Roundtable C - Natural Gas Uses in Transportation - Liquid? Gas? Electric?

THINKTANK ROUNDTABLE C

NATURAL GAS USES IN TRANSPORTATION: LIQUID? GAS? ELECTRIC?Organised by:

Institute for the Analysis of Global Security (IAGS)

Dr. Gal LuftSenior Adviser, United States Energy Security CouncilCo-director, Institute for the Analysis of Global Security

Mary PetersFormer Sec. of Transportation

William PerryFormer Sec. of Defense

George ShultzFormer Sec. of State

William ClarkFormer Sec. of Interior

Robert C. McFarlaneFormer National Security Advisor

Sen. Gary Hart

R. James WoolseyFormer Director Central Intelligence

Sen. Bennett Johnston

Boyden GrayFormer White House Counsel

Prof. George OlahNobel Laureate

John BlockFormer Sec. of Agriculture

Norm AugustineFormer CEO Lockheed Martin

John LehmanFormer Sec. of Navy

John HofmeisterFormer Pres. Shell Oil

William BallFormer Sec. of Navy

Michael LevenPresident, Las Vegas Sands

WWW.USESC.ORG

V. Admiral Dennis McGinn

Alan GreenspanFormer Chairman Federal Reserve

Geoffrey BibleFormer Chairman Kraft Foods

Harold BrownFormer Sec. of Defense

James RocheFormer Sec. of Air Force

Stephen HadleyFormer National Security Advisor

Gov. Tom RidgeFormer Sec. of Homeland Security

Gen. Wesley Clark James Hachett, CEOAnadarko Petroleum

Gen. Barry McCaffrey

Gen. Carlton Fulford

Biofuels

Natural Gas

Electricity

Methanol

Fuel Choices/Commodity arbitrage

BRENDA SMITHMANAGING DIRECTOR, GAS ADVISERS, HONG KONG

BOARD MEMBER, INTERNATIONAL ASSOCIATION OF NATURAL GAS VEHICLES

VICE PRESIDENT, ASIA PACIFIC NATURAL GAS VEHICLES ASSOCIATION

SIEW 2012NATURAL GAS USES IN TRANSPORTATION

LIQUEFIED NATURAL GAS

TRADITIONAL LNG INFRASTRUCTURE- LARGE SCALE LNG

GAS ADVISERS SIEW 201212

EXPLORATION &PRODUCTION

LIQUEFACTION

SHIPPINGSTORAGE & REGASIFICATION

25-OCT-2012

TRUCK LOADING FACILITIES


25-OCT-2012

DISTRIBUTION BY ROAD, RAIL & SMALL MARINE VESSELS


25-OCT-2012

LNG IS NOW AVALABLE TO THE TRANSPORTATION SECTOR

GAS ADVISERS SIEW 201215 25-OCT-2012

LNG IS TAKING OFF AROUND THE WORLD

16GAS ADVISERS SIEW 2012 25-OCT-2012

OFF ROAD VEHICLES

• Very heavy fuel use

• Fewer weight restrictions

• Potential fuel savings of millions of dollars for operators

17GAS ADVISERS SIEW 2012 25-OCT-2012

MARINE

25-OCT-2012GAS ADVISERS SIEW 201218

RAIL


AVIATION

25-OCT-201220


KEY BENEFITS

25-OCT-2012


21

EMISSION BENEFITS THE SAME AS CNGCAN BE STORED ON BOARD IN A RELATIVELY

SMALL SPACE, SIMILAR TO DIESEL, THUS PROVIDING GOOD VEHICLE RANGE

BECOMING WIDELY AVAILABLE IN MANY PARTS OF THE WORLD

EASILY DISTRIBUTED BY ROAD AND OTHER FORMS OF TRANSPORT

PRICING IS VERY COMPETITIVE WITH EXISTING FUELS IN MANY LOCATIONS

INHERENTLY SAFER THAN MANY OTHER FUELS

ENGINE TECHOLOGIES

13-SEP-2012

GAS ADVISERS22

1.SPARK IGNITION2. DUAL FUEL – 45% to 75% DIESEL SUBSTITUTION3. HIGH PRESSURE DIRECT INJECTION

THE NATURAL GAS ISINJECTED AT HIGH PRESSURE DIRECTLY INTO THE COMBUSTION CHAMBER LATEIN THE COMPRESSION CYCLE IGNITION IS BY PILOT DIESEL FUEL<5% OF FUEL CONSUMPTION IS DIESELNO MINIMUM PRESSURE BUT THE LNG IS PREFERRED TO BE “COLD” - 3 BAR / -153OC

