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KOGAS KOGAS KOGAS KOGAS R&D Division, DME Project KOGAS R&D Division, DME Project Introduction of KOGAS’s Activities on DME September 8, 2010 DME4 in Stockholm, Sweden Wonjun Cho, KOGAS

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Page 1: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGASKOGASKOGAS

KOGAS R&D Division, DME ProjectKOGAS R&D Division, DME Project

Introduction of KOGAS’s Activities on DME

September 8, 2010

DME4 in Stockholm, Sweden

Wonjun Cho, KOGAS

Page 2: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 2 -

ContentContent

DME standard

KOGAS’s Activities on DME

History of KOGAS DME Activities

Development of KOGAS DME Process

KOGAS DME Commercialization

Global DME business of KOGAS

DME Activities & Prospects in Korea

Master Plan of DME Supply in KOREA

DME Prospect (Market)

Household & commercial use

Transportation use

Power generation use

Page 3: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

DME Activities & Prospects in Korea

Page 4: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 4 -

Master Plan of DME supply in KOREAMaster Plan of DME supply in KOREA

Government master plan of DME supply in Korea

(MKE, Ministry of Knowledge Economy)

’07. 7(1st Master plan), ’09. 11(2nd Master plan)

Domestic Supply of DME fuel in 2013Domestic SupplyDomestic Supply of DME fuel in 2013of DME fuel in 2013

1st Demonstration step(’07~’09) : Study on the Quality Characteristics of DME-LPG

Blending Fuel(Safety, Quality, Standard etc.) → Establishment of specific regulation

2nd Demonstration step(’09~’11) : Test of Business Model of DME-LPG Blending Fuel

(Supply DME-LPG blending fuel to domestic area)

Promotion step(’11~’13) : Oversea DME Project and Import DME (End of ’13)

Page 5: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 5 -

At present : Cosmetics, Spray propellant, Intermediate of agricultural chemical, LPG blending.

In future : Power generation, Transportation, Households & Commercial, etc.(Korea will use it for households & commercial, transportation fuel in 2013)

DMEDMEEmergency diesel generator

Home-use

DME-FCV

DME station

Fuel cell

Diesel engine carIndustrial fuel

ChemicalsAerosol

DM

E Future

DME Prospects (Market)DME Prospects (Market)

Community energy supply system

Page 6: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 6 -

Household and Commercial useHousehold and Commercial use

▣ Household Use- Cooking appliance- Hot water boiler

▣ Industrial Use- Cooker for the restaurants- Industrial Boiler

▣ Chemical (Spray Propellant)- Aerosol propellant- Agriculture intermediates

Spray Propellant

Household

Industrial Use

Page 7: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 7 -

Domestic DME-LPG Experimental System Combustion Test

Blending Test Cylinder TestDME-LPG Test Facilities

(Lab.)

DME-LPG blending test (KGS)DME-LPG blending test (KGS)

DME-LPG blending test facilities

Page 8: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 8 -

Supply of DME-LPG blending (KOGAS)Supply of DME-LPG blending (KOGAS)

Fuel system for DME-LPG blending- cooking gas stoves : DME 20~30wt% + LPG 70~80wt%,

- LPG vehicles for field test : DME 5~10wt% + LPG 90~95wt%

Fuel Station for the filling of 100% DME and DME-LPG blending fuel-100% DME Bus from the modification of diesel bus and LPG vehicles

DME-LPG blending & Filling System 100% DME Station & DME Bus

Page 9: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 9 -

KOGAS Activities for VehicleKOGAS Activities for Vehicle

Proto-type DME Vehicle

KOGAS DME Bus KIER DME TruckKIER DME Truck KATECH

Features of DME vehicle from the modification of diesel vehicle• Ultra-low emissions and low engine noise • minor modification at low cost

KOGAS has developed the DME vehicles since 2005(with KIER, SK).• we already completed the key-technology for DME vehicles, and engine and a fuel

supply systems successfully.• 8,000 cc bus with 33 passenger

Page 10: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 10 -

▣ Less CO2 emission than coal or

oil fired power generation

▣ Similar efficiency to gas fired

power generation

- Generation efficiency in gas

turbine : 39~40%

▣ Demonstration is completed by

KEPRI

- Retrofit fuel supply system

Power Generation usePower Generation use

KEPRI

Page 11: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS’s Activities on DME

