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WWW.METHANOL.ORG
Chris Chatterton, COO
METHANOL AS A MARINE FUEL
LNGgc ASIA
27 – 28 FEBRUARY 2019
NOVATEL, CLARKE QUAY, SINGAPORE
WWW.METHANOL.ORG
- About MI
- Developing Trends for New Capacity
- Global Methanol Fuel Blending
- Methanol as Marine Fuel
Contents
WWW.METHANOL.ORG
Tier 2
Tier 3
Tier 4
Tier 1
Ecofuel
MEMBERS
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DEVELOPING TRENDS FOR NEW CAPACITY02
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WHERE IS METHANOL PRODUCED?
Source: MMSA
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E
-000
-ton
nes
Supply Capacity for Methanol by Region 2012 - 2022E
Asia North America South America Europe Rest of World Middle East
• Merchant projects are focused in USGC• China future capacity additions may slow, with a focus on integrated facilities
SUPPLY CAPACITY BY REGION
Supply Capacity for Methanol by Region2012– 2022E
2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
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WHERE IS METHANOL PRODUCED?
Source: MMSA
CHINA METHANOL DEMAND DRIVES WORLD MARKETSProjected Methanol Demand Growth, by Product & Region
2017– 2027E
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MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА
WHERE IS METHANOL PRODUCED?RENEWABLE PATHWAYS
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WHERE IS METHANOL PRODUCED?AN EFFICIENT ENERGY CARRIER
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WHERE IS METHANOL PRODUCED?Methanol category Commercial Feasibility and R&D Stopped or On-hold
Bio-methanol • BioMCN (NL)• Enerkem (CAN)• New Fuel (DEN)• Oberon (USA)
• Biogo (GER)• Enerkem (NL)• LowLands Methanol (NL)• Södra (SE)• NREL (USA)• Heveskes Energy (NL)
• BioMCN (glycerine) (NL)• Chemrec (SE)• Range Fuels (USA)• Schwarze Pumpe (GER)• Värmlands Metanol (SE)• Woodspirit (NL)
Renewable methanol • CRI (IC)• Innogy (GER)
• bse Engineering (GER)• Blue Fuel Energy (CAN)• CRI (CN/GER)• MefCO2 (GER)• Infraserv (GER)• Liquid Wind (SE)• Port of Antwerp (BE)• STEAG (GER)• Swiss Liquid Future (CH)• ZASt (GER)• USC (USA)• Gensoric (GER)• Neo-H2 (USA)
Hybrid methanol • Haldor Topsoe (DEN)• OPTIMeoH (GER)
Low carbon methanol • GPIC (BAH)• Methanex (CAN)• QAFAC (QAT)• SABIC (KSA)
• Carbon2Chem (GER)• FRESME (SE)• NCF (CN)• GasTechno (USA)• Maverick Synfuels (USA)
VARIOUS STAGES OF DEVELOPMENT
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GLOBAL METHANOL FUEL BLENDING03
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PRACTICAL LIQUID FUEL
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MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА
Global Transportation Fuel ProgressIsraelo Cooperation with Italy Fiat to promote M15 Fiat
500 Car (Euro 6)o Testing M70-85 in Flex fuel vehicleso 2016 First M15 National Standard Released
Italyo ENI and FCA cooperation to promote A20 fuel
(M15+E5)o Fiat 500 cars for car sharing service in 2018o Compliance with Euro 6 standard and 3%
tailpipe emission reduction
Denmarko Methanol Fuel Cell for EV range extensiono Europe’s first methanol filling station in
Aalborg, Denmark (Aug. 2015)
WWW.METHANOL.ORG
MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА• September 2015, NITI Aayog formed the
Methanol Economy Expert Group
• 2018 Methanol M15 Guidelines published
• 2018 IRClass published Guidelines for Methanol Fueled Vessels
• Launching Projects: o M15 fuel blendingo methanol/DME buses and truckso railway engineso inland waterwayso cook stoveso industrial boilers
India: Roadmap to Methanol Economy
Union & Road Transport Minister Nitin Gadkari
WWW.METHANOL.ORG
Source: Methanol New Energy Applications in China: Boilers and Cook Stoves
• Widely used for heating and industrial steam, new-builds and replacing coal and HFO-fired units
• Capacity range from: 1 - 20 steam tons/hour
• Standards developed together with MI and Methanex support
• Blends starting as low as 60% (M60)
• More than 1,000 registered units consuming over 2M mtpa of methanol
Vertical Tank Fuel Metering & Blending
Underground Storage Boiler Unit
METHANOL BOILERS
WWW.METHANOL.ORG
• Various applications: o Single burner heatingo Stir fryingo Steaming