LNG VEHICLE TANKS


REFUELLING STATIONSLNG, LCNG OR BOTH


LNG & LCNG REFUELLING STATION

GAS ADVISERS SIEW 201225 25-OCT-

2012

DISTRIBUTED LNG


PRODUCTION LNG available for distribution from main LNG terminals Small scale LNG plants produce wherever suitable feed gas is available

DISTRIBUTION LNG distributed to points of use by road, rail or small marine vessels LNG can be supplied to wherever there is a demand

STORAGE Fuel can be stored at central storage terminals and at points of use

ADVANTAGES Not dependant on pipeline infrastructure Full supply coverage to match demand Can take advantage of cheap and / or renewable feeds Cost savings can be made by producing warm gas due to short supply

chain

25-OCT-2012

DISTRIBUTED LNG FOR THE TRANSPORT SECTOR


Abundant supply from truck and ship loading facilities at base load LNG facilities

Broad-based production infrastructure through small-scale production

Utilisation of various feeds enhances environmental benefits and reduces costs

Short distribution distances reduces costsFuel can be available wherever there is a

demand Reliable, flexible and cost effective supply for

NGVs

25-OCT-2012

[email protected]

THANK YOU


29 25-OCT-2012

Methanol Fuels: Safe, Efficient, Affordable, and Mature

Dom LaVigneDirector, Government & Public Affairs (AP/ME)

Methanol InstituteSingapore

Overview

Methanol Basics

Methanol as a Transportation FuelGlobal Public Policy Experiences

About MI

Met

hano

l Bas

ics About MI

About MI

• Members include:– World’s leading methanol producers;– Distributors; and – Technology companies.

• Provides market support:– To traditional markets & derivatives;– Leads the development of new emerging

markets and applications; and– Delivers safe handling tools to global

distribution chain.

33

Raymond James ForumOctober 6, 2009

3434

About MI: 2012 Members

METOMETORR

OmanOmanMethanoMethanollCompanCompanyy

34

Met

hano

l Bas

ics Methanol Basics

Met

hano

l Bas

ics

The simplest of all alcohols CH3OH A pure clean burning liquid fuel with the highest

available hydrogen to carbon ratio A high octane blending component for gasoline A globally marketed commodity with a distribution

system similar to gasoline A fuel made from non-petroleum feedstocks, such as

natural gas, coal and residue/biomass/renewable A much less flammable fuel than gasoline A fuel competitive with gasoline, and a biofuel

competitive with ethanol

Methanol Basics: Physical Properties

• Name: Methanol• Chemical Family: Aliphatic

Alcohol• Synonyms: Carbinol;

Methyl Alcohol; Wood Alcohol; Wood Spirits

• Formula: CH3OH• CAS #: 67-56-1• Form: Colorless Liquid• pH: 7.2• Solubility: 100%

• Odor: Faintly sweet alcohol• Boiling Point: 148o

• Freezing Point: -144o

• LEL/UEL: 6% and 36%by volume in air

• Vapor Density: 1.11 (@60o)• Vapor Pressure: 1.86 psia (@68o)• Density: 6.63 lb per gallon• Flammable and Toxic

