Renewable methanol Trends and developments
IEA EGRD Eelco Dekker, Chief EU Representative, Methanol Institute Paris, October 21, 2019
WWW.METHANOL.ORG 01 Introduction
WWW.METHANOL.ORG A global industry association
• First formed in 1989, the Methanol Institute (MI) serves as the trade association for the global methanol industry.
• MI represents the world’s leading methanol producers, distributors and technology companies from offices around the world
MI provides value to its members by: • Ensuring safe handling of methanol and its derivatives • Promoting methanol growth by furthering methanol as an essential chemical commodity and an emerging source of clean and renewable energy • Influencing global regulatory and public policy initiatives that impactthe methanol industry
WWW.METHANOL.ORG 2019 members
Tier 1
Tier 2
Tier 3
Ecofuel
Tier 4
WWW.METHANOL.ORG Methanol is simplest of alcohols • Simple molecule rich in Formula: CH3OH hydrogen, with only a single Density: 0,792 g.cm-3 carbon bond Molar mass: 32,04 g mol-1
• Clear and colorless liquid at Appearance: colourless liquid room temperature and ambient pressure
• Also known as “wood alcohol,” methanol can be produced from a wide range of feedstocks
WWW.METHANOL.ORG Broad feedstock range, many applications
feedstock conversion derivatives products markets
other 7% appliances solvents 4% chloromethanes 2% ~65% automotive natural gas MTO 18%
methylamines 3% DME 8% construction biodiesel 3% gasoline blending 9% ~35% electronics MTMA 2% MTBE 8% coal fuel acetic acid 9% methanol synthesis paint formaldehyde 27%
<1% pharma source: IHS biomass & and more…. renewables
WWW.METHANOL.ORG Renewable methanol report available
In February 2019 MI released its Renewable Methanol Report prepared by ATA Insights
Contents: • Executive summary • Why consider renewable methanol? • Renewable methanol production • Case Studies: CRI, Enerkem, BioMCN • Applications and uses of renewable methanol • Conclusions and how to find out more
• https://www.methanol.org/renewable-methanol/
WWW.METHANOL.ORG Low carbon pathways exist
WWW.METHANOL.ORG Different forces impact e-methanol potential
policy
E-methanol
supply demand
WWW.METHANOL.ORG 02 Supply
WWW.METHANOL.ORG PtX and CCU are similar, but different
HYDROGEN fossil biogenic renewable fossil CARBON biogenic CCU PtX
WWW.METHANOL.ORG Plenty of sources of CO2 available
Direct Air Capture Concentration ~415 ppm
Flue gases up to 700 ton/hour Concentration ~10% - 15%
Ethanol fermentation up to 50 ton/hour Concentration ~95%
Biogas purification up to 0,7 ton/hour Concentration ~90%
WWW.METHANOL.ORG Increasing carbon conversion yield
C2H5OH Ethanol 1 t/h
production CO2 1 t/h
Gevo WWW.METHANOL.ORG Increasing carbon conversion yield
C2H5OH Ethanol 1 t/h
production CO2 1 t/h
H2O steam 0,41 t/h Methanol <0,7 ton CH3OH synthesis per hour
H2 0,14 t/h
H2O 1,23 t/h Electrolysis
O2 1,09 t/h Steam generation
Gevo WWW.METHANOL.ORG Very low carbon intensity and no (i)LUC
Renewable methanol
Source: Meo Carbon Solutions
WWW.METHANOL.ORG Methanol process requires less hydrogen
4H 2H
64 w% CH3OH Power-to-Methanol CO2 + 3H2 ➔ CH3OH + H2O 36 w% H2O
1/3 difference in hydrogen
30 w% CH4 Power-to-Methane CO2 + 4H2 ➔ CH4 + 2H2O 70 w% H2O 4H 4H
WWW.METHANOL.ORG Methanol has a density advantage
To store 4.800 kWh requires very different volumes:
Methanol* Methane (200bar)* Hydrogen (200bar)* Lithium-Ion-Battery Pumped Hydrostorage 0
1 1.0 1.9
10 9.1
24.0
100 Volumen in m³ in Volumen
1, 000
10,000 4,800.0
*Calculation excluding conversion losses based on heating value
WWW.METHANOL.ORG The practical side of energy storage
One cubic meter of e-Methanol contains the same amount of energy as the battery capacity of 222 BMW i3‘s*
=
1 Nm³ CH3OH
*Storage capacity BMW i3 = 21,6 kWh
WWW.METHANOL.ORG Competitive cost position feasible
€200/MWh200 fuel 1120€1120/t Green premium in biodiesel €1600/t1600 180 980 €0.75/L 1200 160 840 800 140 Product value EBIDTA 400 120 700 €0.53/L 0 100 560 FMAM J J A SOND J €0.42/L 80 420 Nordpool electricity futures 60 Full operating costs 60 280 40 40 20 140 20 0 0 0 1020304050607080€80/MWh el 0 Nordpool price 19 20 21 22 23 24 *Jan ‘18– Jan ‘19 Sources: CRI, NasdaqOMX, Energy Census
Source:
WWW.METHANOL.ORG Several factors impact profitability
Economics improving Learning curve effects Scale economies Efficiency improvements
Growing renewable fuel demand Increasing targets Cap on biofuels Battery electric drive not applied in trucks or ships
Increased low-cost RES electricity Wind and PV costs falling Intermittency = surplus capacity Grid congestion
WWW.METHANOL.ORG Most e-methanol examples in Europe
....the future?
