Methanol
Sustainable Shipping: Methanol as a Marine Fuel
Gregory Dolan, CEO Methanol Institute Platts European Refining Summit
Brussels – September 29, 2016
WWW.METHANOL.ORG
01
WHO WE ARE
WWW.METHANOL.ORG
Global methanol representation •
The Methanol Institute (MI) was first formed in 1989 to represent US methanol producers in Washington.
•
27 years later, MI is truly a global trade association supporting the expansion of the methanol industry in every corner of the world from offices in: Sin g a p o r e | Wa s h in g to n | Br u s s e ls | Be ijin g
WWW.METHANOL.ORG
WWW.METHANOL.ORG
02
Transition to Energy Resource
WWW.METHANOL.ORG
Alternative Fuel Drivers Scale: The feedstock base needs to be large enough to support global transportation market. Sustainability: There needs to be a viable pathway to low- or no-carbon transport, while reducing smog. Subsidy: Can’t rely on government support forever, so someone needs to make money. Consumer: Demands seamless transition and ease of use. Methanol: Checks all the drivers! WWW.METHANOL.ORG
Methanol is simplest of alcohols • Simple molecule rich in hydrogen, with only no carbonto-carbon bonds • Clear and colorless liquid at room temperature and ambient pressure
Formula: CH3OH
Density: 0,792 g.cm-3 Molar mass: 32,04 g mol-1 Appearance: colourless liquid
• Also known as “wood alcohol,” methanol can be produced from a wide range of feedstocks WWW.METHANOL.ORG
Feedstock: Abundant/Sustainable
Market: Large/Diverse
WWW.METHANOL.ORG
Methanol: Essential Chemical Building Block Source: Methanex
WWW.METHANOL.ORG
Methanol is a versatile fuel source Out of the ~70 million metric tons of methanol sold globally in 2015, energy and fuel uses represent 40% of total demand From 2009-2015, direct methanol fuel blending has increased at an annual rate of nearly 23% FUELS • Neat fuel • Low blends • High blends • GEM • MTBE • Biodiesel • DME & OME • MTG
TECHNOLOGIES • SI & CI engines • Turbines • Fuel cells • Stoves SEGMENTS • Road & non-road transportation • Power & heat generation, and • Marine WWW.METHANOL.ORG
Oil displacement drives demand growth
Source: IHS Chemical, November 2015 WWW.METHANOL.ORG
Shifting supply & demand balance
Source: IHS Chemical WWW.METHANOL.ORG
Methanol Fuel Examples Around the World Iceland – M100 Trials
USA – methanol motorsport fuel
UK – EN228 low blend
Sweden – methanol marine fuel
Denmark – methanol fuel cells for vehicles
China– M15 to M100, Industrial Boilers
Israel – Power generation & M15 Standard Egypt – M15 Trials Africa – cooking stoves
New Zealand – Introducing M3
India – Methanol Economy Roadmap
Australia – GEM fuel
WWW.METHANOL.ORG
03
MARINE FUELS
WWW.METHANOL.ORG
Marine Fuel in Transition •
Over 90,000 commercial vessels on world’s oceans, consuming 370 million tons of bunker fuel (Heavy Fuel Oil and Middle Distillates).
• One container ship: SOx = 50 million cars • 15 largest ships: SOx emissions = 760 million cars in the world
WWW.METHANOL.ORG
Environmental & Health Hazards • NOAA: Globally shipping accounts for 60,000 deaths and US$330 billion in health costs • NRDC: Shipping at intersection of high population, choking pollution, and rapid growth Source: Natural Resources Defense Council
WWW.METHANOL.ORG
Emissions regulations driving market The International Maritime Organization has adopted regulations for SOx and NOx that are transforming the shipping industry While SOx reductions may be met with low sulfur fuels, the combination of SOx and NOx reductions driving shipboard solutions
WWW.METHANOL.ORG
Different options available to ship owners
HFO + scrubbers
MGO
LNG
Methanol
WWW.METHANOL.ORG
Methanol is also a low flash point fuel Properties Physical state Boiling temperature at 1 bar [oC] Density at 15oC [kg/m3] (LNG shown at
HFO
MGO
LNG
liquid
liquid
-
175 – 650
989 -
Methanol
cryogenic liquid -/
liquid
161
65
Max. 900
448
796
3,5
-
0,6
-
-/-160oC)
Dynamic viscosity at 40oC [cSt]
(at 25oC)
Lower heating value [MJ/kg]
40
43
50
20
(at -160oC, 1 bar)
Lubricity WSD [μm]
-
280-400
-
1100
Vapour density air = 1
-
>5
0,55
1,1
Flash point (TCC) [oC]
>60
>60
-/-175
12
Auto ignition temperature [oC]
-
250-500
540
464
Flammability limits [by % vol. of mixture]
-
0,3 – 10
5 – 15
6 - 36
Source: EMSA Study on the use of ethyl and methyl alcohol as alternative fuels in shipping WWW.METHANOL.ORG
Different parameters determine choice of fuel Economy
Supply
Technology
Regulations
WWW.METHANOL.ORG
Examples of vessels running on methanol
MOL, WL, Marinvest
Stena Lines
Swedish Maritime Administration, MI
Methaship, LeanShips, a.o.