37

Methanol Basics: Must Knows of Methanol

Flammable

Burns with a clear, low heat flame

Difficult to see during daylight

Impact confined to size of spill

Biodegrades quickly

Soluble in water

Toxic

Readily absorbed into the body

38

Methanol Basics: Polygeneration

Natural Gas

Coal

Synthesis Gas

Methanol

Methanol

Gasoline

Fuels DME

Chemicals Formaldehyde

Acetic Acid

Olefins

Chemicals

MTBE

Fuels

CO2

Biomass

39

Methanol Basics: Chemical Applications

40

Methanol as a Transportation Fuel

Methanol Basics: Transportation Fuel Applications

Direct Fueling•Blended with gasoline (M3 – M85)•8 million metric ton annual demand (2.6 billion gallons)•BioMethanol is 2nd Generation biofuel

Dimethyl Ether•Either DME or BioDME•Can be used neat or blended with propane•Low-carbon, no-sulfur, diesel replacement•Transport market is emerging with partners like

Volvo and Nissan. Pilots in EU, Japan and China

Biodiesel•Key ingredient in esterfication•Renewable methanol can make ultra-clean biodiesel•Roughly 15-20% of oil source by mass

42

Methanol Basics: Transportation Fuel Applications

MTBE/BioMTBE•Extensive world markets remain for MTBE•Up to 15% MTBE content allowed in EU, compliance with Renewable Energy Directive with BioMTBE attractive

Methanol-to-Olefins•A 600,000 tonnes/year MTO project requires 1.8m tonnes/year of methanol•MTO eases burden of petroleum supply by diversifying feedstocks for light olefins

Methanol-to-Gasoline•ExxonMobil MTG technology produces sulfur-free 92 Research Octane drop in gasoline•Better yields than Fischer-Tropsch fuels at lower costs

43

Achieving Transportation Energy Policies Two Basic Approaches

• Useable in existing engines/FFV’s• Biomass limit/food vs fuel/ILUC• Wide LCA GHG emissions reduction variations• Better yields expected with second generation

biofuels

• Very expensive vehicle cost• Low energy density of batteries and hydrogen• High distribution system cost for electricity• Very high costs for hydrogen infrastructure

Change Fuel &

Feedstock

Methanol Biomethanol

• Useable in existing engines/FFV’s • Cost competitive with gasoline/ethanol• Biomethanol - High LCA GHG emission

reduction /no competition with food

Renewable Synthetic Methanol

• Useable in existing engines/FFV’s • From atmospheric CO2 and water • Carbon-neutral status reached• Integration with renewable power

Ethanol Biodiesel

Change Technolog

y

Electric Cars Fuel Cells

44

Met

hano

l Bas

ics

Gasoline: US$3.69 / gasoline gallon equivalent (gge)

M-85: $3.26 ggeE-85: 4.28 gge

Met

hano

l Bas

icsGlobal Public Policy Initiatives

Open Fuel Standard Act

• Requires starting in 2014, 50% of all new cars warranted to operate on non-petroleum fuels.

• Goes up to 80% by 2016, and 95% by 2017.

• Includes alcohol FFVs, and vehicles running on CNG, propane, plug-in battery electrics, and fuel cells.

•Introduced in the House by Reps. Shimkus (R-IL), Engel (D-NY), Bartlett (R-MD) and Israel (D-NY).

•Introduced in the Senate by Sens. Cantwell (D-WA) and Lugar (R-IN).

•Supporters: MI, RFA, US Energy Security Council, Growth Energy, National Biodiesel Board.

•Detractors: Chamber of Commerce, American Petroleum Institute, Alliance of Automobile Manufacturers.

