Production and development prospects of dimethyl ether

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According to the Petrochemical Technology Network on November 8th: On January 5, 2006, the 10,000 tons per year industrial facility for the production of dimethyl ether through the gas-phase dehydration of methanol, built using patented technology from the Southwest Chemical Research and Design Institute and Sichuan Tianyi Technology Co., Ltd., was put into operation by Anhui Bengbu Newao Gas Company. It passed a 72-hour performance test, with all technical and economic indicators meeting or exceeding the design requirements. It is reported that this technology is the first of its kind in China, with no similar production processes available abroad. The breakthrough in this technology holds significant illustrative value for the widespread adoption of dimethyl ether as an energy source. It is reported that this device implements two Chinese invention patents held by the Southwest Research Institute and Tianke Co., Ltd., verifying the practicality, reliability, and advancement of these two patents. This device is easy to operate, produces no waste emissions, and its investment cost is only over 9 million yuan, representing a 30% savings compared to imported similar devices; the investment is expected to be fully recovered within two years. The commissioning of this device indicates that it is now possible to fully replace liquefied petroleum gas with low-cost dimethyl ether produced using new technologies as a fuel for domestic and industrial use. According to the commissioning and acceptance reports for this facility, the purity of dimethyl ether reaches 99.99%, and the steam consumption required to produce 1 ton of dimethyl ether is 0.5–1.5 tons less than that of similar facilities abroad. The production facility at Sichuan Lutianhua Lvyuan Alcohol Industry Company, capable of producing 100,000 tons of dimethyl ether per year, was successfully put into operation in mid-March 2006, producing dimethyl ether with a purity of 99.83%. This marks Lutianhua’s successful construction and commissioning of a dimethyl ether production facility on a world-class scale. Lutianhua’s 100,000-ton dimethyl ether production facility utilizes advanced gas-phase technology and equipment jointly developed by Lutianhua and the Japanese company Toyo Engineering Corporation. It represents a further improvement over the 10,000-ton dimethyl ether research and development facility that was put into operation by Lutianhua in 2003. The commissioning of this production facility with an annual capacity of 100,000 tons of dimethyl ether fully demonstrates the superiority of this advanced technology and equipment, which are backed by independent intellectual property rights. It features simple operation, a synthesis process that generates no corrosion or waste fluids, high product purity (up to 99.99%), low raw material consumption, and low consumption of water, electricity, and steam – all of which contribute to its resource-saving and environment-friendly characteristics, giving it strong competitiveness. The 5,000 t/year dimethyl ether production plant owned by Shanghai Coking Co., Ltd., a subsidiary of Shanghai Huayi Group, was successfully put into operation in early May 2006, with the quality of the dimethyl ether product reaching an aerosol-grade level of 99.99%. This facility is not only capable of meeting the annual dimethyl ether fuel needs of Shanghai’s existing diesel buses, but Shanghai Coking Company can also increase production further should there be market demand. In 2006, Shanghai listed the industrialization of dimethyl ether vehicles as a key project for clean fuel vehicles; through demonstration operations, it aimed to reach a usage level of over 1,000 such vehicles by the time of the World Expo. With the launch of the industrialization of dimethyl ether vehicles, the production of dimethyl ether fuel for use in vehicles, and the establishment of a research and development base for this new type of clean fuel for vehicle use, have also become one of the key product focuses of Huayi Group’s Wujing Chemical Industry Base. In May 2005, China’s first urban bus powered by dimethyl ether, developed through a collaboration between Shanghai Jiao Tong University, SAIC Group, and Huayi Group, was unveiled in Shanghai. **The test results from the Heavy Vehicle Quality Supervision and Testing Center and the **Motor Vehicle Product Quality Supervision and Testing Center show that this new type of bus has strong power; the noise level inside the bus is 2.5 decibels lower than that of the original model, its emissions far exceed the Euro III standards, and its carbon monoxide emissions are zero – thus completely solving the problem of urban buses emitting black smoke. According to research, Shanghai currently has around 19,000 buses, of which about 15,000 are powered by diesel engines. Switching to dimethyl ether engines will **improve the air quality in Shanghai’s urban area and help fulfill the environmental goals set for the Shanghai World Expo. The 20,000 t/year dimethyl ether production