7 chemical tankers
1 RoPax Ferry
1 pilot boat
cruise ship, ferry, a.o.
2-stroke
4-stroke
high speed
projects
MAN
Wärtsila
new build operational
retrofit operational
DNV GL
Lloyds Register
Volvo, Scania, FiTech retrofit testing
various new build design various
WWW.METHANOL.ORG
Methanol fuel cells improve electrical efficiency As part of the Pa-X-ell project Meyer Werft installed a Serenergy high temperature methanol fuel cell system demonstrator on board the Mariella
The system electricity at higher efficiencies than a typical diesel system [source: Serenergy]
WWW.METHANOL.ORG
Dual fuel engine technology ensures flexibility Engines converted for methanol combustion
Double walled fuel pipes
Pump room
Source: Stena Line
Ballast tank converted to methanol fuel tank
• Pilot fuel assisted diesel combustion concept Methanol is ignited by a small amount of diesel pilot fuel • Crew and passenger safety top priority Safety measures include a.o. double walled pipes, ventilation, high pressure oil valves, nitrogen blanketing WWW.METHANOL.ORG
Wärtsilä Methanol - Diesel on engine piping
Toni Stojcevski / Wärtsilä
WWW.METHANOL.ORG
Methanol Injector - the heart of the methanol adaptation
ACCUMULATOR BLOCK
CONTROL BLOCK
TRANSFER BLOCK
The methanol injector allows the engine to run on methanol ignited by pilot fuel or on pure diesel.
WWW.METHANOL.ORG
Phi T Maps – NOx & PPM
“soot”
NOx
Methanol Fuel
“soot”
NOx
Typical Diesel Fuel
Zero particulates , much lower NOx Source: SAE 2016-01-0887 , Svensson et al. , Lund University Toni Stojcevski / Wärtsilä
WWW.METHANOL.ORG
Methanol enables significant emission reductions SOx
NOx
PM
0% -/
-10%
-/
-20%
-/
-30%
-/
-40%
-/
-50%
-/
-60%
-/
-70%
-/
-80%
-/
-90% Source: Stena Line WWW.METHANOL.ORG
Available in many ports around the world
Methanol storage capacity estimates (thousand tons) WWW.METHANOL.ORG
Methanol is easy to handle • Liquid at atmospheric pressure • Available in many ports around the world and along rivers • Low infrastucture cost • Flexible, modular system • Environmentally friendly as it is biodegradable
WWW.METHANOL.ORG
Methanol is cost competitive on an energy equivalent basis Over a five-year time frame methanol has been mostly cost competitive Despite decreased oil prices methanol remains competitive in many key regions, incl China
Source: Platts and IHS Chemical Methanol converted to MGO energy equivalent at factor of 2.16
WWW.METHANOL.ORG
04
CONCLUSIONS
WWW.METHANOL.ORG
Methanol... •
is plentiful, available globally
•
can be made 100% renewable
•
runs well in existing engine technology and has potential for further optimization
•
complies with increasingly stringent emission reduction regulations
•
requires only minor modifications to current bunkering infrastructure
•
is biodegradable!
