windows of opportunity for emerging methanol markets · guizhou m15 2010 hebei m15 & m30 2010...
TRANSCRIPT
WWW.METHANOL.ORG
Windows of Opportunity for
Emerging Methanol Markets
Gregory Dolan, CEO – Methanol Institute
Argus Methanol Forum – Houston, Texas
13 September 2018
WWW.METHANOL.ORG
Agenda
1. WHO WE ARE
2. METHANOL PRODUCTION
3. ROAD TRANSPORT
4. MARINE FUELS
5. OTHER MARKETS
6. CONTACTS
WWW.METHANOL.ORG
US-China Tariffs
Methanol Institute Opposes Tariffs
• 23 August – MI Testified before U.S. Trade Representative
• Urged USTR to remove methanol from list of 6,000 products of Chinese goods for 25% tariff
• No methanol trade flow from China to U.S.
• U.S. becoming net methanol exporter and China the world’s largest market for methanol
• Tariffs threaten expansion of U.S. methanol production
• Hopeful U.S. and China can resolve differences
WWW.METHANOL.ORG
WHO WE ARE01
WWW.METHANOL.ORG
MI History
• The Methanol Institute (MI) was established in 1989
• 29 years later, MI recognized as the trade association for the global
methanol industry
• Facilitating methanol’s expansion from our Singapore headquarters and
regional offices in Washington DC, Brussels, and Beijing
Beijing
Singapore
Brussels
Washington, DC
WWW.METHANOL.ORG
WWW.METHANOL.ORGWWW.METHANOL.ORG
METHANOL PRODUCTION AND DEMAND02
WWW.METHANOL.ORG
WWW.METHANOL.ORGWWW.METHANOL.ORG
MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В
БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА
WHERE IS METHANOL PRODUCED?REDUCED CARBON INITIATIVES
WWW.METHANOL.ORGWWW.METHANOL.ORG
MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В
БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА
WHERE IS METHANOL PRODUCED?RENEWABLE PATHWAYS
WWW.METHANOL.ORG
Commercial Status
Methanol category Commercial Feasibility Other
Bio-methanol BioMCN (biogas),
Enerkem (CN, NL, US,
China), Oberon,
NewFuel (biogass)
LowLands Methanol,
Södra, Industrial
Microbes, NREL
Chemrec, Range Fuels,
Schwarze Pumpe,
Värmlands Metanol,
Woodspirit
Renewable methanol Carbon Recycling
International, innogy
USC, bse Engineering,
Port of Antwerp,
Infraserv, Liquid Wind,
STEAG, Swiss Liquid
Future, ZASt, Blue Fuel
Energy, Gensoric, Neo-
H2, Heveskes Energy
Low carbon
methanol
Methanex, QAFAC,
SABIC, GPIC
Carbon2Chem,
FRESME, Swerea,
GasTechno, Maverick
Synfuels
WWW.METHANOL.ORG
Methanol is a versatile fuel source
FUELS• Neat fuel
• Low blends
• High blends
• GEM
• MTBE
• Biodiesel
• DME & OME
• MTG
TECHNOLOGIES• SI & CI engines
• Turbines
• Fuel cells
• Out of the ~75 million metric tons of methanol sold globally in
2017, energy and fuel uses represent 40% of total demand
• From 2009-2016, direct methanol fuel blending increased at an
annual rate of nearly 23%
SEGMENTS• Road & non-road transportation
• Power & heat generation
• Marine
WWW.METHANOL.ORG
Denmark –fuel cells
for vehicles
Sweden – marine fuel
Israel – M15, power generation
Australia – GEM fuel
Africa – cook stoves
China– M15 to M100,
boilers, cook stovesUK – EN228
low blend
USA –motorsport fuel
Global Methanol Fuel Examples
Iceland – M100 trials
Egypt – M15 trials
New Zealand –M3
India – Methanol
Economy roadmap
Canada – Waterfront vessels
Italy – Eni/FCA M15/E5