plant of Inner Mongolia Yigao Chemical Company was successfully put into operation in August 2006 at the Wushenzhao Industrial Park in Ordos City. This device utilizes a proprietary production process technology developed by Igao Company after optimizing dimethyl ether production technologies both domestically and internationally. The first phase of the dimethyl ether project to replace petroleum, initiated by Guangzhou Development Zone Co., Ltd., came online in February 2007. The designed capacity of this project is 1.05 million tons per year, with a total investment of around 1 billion yuan; the dimethyl ether produced will serve as a substitute for household LPG and diesel. This project is the only dimethyl ether-based alternative to petroleum project in Guangdong Province, located on Xiaohu Island in Nansha. The first phase of the project has an annual production capacity of around 200,000 tons of dimethyl ether. Once the project is fully operational in 2008, its annual sales revenue is expected to exceed 4 billion yuan. The capacity expansion and renovation project of SNOW Group’s dimethyl ether production facility in Bengbu was successfully commissioned in early March 2007; the purity of the product reached 99.7%, marking SNOW’s first core dimethyl ether production technology with independent intellectual property rights, whose practical value has been verified through actual use. The production facility in Bengbu, which produces 10,000 tons of dimethyl ether per year, has been upgraded, making use of CNPC New Energy’s first dimethyl ether production technology with independent intellectual property rights. This technology is a software package independently developed by Xineng Technology Co., Ltd.; the engineering design was carried out by the Shijiazhuang Design Branch of XinAo Energy Research Institute, while the construction was undertaken by China’s Third Chemical Engineering Design Company. Through the replacement of the core catalyst, process innovations in the reactor, and modifications to the separation units, this capacity expansion project increased the plant’s annual production capacity from 10,000 tons to 20,000 tons. The first industrial plant in China for the production of dimethyl ether via gas-phase dehydration of methanol, with an annual capacity of 100,000 tons, built by Hubei Tianmao Group using technology covered by China’s own intellectual property rights, was successfully put into operation in mid-May 2007. All technical and economic indicators met or exceeded the design requirements. The device utilizes two patented technologies and engineering designs provided by the Southwest Research Institute and Sichuan Tianyi Technology Co., Ltd. This technological breakthrough holds significant illustrative value for the widespread adoption of dimethyl ether as an energy product. The overall yield of this 100,000 tons per year dimethyl ether production facility is as high as 98%, and its investment cost is 30% lower than that of similar facilities imported from abroad. The innovations of this technology lie in the following aspects: the raw material can be either crude methanol or refined methanol, with no need for concentration ； The catalyst is independently developed and produced, featuring good performance, high activity, excellent selectivity, and a long service life ； The reactor uses a multi-stage quench-type fixed-bed design; it features a large catalyst loading capacity, low investment costs, a high conversion rate of methanol in a single pass, good selectivity for dehydration reactions, few side reactions, and is easy to scale up ； The unique vaporization distillation tower structure and separation process simplify the process flow, reduce investment, and minimize steam consumption. In addition, the device has a high degree of automation; only 4 operators are required per shift. The \"three wastes\" are properly treated, achieving virtually zero emissions of pollutants. It is estimated that this facility, with an investment of 40 million yuan, can recoup its entire investment within one year. The solid-phase catalytic methanol dehydration technology for producing dimethyl ether, developed by the Department of Chemical Engineering at Tsinghua University, was implemented in a industrial demonstration plant with a capacity of 10,000 tons, and it came online at Shandong Kaifu Chemical Co., Ltd. on May 13, 2007. Tests conducted through continuous operation have shown that this dimethyl ether production plant is simple to operate and stable in performance; all the economic and technical parameters related to the synthesis and separation processes meet the design requirements. The dimethyl ether fuel technology developed by Tsinghua University uses a specialized, high-efficiency solid acid as a catalyst, along with a corresponding isothermal reactor. The operating temperature for the catalytic reaction remains below 300°C, the one-pass conversion rate is higher than 80%, and the selectivity of dimethyl ether during the reaction process is close to 100%. The product separation process employs a closed-loop high-pressure distillation technique; as