Methanol as a FuelStatus of International ResearchBP Presentation to NDRCBeijing May 16, 2006Steve Wittrig/Scott Charpentier

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Outline

• Methanol production technology and economics• Methanol engine technology• Issues associated with the use of methanol as a fuel

(problem definition, risks and mitigation strategies)− Toxicity− Methanol/Gasoline blends− Methanol logistics and infrastructure cost − Biodegradability in the environment− Emissions and air pollution− Corrosiveness/Materials compatibility− Cold Start/Operability

Methanol production technology and economics

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BP’s Trinidad-Based Methanol ProjectsLurgi Technology and Major Contractor• Titan Methanol Plant

− 2500 tonnes/day (single train), largest in world at the time

− Natural Gas Consumption:80 MMSCFD− Start up: Dec 1999

• Atlas Methanol Plant− First implementation of Lurgi megamethanol

technology− 5000 tonnes/day (single train), currently largest in

world− Natural Gas Consumption:160 MMSCFD− Start up: June 2004

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Methanol from Natural Gas• Megamethanol technology recently commercialized in

Trinidad profitably produces methanol at $110 per tonne (using $1 / MMBTU gas)

• $140 per tonne methanol from $2 / MMBTU gas (add $30 per tonne for additional $1 / MMBTU gas)

• Technology breakthrough (20% lower cost than next best technology)

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7

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Syngas/Methanol Synthesis Schematic

• Show gas cooled reactor

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Atlas Methanol Plant

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Lurgi Combined Reforming

NaturalGasFeedFromNGC/BP

Syngas

Oxygen

SteamReformer

AutothermalReformer

Air SeparationPlant

MethanolSynthesis

MethanolDistillation

Storage andLoading

MethanolExports

NaturalGasFeedFromNGC/BP

Syngas

Owned by Atlas Partners

Oxygen

Atlas Methanol PlantSteamReformer

AutothermalReformer

Air Separation

Plant

MethanolSynthesis

MethanolDistillation

Storage andLoading

MethanolExports

Block Flow Diagram

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Syngas/Methanol Synthesis Schematic

• Show gas cooled reactor

Lurgi’s Combined Methanol Converter

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Cost breakdown- $/tonne

Titan AtlasCapital cost 43.3 26.0Fuel (gas $0.85/mmbtu) 27.3 27.3Oxygen 7.3 8.3Operating 19.3 18.0

− Critical factors− Choice of technology− Fuel costs− Economies of scale

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Next Generation TechnologyHigh Pressure POX (Another 10% lower cost?)

• Lurgi’s Pure ATR – eliminate steam reformer− Lower capital costs − Lower CO2 emissions

• Increased pressure to 80 bar− Eliminate compressors

Demonstration plant for production of Syngas from Natural Gas, Liquid Hydrocarbons/Slurries at pressures up to 100 bar sponsored by BMWA, SMWK, mg technologies

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Methanol from Coal

• BP is not expert on coal conversion or the costs to produce methanol from coal gasification.

• Some of our colleagues in China tell us that methanol can be produced from coal at a cost of 800 – 1200 RMB per tonne.

• We are interested to know more about the costs and processes used in China for producing methanol

• If methanol can be produced in China for 1200 RMB per tonne, that is equivalent to gasoline at 1.5 RMB per litre.

• We are interested to know if China will use this opportunity for transportation fuel made from coal in China.

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Life Cycle Energy Balance - Fuel Yield Methanol and Fischer Tropsch Diesel

5 Tonne Coal

2.5 Tonne Methanol

0.9 Tonne FT Liquids

Equivalent to

0.3 Tonne Naphtha (not auto fuel)

1.1 TonneDiesel Equivalent

0.6 Tonne FT Diesel

Fischer Tropsch

MethanolDivide by 2.3 for conversion

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Life Cycle Energy Balance - Fuel Yield Methanol and Fischer Tropsch Diesel

