Methanol/DME as Transportation FuelsGlobal ExperienceBP Presentation to NDRCBeijing May 16, 2006Steve Wittrig/Scott Charpentier

Methanol

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Why is Methanol of Interest?

• It is possible to manufacture methanol from coal, gas or other feedstocks besides imported petroleum

• Methanol cost of production has come down dramatically over the last decade− $100 (800 RMB) per tonne methanol is 0.62 RMB per litre

(equivalent to 1 RMB per litre gasoline)− $300 (2400 RMB) per tonne methanol is equivalent to 3 RMB

per litre gasoline • Methanol is a liquid fuel. • A clean fuel (lower emissions of CO, NOX, SOX,

particulates and soot)

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What are the Problems with Methanol?

• Methanol is poisonous. Drinking methanol causes blindness or death.

• Methanol dissolves or corrodes some materials (metals and elastomers) that are used in standard automobile engines and fuel distribution infrastructure

• In today’s global methanol market for chemical methanol, the prices are unpredictable and can go quite high when the chemical business cycle increases demand beyond supply

• Methanol has a lower energy content than gasoline so the fuel capacity of the automobile (or the fuel delivery truck) must be about 1.6 times greater for methanol than for gasoline.

• Methanol is not totally miscible (compatible) with gasoline, so methanol/gasoline blends require special additives to keep them mixed

• Engines fueled with pure methanol (M100) have some problems with starting in cold weather due to methanol’s lower vapor pressure

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Today’s Agenda

• Today, we will all talk about both the opportunities and the problems associated with using methanol (and DME) as fuels in China

• We will tell you about BP’s experience in methanol manufacturing and in the development and use of technology for methanol and DME as fuels

• We will listen with great interest to your experiences and your ideas and your concerns about these fuels

• And we will learn how we might offer assistance or advice or new opportunities to each other.

Methanol as a Fuel

Real World Experience in the US and Europe

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Use of Methanol/Gasoline Blends - US

• The use of mixtures of alcohols in nearly every blend rate with gasoline or pure alcohols as fuels for internal combustion engines is possible (BP Global Fuels Technology – GFT). Methanol has been used in various applications blended with gasoline at levels from 3% to 85% in the past in Europe and the US.

• Over 15,000 methanol flex fuel vehicles (using up to 85% methanol) were manufactured and sold as retail automobiles in the US in the 1990’s. This was particularly popular in California. The methanol flex fuel vehicles were sold at a lower cost than regular gasoline powered vehicles of the same type.

• Low fraction blending of methanol (M5 and M10) was also tried in the US during this time. Several problems showed up in early use which identified methanol blends fuels as difficult and problematic. For example, an M5/10 programme in Ohio stopped because of water and fuel quality issues.

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Use of Methanol/Gasoline Blends - Germany

• In the 1980’s and 90’s, M15 was extensively tested in vehicles in Germany. Moreover, the German oil industry introduced gasoline with 3 vol-% methanol and 2 vol-% TBA in the 80´s all over the country.

• In the German M15 demonstration project, about 30 filling sites were converted to supply M15 methanol - gasoline blends, consuming adaptation costs of up to 45,000€ / station. The M15 stations were equipped with special methanol tanks, methanol fuel lines and special dispenser columns. In the same way, the road tanker of the distribution chain was adapted, e.g. elastomers and metals were exchanged.

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BP Experience - Methanol/Gasoline Blends • A great deal of technology, engineering and experience

was developed during these large scale and demonstration uses of methanol fuels in the US and Europe.

• BP’s Global Fuels Technology experiences from the 80´s include detailed information on: − the adaptation of standard vehicles of this time to

methanol usage − driveability and emissions− methanol blend properties − M15 filling station scenarios− in-depth fleet tests

• BP’s experts in Global Fuels Technology in Bochum have very broad networks with OEM’s, parts suppliers and other experts in various aspects of methanol and DME fuel uses

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Methanol/Gasoline Blends Standards

• Currently the use of methanol as a limited blending component is still allowed, for Europe max. 3 v% methanol. The total amount of oxygen from all alcohols and ether components is limited to 2,7 wt%.