U.S. Policy Drivers

47

OCTAMIX Waiver

• In 1988, EPA granted Clean Air Act waiver to Texas Methanol Company for OCTAMIX blend of 5% methanol and 2.5% co-solvent (ethanol, butanol, pentanols)

• Considered “substantially similar” to gasoline and will not cause or contribute to failure of any emission control device

• Recognition that low-level methanol fuel blends are allowed under U.S. law

• For commercial introduction, fuel blend must be registered with EPA

• Given constraints of RFS, finding a niche market may be difficult

In 2012, U.S. EPA approved two petitions for the use of corrosion inhibitors with OCTAMIX methanol fuel waiver.•Spirit of 21st Century•Baker Hughes

48

European fuel standards allow up to 3% methanol in gasoline with stabilizing agents

Low concentration methanol blends sold in Iceland, UK, Netherlands

Use of methanol in “E85 Flex Fuel Vehicles” (FFV’s) being tested

~27 million FFV’s globally

Lotus Tri-fuel Exige 270E

Global Methanol Fuel ExperienceEuropean Union

Flower of Scotland Streamliner

49

China Methanol Demand2000 to 2011 (Source: CMAI)

0

5

10

15

20

25

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

MIL

LIO

NS

OF

ME

TRIC

TO

NN

ES

(MM

T)

• Methanol helps China reduce fuel price inflation and be less dependent on foreign energy

• M-85 and M-100 standards went into effect on December 1, 2009. M-15 standard in final stages of review, and may be released in Q1 2013.

• Ministry of Industry and Information Technology (MIIT) has launched methanol fuel trials in Shaanxi and Shanxi Provinces and the municipality of Shanghai

Energy DemandEnergy Demand

Traditional Chemical Demand Traditional Chemical Demand

Global Methanol Fuel ExperienceChina

50

• Israel M15 demonstration underway

• ~100kMTA methanol used in Korean fuel additive CENOX

• Pakistan govt. and oil companies evaluating M15 to reduce fuel costs

• Discussions with govt. on methanol fuels introduction underway in Egypt

• M2-M3 trials in Iran

• Australia looking at methanol, 10-year excise tax-free holiday

Global Methanol Fuel ExperienceAsia and Middle East

51

Thank you!Dom LaVigneDirector of Government & Public Affairs (AP/ME)Methanol Institute

[email protected]+65 6325 6300

http://www.methanol.org/

François BOLLONFRMB-Consulting

DME A sustainable alternative fuel for

transportation

[email protected] Tel. +33-686075937

mailto:[email protected]

[email protected] –Tel. +33-686075937

SIEW - Natural Gas Uses in Transportation – 25 October 2012What is Dimethyl Ether (DME)?

Dimethyl Ether (DME) is the simplest ether. Its formula is CH3-O-CH3A clean, colorless gas that is easy to liquefy and

transport

An environmentally compatible propellant for spray cans

A foaming agent for polystyrene insulating materialA low-boiling solvent, a refrigerant, a fuel for the

production of ultra-pure glass

Close to LPG but with a good cetane number, DME is considered as a low CO2 fuel, which can be used as a clean burning alternative to LPG, LNG and diesel.



SIEW - Natural Gas Uses in Transportation – 25 October 2012

DME properties and benefits




DME properties and benefits

On net energy content basis:1.6 kg of DME is equivalent to 1kg of LPG, 1.25 m3 of DME is equivalent to 1 m3 of LPG1.2 m3 of DME is equivalent to 1 m3 of diesel

Liquefies at -25°C or under 6 atmospheres ► Can be stored and transported just like LPG

Higher cetane number than diesel ► Can be used in diesel enginesCompletely safe with no adverse impact on healthHazard equivalent to LPGDecomposes in the atmosphere in several ten of hours

►No concern over ozone layer depletion (alternative to CFCs)

No sulfur content

No direct carbon bonds (CH3-O-CH3)Lower temperature catalytic reforming than gasoline

► Better fuel for fuel cells

No problems expanding use

No particulate matter (PM) or soot emission from combustion

►

►




DME production

DME can be produced By methanol dehydration - 2 CH3OH → CH3OCH3 + H2O – the two-steps process (1,4 tons of methanol to produce 1 ton of DME)Or through direct synthesis – the one-step process.