1 MM SCF Gas

29.9 Tonne Methanol

11.1 Tonne FT Liquids

Equivalent to

3.6 Tonne Naphtha (not auto fuel)

13 TonneDiesel Equivalent

7.5 Tonne FT Diesel

Fischer Tropsch

MethanolDivide by 2.3 for conversion

Methanol engine technology

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Engines and Autos for methanol fuel• Thousands of methanol flex fuel vehicles have been manufactured and sold

in the West in the last 20 years• The technology exists to build consumer or commercial autos and trucks

that efficiently and safely use methanol and methanol/gasoline blends as fuel

• Engines that are designed and built specifically for methanol are probably not generally more costly than gasoline or diesel engines. The technology is very similar. There are some different materials that need to be specified for methanol service, but they are not generally more expensive materials.

• The M85 FFV Ford Taurus sold in the US was $340 cheaper than the gasoline version.

• Many companies and research entities have continued development of methanol fueled engines and there are modern prototype methanol engines that take advantage of methanol’s octane and vapor pressure characteristics to achieve very high engine efficiencies.

• The potential relative cost of methanol fueled engines is an issue that can be estimated from work done over the last 20 years by engine designers such as FEV

• The production of methanol fueled cars and buses could be a significant opportunity for Chinese auto companies.

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© by FEV – all rights reserved. Confidential – no passing to third parties

19FEV China in Dalian

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© by FEV – all rights reserved. Confidential – no passing to third parties

1. Level_Company Profile / Faensen / 08.02.2005

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FEV Company Profile

LOCATIONS

GERMANY

Aachen Alsdorf Dalian

CHINA

Detroit

USA

Innovative EngineEngineering Company Working for Major Car and Engine Manufacturers Worldwide1300 Employees

Engineering Services and Products Engine and Powertrain Vehicle Integration, Application and Electronics Test Systems

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© by FEV – all rights reserved. Confidential – no passing to third parties

1. Level_Complete Development and Product Range/ Perseke / 16.12.2003

21Complete Development and Product Range

End-of-LineHot Test Facility

Turn Key Installation

Off-ToolDevelopment

Start SeriesProduction

SOP

Pre-SeriesDevelopment

First Engines ofManufacturing Line

PrototypeDevelopment

First Engines Available

CONCEPT Production

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FEV

© by FEV – all rights reserved. Confidential – no passing on third parties

Alternative Fuels at FEVEngineering Services and Competence

Methanol/

Ethanol Natural Gas

GTL/CTL/DME

Hydrogen

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FEV

© by FEV – all rights reserved. Confidential – no passing on third parties

Diesel and Diesel Blends Gasoline and Gasoline Blends Biodiesel (RME) GTL Fuels Methanol

Spark ignition Hot surface ignition

Ethanol CNG LPG Hydrogen Heavy Fuel Oil Diesel / Water Emulsion

Experiences with different Fuels

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FEV

© by FEV – all rights reserved. Confidential – no passing on third parties

1.1

FEV Methanol-Activities

Passenger Car Engines1.9 l 4-Cyl DI HSI -66 kW@4000 rpm1.9 l 4-Cyl DI HSI -66 kW@4000 rpm 0.86 l 2-Cyl DI HSI -29 kW@4000 rpm2.0 l 4-Cyl DI HSI -75 kW@4000 rpm6.2 l 8-Cyl DI HSI -87 kW@3500 rpm2.1 l 4-Cyl IDI HSI -66 KW@4200 rpm2.2 l 4-Cyl IDI HSI -70 kW@4500 rpm1.7 l 4-Cyl DI SI -60 kW@4000 rpm1.7 l 4-Cyl DI SI -60 kW@4000 rpm

Heavy Duty Engines12 l 6-Cyl DI HSI -230 kW@1500 rpm7.6 l 6-Cyl DI HSI -157 kW@2600 rpm9 l 6-Cyl 2-Stroke DI HSI -192 kW@2100 rpm4.5 l 4-Cyl DI HSI -60 kW@2400 rpm

durability criterias etc.)

