METHANOL AS A MARINE FUEL
Chris Chatterton, COO
LNGgc ASIA
27 – 28 FEBRUARY 2019 NOVATEL, CLARKE QUAY, SINGAPORE WWW.METHANOL.ORG Contents - About MI
- Developing Trends for New Capacity
- Global Methanol Fuel Blending
- Methanol as Marine Fuel
WWW.METHANOL.ORG MEMBERS Tier 1
Tier 2
Tier 3
Ecofuel
Tier 4
WWW.METHANOL.ORG DEVELOPING TRENDS 02 FOR NEW CAPACITY
WWW.METHANOL.ORG WHERESUPPLY IS METHANOL CAPACITY PRODUCED? BY REGION • Merchant projects are focused in USGC • China future capacity additions may slow, with a focus on integrated facilities SupplySupply Capacity Capacity for for Methanol Methanol by Region 20122012 –- 2022E2022E 100,000
90,000
80,000
70,000
60,000
tonnes 50,000 - 000 - 40,000
30,000
20,000
10,000
- 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
Asia North America South America Europe Rest of World Middle East Source: MMSA
WWW.METHANOL.ORG WHERECHINA IS METHANOLMETHANOL PRODUCED?DEMAND DRIVES WORLD MARKETS Projected Methanol Demand Growth, by Product & Region 2017– 2027E
Source: MMSA
WWW.METHANOL.ORG WHERERENEWABLE IS METHANOL PATHWAYS PRODUCED? MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА
WWW.METHANOL.ORG WHEREAN EFFICIENT IS METHANOL ENERGY PRODUCED? CARRIER
WWW.METHANOL.ORG WHEREVARIOUS IS METHANOL STAGES OFPRODUCED? DEVELOPMENT
Methanol category Commercial Feasibility and R&D Stopped or On-hold
Bio-methanol • BioMCN (NL) • Biogo (GER) • BioMCN (glycerine) (NL) • Enerkem (CAN) • Enerkem (NL) • Chemrec (SE) • New Fuel (DEN) • LowLands Methanol (NL) • Range Fuels (USA) • Oberon (USA) • Södra (SE) • Schwarze Pumpe (GER) • NREL (USA) • Värmlands Metanol (SE) • Heveskes Energy (NL) • Woodspirit (NL) Renewable methanol • CRI (IC) • bse Engineering (GER) • Innogy (GER) • Blue Fuel Energy (CAN) • CRI (CN/GER) • MefCO2 (GER) • Infraserv (GER) • Liquid Wind (SE) • Port of Antwerp (BE) • STEAG (GER) • Swiss Liquid Future (CH) • ZASt (GER) • USC (USA) • Gensoric (GER) • Neo-H2 (USA) Hybrid methanol • Haldor Topsoe (DEN) • OPTIMeoH (GER) Low carbon methanol • GPIC (BAH) • Carbon2Chem (GER) • Methanex (CAN) • FRESME (SE) • QAFAC (QAT) • NCF (CN) • SABIC (KSA) • GasTechno (USA) • Maverick Synfuels (USA)
WWW.METHANOL.ORG GLOBAL METHANOL 03 FUEL BLENDING
WWW.METHANOL.ORG PRACTICAL LIQUID FUEL
WWW.METHANOL.ORG Global Transportation Fuel Progress IsraelMSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА o Cooperation with Italy Fiat to promote M15 Fiat 500 Car (Euro 6) o Testing M70-85 in Flex fuel vehicles o 2016 First M15 National Standard Released
Italy o ENI and FCA cooperation to promote A20 fuel (M15+E5) o Fiat 500 cars for car sharing service in 2018 o Compliance with Euro 6 standard and 3% tailpipe emission reduction
Denmark o Methanol Fuel Cell for EV range extension o Europe’s first methanol filling station in Aalborg, Denmark (Aug. 2015)
WWW.METHANOL.ORG India: Roadmap to Methanol Economy MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА • September 2015, NITI Aayog formed the Methanol Economy Expert Group
• 2018 Methanol M15 Guidelines published
• 2018 IRClass published Guidelines for Methanol Fueled Vessels
• Launching Projects: o M15 fuel blending o methanol/DME buses and trucks o railway engines o inland waterways o cook stoves Union & Road Transport o industrial boilers Minister Nitin Gadkari
WWW.METHANOL.ORG METHANOL BOILERS
• Widely used for heating Vertical Tank Fuel Metering & Blending and industrial steam, new-builds and replacing coal and HFO-fired units • Capacity range from: 1 - 20 steam tons/hour • Standards developed together with MI and Methanex support • Blends starting as low as 60% (M60) • More than 1,000 registered units consuming over 2M mtpa of methanol Underground Storage Boiler Unit
Source: Methanol New Energy Applications in China: Boilers and Cook Stoves
WWW.METHANOL.ORG METHANOL COOKSTOVES