Wide range of resource utilization



SIEW - Natural Gas Uses in Transportation – 25 October 2012DME industry and development

Many companies are interested in DME: Methanex, Total, Volvo truck, Mitsubishi Gas Chemical, ENN, China Energy, Kogas, Aygas, … but China represents most of the DME capacities in the world for DME as fuel.

First use as an aerosol propellant

(Akzo Nobel)




DME usages




DME as automotive fuelAs an automotive fuel, DME demonstrates a number of significant benefits:

Ultra low exhaust emissionsNo particulate matter (PM); very low NOx; no SOx)Low CO2 emissionsLow engine noiseHigh fuel economyHigh well-to-wheel efficiencyThermal efficiency equivalent to diesel engine performanceIgnition characteristics equivalent to diesel engine performance

The reduction or elimination of particulate emissions, also commonly known as “soot” or black smoke, is an important benefit.

A high cetane rating of 60 and a boiling point of -25ºC provide fast fuel/air mixing, reduced ignition delay, and excellent cold starting properties



SIEW - Natural Gas Uses in Transportation – 25 October 2012Japanese DME vehicle tests

The Japanese performed some tests of DME for transportation from 2003 to 2007 with 4 DME filling stations. At this period, they made 1,000 km with DME trucks.

They created the DME Vehicle Promotion Committee organized by 13 private companies – whose Iwatani, Isuzu, Total Japan, Toyota Tsusho, JFE, Idemitsu Kosan, Japan DME – in March 2006 in order to develop and research DME vehicles operation, DME fuel supply infrastructure and DME distributions and logistics.

From 2009, they launched some demonstration of DME Truck for commercial transport operation covering the full chain from production of DME to the utilisation in DME vehicles in Niigata and Kanto regions. Isuzu and Nissan Diesel made DME trucks for commercial use.



SIEW - Natural Gas Uses in Transportation – 25 October 2012Japanese DME vehicle tests

DME Vehicles Demonstration (commercial use)




Chinese DME vehicle testsDME buses tests in Shanghai: the line #147

In 2010



SIEW - Natural Gas Uses in Transportation – 25 October 2012The European Bio-DME project

The project was launched in 2008 and is coming to an end in December this year.



SIEW - Natural Gas Uses in Transportation – 25 October 2012The European Bio-DME project

A consortium of Chemrec, Haldor Topsøe, Volvo, Preem, Total, Delphi and ETC.

The project is supported by the Swedish Energy Agency and the EU's Seventh Framework Programme.

The total budget is: €28.4 million including EU funding for €8.2 million and the Swedish Energy Agency for €9.5 million.

DME produced from black liquor from the paper and pulp mill of Smurfit Kappa in Piteå (North of Sweden)

a fleet consisting of 10 Volvo trucks four DME filling stations: Stockholm, Jönköping,

Göteborg and Piteå The four-year project has already demonstrated that

DME works in daily commercial operations, with 10 Volvo trucks in use by a number of haulage firms already having driven 400,000 km on bio-DME




The Spireth project




The Spireth projectObjectives

identify the best and most effective way for the shipping industry to comply with the upcoming regulations regarding emissionsDevelop and install an onboard process for the conversion of methanol to DMEInstall auxiliary engine adopted for operation on DMEVerify rule compliance, function and endurance

BenefitsMethanol can be made available in principle everywhereMethanol energy cost lower than for Marine Gas OilMethanol-DME operation will fulfill tier 3 NOx requirements without after treatmentThe cost for conversion and/or adaption to methanol is a fraction of the comparable cost for LNG



SIEW - Natural Gas Uses in Transportation – 25 October 2012Future of DME for transportation

Opportunities

a high cetane number, a quiet combustiona clean burning fuel (no soot, no smoke, no particles and 100% SOx reduction)can be used in conventional diesel engines with a modified fuel injection system. storage tanks same as the ones of LPG for vehicles with small modificationsa large market.