Page 12: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 12 -

History of KOGAS DME ActivitiesHistory of KOGAS DME Activities

DME Manufacturing Technology Development (KOGAS)

LAB scale (’00~’03)

50Kg/day DME Pilot Plant (’03~’05)

10Ton/day DME Demo Plant (’04~’09)• ’04~’06 : Safety standard study for DME fuel (KGSC)

• ’04~’07 : Basic property study for DME-LPG blending fuel (KGSC)

DME Partnership Program• ’04~’07 : Application technology development for DME fueled Power plant (KEPRI)

• ’05~’08 : DME fueled diesel engine for Bus (KIER)

Demonstration and Model Business• ’07~’10 : DME demonstration and model business (MOCIE)

DME Manufacturing Technology Development (KOGAS)

LAB scale (’00~’03)

50Kg/day DME Pilot Plant (’03~’05)

10Ton/day DME Demo Plant (’04~’09)• ’04~’06 : Safety standard study for DME fuel (KGSC)

• ’04~’07 : Basic property study for DME-LPG blending fuel (KGSC)

DME Partnership Program• ’04~’07 : Application technology development for DME fueled Power plant (KEPRI)

• ’05~’08 : DME fueled diesel engine for Bus (KIER)

Demonstration and Model Business• ’07~’10 : DME demonstration and model business (MOCIE)

3,000 ton/d DME production plant developmentfrom Small-medium size gas fields

Target

Page 13: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 13 -

KOGAS DME ProcessKOGAS DME Process

Plant ViewPlant ViewPlant View

Technical propertiesDME technology using various feed stocks like NG, CBM, Biogas, etc.Syngas process : tri-reforming using 20%CO2 included in gas fieldDME Process : application of efficient heat removal system of fixed bed reactor with shell & tube

Development state2003 : Pilot plant Construction and Operation (50~100 kg/d)2008 : Demo plant Construction and Operation (10 ton/d)→ Establishment of catalyst recipe and reactor design for commercial plant

Reforming processReforming processReforming process

SyngasProduction

Process

DME Process(heat removal

system)

DME processDME processDME process

Page 14: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 14 -

ReactorReactor

Methanol Catalyst

Syngas Catalyst

DME Catalyst

DME Synthesis Reactor

Tri-reformer

Methanol reactorDirect synthesisDirect synthesis

DME PurificationDME Purification

CO2 Recycle

Development of core technologyDevelopment of core technology

Engineering

ProcessOperation

Catalyst

Optimum Process Simulation

BEP Licensing

Optimization technology

Page 15: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 15 -

KOGAS DME Catalyst DevelopmentKOGAS DME Catalyst Development

Desulfurization350~400℃15~30atm

Pre-reforming

ConditionsProcess

350~400℃15~30atm

Catalyst

ZnO/CaO

Ni/CuO/MgO/Al2O3

Tri-reforming

DME Synthesis

950~1050℃15~30atm

230~280℃30~60atm

NiO-Mg/Ce-ZrO2/Al2O3

CuO/ZnO/Al2O3+ Additives

Photo

Page 16: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 16 -

Gas field DME commercialization※ DME import until 2013, Expected 1.5 million tons on 2015

Gas field DME FPSO technologySecuring gas field of oversea, utilizing domestic shipbuilding company

CBM DME commercialization※ Production of 10,000ton from coal and CBM

Domestic supply and market expansionDemonstration step in 2009, Penetration from model distribution until 2011

Domestic supply and market expansionDemonstration step in 2009, Penetration from model distribution until 2011

-- Development of core technology of DME FPSO Development of core technology of DME FPSO -- Securing gas field in Indonesia, Vietnam etc Securing gas field in Indonesia, Vietnam etc -- Secure economic of nonSecure economic of non--economic gas field containing CO2economic gas field containing CO2

- New growth green energy projects- new growth businesses in KOGAS- LPG and diesel alternative clean fuel supply