• New European gasoline standard to come into power soon will exclude methanol from use in gasoline. The new limitation will be < 0,2v% methanol in gasoline.

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Engine Requirements for Different Uses of Methanol as a Fuel

Engine and vehicle adaptation required for

conversion to:

80´s- 90´s SI vehicle technology

Todays SI vehicle

technology

Future SI vehicle

technology

M3-M15 M30-M60 M85 FFVM100 M3-M15 M85 FFV

M100

1. Exchange of materials (compatible elastomers and metals)

depends on

vehicle type

yes yesdepends on

vehicle type

yes

2. Adaptation of fuel system (fuel pump, gaskets, fuel filter, fuel line)

yes yes yesdepends on

vehicle type

yes

3. Fuel preheating system (low temperature driveability)

no potentially yes yes no

depends on vehicle

type4. Higher energy spark plug no - yes no yes5. Adaptation of injection

system and inlet manifold (larger injectors to compensate for methanol’s lower heat content)

no - yes has to be checked yes

6. Cylinder preheating system (low temperature driveability)

no potentially yes yes no

depends on vehicle

type

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Engine Requirements for Different Uses of Methanol as a Fuel

Engine and vehicle adaptation required for

conversion to:

80´s- 90´s SI vehicle technology

Todays SI vehicle

technology

Future SI vehicle

technology

M3-M15 M30-M60 M85 FFVM100 M3-M15 M85 FFV

M100

7. Exchange of inlet valves, cylinder components no no - no has to be

checked8. Alcohol fuel sensor

(monitors fuel mixture) no no yes no yes

9. Adaptation of aftertreatment system (catalysts)

no - - has to be checked

has to be checked

10. ECU software changes (mixture, fuel flow, ignition timing etc.)

yes yes yes yes yes

11. Base fuel adjustment yes yes yes yes yes

12. Stainless steel tank no - yes has to be checked yes

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Methanol as a fuel – high level view

• This has just been a quick list of some of the pluses and minuses of methanol as a fuel. These problems depend on the fraction of methanol in the fuel and will be different for each case.− Pluses− Possibility for low cost transportation fuel− Made from gas or coal− Low emissions

− Minuses− Can damage cars not designed for methanol− Methanol/gasoline blends can separate into two phases and cause

fuel quality or distribution problems− Poisonous to drink

• We look forward to the opportunity to talk about the details in our later sessions through the day.

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Some of the Issues for this afternoon

• Issues associated with the use of methanol as a fuel (problem definition, risks and mitigation strategies)− Toxicity− Methanol/Gasoline blends− Methanol logistics and infrastructure cost − Biodegradability in the environment− Emissions and air pollution− Corrosiveness/Materials compatibility− Cold Start/Operability

DME

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Why is DME of Interest?

• It is possible to manufacture DME from methanol made from coal, gas or other feedstocks besides imported petroleum

• Methanol cost of production has come down dramatically over the last decade, thus lowering the cost of DME

• DME is a convenient and a clean fuel similar in handling characteristics to LPG

• DME is non toxic• DME is a high performance diesel fuel with ultralow

emissions (CO, NOX, SOX, particulates and soot)• DME can also be used as an LPG supplement and for

power production in combined cycle power plants

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What are the Problems with DME?

• It is a gas and requires more expensive storage and infrastructure than liquid fuels.

• As a diesel fuel, DME requires special engineering for injection of the fuel and for lubrication of the engine.

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DME Markets

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DME – Clean and Green

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BP Pioneering Diesel Demonstration

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DME as a fuel – high level view

• This has just been a quick list of some of the opportunities and the pluses and minuses of DME as a fuel. − Markets include bottled gas (like LPG), clean diesel fuel and power− Pluses− Storable fuel− Can be low cost compared to other alternatives− Low emissions− Reduces cost of emission control

− Minuses− Engines require special systems for fuel tank, fuel injection− Requires LPG storage and distribution

• We look forward to the opportunity to talk about the details in our later sessions through the day.

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