Challenges

Some technical and regulatory hurdles remainrequires some appropriated lubricating agentneed probably a specific lubricantviscosity is lower than the one of diesel, we must prevent possible leakageLPG-like infrastructure, which must be set up most of the time from scratchneeds governments appropriated government support and regulations.




Driver for DME

The big driver for DME today is the tighter emissions control. DME is one of the lowest cost ways to meet the tighter emissions regulations (like the Spireth project). Besides the low cost of the fuel it also allows vehicles, power plants, ships to meet the tighter emission regulations without expensive exhaust gas after-treatment devices.



SIEW - Natural Gas Uses in Transportation – 25 October 2012DME: the cleanest diesel alternative

DME

Cetane No.

High

Cleanness (PM, S, NOx)

DME

Methanol

CNGLPG

Ethanol

Diesel

Biodiesel

GTL Diesel

High Octane Gasoline

RegularGasoline

For gasoline type engines

For diesel engines

Low High



SIEW - Natural Gas Uses in Transportation – 25 October 2012DME investments and costsDME production costs are presently

around USD 540 to 595 per metric ton (whose USD 490 to 545 come from the methanol cost)

DME plants: around 15 millions Euro for a capacity of 80,000 tons of DME per year (Europe, Japan or USA - cheaper in China)

In the bio-DME project, the cost of a filling station was around €200,000 (instead of €120,000 for a filling station with diesel)

Regarding DME trucks, injection equipment and fuel tanks are more expensive but we gain on the lower pressure and the exhaust after-treatment. The real challenge is to get through the “valley of death” (i.e. the initial low volumes)




DME and natural gasAs the investments for DME production

are much lower than the ones of a LNG chain and as it can be easily stored in LPG storage with few modifications, DME is a good solution for stranded gas

DME requires limited capital investment versus LNG, less costs for liquefaction and re-gas, can be used in small quantities and does not need a large consumption base to support the supply.

As there is no methane slip compared to LNG so there is less GHG impact




DME versus CNG

CNG vehicles suffer from:

Reduced compression ratio with lower thermal efficiencyHigh unburned CH4 emissions

Combination of high CH4 emissions and reduced efficiency eliminates the H/C ratio benefit of CNG over diesel fuel with respect to CO2 eqv emissions




DME versus CNGWhy consider DME for transportation instead of CNG?

Because it makes sense on many levels

Higher energy density than CNGWill not vent due to evaporation over timeDoes not need cryogenic storageEase of refueling (no venting, no

compressors)Diesel engine efficiencyUltra low emissions with simple emissions

controlsRepresents in most cases an increase in

the value of natural gas




François BOLLONFRMB-CONSULTING

Contact:[email protected]. +33-686075937



C. Melchers GmbH & Co. CNG presentation

Singapore International Energy WeekNatural Gas Uses in Transportation:

Liquid? Gas? Electric?

25th Oct 2012

C. Melchers CNG References• Melchers opened the first dedicated conversion workshop in Singapore

• About 60% market share in converted vehicles using Italian conversion technology

• >1600 Taxis passed the 200,000 km mark.

• First company to introduce Type 4 (light-weight) cylinders for mass conversion

• Engineered and built world’s largest CNG station at Toh Tuck

• Currently supplying of CNG systems to Malaysia, Vietnam, Indonesia, Myanmar.

Singapore – CNG study As of Sep 2012: 25,192 Diesel Taxis, 2,643 CNG Taxis

Study undertaken in 2011 to illustrate environmental benefits of CNG taxis vs. diesel taxis.

Cost of CNG: ~ USD 0.85/litre equivalent (incl USD 0.16 government duty).

