Process Economics Program Report 245
Published: June 2002
A great deal of enthusiasm is currently noticeable for synthetically derived
fuels from the fossil sources. Notable among such fuels are the diesel, gasoline
and jet fuel for which fairly well developed commercial manufacturing processes
are in place. A more recent addition to this family of sulfur-free, near-zero
aromatics synthetic fuels is dimethyl ether (DME), which is considered an excellent
substitute for conventional diesel and liquefied petroleum gas (LPG). Asian
countries particularly China, India, Japan and Korea with their highest expected
energy consumption rates are showing great interest in DME as these countries
are large consumers of diesel, LPG and LNG (liquefied natural gas). Several
Japanese companies have joined hands together to commercialize DME production
and consumption on economic scales comparable with LNG and diesel. Elsewhere
in the developed world (US and Western Europe), DME has invoked interest not
only as an environmentally benign fuel but also as downstream outlet for over-capacity
methanol industry after the expected MTBE ban.
Our report reviews and appraises the technological and economic aspects of DME
manufacture and its prospective use as an alternative fuel. The report evaluates
the following options for DME production.
· Production of DME from Methanol via "Methanol Dehydration Technology"
(termed as two-step or indirect methodology for DME manufacture starting from
syngas, which is also in current use).
· Production of DME from Natural Gas via "Single-Step DME Synthesis"
(an emerging single-step or direct methodology).
DME has several physical properties similar to those of LPG; DME has also been
found to possess cleaner burning characteristics as compared to conventional
petroleum-derived diesel. For that reason, DME is envisaged as a clean alternate
fuel of future for electricity generation, domestic heating and automotive power.
DME can be produced from a gas mixture of hydrogen and carbon monoxide (generally
termed as synthesis gas) which is synthesized from natural gas, coal or biomass.
The report further examines and compares the economic viability of the following
pathways for transportation of the remote, stranded energy to the industrialized
markets.
· Conversion of remote gas to methanol - transportation of methanol to
developed countries - and its subsequent conversion to DME per requirement in
those areas.
· Conversion of remote gas to DME directly - transportation of DME to
developed countries.
In addition, the report also presents comparative economics of DME with GTL,
LNG, conventional diesel and methanol.
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