China Energy LimitedChina Energy Limited

DME as Transportation Fuel October 2012

DME as Transportation Fuel October 2012

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China Energy Limited

2

CEL – pioneered DME as alternative energy in PRC

Patented Technology – efficient & economical

DME – wide applications with easy adoption

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DME

3

Cost Efficient Production & Distribution

* 70% Butane + 30% Propane by volumeSources: Purvin & Gertz DME Market Study (2006), Green Car Congress

MethanolDME Production

Process DME

Natural Gas

Coal

Biomass

Colourless, odourless & non-toxic gas Similar properties to LPG

CH3 OCH3

Physical Properties of DME vs. Other Fuels

Properties DMEChina

Typical LPG*

Methane (Natural

Gas)

Diesel Fuel

Boiling Point (ºC) -25.1 -42.0 -161.5 180-370

Liquid density (g/cm3, 20ºC)

0.67 0.49 - 0.84

Cetane number 55-60 5 0 40-55

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DME – Dimethyl Ether

4

Viable Alternative Energy

Favourable Characteristics

Wide Applications

Favourable Supply Dynamics

High Adaptability

“Clean” & safe

Lower smoke emission rates

Characteristics similar to LPG

Blend stock or substitute for fuel

Expanding applications

Methanol can be derived from coal, natural gas or biomass

– Abundance of coal: cost adv

Can be transported & stored like LPG

Minimal modifications to existing fuel system required

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DME

5

Clean Energy For the Future

Emissions from Diesel EngineEmissions,

g/k WhrDME Field

Test ResultsDME Lab

Test ResultsEuro 4 Diesel Fuel Standard

Nitrogen Oxide Gases (NOx)

3.30 2.99 3.50

Hydrocarbon (HC) 0.26 0.25 0.46Carbon Monoxide (CO)

0.03 0.12 1.50

Particulate Matter (PM)

n/a <0.02 0.02

Lower Emissions – Environmental Friendly

Meets the most stringent emission regulations in

Europe (EURO5), U.S. (U.S. 2010), & Japan (2009 Japan)

http://www.japantransport.com/conferences/2006/03/dme_detailed_information.pdf

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DME

6

Easy Adoption; Wide Applications

* 70% Butane + 30% Propane by volumeSources: Purvin & Gertz DME Market Study (2006), Green Car Congress

Commercially Proven Market Developing Market Potential Market

DMEDME

Power Generation Fuel

Fuel Substitute (e.g. LPG, LNG)

LPG – Blendstock

Chemicals(e.g. Aerosol Propellant ）

Transportation Fuel

(e.g. diesel)

Blend LPG with

20-25% DME to

reduce costs

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MNCs To Further Drive Application of DME

7

http://www.volvo.com/group/global/en-gb/volvo+group/ourvalues/environment/info_material/dme/dme.htm

http://www.cider.as/biodme/doc/080923_Volvo_FINAL.pdf

Endorsing DME as alternative

energy

http://www.biodme.eu/

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1.5 parts DME to 1 part diesel

Good substitute for diesel

China – Running DME-Powered Buses

8

Joint Study with JiaoTong University

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TRANSPORTATION FUEL

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TRANSPORTATION FUEL

JANUARY 2005- JIUTAI ENRGY WAS TASKED BY CHINESE SCIENCE MINISTRY TO CARRY OUT DME AUTOMOTIVE CLEAN FUEL PROGRAM. THE PROGRAM SUCCESSFULLY CONCLUDED IN JUNE 2007.

R&D COLLABORATION WITH WEICHAI POWER, ZHONG TONG BUS, DME PUBLIC BUSES NOW OPERATING ON ROAD 19, LINYI FOR 5 YEARS WITH 200,000 KM MILEAGE. OPERATION SATISFACTORY.

WITH 7 YEARS EXPERIENCE OF OPERATING MORE THAN 10 DME BUSES FOR EMPLOYEES, ACCUMULATED WEALTH OF PRACTICAL DATA AND KNOWHOW, ON 7 DECEMBER 2008, JIUTAI CHEMICAL WAS AWARDED “MODEL COMPANY FOR ETHER TRANSPORTATION CLEAN FUEL” BY ETHER TRANSPORTATION CLEAN FUEL ASSOCIATION.

DME AS TRANSPORTATION FUEL

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