Cost of Diesel: ~ USD 1.30/litre

Types of taxis compared: Toyota Wish 1800cc CNG/Petrol Toyota Wish 2000cc CNG/Petrol Toyota Crown Euro 2 Diesel Chevrolet Epica Euro 4 Diesel Hyundai Sonata Euro 4 Diesel

Comparison of Toxic Emissions

Note: Even though Particulate Matter (PM) emissions from Euro 4 vehicles has been reduced considerably by the DPF, it can create new toxic emissions in the process by creating NO2:

PM accumulates in DPF → Passive regeneration by oxidizing NO to NO2 → NO2 reacts with carbon to burn off as CO2. If NO2 slip occurs, excess NO2 emission results.

Vehicle PM Emissions PM Emissions from 1000 taxis PM emissions from 1000 taxis on annual basisg/km g/km at 208,000 km/Annum

Kg/Annum

Toyota Crown Euro 2 diesel 0.1 - 0.2 100 - 200 20,800 - 41,600

Chevrolet Epica Euro 4 diesel 0.001 1 208

Toyota Wish CNG Not detectable 0 0

CO2 comparison between Diesel & CNG TaxisVehicle Description F.E. Fuel CO2 CO2 if 20% petrol CO2 for 1000 taxis CO2 Savings by

L/100 km g/km and 80% CNG g/km on annual basis Using CNGKilotonnes/Annum Kilotonnes/Annum

Toyota Crown Diesel 10 Diesel 260 54.08Toyota Wish CNG 1800cc v1 9.73 Petrol 49

CNG 131 180 37.44 16.64

Toyota Epica Euro 4 diesel, 6 spd auto 7.6 Diesel 210 43.68Toyota Wish CNG 2000cc v2 6.25 Petrol 31

CNG 85 116 24.13 19.55

Hyundai Sonata Euro 4 diesel auto 7.3 Diesel 191 39.73Hyundai Sonata CNG 4 spd auto - not taxi 7.9 Petrol 39

CNG 106 145 30.16 9.57

CNG Transport markets

Thank you!

Gilbert von der AueHead of Department, Oil & GasC. Melchers GmbH & Co., Singapore BranchTel: +65 6259 9288Email: [email protected]

China Energy LimitedChina Energy Limited

DME as Transportation Fuel October 2012

DME as Transportation Fuel October 2012

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China Energy Limited

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CEL – pioneered DME as alternative energy in PRC

Patented Technology – efficient & economical

DME – wide applications with easy adoption

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DME

87

Cost Efficient Production & Distribution

* 70% Butane + 30% Propane by volumeSources: Purvin & Gertz DME Market Study (2006), Green Car Congress

MethanolMethanolDME Production

Process DMEDME

Natural Gas

Coal

Biomass

Colourless, odourless & non-toxic gas Similar properties to LPG

CH3 OCH3

Physical Properties of DME vs. Other Fuels

Properties DME

China

Typical

LPG*

Methane

(Natural

Gas)

Diesel

Fuel

Boiling Point

(ºC)-25.1 -42.0 -161.5

180-

370

Liquid density

(g/cm3, 20ºC)0.67 0.49 - 0.84

Cetane number 55-60 5 0 40-55

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DME – Dimethyl Ether

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Viable Alternative Energy

Favourable Characteristics

Wide Applications

Favourable Supply Dynamics

High Adaptability

“Clean” & safe

Lower smoke emission rates

Characteristics similar to LPG

Blend stock or substitute for fuel

Expanding applications

Methanol can be derived from coal, natural gas or biomass

– Abundance of coal: cost adv

Can be transported & stored like LPG

Minimal modifications to existing fuel system required

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DME

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Clean Energy For the Future

Emissions from Diesel Engine

Emissions,

g/k Whr

DME Field

Test Results

DME Lab

Test

Results

Euro 4 Diesel

Fuel Standard

Nitrogen Oxide

Gases (NOx)

3.30 2.99 3.50

Hydrocarbon

(HC)

