Methanol growth boost from emerging applications

04 November 2008 16:24  [Source: ICIS news]

DUBAI (ICIS news)--Methanol growth will be boosted by emerging applications such as biodiesel, dimethyl ether (DME), gasoline blending and MTO/MTP (methanol-to-olefins/methanol-to-propylene), an industry consultant said on Tuesday.

Methanol is the preferred alcohol in the transesterification step to convert plant oils into biodiesel and glycerine, Graham Hoar, manager, gas-based chemicals, Nexant told delegates at the Middle East Petrochemical conference.

He said annual biodiesel was at a global average of 43% in the 2002-2007 period.

However, growth in the biodiesel market has now stuttered due to the dismantling of subsidies in Germany and high cost of natural oils, Hoar added.

Methanol blending into gasoline is occurring in even larger quantities in China up to concentrations of M85. Hoar estimated this application was now consuming around 1.3m tonnes/year of methanol.

He added that methanol blending in gasoline could provide a sink for excess methanol capacity allowing gasoline to set a floor price of methanol.

MTO and MTP technologies are now being commercialised providing an alternative to oil-linked feedstocks used for other routes to olefins.

The growing interest is due to high crude oil prices increasing the attractiveness of these processes while methanol costs have been lowered due to technology improvements, said Hoar.

He added that China was driving through projects to exploit coal reserves, with Shenhua using Chinese MTO technology for a coal-based project.

MTP technology developed by the German engineering contactor Lurgi is being used in two commercial projects now under construction China, Hoar said.

The Middle East Petrochemical conference is organised by ICIS and consultant Nexant.

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By: Peter Taffe
+44 20 8652 3214

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