The memorandum of understanding (MoU) was signed by Col Karandeep Singh (Retd), MD & CEO of FC TecNrgy, and Rajnesh Gogoi, Managing Director of Assam Petrochemicals, during the International Methanol Seminar organized by Niti Aayog this week, with the ceremony presided over by Niti Aayog Vice Chairman Suman Bery.

Under the MoU, the two companies will collaborate on refining methanol produced by Assam Petrochemicals to achieve 99.95% purity, making it suitable for the expanding fuel cell market and reducing fossil fuel consumption in India.

The partnership aims for a production target of 50-75 lakh litres of high-grade methanol over the next five years, with plans for joint marketing and potential future exports of fuel cell-grade methanol to international markets.

"This collaboration is set to significantly benefit both FC TecNrgy and Assam Petrochemicals as it taps into the rapidly growing methanol fuel cell market, which has gained momentum following India’s carbon reduction commitments under COP26 and its pledge for net-zero emissions by 2070," the statement said.

Methanol is produced through the direct combination of carbon monoxide and hydrogen in the presence of a catalyst. Additionally, syngas, a mix of hydrogen and carbon monoxide derived from biomass, is also utilized for methanol production. It serves as an alternative fuel for vehicles, ships, and power generation.