targets to gasify 100 million tonnes of coal by 2030 through surface coal/lignite gasification projects. In January, the Union cabinet approved a scheme to promote coal/lignite gasification projects by both public sector undertakings (PSUs) and the private sector, allocating Rs 8,500 crore for it. The scheme aims to showcase the financial and technical feasibility of gasification projects, expedite markets for downstream products, and establish an additional value chain in the economy for coal.