WWW.METHANOL.ORG 03 Demand
WWW.METHANOL.ORG Combustion engines remain dominant
EU Reference Scenario 2016; Energy, transport and GHG emissions, Trends to 2050; https://bit.ly/2yzeW0z
WWW.METHANOL.ORG Oil displacement drives growth
Source: IHS
WWW.METHANOL.ORG Methanol fuel use increasing globally
Canada – Waterfront Iceland – M100 Sweden – methanol Shipping Vessels Trials marine fuel China– M15 to M100, industrial Denmark – boilers, etc. methanol fuel cells for vehicles UK – EN228 low blend Eni/FCA M15/E5 Israel – Power generation & M15 Standard Egypt – M15 Trials India – Methanol Economy Roadmap
USA – methanol motorsport fuel Africa – cooking stoves
Australia – GEM fuel
New Zealand – Introducing M3
WWW.METHANOL.ORG German OEMs investigate methanol fuels
WWW.METHANOL.ORG Methanol fuel cell range extender
• 1.000 kilometer electric range • 3 minutes refuelling • Existing infrastructure
WWW.METHANOL.ORG Closing the carbon cycle in marine
WWW.METHANOL.ORG 04 Policy
WWW.METHANOL.ORG Policy leaves room for interpretation
E-fuels are categorized in Renewable Energy Directive 2 (RED2) as ‘Renewable Fuels of Non-biological Origin’
Specific details in the legislation leave room for interpretation at Member State level:
Either, share of renewability determined by national grid average from 2 years before
Or, 100% renewable provided a direct connection exists, and power is... • not taken from the grid • òr, when taken from the grid proof of sustainability is provided • ànd, electricity is additional
E-fuels no longer recognised as Advanced Fuel
WWW.METHANOL.ORG 05 To conclude
WWW.METHANOL.ORG The future is bright
E-Methanol is an opportunity to provide electricity in liquid form (‘liquid electricity’), which makes it an interesting way to utilize carbon ànd store electricity because it: • Uses mature technologies • Enables energy efficient production, especially when integrated • Can be used in existing engines and infrastructure • Is suitable for road vehicles and ships, and for power as well as heat • Reduces emissions • Can be made economically viable
However, political bottleneck will have to be addressed to ensure a level playing field exists between all low carbon options (technology neutral)
WWW.METHANOL.ORG SINGAPORE (HQ) WASHINGTON D.C. BRUSSELS BEIJING
10 Anson Road 225 Reinekers Lane Square de Meeûs 38-40 #511, Pacific Sci-tech #32-10 International Plaza Suite 205 B-1000 Brussels Development Center Singapore 079903 Alexandria, VA 22314 Belgium Peking University + 65 6325 6300 +1 (703) 248-3636 +32 241 6151 No. 52 Hai Dian Rd. Beijing 100871, China +86 10 6275 5984
WWW.METHANOL.ORG - Back up
WWW.METHANOL.ORG Modern approach to biorefining
Sustainable biomass (residues, MSW, etc)
Fermentation
Biogas
Biomethane BioMCN, The Netherlands
Reformer Reactor Syngas & distillation
Bio-methanol
Courtesy QAFAQ
WWW.METHANOL.ORG Or gasification to syngas
Sustainable biomass (residues, MSW, etc)
Gasification
Enerkem, Canada
Reactor Syngas & distillation
Bio-methanol
Courtesy QAFAQ
WWW.METHANOL.ORG And from pulp mill processes
Sustainable biomass (residues, MSW, etc)
Kraft process
Södra, Sweden
Reactor & distillation
Bio-methanol
Courtesy QAFAQ
WWW.METHANOL.ORG Many energy applications still early in life cycle
DME OME MD95 MTBE M100 GEM Turbines biodiesel Generators
sales M15
M3 boilers cook stoves marine fuel cell
introduction growth mature decline
WWW.METHANOL.ORG Methanol synthesis
Several methanol synthesis catalysts are commercially available, with improved activity and selectivity. The catalysts are utilized for methanol synthesis from carbon monoxide, carbon dioxide and hydrogen.
CO + 2H2 ↔ CH3OH ΔHR = - 91 kJ/mol
CO2 + 3H2 ↔ CH3OH + H2O ΔHR = - 49 kJ/mol
Both methanol forming reactions are interconnected with the water gas shift reaction:
CO + H2O ↔ CO2 + H2 ΔHR = - 42 kJ/mol
The above equilibrium reactions are exothermic, so low reaction temperatures and high reaction pressures favor methanol yield.
WWW.METHANOL.ORG PtX and CCU are similar but not the same
1 Convert electricity to 2 Convert hydrogen to fuel hydrogen
gaseous liquid
- • hydrogen electricity electrolysis hydrogen Nitrogen • ammonia
Carbon • methane • formic acid • methanol • butanol • FT diesel • gasoline •a.o.
WWW.METHANOL.ORG Methanol is a great energy carrier
WWW.METHANOL.ORG Comparing apples to apples
WWW.METHANOL.ORG Less dangerous than gasoline
Source: Malcolm Pirnie, Inc. , Technical Memorandum
WWW.METHANOL.ORG Methanol has lower fire risk
Methanol evaporates slowly needs lots of vapour to burn confined fire zone; fires less likely
Gasoline evaporates fast needs little vapour to burn broad fire zone; fires more likely
WWW.METHANOL.ORG Putting things in perspective
LC50 - Lethal dosis fish
Gasoline [1] Diesel [2] Methanol 8,2 mg/l 65 mg/l 15.400 mg/l
Sources: [1] Petrobras/Statoil ASA, Safety Data Sheet, ECHA registration dossier Gasoline [2] ECHA, European Chemical Agency, registration dossier Diesel [3] ECHA, European Chemical Agency, registration dossier Methanol
WWW.METHANOL.ORG