•
safe handling can rely on long history and experience in shipping and industry
•
cost are relatively modest and drop as experience mounts
•
shows slight regional price variation
WWW.METHANOL.ORG
A picture says more…
WWW.METHANOL.ORG
BONUS: Methanol as Diesel Substitute Diesel Emissions Under Attack
• The “low hanging fruit” for methanol fuel blending may be the diesel substitution market for heavy-duty trucks and buses • Methanol Institute looking at research agenda for dual-fuel compression ignition engines and dedicated spark ignition engines • MI Member Fuel Injection Technologies of China working with Beiben Trucks and Yuchai engines in China • MI sponsoring work in Finland to convert Scania ED95 engine to MD95 • MI sponsoring Green Pilot Boat to demonstrate methanol fueled engines from FiTech, Volvo, and Scania WWW.METHANOL.ORG
05
CONTACTS
WWW.METHANOL.ORG
CONTACTS MSF MAINTAINS A PRESENCE IN OVER 60 COUNTRIES 01
•
GREG DOLAN
05
CEO MANY OF THESE COUNTRIES MI HAS [email protected] TARGETED FOR METHANOL POISONING OUTREACH PROGRAMS, MSF HAS EXISTING OPERATIONS, •TO CINCLUDE: H R I S C H AT T E R T O N 06 02
• • • • • • • • • •
F F F F F F F F F F
•
Chief EU Representative [email protected]
•
COO [email protected]
03
•
D O M L AV I G N E
EELCO DEKKER
KAI ZHAO Chief China Representative [email protected]
07
•
Director of Government Affairs
APRIL CHAN Executive Manager [email protected]
[email protected] 04
•
L A R R Y N AV I N
Senior Manager External Affairs [email protected]
08
•
S H E E VA N O S H I R V A N Executive Assistant
[email protected]
WWW.METHANOL.ORG
SINGAPORE (HQ)
WASHINGTON D.C.
BRUSSELS
BEIJING
10 Anson Road #32-10 International Plaza Singapore 079903 + 65 6325 6300
225 Reinekers Lane Suite 205 Alexandria, VA 22314 +1 (703) 248-3636
Square de Meeûs 38-40 B-1000 Brussels Belgium +32 241 6151
#511, Pacific Sci-tech Development Center Peking University No. 52 Hai Dian Rd. Beijing 100871, China +86 10 6275 5984
WWW.METHANOL.ORG WWW.METHANOL.ORG
Gregory Dolan, CEO Methanol Institute Platts European Refining Summit
Brussels – September 29, 2016
WWW.METHANOL.ORG
01
WHO WE ARE
WWW.METHANOL.ORG
Global methanol representation •
The Methanol Institute (MI) was first formed in 1989 to represent US methanol producers in Washington.
•
27 years later, MI is truly a global trade association supporting the expansion of the methanol industry in every corner of the world from offices in: Sin g a p o r e | Wa s h in g to n | Br u s s e ls | Be ijin g
WWW.METHANOL.ORG
WWW.METHANOL.ORG
02
Transition to Energy Resource
WWW.METHANOL.ORG
Alternative Fuel Drivers Scale: The feedstock base needs to be large enough to support global transportation market. Sustainability: There needs to be a viable pathway to low- or no-carbon transport, while reducing smog. Subsidy: Can’t rely on government support forever, so someone needs to make money. Consumer: Demands seamless transition and ease of use. Methanol: Checks all the drivers! WWW.METHANOL.ORG
Methanol is simplest of alcohols • Simple molecule rich in hydrogen, with only no carbonto-carbon bonds • Clear and colorless liquid at room temperature and ambient pressure
Formula: CH3OH
Density: 0,792 g.cm-3 Molar mass: 32,04 g mol-1 Appearance: colourless liquid
• Also known as “wood alcohol,” methanol can be produced from a wide range of feedstocks WWW.METHANOL.ORG
Feedstock: Abundant/Sustainable
Market: Large/Diverse
WWW.METHANOL.ORG
Methanol: Essential Chemical Building Block Source: Methanex
WWW.METHANOL.ORG
Methanol is a versatile fuel source Out of the ~70 million metric tons of methanol sold globally in 2015, energy and fuel uses represent 40% of total demand From 2009-2015, direct methanol fuel blending has increased at an annual rate of nearly 23% FUELS • Neat fuel • Low blends • High blends • GEM • MTBE • Biodiesel • DME & OME • MTG
TECHNOLOGIES • SI & CI engines • Turbines • Fuel cells • Stoves SEGMENTS • Road & non-road transportation • Power & heat generation, and • Marine WWW.METHANOL.ORG
Oil displacement drives demand growth
Source: IHS Chemical, November 2015 WWW.METHANOL.ORG
Shifting supply & demand balance
Source: IHS Chemical WWW.METHANOL.ORG
Methanol Fuel Examples Around the World Iceland – M100 Trials
USA – methanol motorsport fuel
UK – EN228 low blend
Sweden – methanol marine fuel
Denmark – methanol fuel cells for vehicles
China– M15 to M100, Industrial Boilers
Israel – Power generation & M15 Standard Egypt – M15 Trials Africa – cooking stoves
New Zealand – Introducing M3
India – Methanol Economy Roadmap
Australia – GEM fuel
WWW.METHANOL.ORG
03
MARINE FUELS
WWW.METHANOL.ORG
Marine Fuel in Transition •
Over 90,000 commercial vessels on world’s oceans, consuming 370 million tons of bunker fuel (Heavy Fuel Oil and Middle Distillates).