KOGAS DME CommercializationKOGAS DME Commercialization

-- Establishment of commercial technology optimizationEstablishment of commercial technology optimization-- Secured gas field(2010) Secured gas field(2010)

-- Licensing of core technology Licensing of core technology

-- Resource development cooperation projects in Mongolia Resource development cooperation projects in Mongolia ((’’09~09~’’12)12)

-- secure resourcessecure resources from applied commercial technologyfrom applied commercial technology-- Improvement of air pollution in MongoliaImprovement of air pollution in Mongolia

Page 17: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 17 -

Global DME business of KOGASGlobal DME business of KOGAS

Saudi Arabia

1000TPD(300,000TPY) DME Production MOU cooperation (’09.11) → Import DME 300 KTPA in 2013

• Natural gas price : 1.0~1.5$/MMBtu• Ready for Feasibility study, Economic analysis, etc

MongoliaSecuring CBM(50~100 KM3), Construction and operation of 10~20 KTPA DME Plant (’09.9 ~ ’12.12)

→ Supply of Ulaanbaatar and near area for the vehicle and household fuel

Vietnam

DME business cooperation with state government of Thai Bihn in Vietnam(’10.3)

→ Development of ocean gas field with Petro SAONAM (consortium)

Indonesia

DME production capacity : 1.7 million tons per year(’2014) → Use : DME-LPG blending fuel• Pertamina had been discussed with KOGAS and Daewoo

Engineering (’09.11)

etc Myanmar, Oman, Australia etc• DME Production From CBM, Gas field (MEO Australia)

Page 18: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 18 -

DME Business in Mongolia (I)DME Business in Mongolia (I)

Battling Mongol’s air pollution with environment-friendly DME

business utilizing CBM from rich coal resource

Joint Research

Joint R&D Center

R&D for CBM Applications

Model Business

DME Demo Plant

Utilizing Nalaykha Coal mine

Commercial Plant

Mid-Size DME Plant

Large Coalfields

Business Start-up Foundation Technology Demonstration Profitable Business Model

Improvement of Mongol’s Air Quality

Page 19: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 19 -

DME Business in Mongolia (II)DME Business in Mongolia (II)

With sufficient CBM feed gas (0.05~0.1 million M3 per day) available, DME plat of 10~20 thousand ton per year will be built.- Use of CBM from Nalaykha coalfield near Ulaanbataar

- Project finance with a consortium by Korean and Mogolian companies

Suppy of produced DME for transportation and household fuels

4.5~9만 m3/day

CBMCBMExtractionExtraction

StationStation UsageUsage

Business ModelBusiness Model

DME PlantDME Plant

25~50 ton/day 20 ton lorry

Page 20: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 20 -

Historic Schedule• ’08. 12 : KOGAS DME Plant PR to Saudi Arabia, Oman etc

• ’09. 11 : MOU with Saudi Arabia

• ’10. 1 : KOGAS DME Technology Valuation and PFS(~’10.4)

• ’10. 3 : Korea-Saudi Working Committee (Incheon)

• ’10. 7 : Agreement of Joint Study (Launching a Feasibility Study)

Main Contents of DME Business in Saudi Arabia• Providing of KOGAS DME Technology• Securing Utility (NG, Industrial Water, Area, Electricity etc) in Saudi

Arabia• Feasibility Study (Joint Study)

Construction of 300,000ton/year DME Commercial Plant and Import (’13)

K-DME Business in Saudi Arabia (I)K-DME Business in Saudi Arabia (I)

Page 21: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 21 -

K-DME Project in Saudi Arabia (II)K-DME Project in Saudi Arabia (II)

KOGAS DME PlantCore

Technology

Saudi

Arabia,

Al Jubail

DME Commercial Plant

• KOGAS DME Plant Technology • Complete KOGAS Demo Plant Technology • Complete Basic Design of DME Commercial Plant

• Saudi Arabia applies the local conditions• Resource gas, Electricity, Industrial water, etc

⇒ DME production from overseas and import(’13)