Achievable Full Load Range

38.5%

68%

Rated Power: 66 kW

(as function of emission targets,BM

EP

[ b

ar ]

Engine Speed [ rpm ]

TorqueMultiplication

Factor:

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© by FEV – all rights reserved. Confidential – no passing on third parties

Methanol: Efficiency maps of methanol engines

Methanol glow ignition engine Methanol spark ignition engine

Engine rpm1000 2000 40003000 1min

4241

4038

3633

3025

2010

%e

37

3635

34

3230252010

1000 2000 40003000

4

8

16

12

0

Engine rpm

4

8

16

12

01min

%e

bar

mep

bar

mep

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© by FEV – all rights reserved. Confidential – no passing on third parties

Low heat value Larger pump capacity required

Insufficient lubrication Common rail pump with oil sump Special injector design Higher wear

Corrosion Special materials, coatings and sealings

Cavitation in the fuel system DME is gaseous under atmospheric conditions

Low pressure fuel system under pressure (5 bar at 20.6°C or 10 bar at 45.3°C)

…

Open Items regarding Methanol and DME

Oxygenated Fuels

Fig. 6

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© by FEV – all rights reserved. Confidential – no passing on third parties

Electronically ControlledMulti-Fuel Inline Injection Pump

1.4

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FEV

© by FEV – all rights reserved. Confidential – no passing on third parties

Methanol: Combustion process for internal mixture formation

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© by FEV – all rights reserved. Confidential – no passing on third parties

E 6350

FEV-Methanol vehicle with direct injection

UKA

Methanol Toxicity

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Toxicity of Methanol

• Methanol is poisonous and should not be drunk• The lethal dose of methanol ranges from 25-90 ml, the

lethal dose of gasoline in humans is approx. 400 ml (70 kg body),

• There have been reported instances of pure methanol being intentionally mixed with drinks and poisoning people

• One very effective strategy for preventing these problems is to add some gasoline or bitter additives (this is the strategy used for ethanol fuel as well).

• Another strategy is for methanol to be used by professional drivers (such as bus fleets or taxi drivers or delivery vehicles) and only dispense it from a limited number of sites (e.g., 4-6 bus terminals in a city dispensing methanol for buses designed for methanol fuel).

Methanol/Gasoline Blends

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Phase separation and water problems• In low concentration blends, methanol/gasoline blends are not

very stable in the presence of water. The gasoline and the methanol can separate if there is some moisture or water contamination. This is one of the primary problems caused by mixing a small amount of methanol with gasoline (M5 – M15).

• It can cause problems in retail or distribution storage• It can cause problems in driveability of cars using blends.• The primary strategies for dealing with the problem are

compatibilizer additives and special design and careful operation of storage and dispensing infrastructure to keep out water.

• These problems with low fraction methanol/gasoline blends can be managed, but they do cause extra expense and require attention.

• These problems are not particularly evident with M85 or not at all for M100. One way that China might effectively use methanol would be as M100 for city buses, taxis and delivery vehicles

Methanol Corrosiveness and Materials Compatibility

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Methanol Corrosiveness

• Methanol has different chemical characteristics than gasoline. It is not compatible with some elastomers and other materials (notably aluminum) that are commonly used in gasoline cars and distribution infrastructure.

• If a car or a dispensing system is designed with the knowledge that it will be exposed to methanol, it is only a matter of proper material selection and design.

• This problem leads to many of the problems that can occur with the use of methanol blends (such as M15) in automobiles that are not designed for methanol use. It is the main reason that auto companies object to unregulated blending of methanol into gasoline.

Methanol logistics and infrastructure cost

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Moving, storing and distributing methanol

• Methanol is an item of commerce that is sold, shipped and stored around the world

• BP is the largest buyer of methanol in the world (for our acetic acid business)

• BP is part owner of the largest methanol plant in the world (Atlas in Trinidad)

• BP has a lot of information and know-how on methanol shipping and handling

• However, the major issues in the past for methanol as a fuel have been associated with methanol blends (M5 – M15) (Phase separation, water take-up and fuel quality and corrosiveness in systems not designed to handle methanol).

