From definition to deployment: India's evolving green methanol ecosystem a crucial addition to country's green taxonomy stride across sectors
On 27 February 2026, the Union Ministry of New and Renewable Energy (MNRE) published the standard definition for green methanol in India. This was followed by the announcement of India's first green methanol bunkering facility and the release of a draft tender for 'Production and supply of Green Methanol' as part of the National Green Hydrogen Mission. The tender was issued by Solar Energy Corporation of India (SECI), under the Strategic Interventions for the Transition to Green Hydrogen Programme (SIGHT) as a preliminary step to facilitate domestic production and supply of green methanol. India defines green methanol Methanol is widely used across several industrial applications, including production of paint, resin and solvent, chemical processing and fuel blending. In India, pharmaceutical and chemical sectors are the primary consumer of methanol. Traditionally, methanol is produced using syngas, a combustible gas mixture of hydrogen (H2), carbon dioxide (CO2) and carbon monoxide (CO). The carbon components of syngas require carbon-based raw materials, which is fetched through coal and natural gas as feedstock. The final product has a high carbon emission intensity (ranging between 1.46 kg CO2eq/t to 3.95 KgCO2eq/t production) and is termed 'grey methanol'. With the introduction of the new guidelines by MNRE, 'green methanol' is defined as 'methanol as a product' whose emission arising from the synthesis process including 'Green Hydrogen production, methanol synthesis, purification, and on-site storage shall not exceed 0.44 kilogram of carbon dioxide equivalent per kilogram of methanol (kg CO2 eq/kg CH3OH), calculated as an average over the preceding 12-month period'.It is further mandated that for the synthesis process, 'carbon dioxide may be sourced from biogenic sources, Direct Air Capture (DAC), or existing industrial sources' while using green hydrogen as primary fuel source. Introduction of this formal definition has established regulatory clarity to project developers, investors and industrial consumers.