the product quality meets all specifications, no non-condensable gases are generated during distillation, resulting in a significant reduction in the consumption of methanol raw material. During the production process, this system utilizes pressure as the primary driving force for all operations from synthesis to separation, eliminating the need for high-pressure dimethyl ether circulation pumps; thus, it ensures long-term stable operation of the production facility. Compared with similar technologies, the dimethyl ether production technology developed by Tsinghua University allows for a reduction of about 60% in the amount of catalyst required. It features low raw material consumption and energy usage, a pollution-free and corrosion-free production process, as well as low investment costs, high efficiency, and environmental friendliness; it is therefore considered one of the more advanced dimethyl ether production technologies available today. More than half a month of continuous operation has shown that this technology has reached an industrial maturity stage, making it feasible to build production facilities on a larger scale (300,000 tons per year per unit). The dimethyl ether produced by Shandong Kaifu Chemical Co., Ltd. is mainly mixed in certain proportions with liquefied petroleum gas to be used as a fuel for domestic use; a smaller portion of it is used as a substitute for acetylene as a gas for welding or cutting. The demand for this product exceeds its supply. An industrial plant with an annual production capacity of 100,000 tons of dimethyl ether was built by Hebei Zhongjie Petrochemical Group, using industrial catalysts and process technologies provided by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, and with engineering design carried out by Donghua Engineering Company. The plant was successfully put into operation at the end of May 2007. The purity of dimethyl ether produced by this device exceeds 99.5%. By taking into account **planning and market demands, the Dalian Institute of Chemical Physics has utilized newly developed catalytic materials of its own design as catalysts, along with novel reaction processes, to create a patented technology for the production of dimethyl ether from methanol, which holds independent intellectual property rights. The new catalyst features high activity, good selectivity, a low initial reaction temperature, a high one-pass conversion rate of methanol, few side reactions, and uniform temperature in the reaction bed. Newao Company, located in Langfang, Hebei, is building a methanol plant with an annual capacity of 600,000 tons and a dimethyl ether plant with an annual capacity of 400,000 tons in Inner Mongolia, with completion scheduled for the end of 2007. The 1 million tons per year dimethyl ether production project of Jutai Energy (Inner Mongolia) Co., Ltd. was launched in Ordos in April 2005, with commissioning planned for the first half of 2008. This marks the beginning of large-scale development of dimethyl ether as a clean fuel in our country, with Jutai Chemical having achieved the optimal combination of technical advantages and resource advantages. This project plays a significant role in the deep processing of Ordos’ coal resources, extending the coal industry chain, increasing the added value of products, and boosting the local economy. It also lays a foundation for the large-scale adoption of dimethyl ether as a clean fuel. The dimethyl ether products manufactured by Shandong Jiutai Chemical have been included in the ’10th Five-Year’ science and technology research program of the Ministry of Science and Technology as a project for researching and demonstrating key technologies for the industrialization of clean vehicles ； The application technologies for dimethyl ether as a clean energy source, the technology for using dimethyl ether as a substitute for Freon, the technology for mixing dimethyl ether with other fuels, as well as the technologies for developing downstream products derived from dimethyl ether – all of these were developed in collaboration with institutions such as Xi’an Jiaotong University. They are now fully mature and have entered the market for practical use. At the end of October 2005, the Honghe Hani and Yi Autonomous Prefecture in Yunnan Province launched the construction project for a dimethyl ether facility. The project is implemented by Yunnan Jiehua Group Co., Ltd., with a total investment of 970 million yuan. It has a designed annual production capacity of 150,000 tons, and is scheduled to be completed and put into operation by the end of 2007. Once operational, this project is expected to process 1.1 million tons of low-quality coal per year, increasing the added value of such coal by five times, while generating annual sales revenue of 447 million yuan. Using local lignite as raw material, this project employs the BGL slag gasification technology to produce high-quality feed gas, ultimately yielding dimethyl ether and methanol products. Yinchuan in Ningxia is also planning a dimethyl ether project with an annual production capacity of 830,000 tons, which will utilize technology