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Methanex Enters DME Partnership in China

7 November 2006

Methanex and China’s XinAo Group have entered into a long-term arrangement under which Methanex will, beginning in late 2007, supply an initial quantity of approximately 300,000 tonnes per annum of methanol to XinAo.

This methanol will be used in a new 200,000-tonne dimethyl ether (DME) production facility that XinAo is developing near Shanghai. The price for methanol under this supply arrangement will be linked to energy prices. Methanex also has an option to take an equity stake of up to 20% in this DME facility.

DME can be blended up to 20% with liquefied petroleum gas (LPG) and used for household cooking and heating. DME can also be used as a clean burning substitute for diesel in transportation and as a clean fuel for power generation.

The Chinese government is supporting the development of dimethyl ether (DME) as a possible alternative to diesel. (Earlier post.)

Earlier in August, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, signed a financing package for the Xinao Group to support a coal-to-dimethyl ether (DME) project that will be one of the world’s largest. That project is expected to come online in 2009. (Earlier post.)

XinAo is developing DME as a clean energy source that has been identified by the Chinese government as a strategically important alternative to fuels such as coal or diesel. The outlook for DME demand in China’s fuel sector is promising and we are very pleased to be supported by Methanex, the global leader in methanol, as we establish and grow our DME business.

—Wang Yusuo, XinAo Group Chairman

Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol.

(A hat-tip to Andrey!)

November 7, 2006 in China, DME | Permalink | Comments (13) | TrackBack (0)


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Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol.
they are also the d!ckholes that wasted the money of the gvmt of california by fighting the state's MBTE ban. dicks.

PRC CO2 emission levels will rise faster than previously projected. Coal will be the leading driver that will push their GHG levels beyond US emissions.


MTBE contamination of groundwater was only tip of the iceberg.
MTBE was blended into gasoline as oxygenate and octane boosting component in quantities of about 3-4%. It is only marginally more troublesome then other gasoline components, but it smells and tastes bad in drinking water. As such it served same role as smelly mercaptanes added to NG to detect leaks. Three things exasperated the problem:
a)Millions of households in N. America use uppermost ground water layer as drinking water supply. This water layer could be easily contaminated.
b)Hundreds of thousands of leaking gasoline, diesel, and oil tanks are buried underground all across America. California law, for example, actually defines a "non-leaky" tank as one that leaks less than five gallons a day.
c)MTBE (and only MTBE, not gasoline) contamination represent perfect subject for litigation law suits.

So, removal of MTBE from gasoline allows “innocent Americans” to enjoy gasoline contaminated yet fresh-tasting drinking water for years to come. Sometimes this water is spiced-up by Coli from neighboring cesspool.

MTBE is still used worldwide, notably in Europe, where governments prefer to prevent gasoline leaks rather then make gasoline more drinkable.

MTBE article in Wikipedia describes the subject quite in detail. Two additions, thought:

Use of multi-stage Reverse Osmosis water purification units is the must for every household with individual drinking water supply.

Addition of MTBE to gasoline allowed blend-in additional quantities of other vice too volatile butane. All in all, for summer driving season it contributed up to 5% of additional non-oil “gasoline” to the market. Disproportional spike in gasoline prices (relative to price of crude oil) in summer driving season of 2005 was largely attributed to removal of this resource. For summer driving season of 2006 increased production of corn ethanol substituted for this deficit, which somehow influenced reduction in gasoline prices. For 2007 it is expected that domestic ethanol production will suffice to satisfy oxygenate requirements for summer gasoline blends.

Methanol is produced from NG. Methanex (NASDAQ:MEOH) uses cheap NG from remote strained NG resources, predominantly located in Southern Hemisphere (Chili, New Zealand), and thus shielded from NG prices spike during northern heating season. Methanol is easily shipped in conventional tankers to the customer, where it could be converted to DME. It is, actually, gas-to-liquid process, which does not require expensive pressurized vessels as LNG. It could be competitive with more expensive in-situ F-T GTL technology. It is also way cleaner then CTL and environmentally safe in transportation.

from the same wikipedia aritcle:
MTBE is not classified as a human carcinogen in low exposure levels by the International Agency for Research on Cancer (IARC).[6] However, it has been shown to cause kidney lesions in animals. As an ether, MTBE acts as an emulsifier, increasing the solubility of other, harmful components of gasoline (for example, the known carcinogen benzene). It thus may increase the risk of contamination by other compounds. MTBE is biodegraded very slowly, remaining in water for decades or more. In addition some MTBE degrades in blood to the associated alcohol, tert-butanol, with a greatly increased residence time. The prolonged presence of this alcohol derivative is not fully understood.

no thanks, i'll take a pass. regardless, the point wasn't to discuss the merits of MTBE, but rather to point out how Methanex wasted billions of taxpayer money by fighting the state of california in the courts.

“…future California Governor Gray Davis and ADM officials held a secret meeting during the 1998 campaign at ADM's Illinois headquarters and the agricultural commodities giant made over $200,000 in contributions to Davis's campaign. California Governor Gray Davis ordered the MTBE phase out by 2003, to be substituted by domestically produced ethanol.”

By the way, Methanex lost NAFTA Tribunal case seeking compensation amount of 970 M$. So, billions of dollars you mentioned ended up in somebody’s other pockets.

China is already most advanced in commercial use of DME as a mixture with LPG. China is mainly interested in DME production from their own coal resources as national policy. South Korea is also interested in DME. As KOGAS is predominant in handling gas in South Korea , MOU for market study in South Korea has been signed between TOTAL and KOGAS quite recently. Their interest of DME is for LPG market as well as fuel for diesel trucks.

If you would like to know more on the latest DME developments, join us at upcoming North Asia DME / Methanol conference in Beijing, 27-28 June 2007, St Regis Hotel. The conference covers key areas which include:

DME productivity can be much higher especially if
country energy policies makes an effort comparable to
that invested in increasing supply.
National Development Reform Commission NDRC
Ministry of Energy for Mongolia

Production of DME/ Methanol through biomass
gasification could potentially be commercialized
Shandong University completed Pilot plant in Jinan and
will be sharing their experience.

Advances in conversion technologies are readily
available and offer exciting potential of DME as a
chemical feedstock
By: Kogas, Lurgi and Haldor Topsoe

Available project finance supports the investments
that DME/ Methanol can play a large energy supply role
By: International Finance Corporation

For more information:

Nice post about the long term aggrement by the two groups Methanex and China’s XinAo.......................
California Dui

Nice post about the long term aggrement by the two groups Methanex and China’s XinAo.......................
California Dui

Nice post about the long term aggrement by the two groups Methanex and China’s XinAo.......................
California Dui

Nice post about the long term aggrement by the two groups Methanex and China’s XinAo.......................
California Dui

Nice post about the long term aggrement by the two groups Methanex and China’s XinAo.......................
California Dui

Amananta at Screaming Into The Void has a post up about the fact that she has been taking a lot of inappropriate abuse from other bloggers. Although she doesn’t say it directly, it sounds like some stress in her personal life has made this a lot more difficult to bear right now. I support her decision to stop blogging if that is what she needs to do, but damn, I hate it when mean bullies win, and I don’t want to lose her unique and eloquent voice in the feminist blogosphere. If you have anything positive to offer Amananta, now would be a good time. Otherwise, please leave her alone.

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