DME Industry and Association · PDF fileDME Industry and Association Overview ... Indonesia...
Transcript of DME Industry and Association · PDF fileDME Industry and Association Overview ... Indonesia...
IDA Patron Members
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DME Industry and Association OverviewJean-Alain Taupy
IDA Chairman4th International DME Conference
Stockholm
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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
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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
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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 ?
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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)
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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%)
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Factors Driving Growth
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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
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Factors Driving DME Fuels Growth –DME / LPG Blending
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
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Factors Driving DME Fuels Growth –DME / LPG Blending
Profitability Considerations
Cost of feedstock and LPG pricesDME efficiency benefitsRelatively low capital costProven technologyRural area gas bottling opportunities (niche/local markets)
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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
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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
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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
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The Association
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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
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About the Association –Membership
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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
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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:
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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)
Representation Representation Representation Representation Representation
China AffairsChairman: Huang Zhen (SJT University)
Representation Representation Representation Representation Representation
Japan AffairsChairman: Yotaro Ohno (RenFuD)
Representation RepresentationRepresentationRepresentationRepresentation
Korea AffairsChairman: Gye Lim(Hoseo University)
Representation Representation Representation Representation Representation
Regional Committees
AdvocacyCommittees
European AffairsChairman: Ulrik Federspiel(Haldor Topsoe)
Representation Representation Representation Representation Representation
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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
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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
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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
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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
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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
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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
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DME Industry and Association OverviewJean-Alain Taupy
IDA Chairman4th International DME Conference
Stockholm