WWW.METHANOL.ORGWWW.METHANOL.ORG
ROAD TRANSPORT03
WWW.METHANOL.ORG
Methanol Fuel Buckets
• Bucket #1: Low-Level Blends• EU allows M3
• China using M15
• Bucket #2: Mixed Mid-Level Alcohol High Octane Fuels (A20-A30)
• Automakers calling for more octane to facilitate greater engine efficiency
• Bucket #3: M51-M100• Light- and Heavy-Duty markets
WWW.METHANOL.ORG
China Provinces in the Driver Seat
ProvinceLocal Methanol
Gasoline StandardsImplemented
Since
Gansu M15 & M30 2009
Guizhou M15 2010
Hebei M15 & M30 2010
Heilongjiang M15 2005
Jiangsu M45 2009
Liaoning M15 2006
Shaanxi M15 & M25 2004
Shandong M15 2012
Shanghai M100 2013
ShanxiM5, M15, M85 &
M1002008
Sichuan M10 2004
Xinjiang M15 & M30 2007
Zhejiang M15, M30 & M50 2009
Ningxia M15 & M30 2014
WWW.METHANOL.ORG
US Energy Information Administration’s “Today in Energy” 23 Feb 2017
WWW.METHANOL.ORG
Geely M100 Vehicles
• China’s Geely Automotive Holdings is global leader in the commercialization of M100 vehicles
• Geely has two methanol engine and five methanol vehicle manufacturing bases, with an annual methanol vehicle production capacity of 300,000 - 500,000 cars
• Now introduced M100 bus, long-haul truck and medium-duty truck
WWW.METHANOL.ORG
UK BioMethanol Blending
• UK Department of Transport: Renewable Transport Fuel Obligation Report – 1 February 2018
• Biomethanol 57 Million liters, or 4% of UK total renewable fuel use
• “The supply of biomethanol has been increasing in recent years to an all-time high in 2016/2017”
WWW.METHANOL.ORG
• Green Methanol Infrastructure consortium
opened the first methanol fuel pump in Europe
• Cars/vans use Serenergy RMFC technology
as range extender and CRI methanol as fuel
• Increasing range of battery powered vehicles
from 200 to 800 kilometers
• Serenergy fuel cells also in Gumpert RG
Nathalie, a methanol fuel cell powered electric
supercar with a 1,200 km (745 mile) range and
a top speed of 300 km/h (186 mph)
Denmark: Methanol Fuel Cell EV Range Extender
WWW.METHANOL.ORG
• Prime Minister Netanyahu
established Fuel Choices Initiative
• Driven 1,000,000 kms on M15 fuels
with improved power and torque
• In 2016, Israel adopted national
standard for M15 fuels
• Fiat marketing M15 car in Israel, and
Dor Chemicals has introduced M15
retails pumps
Israel Methanol Fuels Demonstrations
WWW.METHANOL.ORG
• 21 November 2017: With Italian Prime
Minister, the CEOs of Eni and Fiat
Chrysler Automobile sign MOU for joint
development of technology reducing
CO2 of road transport vehicles
• Eni had developed a 15% methanol
and 5% bioethanol fuel blend
• New blend being demonstrated in 5
FCA Fiat 500 vehicles in Eni’s Enjoy
car-sharing fleet
Italy M15/E5 Blending
WWW.METHANOL.ORG
India: Roadmap to Methanol Economy
• September 2015, NITI Aayog formed Methanol Economy Expert Group
• September 2016, MI jointly organized Methanol Economy International Seminar held in Delhi
• Working towards standard for M15, M100 and MD95 fuel blending, demonstrations for cook stoves, marine fuels, railways, methanol production
WWW.METHANOL.ORG
MARINE FUELS04
WWW.METHANOL.ORG
Marine Fuel Drivers
✓ Scale: Marine sector consumes 370 million metric tonnes
of bunker fuel per year.