• Widely used in restaurants and central kitchens: o adoption mainly cost driven
• Simplified logistics, filling the deficit of NG pipeline/distribution capacity• Fuel:
o 100% methanol (M100) o 80% and higher blends (balance of fuel mix emulsified with water)
• Consuming over 3M mtpa of methanol
METHANOL COOKSTOVES
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SMART SUPPLIERS – LAST MILE
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METHANOL AS MARINE FUEL04
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• Methanol can be a practical solution for dual fuel applications, to include other alternative fuels such as LPG and LNG
PRACTICAL SOLUTION
• Multi – fuel engines will be the norm going forward
• Methanol can be readily and safely applied in both new build and conversion
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Methanol (MeOH) achieves low emissions & acts as a bridge in lowering CO2 in the future
(renewable/bio methanol)
CONVENTIONAL MeOH EMISSIONS SCORECARD
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METHANOL / WATER BLENDING (EMULSIFICATION)
Source: MAN
• Approximately 25-40% water is added to the methanol to achieve a new, Tier III solution
• NOx decreases almost linearly with water content, to approximately 2 g/kWh at 50% and 75% load
• Similar system is being planned for fuel oil, so the Tier III complianttechnology will be available as a dual fuel solution
• R&D testing completed - service test is under preparation
WWW.METHANOL.ORG
METHANOL IS ECONOMICALLY VIABLE
Source: Platts and IHS Chemical
• MGO NA GC: Avg New orleans, Houston; MGO NA WC: Avg LA, San Francisco, Seatle, Vancouver; MGO Europe: Avg Rotterdam, Antwerp, Hamburg; MGO Asia: Avg Shanghai, Korea; MGO Middles East: Avg Fujairah, Kuwait, Khor Faakan
• Methanol: Avg USGC, China and Europe spot prices; adjusted to energy equivalentof MGO (2.16 factor)
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PRICING
Source: BunkerIndex
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FUEL EVALUATOR
https://www.lr.org/en/latest-news/online-tool-to-help-evaluate-options-for-sulphur-2020-compliance/
WWW.METHANOL.ORG
GLOBAL PORT TERMINAL AVAILABILITY (‘000 MT)
Source: IHS 2018
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EXPERIENCE
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Methanol[1]
15,400 (mg/l)
Additional Source: Meyer-Werft
SAFER FOR THE ENVIRONMENT
LC50, LC = LETHAL CONCENTRATIONConcentration in water, at which half the marine population died within the specified test duration
Safer than Diesel by a factor of 240 times
WWW.METHANOL.ORG
CCC 2o Ethyl/methyl alcoholo Fuel cellso Low-flashpoint diesel
CCC 1o Ethyl/methyl alcoholo Fuel cellso Low-flashpoint diesel
CCC 3o Fuel cellso Ethyl/methyl
alcoholo Low-flashpoint
diesel
2014 2015 2016 2017 2018
CCC 4o Fuel cellso Ethyl/methyl alcoholo Low-flashpoint
diesel
MSC 100• Amendments• Confirmation• Referral to
other sub-committees
2019
CCC 5o Ethyl/methyl
alcoholo Fuel cellso Low-flashpoint
diesel
o The draft interim guidelines contain a definition of such fuels as follows: “Fuel means methyl/ethylalcohol fuels, containing allowable additives or impurities, suitable for the safe operation on boardships, complying with an international standard.”
o Earlier 2018, MSC 99 mandated ISO to develop a fuel standard for methyl/ethyl alcohol fuels,which is ongoing
o After expected Approval by MSC 102 in May/June, 2020, Interim Guidelines may begin to beAdopted at the flag state level with the understanding that additional amendments will be added
Draft Interim Guidelines Validated
///2020
CCC 6o Ethyl/methyl
alcoholo Fuel cellso Low-flashpoint
diesel
MSC 101• Amendments• Referral to
other sub-committees
MSC 102• Amendments• Approval• Adoption
IMO CONFIRMATION OF METHANOL AS A MARINE FUEL
WWW.METHANOL.ORG
SUMMARY
• Cost effective and “future proof” fuelwhich can be produced from a varietyof feedstocks – to include renewables
• One of the top 5 seaborne chemicalcommodities – safely handled for over50 years
• Capital costs for converting tomethanol are minimal – economicallyviable without subsidies
• Widely available and alleviates manyinfrastructure limitations both on landand at sea
WWW.METHANOL.ORG
THANK YOU
