Renewable Methanol Trends and Developments
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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.