from Air Products and Chemicals in the United States. An investment of 4.78 billion yuan is planned. Ningxia Petrochemical Group Company, China Coal Sida Mining Company, Xi’an Jiaotong University, the Second Design Institute of the former Ministry of Chemical Industry, China Chengda Chemical Engineering Company, and others are involved in this cooperation. This project will produce dimethyl ether using coal as the starting material. The project construction will be carried out in two phases: the first phase will have an output of 210,000 tons per year, while the second phase will increase this capacity by another 620,000 tons per year. Nippon Tokyo Engineering Company will construct a 1,350 t/d (490,000 t/year) methanol plant for China’s Lutianhua Company in the Western Sichuan Chemical Industry Park in Luzhou; this methanol plant will supply methanol as a raw material for local industrial-scale fuel-grade dimethyl ether (DME) plants. Toyo Engineering Corporation has signed a contract with the mining company Ningxia Coal Group to provide technology transfer, civil engineering work, and catalysts for the construction of a fuel-grade dimethyl ether (DME) plant. The facility will use coal as raw material to produce 210,000 tons of dimethyl ether per year. The dimethyl ether produced by this facility will be used as an energy source locally. Using dimethyl ether is a clean alternative to direct coal combustion as an energy source. This is Dongyang Engineering’s third dimethyl ether contract in China. Toyo Engineering Corporation also transferred its dimethyl ether (DME) technology to Shanxi Cauliflower Clean Energy Company in China. The company will provide process design, catalyst supply, and technical services for the 140,000 t/year coal-to-dimethyl ether project in Jincheng, Shanxi Province, China. Commercial production of this device is scheduled to begin by the end of 2007. The DME produced is used as a substitute fuel and aerosol. This is the fourth DME project of Dongyang in China. In 2003, its first DME plant with an annual capacity of 10,000 tons was built in Sichuan Province. Ningxia Shenhua Coal Industry Group Co., Ltd. is building a dimethyl ether plant with an annual production capacity of 210,000 tons in Lingwu City, Ningxia; the plant is expected to be completed and put into operation in 2007. The first phase of Shenhua Ningmei Group’s project to produce 830,000 tons of coal-based dimethyl ether per year has a capacity of 210,000 tons of coal-based dimethyl ether and 600,000 tons of methanol per year; it requires approximately 1.87 million tons of coal per year, with an investment of around 3 billion yuan. Future construction will expand the capacity to 830,000 tons per year of dimethyl ether, and this project has been designated as a key project in the Ningdong Energy and Chemical Industry Base in Ningxia. In January 2007, Shenhua Ningxia Coal Group and Siemens Power Generation Group jointly signed a contract for the procurement of proprietary GSP gasification equipment for Shenhua Ningxia Coal Group’s 830,000-ton coal-based dimethyl ether project, as well as a memorandum of understanding regarding cooperation on the coal-to-olefins project. Both projects utilize Siemens’ advanced large-scale gasification technology – the GSP gasification technology. The first phase of the dimethyl ether project, built by GCL Group in Inner Mongolia with an annual production capacity of 150,000 tons of dimethyl ether, has been approved by the Inner Mongolia Autonomous Region Development and Reform Commission. This approval marks the start of construction of the project, whose overall planned capacity will be 500,000 tons per year of dimethyl ether. The project is located in Xilinhot City, Inner Mongolia. The first phase of the project, which involves the production of 150,000 tons per year of dimethyl ether, is expected to require an investment of 1.07 billion yuan. It will consume 877,000 tons of coal per year and 3.78 million cubic meters of water, with a construction period of 2 years. Once completed, the project is expected to generate annual sales revenue of 540 million yuan. The process technologies and production equipment such as GSP to be used in this project are generally at the advanced level in China. **GCL (Group) Holding Co., Ltd. is headquartered in **, and it has subsidiaries and offices in the United States, Singapore, Vietnam, Indonesia, and other locations. Its operations in China are managed from Shanghai, with representative offices in Beijing, Nanjing, Hangzhou, and Shenzhen. It is a specialized energy investment and holding company whose main business areas are clean energy and renewable energy, and it boasts advanced professional technical capabilities and management experience. At the beginning of June 2007, Synthetic Energy Systems Investment Company, a subsidiary of Synthetic Energy Systems Corporation (SES), and Inner Mongolia Golden Harmony Energy Company signed an agreement to establish a joint venture aimed at building integrated coal gasification facilities, as well as methanol and dimethyl ether production plants in Inner Mongolia. SES holds