• EPC Construction• Trial Operation• DME Production

Construction of Construction of

DME Commercial DME Commercial

Plant in Saudi Plant in Saudi

ArabiaArabia

Page 22: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 22 -

DME Business in VietnamDME Business in Vietnam

Improvement of air pollution with environment-friendly

DME business utilizing gas field

Gas Field

Exploration & Production

Development

Commercial Plant

ConstructionOperation

Market

DME-LPG BlendingDiesel substitute

Business Start-up Foundation Technology Demonstration Business Model

Improvement of Air Quality and Development of Gas Field in Vietnam

Improvement of Air Quality and Development of Gas Field in Vietnam

Page 23: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 23 -

DME FPSO (in Vietnam or East-Southern Asia)DME FPSO (in Vietnam or East-Southern Asia)

With CO2 rich natural gas of above 1.0 TCF, DME plant of 1 MM ton/year will be built and produced DME product

Import to domestic fuels and export to others (Indonesia, Vietnam etc.)

DME-LPG blending fuel & Diesel substitute

Business ModelBusiness Model

DME-FPSO End UserReceiving terminalOcean tanker

CO2 rich gas field of 1.0 TCF

Page 24: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

DME Standard

Page 25: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 25 -

Sample Phase method

Syngas Gas On-line Gas Analyzer (ND-IR)

Product DME Liquid On-line Gas Chromatograph(TCD & FID)

Impurity(Water Contents)

Gas & Liquid

Karl-Fisher Coulometer

1. Test Method1. Test Method 2. Analyzer2. Analyzer

On-lineGas Analyzer

On-lineGas Chromatograph

Karl-Fisher Coulometer

3. Test Results3. Test Results

ComponentsSampling. No.

H2 CO CH4 CO2 MeOH

0.0002 0.5095

0.0530

0.1011

Average 0.0097 0.0003 0.0001 0.0390 99.7296 0.2212 100

0.0557

0.0611

0.0008

0.0000

0.0000

DME Total

1st Operation 0.0292 0.0004 99.4598 100

2nd Operation 0.0000 0.0000 99.8913 100

3rd Operation 0.0000 0.0000 99.8378 100

Average DME Purity (mol%) : 99.7%

Test method result of KOGAS DMETest method result of KOGAS DME

Page 26: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 26 -

DME Standard (KGS code)DME Standard (KGS code)

Item Value

Purity(wt%) >99.0

Methanol(wt%)

CO2(wt%)

Methyl Formate(wt%) <0.01

Steam Pressure(40℃, MPa) <1.05

<0.1Composition (wt%)

Hydrocarbon(wt%) <0.5

<0.02

Residue (mg/kg) 0.002

Water (wt%) <1.0

Sulfur (wt ppm) Not detected

Copper Corrosion (40℃, 1h) Under 1 degree

Page 27: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 27 -

DME-LPG Standard (KGS Code)DME-LPG Standard (KGS Code)

LPG-DME Standard for household & commercial

Item Value

LPG Over 75.0

DME

etc

Composition (wt%) Under 20.0

Under 1.0

Steam Pressure(40℃, MPa) Under 1.43

Residue (mg/kg) Under 0.05

Water (wt%) Under 0.04

Sulfur (wt ppm) Under 40

Copper Corrosion (40℃, 1h) Under 1 degree

Page 28: KOGAS - aboutdme · 2019-12-17 · KOGAS R&D Division -2- DME Project ContentContent DME standard KOGAS’s Activities on DME fHistory of KOGAS DME Activities fDevelopment of KOGAS

KOGAS R&D Division DME Project- 28 -

Distribution Model Business RegulationDistribution Model Business Regulation

Specific Regulation for DME-LPG blending fuel (KGS AC2112009)To Check the Safety of the Equipment and Distribution Network in KoreaTo Supplement/Improve the Inadequate ProblemDuration : 2009. 11 ~ 2011.11Start-up for DME-LPG Distribution : 2010. 8. 5

Demonstration Field Tester Site

Dong-Bang City Gas Industry Kangreung City, Kangwon Prov.

Youngjin Energy

Mokpo City Gas Mokpo City, Jeonnam Prov.

Korea Gas Corporation

Chunil Gas

Filling Station Company

Pohang City, Kyungbuk Prov.

Manufacture Company

Youngkwang City, Jeonnam Prov.

Incheon