• These are all issues that require attention and some cost to handle. There is significant experience in the world in how to design and operate systems to handle methanol/gasoline blends. BP can offer advice and guidance to China if desired

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CONCAWE/EUCAR study

• Conventional fuels, bio-fuels, synthetics fuels (from gas, coal and biomass) and hydrogen

• Assessment of future vehicle technologies• Based on European Resources and product infrastructure• Results - Life cycle costs, Energy efficiency and GHG

emissions• Analysis of light duty market only• Methanol results based on 100% methanol for Fuel cell use.

• Results are not directly applicable to China. But do show the type of analysis that needs to be done and demonstrates the potential of BP and Ford sponsored work at Tsinghua University with Zhang Aling’s group

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Economic analysis and Life cycle energy balance

• EUCAR, CONCAWE and JRC have performed a joint evaluation of the Well-to-Wheels energy use and greenhouse gas (GHG) emissions for a wide range of potential future fuels and powertrain options.

• 2005 Revision http://ies.jrc.cec.eu.int/wtw.html• Objectives

− Establish, in a transparent and objective manner, a consensual well-to-wheels energy use and Greenhouse gas (GHG) emissions assessment of a wide range of automotive fuels and powertrains relevant to Europe in 2010 and beyond.

− Consider the viability of each fuel pathway and estimate the associated macro-economic costs

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Incremental Well-to-Tank costs for coal derived fuels

$25 / bbl Oil

02468

1012141618

Euro

/GJ

Production DistributionRefueling

$50 / bbl Oil

02468

1012141618

Euro

/GJ

Production DistributionRefueling

Incremental Vehicle Costs – DME 2995 Euro/unit (6.3 Euro/GJ), methanol 1990 Euro/unit (est)

Methanol at $250/tonne

Assume an extra 500,000 RMB for one retail station

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BP/Ford/Tsinghua University Programme

• Replicate the CONCAWE/EUCAR study showing Economics, Energy Efficiency and GHG Emissions for a range of Chinese fuel options including methanol in gasoline vehicles and DME for diesel vehicles.

• Primary resources – Oil, Naturals gas, coal, and renewables (biomass, solar, wind etc.)

• 1 year programme• Completion due in June 2006

Methanol and the Environment

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Methanol and the environment

• Ground Water and Spills− Methanol biodegrades very quickly in soil and

water. − Methanol and water are the major components of

windshield washer fluid around the world. All of the methanol used in this application end up in soil or water and quickly are consumed by natural bacteria.

− Any cases of environmental damage or poisoning or toxic effects to humans caused by methanol spills or accidents are extremely rare, if ever (I’m not aware of any).

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Methanol and the environment

Combustion emissions and air pollution− Methanol burns very cleanly and is generally a better

fuel for air pollution than either gasoline or diesel− If methanol is used in poorly designed or tuned engines

and without catalyst aftertreatment, the incomplete combustion of methanol can lead to somewhat elevated levels of formaldehyde.

− This is reported to be about the same level or less of formaldehyde from diesel combustion.

− The issue of formaldehyde emissions from methanol engines is well studied and there are well known solutions that can be applied to design and operation of methanol fueled cars.

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A study from the US Dept of Energy

Cold Start and Operability

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Cold Start

• Methanol (and ethanol) have low vapor pressure in cold (e.g., -20 C) temperatures. This can cause problems with starting a methanol engine in a cold environment.

• If methanol is used as M85 or M100 for city buses or taxi fleets, the vehicles will typically be started once a day, they can be parked in heated garages if the weather is very cold and they can be started and warmed up according to established procedures to solve this problem.

• There are also straightforward engineering solutions to this problem for cars and buses that will operate in cold environments (just as there are for gasoline and diesel engines). One example is shown on the next slide.

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Start-heating systems for Ethanol engines

Cold-start system for Ethanolengine for 1.6 l with central injection

Cold-start system for Ethanolengine for 2.0 l with multi-point injection

To control unit

Injection nozzleFuel

Fuel supply

PTC - Heating part

PTC - Heating element (120W)

Air from idle actuator

Cold-start injector