• One container ship: SOx = 50 million cars • 15 largest ships: SOx emissions = 760 million cars in the world
WWW.METHANOL.ORG
Environmental & Health Hazards • NOAA: Globally shipping accounts for 60,000 deaths and US$330 billion in health costs • NRDC: Shipping at intersection of high population, choking pollution, and rapid growth Source: Natural Resources Defense Council
WWW.METHANOL.ORG
Emissions regulations driving market The International Maritime Organization has adopted regulations for SOx and NOx that are transforming the shipping industry While SOx reductions may be met with low sulfur fuels, the combination of SOx and NOx reductions driving shipboard solutions
WWW.METHANOL.ORG
Different options available to ship owners
HFO + scrubbers
MGO
LNG
Methanol
WWW.METHANOL.ORG
Methanol is also a low flash point fuel Properties Physical state Boiling temperature at 1 bar [oC] Density at 15oC [kg/m3] (LNG shown at
HFO
MGO
LNG
liquid
liquid
-
175 – 650
989 -
Methanol
cryogenic liquid -/
liquid
161
65
Max. 900
448
796
3,5
-
0,6
-
-/-160oC)
Dynamic viscosity at 40oC [cSt]
(at 25oC)
Lower heating value [MJ/kg]
40
43
50
20
(at -160oC, 1 bar)
Lubricity WSD [μm]
-
280-400
-
1100
Vapour density air = 1
-
>5
0,55
1,1
Flash point (TCC) [oC]
>60
>60
-/-175
12
Auto ignition temperature [oC]
-
250-500
540
464
Flammability limits [by % vol. of mixture]
-
0,3 – 10
5 – 15
6 - 36
Source: EMSA Study on the use of ethyl and methyl alcohol as alternative fuels in shipping WWW.METHANOL.ORG
Different parameters determine choice of fuel Economy
Supply
Technology
Regulations
WWW.METHANOL.ORG
Examples of vessels running on methanol
MOL, WL, Marinvest
Stena Lines
Swedish Maritime Administration, MI
Methaship, LeanShips, a.o.
7 chemical tankers
1 RoPax Ferry
1 pilot boat
cruise ship, ferry, a.o.
2-stroke
4-stroke
high speed
projects
MAN
Wärtsila
new build operational
retrofit operational
DNV GL
Lloyds Register
Volvo, Scania, FiTech retrofit testing
various new build design various
WWW.METHANOL.ORG
Methanol fuel cells improve electrical efficiency As part of the Pa-X-ell project Meyer Werft installed a Serenergy high temperature methanol fuel cell system demonstrator on board the Mariella
The system electricity at higher efficiencies than a typical diesel system [source: Serenergy]
WWW.METHANOL.ORG
Dual fuel engine technology ensures flexibility Engines converted for methanol combustion
Double walled fuel pipes
Pump room
Source: Stena Line
Ballast tank converted to methanol fuel tank
• Pilot fuel assisted diesel combustion concept Methanol is ignited by a small amount of diesel pilot fuel • Crew and passenger safety top priority Safety measures include a.o. double walled pipes, ventilation, high pressure oil valves, nitrogen blanketing WWW.METHANOL.ORG
Wärtsilä Methanol - Diesel on engine piping
Toni Stojcevski / Wärtsilä
WWW.METHANOL.ORG
Methanol Injector - the heart of the methanol adaptation
ACCUMULATOR BLOCK
CONTROL BLOCK
TRANSFER BLOCK
The methanol injector allows the engine to run on methanol ignited by pilot fuel or on pure diesel.
