1) METHANOL MARKET SURVEY i)
GLOBAL DEMAND OF METHANOL
Methanol is becoming the favourite of the global economy. Methanol production process is relatively simple and various sources of raw materials such as coal, wood, natural gas, carbon dioxide and biomass. Methanol has wide range of uses and its downstream products as many as several hundred. In recent years, due to the strengthening of environmental awareness around the world, the approval of the Clean Air Act Amendments of methanol worth prepare by the global methanol demand growth to accelerate. For methanol industry, China always ranks first worldwide production of methanol. It was because the rate of development in China higher to any one country alone last five years. Based on the Figure 8, it shows that China is the largest producing country for consuming methanol in 2011, and it would be the largest producer in 2013. In addition, other significant factor in methanol supply or demand is that the new mega methanol plants are much larger than existing plants. Thus they will have to reduce fixed cost to giving a significant cost advantage.
Country Consumption of Methanol - 2011 China
Malaysia
Indonesia
India
Singpore
4% 3% 8%
16% 52%
17%
Figure 8
Brunei
Based on Figure 8, it shows that China represents the largest demand of methanol with 52 %. Indonesia is the second higher and followed by the Malaysia, India and Singapore. Brunei is the lowest of methanol demand in 2011 because of this country more dependent on production of biodiesel compare to methanol production. ii) Comparison with Natural Gas and Wood Conversion of coal to methanol is considered more efficient than that of wood but involve more processing facilities of greater amount of ash and sulphur. Coal conversion to syngas is more efficient because it has a higher carbon content and less oxygen than wood. The efficiency of conversion and the plant investment are shown in Figure 9 and 10. 100% 90% 80%
Efficiency
70% 60% Processing
50%
Plant
40% 30% 20% 10% 0% Natural Gas
Coal
Wood
Figure 9
Carbon Dioxide
Plant Investment Estimated Plant Investment (USD million)
200 180 160 140 120 100
Plant
80
Process
60 40 20 0 Natural Gas
Coal
Wood
Carbon Dioxide
Raw Material
Figure 10 The other element needed to compare is the raw material prices. Here is the range of price according to raw material per metric ton is shown below, Biomass
USD 65-70/Metric ton
Coal
USD 40-90/Metric tons (high price for high quality of coal)
Carbon dioxide
USD 28.70-30.6/Metric tons
Natural gas
USD 4.18/MMBtu
Wood/crop
USD 25-75 /metric ton
Classification of Coal Coal can be classified into 4 types; Lignite, subbituminous coal, bituminous coal and anthracite. All of these types have their own characteristics. Lignite is used for generating electricity. Subbituminous and anthracite coal are used principally for electricity and space heating. Bituminous coal is the common type can be found. It has higher heating value than lignite and subbituminous coal, but lower heating value than anthracite. The prices are varies according to the type and quality of the coal itself.
Uses of Methanol Methanol has also been used as an alternative fuel. In Europe, methanol is used in the production of biodiesel, which can replace refinery based diesel for use in transportation. In China, methanol is used directly as a blending component of gasoline which is much safer than petroleum. Methanol has also been considered for direct combustion in combined cycle power generation facilities. There is also significant commercialization effort underway in two developmental uses for methanol which are fuel cells and methanol to olefins (MTO). Fuel cells can utilize the hydrogen molecules of methanol to create electricity and also water. All of these alternative fuel uses for methanol have significant obstacles in their commercialization, but high potential demand. Methanol can be used at almost anything products on the market. The application of methanol to the industry is as electricity generation which use methanol to drive turbines and creates electricity. This application will reduce the cost of generate electricity. Next, the biodiesel transetrification which used to convert the triglycerides in different types of oils into usable biodiesel fuel. Methanol also as a key component in the development of different types of fuel cells and ideal hydrogen carrier. Methanol can treat the wastewater in a stream and remove nitrogen from effluent streams. In transportation fuel, it is easy to transport and readily available and also has high octane rating that allows for superior vehicle performance compared to gasoline. Another simple example of the uses of methanol is; For example: •
Solvents for Lacquers
•
Plywood Structural Panels
•
Polyester Carpets
•
Silicone Sealants
•
Bleached Paper (Toilet Paper)
•
Particleboard
•
Tire Core Adhesives
•
Moulding Compounds
•
Spandex Cycling Tights
•
Acetyl Thermoplastics
•
MTBE Fuel additives
•
PVA Acrylic Coatings
•
Herbicide
•
Insulation
•
Windshield Washer Fluid
•
Refridgerants
•
Dashboard Foam
•
Windshield washer fluid
•
Magnetic Film (Computer Disks)
•
Particle board
•
Vinyl Adhesives
•
Pigments and dyes
Pricing of Methanol The price of methanol is changing according to demands. The latest price of methanol in 3 large regions (only valid 1-31 March 2013)
In Europe EURO 370 / Metric Ton = RM1496 (contract price) In North America USD 516 / Metric Ton = Rm1606 In Asia Pacific USD 450 / Metric Ton = RM1400 (contract price) The general price ( non-discount ) = US $700-800 / Metric Ton = RM 2178-2490
The higher price of methanol and many demands will make huge profits to the company. This is what engineers want. Thus, by making less price raw material and more price of methanol production will contribute to the country financial increase. Methanol is low price compared to gasoline and ethanol. It is very small increment cost to modify current vehicles to run on blends of methanol fuel. Methanol produces much less toxic emission than reformulated gasoline, with less particular matter and smog forming emissions. Application of Methanol in Industry They are 5 main applications of methanol in the industry: 1) Electricity Generation - use of methanol to drive turbines to create electricity. 2) Biodiesel Transesterification - methanol is used to convert the triglycerides in different types of oils into usable biodiesel fuel. 3) Fuel Cell Hydrogen Carrier - Methanol is used as a key component in the development of different types of fuel cells and ideal hydrogen carrier. 4) Wastewater Denitrification - used by municipal and private wastewater treatment facilities to aid in the removal of nitrogen from effluent streams. 5) Transportation Fuel - easy to transport, readily available, and has a high octane rating that allows for superior vehicle performance compared to gasoline.