✓ Sustainability: There needs to be a viable pathway to
low- & no-carbon marine fuels.
✓ Price: Need to be price competitive with current bunker
fuels and other alternatives such as LNG.
✓ Supply: Fuel needs to be available globally.
✓ Safety: Ship operators need to be assured of safe
handling on-board vessel and for bunkering.
WWW.METHANOL.ORG
• The International Maritime Organization has adopted emission regulations transforming the shipping industry
• In 2020, global SOx reductions take effect
• By 2050, greenhouse gas emissions must be cut in half
Emissions regulations driving market
WWW.METHANOL.ORG
Options available to ship owners
HFO
+scrubbers
MGO or
HFO/MGO
Hybrid
LNG Methanol
WWW.METHANOL.ORG
Examples of vessels running on
methanol
FUEL CELLDUAL FUEL PROJECT and R&D
7x 1x 1x 1x 1x
2 stroke
MAN
4 stroke
Wärtsila
high speed
Scania,
Volvo, a.o.
Serenergy fuel cell stacks
hotel load propulsion
MOL, WL,
Marinvest
Stena Line Stena Line Innogy Viking Line SUMMETH/MARTEC,
Lean Ships, Methaship,
Billion Miles, FiTech, India,
PCG Product Vessel, NTU Test Bed
Port of Rotterdam Barge
chemical
tankers
ROPAX
ferry
Pilot
boat
Tourist
boat
Ferry Cruise ships, fishing boat,
barge, dredge, a.o.
SI hybrid, dual fuel, etc.
new build retrofit retrofit retrofit retrofit new build & retrofit
WWW.METHANOL.ORG
MAN Duel-Fuel Engine – WaterfontConfiguration
WWW.METHANOL.ORG
Methanol storage capacity estimates (thousand tons)
Available in many ports around the world
WWW.METHANOL.ORG
Methanol is widely available and easy to handle
• Liquid at atmospheric pressure
• Available in many ports around the world and along rivers
• Low infrastucture cost
• Flexible, modular system
• Environmentaly friendly as it’s biodegradable
WWW.METHANOL.ORG
OTHER MARKETS05
WWW.METHANOL.ORG
Methanol Industrial Boilers in China
Source: Methanol New Energy Applications in China:
Boilers and Cook Stoves
• Industrial boilers are widely used for heating and industrial stream
• Many cities in China prohibiting use of coal and diesel fuels
• Capacity ranged from 1 to 20 t/h
• Methanol fuel is used neat or as blend with diesel fuel
• Standards developed with MI and Methanex support
• Estimated more than 1000 units, consuming over 2 MMTs methanol in 2016
WWW.METHANOL.ORG
Methanol Cook Stoves in China
• Different types methanol cook stoves: Single heating, stir fry, steaming
• Widely used in restaurants, central kitchens, mainly cost driven
• Simple Storage and transportation, filling the gap of pipeline NG supply
• Fuel: 100% methanol to methanol blends with usually with water
• Market for Cooking Application estimated over 3 MMTs in China in 2016
WWW.METHANOL.ORG
Smart Suppliers
WWW.METHANOL.ORG
Methanol a Hydrogen Carrier for Fuel Cells
• Horizon Energy Systems
(Singapore)
• Oneberry (Singapore)
• Altergy (USA)
• Palcan (China)
• Serenegy (Denmark)
• SFC Energy (Germany)
• Toshiba (Japan)
• Ultracell (USA)
WWW.METHANOL.ORG
CONTACTS06
WWW.METHANOL.ORG
Contacts
www.methanol.org www.methanolfuels.org
Greg Dolan, CEO
Larry Navin, Senior Manager,
External Affairs and Operations
Nov Bajwa, Operations & Web
Media Coordinator
Eelco Dekker
Chief EU Representative
Chris Chatterton, COO
Belinda Pun, Executive Assistant
Zhao Kai
Chief China Representative