dme industry and association · pdf filedme industry and association overview ... indonesia...

IDA Patron Members

1

DME Industry and Association OverviewJean-Alain Taupy

IDA Chairman4th International DME Conference

Stockholm

2

The DME Industry –Entering its 2nd Decade

DME 12004 Paris

DME 22006 London

DME 32008 Shanghai

DME 42010 Stockholm

4th IDA Meeting2002 Copenhagen

DME Seminar2006 – London

6th IDA Meeting2003 Phoenix

7th IDA Meeting2005 – Stockholm

33

The DME Industry –Development Milestones

1963 1994 20092001

First use as an aerosol propellant

(Akzo Nobel)

Japan DME Forum (JDF) established

ISO standardization

initiative launched

BioDME production begins

(Chemrec)

2010

Use as diesel fuel established(AVL List, BP, Haldor Topsoe, McCandless,

Navistar)

1996

First demonstration projects launched

(China, Japan)

First commercial production for

energy use (Lutianhua Group, Toyo

Engineering)

20072001

IDA established

2003

China DME Association (CDA)

established

44

The DME Industry –Capacity & Production Milestones

2003 2004 20082006

30 KTPY

20092007

40 KTPY 480 KTPY2.2 MTPY

4.4 MTPY 5 MTPY

2010

6, 7 MTPY

Forecast

2015-18

10 -15 MTPY ?

55

Fuel DME Market –Project Overview - Global

Egypt200 ktpy planned

Japan80 KTPY operational

Indonesia800 ktpy planned in 2011

China6,700 ktpy capacity (by March 2010)600 ktpy under construction

20,000 ktpy planned by 2015-2018

India265 ktpy planned

SwedenWorld’s first bioDME plant operational

Uzbekistan100 ktpy planned in 2013

VietnamProject announced in March 2010

Saudi ArabiaProject planned by Kogas (300 ktpy in 2013)

66

DME Market –Project Overview - China

HeilongjiangHeilongjiang

XinjiangXinjiang

TibetTibet

QinghaiQinghai

Inner MongoliaInner Mongolia

GansuGansu

LiaoningLiaoningBeijingBeijing

ShandongShandong

AnhuiAnhui

ZhejiangZhejiangHunanHunan JiangxiJiangxi

GuangdongGuangdongGuangxiGuangxiYunnanYunnan Hong KongHong Kong

JilinJilin

JiangsuJiangsu

SichuanSichuan

ShaanxiShaanxi

ShanxiShanxi

GuizhouGuizhouFujianFujian

MacauMacau

HubeiHubei

ChongqingChongqing

TianjinTianjin

ShanghaiShanghaiHenanHenan

HebeiHebei

HainanHainan

NingxiaNingxia

China DME (KMT)

Q2 ‘09 Q2 ‘10

Nameplate Capacity 6,800 7,600

Realistic Capacity 5,000 5,200

Quarterly Production 313 528

Op. Rates 25% 41%

Operating rates highest in E & S China (>45%)

Lower Operating rates in inland China (<30%)

77

Factors Driving Growth

88

Factors Driving DME Fuels Growth –DME / LPG Blending

More than 70% of DME currently produced is blended with LPG

Blending ~20% DME / 80% LPGModel works best in countries that

Import LPGHave local feed stocks to product DME

Largest market is China (6+MMTPY installed capacity) but regulations & standards must be put in place and applied.Major companies in Egypt, India, Indonesia and Vietnam preparing to enter this market

99


Strategic Considerations

Energy securityClean fuel demandReduced oil product demand / priceImpact on balance of payments for LPG importing nationsEnergy delivery to remote areas without large capital investment in infrastructure

1010


Profitability Considerations

Cost of feedstock and LPG pricesDME efficiency benefitsRelatively low capital costProven technologyRural area gas bottling opportunities (niche/local markets)

1111

Factors Driving DME Fuels Growth –Diesel Substitution

Opportunities

Can be used in conventional diesel engines with a modified fuel injection systemLarge potential marketHigh cetaneQuiet combustionClean burning (sootless – no smoke or particulates)100% SOx reduction

ChallengesTechnical and regulatory hurdles remainLPG-like distribution infrastructureLower lubricity requires lubricating agentLower viscosity can cause leakageGovernment regulations Volvo DME Truck

1212

Factors Driving DME Fuels Growth –Diesel Substitution

Isuzu DME Diesel Truck Nissan NTSL DME Diesel Truck SAIC DME Diesel Bus

Volvo DME Diesel Engine

Much Work Underway

Japan DME Vehicle Promotion CommitteeVolvo & BioDME ConsortiumShanghai Automotive Corp.Alternative Engine TechnologyIsuzu Advanced Engineering CenterNissan

SAIC DME Diesel Engine

13

Factors Driving Growth –Chemical Intermediate & Niches Applications

Very Attractive Chemical Feedstock

Behaves as liquid synthesis gas – may be used in production of:

AmmoniaAcetic acid and anhydrideShort olefins (MTO)Synthesis gas (H2/CO/CO2 mixture)HydrogenSynthetic gasoline

New Markets Appearing

Up to 10% of China production used for welding, cutting and brazing applications Volvo DME Truck

1414

The Association

1515

Mission and Objectives

Serve as the global voice of the DME industry and promote public awareness

Provide a platform for international contact and unified action

Monitor and communicate global DME developments

Advocacy and stewardship

Guide development, address obstacles to market penetration

IDA Executive CommitteeChina - 2008

1616

About the Association –Membership

ENN

The IDA unites those companies most active in the development of DME worldwide, from every sector of the industry, representing a wide range of interests within both the upstream and downstream value chains:

Indian Oil CorporationEniChina EnergyTotalVolvoRange FuelsChemical Market AssociatesCity of Vaxjo, SwedenGenifuelIndian Oil Safety Directorateand many more…

Isuzu Advanced Engineering CenterAlternative Fuel TechnologiesKorea Gas CorporationHaldor TopsøeLurgiPT Arrtu Mega EnergieMethanexSHVChemrecAkzo NobelPosten Logistik

1717

About the Association –Strategic Partnerships

The IDA maintains close ties with regional DME association and related industry bodies, uniting those organizations most active in the development of DME worldwide:

18

About the AssociationOrganization and Governance

Board of DirectorsHealth, Safety & Enviroment

Chairman:Henrik Landalv

(Volvo)

Standards & Regulations

Chairman:François Bollon

(Total)

Research & Development

Chairman: Shuichi Kajitani(Ibaraki Univ.)

StrategyChairman:Ben Iosefa (Methanex)

Government Affairs

Chairman:Johan Torsell

(Vaxjo)

Indian AffairsChairman: B.M. Bansal (Indian Oil)

Representation Representation Representation Representation Representation

North American AffairsChairman: Jim McCandless (Alternative Fuel Technology)


China AffairsChairman: Huang Zhen (SJT University)


Japan AffairsChairman: Yotaro Ohno (RenFuD)

Representation RepresentationRepresentationRepresentationRepresentation

Korea AffairsChairman: Gye Lim(Hoseo University)


Regional Committees

AdvocacyCommittees

European AffairsChairman: Ulrik Federspiel(Haldor Topsoe)


1919

About the Association –North American Affairs Committee

Launched 2009 in MiamiObjectives:

To certify DME as a fuel compliant with U.S. EPA and DOE requirementsTo raise awareness among policymakers, facilitating eligibility for government fleet demonstration funding and activities

Strategy:Collaboration between U.S.-based companies and laboratoriesUse information available from non-U.S. entities where possible

MarketsAutomotive fuel“Green” LPGMilitary fuel applications

2020

About the Association –European Affairs Committee

Launched this week in StockholmObjectives:

To raise awareness among EU policymakers, facilitating eligibility for government funding

Strategy:Work focused on working with DME “champions” in BrusselsLeverage work done to date throughout Europe

MarketsLPG substitutionTransportation

2121

About the Association –Indian Affairs Committee

Launched 2009 in GoaObjectives:

Creation of a 200 TPD methanol-to-DME plant in IndiaTo raise awareness among policymakers, facilitating eligibility for government funding

Strategy:Work focused in four sub-groups

I. Technical & Economic FeasibilityII. Marketing & CommercialIII. R&D, Blending & TransportationIV. Legal & Regulatory

Leverage work done to date in neighboring regions

MarketsLPG substitutionTransportation

2222

About the Association –Health, Safety & Environment Committee

Met this week in StockholmObjectives:

Facilitate HSE initiativesPromote compliance and preparedness for all matters related to HSE Lead product stewardship

Strategy:Facilitate information sharing

Leverage existing documentationJapan DME Data Set translated into EnglishJapan LPG Center DME Blend Report to be translated into English

Identify and prioritize gaps in knowledge or informationShare or produce information of value to members and industry

DME Incident Log2 year activity plan

2323

About the Association –Research & Development Committee

Met this week in StockholmObjectives:

Provide high level review, analysis, and recommendations for R&D initiatives and directionIdentify where most critical challenges are

Strategy:Review existing and new workFacilitate information sharing in support of other initiatives (e.g. regulatory and HSE matters)Identify work of possible interest to membersHighlight gaps where research or funding may be best directed

2424

About the Association –Regulations & Standards Committee

Launched in 2009Objectives

Follow-up of the regulations and standards (R&S) about DME worldwideRecommendations & support to people in charge of R&S

StrategyFollow up of the ISO work about DME standardizationQuestionnaires for survey about R&S

MarketLPG/DME blends for heating fuelDME as replacement of diesel

IDA Patron Members

25

DME Industry and Association OverviewJean-Alain Taupy

IDA Chairman4th International DME Conference

Stockholm

dme industry and association · pdf filedme industry and association overview ... indonesia...

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