NTPC invites EoI to set up methanol production units

NTPC invites EoI to set up methanol production units at its power plants

The facilities shall be developed in an aggregator mode on a build, own, and operate basis

NTPC logo. Credit: Reuters Photo

State-run power giant NTPC has invited expression of interest (EoI) from domestic as well as global firms for setting up methanol production units at its power plants.

According to the tender document, these facilities would be set up after necessary approvals of the respective states and central governments.

The last date to submit the EoI is March 30, 2021. The bids would be opened on March 31, 2021. The tender was issued on January 28, 2021. The last date for seeking clarification is March 20, 2021

"NTPC Ltd intends to set up CO2 Capture, H2 Generation & Conversion to Methanol (composite facility) in aggregator mode at various NTPC power plants in India. In this regard, NTPC Limited invites Expression of Interest (EoI) from any Indian/global company/their consortium/affiliates/representatives," the bid document said.

The participation in EoI may also be done through consortium; however, the consortium shall have a lead partner.

NTPC, in keeping focus on decarbonisation of the Indian energy sector and India’s commitment to COP 21 for reducing GHG emissions, wants to set up facility to capture CO2 from flue gas discharged from power station chimneys and convert captured CO2 to methanol.

NTPC’s power plants are located in various states across the country and its power stations can be used to develop "Methanol Economy", an initiative by NITI Aayog of India, it said.

CO2 captured from fuel gases and hydrogen generated using surplus power during off-peak hours/low schedule or renewable sources shall be used for methanol production.

The initiative will help reduce oil import dependence of the country by using methanol as an alternate substitute of oil, it said adding there are many technologies in various stages of development world over.

The responses (EoI) shall be evaluated with regards to technology, financial viability and best possible option for commercialization.

Based on the responses in the EoI, the project shall be implemented at one/multiple NTPC power plants based on their feasibility.

NTPC is listed in Indian stock exchange with a market capitalisation of Rs 83,312 crore.

It produces around 300 billion units of electricity annually through its cluster of gas, coal, hydro and RE (renewable energy) based power stations of more than 63 GW capacity spanning across the country.

Further, NTPC plans target capacity of 130 GW by 2032.

The NTPC group achieved a net profit of Rs 10,112 crore in the financial year 2020 and has been consistently paying dividends to its shareholders for the last 26 years, the document stated.