• Various applications: o Single burner heating o Stir frying o Steaming • Widely used in restaurants and central kitchens: o adoption mainly cost driven • Simplified logistics, filling the deficit of NG pipeline/distribution capacity • Fuel: o 100% methanol (M100) o 80% and higher blends (balance of fuel mix emulsified with water)
• Consuming over 3M mtpa of methanol
WWW.METHANOL.ORG SMART SUPPLIERS – LAST MILE
WWW.METHANOL.ORG METHANOL AS 04 MARINE FUEL
WWW.METHANOL.ORG PRACTICAL SOLUTION
• Multi – fuel engines will be the norm going forward
• Methanol can be readily and safely applied in both new build and conversion
• Methanol can be a practical solution for dual fuel applications, to include other alternative fuels such as LPG and LNG
WWW.METHANOL.ORG CONVENTIONAL MeOH EMISSIONS SCORECARD
Methanol (MeOH) achieves low emissions & acts as a bridge in lowering CO2 in the future (renewable/bio methanol)
WWW.METHANOL.ORG METHANOL / WATER BLENDING (EMULSIFICATION)
• Approximately 25-40% water is added to the methanol to achieve a new, Tier III solution • NOx decreases almost linearly with water content, to approximately 2 g/kWh at 50% and 75% load • Similar system is being planned for fuel oil, so the Tier III compliant technology will be available as a dual fuel solution • R&D testing completed - service test is under preparation Source: MAN
WWW.METHANOL.ORG METHANOL IS ECONOMICALLY VIABLE
• MGO NA GC: Avg New orleans, Houston; MGO NA WC: Avg LA, San Francisco, Seatle, Vancouver; MGO Europe: Avg Rotterdam, Antwerp, Hamburg; MGO Asia: Avg Shanghai, Korea; MGO Middles East: Avg Fujairah, Kuwait, Khor Faakan
• Methanol: Avg USGC, China and Europe spot prices; adjusted to energy equivalent of MGO (2.16 factor) Source: Platts and IHS Chemical
WWW.METHANOL.ORG PRICING
Source: BunkerIndex
WWW.METHANOL.ORG FUEL EVALUATOR
https://www.lr.org/en/latest-news/online-tool-to-help-evaluate-options-for-sulphur-2020-compliance/
WWW.METHANOL.ORG GLOBAL PORT TERMINAL AVAILABILITY (‘000 MT)
Source: IHS 2018
WWW.METHANOL.ORG EXPERIENCE
WWW.METHANOL.ORG SAFER FOR THE ENVIRONMENT
LC50, LC = LETHAL CONCENTRATION Concentration in water, at which half the marine population died within the specified test duration
Safer than Diesel by a factor of 240 times
Methanol[1] 15,400 (mg/l)
Additional Source: Meyer-Werft
WWW.METHANOL.ORG IMO CONFIRMATION OF METHANOL AS A MARINE FUEL
CCC 1 CCC 3 CCC 5 CCC 6 o Ethyl/methyl alcohol o Fuel cells o Ethyl/methyl o Ethyl/methyl o Fuel cells o Ethyl/methyl alcohol alcohol o Low-flashpoint diesel alcohol o Fuel cells o Fuel cells o Low-flashpoint o Low-flashpoint o Low-flashpoint diesel diesel diesel
Draft Interim Guidelines Validated
2014 2015 2016 2017 2018 2019 2020 ///
CCC 2 CCC 4 MSC 100 MSC 101 MSC 102 o Ethyl/methyl alcohol o Fuel cells • Amendments • Amendments • Amendments o Fuel cells o Ethyl/methyl alcohol • Confirmation • Referral to • Approval o Low-flashpoint diesel o Low-flashpoint • Referral to other sub- • Adoption diesel other sub- committees committees
o The draft interim guidelines contain a definition of such fuels as follows: “Fuel means methyl/ethyl alcohol fuels, containing allowable additives or impurities, suitable for the safe operation on board ships, complying with an international standard.”
o Earlier 2018, MSC 99 mandated ISO to develop a fuel standard for methyl/ethyl alcohol fuels, which is ongoing
o After expected Approval by MSC 102 in May/June, 2020, Interim Guidelines may begin to be Adopted at the flag state level with the understanding that additional amendments will be added
WWW.METHANOL.ORG SUMMARY
• Cost effective and “future proof” fuel which can be produced from a variety of feedstocks – to include renewables
• One of the top 5 seaborne chemical commodities – safely handled for over 50 years
• Capital costs for converting to methanol are minimal – economically viable without subsidies
• Widely available and alleviates many infrastructure limitations both on land and at sea
WWW.METHANOL.ORG THANK YOU
WWW.METHANOL.ORG