0.26 0.25 0.46

Carbon

Monoxide (CO)

0.03 0.12 1.50

Particulate

Matter (PM)

n/a <0.02 0.02

Lower Emissions – Environmental Friendly

Meets the most stringent emission regulations in

Europe (EURO5), U.S. (U.S. 2010), & Japan (2009 Japan)

http://www.japantransport.com/conferences/2006/03/dme_detailed_information.pdf

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DME

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Easy Adoption; Wide Applications

* 70% Butane + 30% Propane by volumeSources: Purvin & Gertz DME Market Study (2006), Green Car Congress

Commercially Proven Market

Developing Market Potential Market

DMEDME

Power Generation

Fuel

Fuel Substitute

(e.g. LPG, LNG)

LPG – Blendstock

Chemicals(e.g. Aerosol Propellant）

Transportation Fuel

(e.g. diesel)

Blend LPG with

20-25% DME to

reduce costs

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MNCs To Further Drive Application of DME

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http://www.volvo.com/group/global/en-gb/volvo+group/ourvalues/environment/info_material/dme/dme.htm

http://www.cider.as/biodme/doc/080923_Volvo_FINAL.pdf

Endorsing DME as alternative

energy

http://www.biodme.eu/

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1.5 parts DME to 1 part diesel

Good substitute for diesel

China – Running DME-Powered Buses

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Joint Study with JiaoTong University

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TRANSPORTATION FUEL

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TRANSPORTATION FUEL

JANUARY 2005- JIUTAI ENRGY WAS TASKED BY CHINESE SCIENCE MINISTRY TO CARRY OUT DME AUTOMOTIVE CLEAN FUEL PROGRAM. THE PROGRAM SUCCESSFULLY CONCLUDED IN JUNE 2007.

R&D COLLABORATION WITH WEICHAI POWER, ZHONG TONG BUS, DME PUBLIC BUSES NOW OPERATING ON ROAD 19, LINYI FOR 5 YEARS WITH 200,000 KM MILEAGE. OPERATION SATISFACTORY.

WITH 7 YEARS EXPERIENCE OF OPERATING MORE THAN 10 DME BUSES FOR EMPLOYEES, ACCUMULATED WEALTH OF PRACTICAL DATA AND KNOWHOW, ON 7 DECEMBER 2008, JIUTAI CHEMICAL WAS AWARDED “MODEL COMPANY FOR ETHER TRANSPORTATION CLEAN FUEL” BY ETHER TRANSPORTATION CLEAN FUEL ASSOCIATION.

TRANSPORTATION FUEL

JANUARY 2005- JIUTAI ENRGY WAS TASKED BY CHINESE SCIENCE MINISTRY TO CARRY OUT DME AUTOMOTIVE CLEAN FUEL PROGRAM. THE PROGRAM SUCCESSFULLY CONCLUDED IN JUNE 2007.

R&D COLLABORATION WITH WEICHAI POWER, ZHONG TONG BUS, DME PUBLIC BUSES NOW OPERATING ON ROAD 19, LINYI FOR 5 YEARS WITH 200,000 KM MILEAGE. OPERATION SATISFACTORY.

WITH 7 YEARS EXPERIENCE OF OPERATING MORE THAN 10 DME BUSES FOR EMPLOYEES, ACCUMULATED WEALTH OF PRACTICAL DATA AND KNOWHOW, ON 7 DECEMBER 2008, JIUTAI CHEMICAL WAS AWARDED “MODEL COMPANY FOR ETHER TRANSPORTATION CLEAN FUEL” BY ETHER TRANSPORTATION CLEAN FUEL ASSOCIATION.

DME AS TRANSPORTATION FUELDME AS TRANSPORTATION FUEL

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Roundtable C - Natural Gas Uses in Transportation - Liquid? Gas? Electric?

Education

Transcript of Roundtable C - Natural Gas Uses in Transportation - Liquid? Gas? Electric?