Dom Lavigne - Methanol Fuels: Safe, Efficient, Affordable & Mature

Methanol Fuels: Safe, Efficient, Affordable, and Mature

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

Methanol InstituteSingapore

Overview

Methanol Basics

Methanol as a Transportation Fuel

Global Public Policy Experiences

About MI

Met

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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.

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Raymond James ForumOctober 6, 2009

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About MI: 2012 Members

METOR

OmanMethanolCompany

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Met

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ics Methanol Basics

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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

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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

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Methanol Basics: Polygeneration

Natural Gas

Coal

Synthesis Gas

Methanol

Methanol

Gasoline

Fuels DME

Chemicals Formaldehyde

Acetic Acid

Olefins

Chemicals

MTBE

Fuels

CO2

Biomass

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Methanol Basics: Chemical Applications

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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

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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

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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 Technology

Electric Cars Fuel Cells

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Met

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

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

Met

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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

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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

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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

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China Methanol Demand2000 to 2011 (Source: CMAI)

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5

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15

20

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

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• 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 Demand

Traditional Chemical Demand

Global Methanol Fuel ExperienceChina

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• 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

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

dlavigne@methanol.orgwww.methanol.org+65 6325 6300