First in India; Methanol Power Plant coming up in Kayamkulam

THIRUVANANTHAPURAM: Electricity will be generated using methanol at the Kayamkulam thermal power plant, which has been closed for eight years. It will be the country's first methanol (methyl alcohol) power plant.

The agreement was signed by NTPC and Bharat Heavy Electricals Limited. The first phase of production will start within a year. The plant has a generation capacity of 350 MW.

KSEB had purchased electricity from the thermal plant, which was started in 1998 on 1180 acres, till 2008. With the increase in the price of naphtha, the price of electricity also went up. With this, KSEB stopped the purchase of electricity. However, the agreement was to pay Rs 200 crore per annum till 2025, whether power is purchased or not. In 2020, it was reduced to Rs 100.

Later it was decided to generate electricity using LNG. Rs 33 crore was spent on it in 2013. However, the fishermen started a protest against the laying of a gas pipeline through the sea from Puthuvype in Kochi to Kayamkulam. Attempts were made to transport LNG in tanker lorries, but it was abandoned due to high cost.

In 2018, a 92 MW solar plant was built at a cost of Rs 450 crore. Electricity from this is being supplied to KSEB.

There are methanol thermal plants in foreign countries, including China. The technology of diesel plants is being used in this as well. Methanol is easy to store. The risk of accidents is also low.

Electricity at Rs 8

• A litre of methanol costs Rs 25. Rs 49 for naphtha and Rs 35 for LNG
• Naphtha power costs Rs 18 per unit, LNG Rs 14
• Methanol power will be sold at a maximum of Rs 8 per unit
• KSEB has not started discussions on the purchase.