a 51% stake in the joint venture known as SES-GCL (Inner Mongolia) Coal Chemistry Company, while Golden Harmony Energy holds the 49% stake. The plant is expected to produce 84,000 cubic meters per hour of crude syngas, which will then be used as a raw material to produce 225,000 tons per year of methanol. The company also uses methanol to produce 150,000 t/year of dimethyl ether. The facility will be completed and put into operation in the fourth quarter of 2008. Shaanxi Sinochem Energy Co., Ltd. will invest around 6 billion yuan in the construction of a coal-based dimethyl ether production facility with an annual capacity of 1 million tons in the Binchang mining area of Shaanxi. The investor has signed a framework agreement with the authorities of Binchang County and the Coal Industry Bureau of Xianyang City. Currently, preliminary preparations such as project feasibility studies and environmental impact assessments are underway. The project of Shanxi Broccoli Technology Entrepreneurship Co., Ltd. to produce 1 million tons of dimethyl ether per year was launched in mid-2006 in Jincheng, Shanxi, marking the full commencement of construction for this project. The Orchid Innovation 1 million tons of dimethyl ether project is a key initiative under the ’11th Five-Year Plan’ of Shanxi Province and Jincheng City. It serves as a cornerstone project for the company to further refine its industrial structure and achieve its development goals, as well as a breakthrough point for entering the field of fine chemicals. The total investment for this project is 4.6 billion yuan, to be carried out in three phases. The first phase involves 200,000 tons of methanol and 100,000 tons of dimethyl ether. According to current market forecasts, once the first phase of the project is completed and put into operation, it will generate an additional annual sales revenue of 400 million yuan and an additional profit of 100 million yuan ； Upon the complete completion of the project, it will generate an additional annual sales revenue of 4.2 billion yuan and an additional profit of 1.3 billion yuan. Shaanxi Sinochem Energy Co., Ltd. will invest around 6 billion yuan in the construction of a coal-based dimethyl ether production facility with an annual capacity of 1 million tons in the Binchang mining area of Shaanxi. The investor has signed a framework agreement with the authorities of Binchang County and the Coal Industry Bureau of Xianyang City. Currently, preliminary preparations such as project feasibility studies and environmental impact assessments are underway. Methanex signed a supply contract with the energy-focused CNPC Group, under which CNPC Group would supply 300,000 tons per year of methanol in the second half of 2007. Methanol will supply a 200,000 tons per year dimethyl ether (DME) plant, which is being developed by ENN Group near Shanghai. Methanex holds a 20% stake in this DME facility. New Oak Group is developing DME as a clean energy source. Manufacturing enterprises for dimethyl ether with an annual production capacity of 3 million tons have been established, driven by the National Development and Reform Commission. This company is named \"Zhongtian Hechuang Energy Co., Ltd.\" (abbreviated as Zhongtian Hechuang). Its registered capital is 6 billion yuan, and it is headquartered in Ordos City, Inner Mongolia. Production is expected to begin in 2010. China National Coal Energy Group Corporation (abbreviated as CNCEG), Sinopec Corporation (abbreviated as Sinopec), Shenneng (Group) Co., Ltd., China Yintai Investment Co., Ltd. (abbreviated as Yintai Investment), and Inner Mongolia Manshi Coal Group Co., Ltd. (abbreviated as Manshi Group) hold 32.5%, 32.5%, 12.5%, 12.5%, and 10% of the shares respectively, with a total planned investment amount of 21 billion. This model project is led by China National Coal Group, while the five major shareholder companies were directly designated by the **National Development and Reform Commission. China Coal Group is China’s second-largest coal enterprise and holds a significant advantage in terms of coal resources, with dimethyl ether being primarily extracted from coal. Sinopec has extensive experience in the production of chemical products and boasts a comprehensive network of gas stations. Shenneng Group controls the sales of liquefied gas throughout the Yangtze River Delta region, which will ensure a stable supply chain for the production and distribution of dimethyl ether. Yintai has advantages in terms of financing. Jiutai Energy (Zhangjiagang) Co., Ltd.’s project to produce 1 million tons of dimethyl ether per year began construction in Zhangjiagang, Jiangsu, in mid-April 2007. This is Jiu Tai Company’s third million-ton-scale dimethyl ether project, following those built in Inner Mongolia and Guangzhou. This project was jointly invested in and constructed by Jutai Energy Technology Co., Ltd. and China Energy Co., Ltd., with Jutai Energy Technology Co., Ltd. holding 55% of the registered capital and China Energy Co., Ltd. holding 45%. The first phase of the project will have an annual production capacity of 300,000 tons of dimethyl ether, cover an area of 150 mu, and require a total investment of $48.72 million; it is planned to be completed and put into operation by the end of 2007 ； The design production capacity for the second phase is 700,000 tons of dimethyl ether per year. Construction began at the beginning of 2008, and it was completed and put into operation by the end of the same year. Upon completion of the entire project, annual sales revenue of 5 billion yuan will be achieved. Once put into operation, this project will play an important role in raising the overall level of the dimethyl ether industry. 