State-owned power generation company NTPC has partnered with Tecnimont to explore green methanol production at a commercial scale. According to a filing to the stock exchanges, a non-binding Memorandum of Understanding (MoU) has been signed between NTPC and Tecnimont Pvt. Ltd., the Indian subsidiary of Italy-based Maire Tecnimont Group.

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The MoU is aimed at jointly evaluating and exploring the possibility of developing a commercial scale green methanol production facility at an NTPC project in India.

The green methanol project involves capturing carbon from NTPC power plants and converting it into a green fuel.

Green methanol is used as a base material for the chemical industry and it’s also used as transport fuel. It is also considered as a substitute fuel for maritime fuel applications.

"This project along with NTPC’s under execution pilot scale Green Methanol project aligns with NTPC's commitment to sustainability and renewable energy, and will significantly contribute to India's energy transition," said CK Mondol, NTPC Director (Commercial).

Last week, NTPC signed a MoU with GE Power India Ltd. to reduce carbon intensity at its coal fired units. This is a first of a kind step for coal fleet decarbonisation in the country.

The objective of the partnership was to demonstrate technologies for firing a higher percentage of Torrefied Biomass in NTPC’s coal fired units, Methanol Firing and Ammonia Firing.

Shares of NTPC ended 0.2 percent lower at Rs 165.35.