There are stringent regulations imposed on the usage of Dimethoxyethane (DME) globally due to its toxicity. DME is classified as a hazardous air pollutant in many countries India and other owing to its potential adverse effects on human health as well as the environment if leaked or improperly handled. The regions having strict emission standards like North America and Europe have imposed limits on the amount of DME that can be released into the atmosphere from production and usage facilities. This has compelled manufacturers to invest heavily in implementing advanced pollution control equipment and safety mechanisms during the entire lifecycle of DME, right from production to transportation and storage. Further, obtaining environmental permits for setting up new plants or expanding the existing capacities has become challenging over time. Such stringent quality and safety regulations have increased the overall production cost of DME. This acts as a major discouraging factor for various end-use industries employing DME to shift to alternative materials.
Market Opportunity - Growing adoption in clean technologies like fuel cells for market
There is a growing market opportunity for dimethoxyethane in clean technologies owing to its increasing adoption in fuel cell applications. DME is emerging as a promising fuel for polymer electrolyte membrane fuel cells (PEMFC) due to its physical and chemical properties like low toxicity, high cetane number, and ease of production from various sources including biomass. As fuel cells are increasingly being used across various mobility and stationary power segments as an alternative to conventional internal combustion engines, the demand for DME as a fuel is expected to rise tremendously over the coming years. Original Equipment Manufacturers (OEMs) are actively investing in developing DME-powered fuel cell vehicles and systems to cater to the green energy and emissions reduction needs. Governments across regions are also coming up with supportive policies and subsidies to promote the commercialization of fuel cell technologies.
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