2. Analysis and Conclusion Using coal gasification as a raw material or natural gas to produce syngas as a raw material are both viable routes for manufacturing dimethyl ether, depending on the availability of coal or natural gas resources. Our country has abundant coal resources, and using coal gas to produce dimethyl ether is also a good approach for developing clean coal technology and producing clean fuels. The one-step process for producing dimethyl ether from syngas is simpler in terms of process flow and has lower production costs compared to the two-step process of first producing methanol from syngas and then converting it into dimethyl ether; it represents the future direction for dimethyl ether production. However, the one-step process is still in the pilot stage both domestically and internationally; research and development efforts are accelerating, and a commercial breakthrough is expected within the next few years. The slurry bed process is superior to the fixed bed due to its high mass and heat transfer efficiency as well as high conversion rate, and this process should be developed and adopted. Japan and China are at the forefront of the world in terms of dimethyl ether process development and the construction of large-scale facilities. Japan primarily relies on the cheap natural gas resources in the Middle East, while China utilizes its abundant coal resources as well as the relatively sufficient natural gas resources in certain areas. The construction of large-scale facilities will surely drive the development of the dimethyl ether market. Reducing the production cost of dimethyl ether is a prerequisite for the accelerated development of the market; it is primarily related to raw material costs and process selection. It is necessary to weigh the pros and cons and make optimal choices in order to bring dimethyl ether production to a level comparable to that of diesel and liquefied gas. Dimethyl ether holds great market prospects, but to secure a position in the new round of energy structure adjustments, it is still necessary to overcome its own technical challenges, reduce costs, and also rely on active policy support. Data shows that dimethyl ether holds great market prospects in the fields of alternative vehicles and civilian fuels; it is predicted that there will be a market demand of 5 to 10 million tons in China over the next 5 years. However, the time is not yet right for dimethyl ether to be promoted in this field. There are mainly two reasons preventing dimethyl ether from entering this market on a large scale: one is market acceptance, and the other is price factors. Currently, domestic manufacturers have made good progress in cost control. The 30,000-ton annual production facility of Shandong Jiutai Chemical Technology Co., Ltd. came online at the end of 2003. At Jiu Tai, the production cost of dimethyl ether has been successfully kept below 3,000 yuan per ton. If the 1 million-ton dimethyl ether project in cooperation with Ordos City in Inner Mongolia comes online, the production cost is expected to drop to around 1,500 yuan per ton, giving it a clear cost advantage and competitiveness over diesel and household liquefied petroleum gas. If it is used to replace household gas, considering the calorific value of dimethyl ether compared to that of liquefied petroleum gas, its cost should not exceed 3,000 yuan per ton. If used as a substitute for diesel, on an equal heat value basis, the price of 1.5 tons of dimethyl ether should be lower than the price of 1 ton of diesel. At the ’Second China International Patent and Famous Brand Expo’ in May 2004, the patent technology of Shandong Jiutai Chemical Technology Co., Ltd. for the catalytic production of dimethyl ether via liquid-phase composite acid dehydration won the gold award, and the company was recognized as one of ’China’s Top 10 Patent Enterprises’. Jiutai Chemical utilizes a dimethyl ether production process with independent intellectual property rights, overcoming the drawbacks of high purification costs and substantial investment requirements associated with traditional gas-phase dehydration methods, and has built a production facility capable of manufacturing 35,000 tons of dimethyl ether per year. Compared with other manufacturers, the investment required to build production lines of the same scale is reduced by half, and production costs are cut by more than one-third, giving it a strong competitive advantage in the market. More than two years of production trials have proven that this process technology is mature.