WWW.METHANOL.ORG
Phi T Maps – NOx & PPM
“soot”
NOx
Methanol Fuel
“soot”
NOx
Typical Diesel Fuel
Zero particulates , much lower NOx Source: SAE 2016-01-0887 , Svensson et al. , Lund University Toni Stojcevski / Wärtsilä
WWW.METHANOL.ORG
Methanol enables significant emission reductions SOx
NOx
PM
0% -/
-10%
-/
-20%
-/
-30%
-/
-40%
-/
-50%
-/
-60%
-/
-70%
-/
-80%
-/
-90% Source: Stena Line WWW.METHANOL.ORG
Available in many ports around the world
Methanol storage capacity estimates (thousand tons) WWW.METHANOL.ORG
Methanol is easy to handle • Liquid at atmospheric pressure • Available in many ports around the world and along rivers • Low infrastucture cost • Flexible, modular system • Environmentally friendly as it is biodegradable
WWW.METHANOL.ORG
Methanol is cost competitive on an energy equivalent basis Over a five-year time frame methanol has been mostly cost competitive Despite decreased oil prices methanol remains competitive in many key regions, incl China
Source: Platts and IHS Chemical Methanol converted to MGO energy equivalent at factor of 2.16
WWW.METHANOL.ORG
04
CONCLUSIONS
WWW.METHANOL.ORG
Methanol... •
is plentiful, available globally
•
can be made 100% renewable
•
runs well in existing engine technology and has potential for further optimization
•
complies with increasingly stringent emission reduction regulations
•
requires only minor modifications to current bunkering infrastructure
•
is biodegradable!
•
safe handling can rely on long history and experience in shipping and industry
•
cost are relatively modest and drop as experience mounts
•
shows slight regional price variation
WWW.METHANOL.ORG
A picture says more…
WWW.METHANOL.ORG
BONUS: Methanol as Diesel Substitute Diesel Emissions Under Attack
• The “low hanging fruit” for methanol fuel blending may be the diesel substitution market for heavy-duty trucks and buses • Methanol Institute looking at research agenda for dual-fuel compression ignition engines and dedicated spark ignition engines • MI Member Fuel Injection Technologies of China working with Beiben Trucks and Yuchai engines in China • MI sponsoring work in Finland to convert Scania ED95 engine to MD95 • MI sponsoring Green Pilot Boat to demonstrate methanol fueled engines from FiTech, Volvo, and Scania WWW.METHANOL.ORG
05
CONTACTS
WWW.METHANOL.ORG
CONTACTS MSF MAINTAINS A PRESENCE IN OVER 60 COUNTRIES 01
•
GREG DOLAN
05
CEO MANY OF THESE COUNTRIES MI HAS [email protected] TARGETED FOR METHANOL POISONING OUTREACH PROGRAMS, MSF HAS EXISTING OPERATIONS, •TO CINCLUDE: H R I S C H AT T E R T O N 06 02
• • • • • • • • • •
F F F F F F F F F F
•
Chief EU Representative [email protected]
•
COO [email protected]
03
•
D O M L AV I G N E
EELCO DEKKER
KAI ZHAO Chief China Representative [email protected]
07
•
Director of Government Affairs
APRIL CHAN Executive Manager [email protected]
[email protected] 04
•
L A R R Y N AV I N
Senior Manager External Affairs [email protected]
08
•
S H E E VA N O S H I R V A N Executive Assistant
[email protected]
WWW.METHANOL.ORG
SINGAPORE (HQ)
WASHINGTON D.C.
BRUSSELS
BEIJING
10 Anson Road #32-10 International Plaza Singapore 079903 + 65 6325 6300
225 Reinekers Lane Suite 205 Alexandria, VA 22314 +1 (703) 248-3636
Square de Meeûs 38-40 B-1000 Brussels Belgium +32 241 6151
#511, Pacific Sci-tech Development Center Peking University No. 52 Hai Dian Rd. Beijing 100871, China +86 10 6275 5984
WWW.METHANOL.ORG WWW.METHANOL.ORG
