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Dimethyl ether urgently needs to have its downstream value chain developed. Author/Source: China Chemical Industry News Date: 2009-2-16 At present, affected by the financial crisis and falling international oil prices, dimethyl ether, known as the \"fuel of the 21st century\", is facing difficulties in its development. A survey conducted by the China Petroleum and Chemical Industry Association in December 2008 showed that approximately 40.3% of dimethyl ether production facilities across the country were shut down, while 45.8% were operating at reduced capacity or on a partial scale. During the interviews with journalists, dimethyl ether manufacturers, as well as research and application institutions, called for dimethyl ether as a new energy source to break free from the constraints imposed by oil prices, and emphasized the need to work together to develop new applications for it. The application of dimethyl ether in the civilian gas sector accounts for over 90% of China’s total dimethyl ether consumption. Currently, dimethyl ether manufacturers are generally facing difficulties in selling their products, with increasing cost pressures. Industry experts suggest that dimethyl ether, as a new energy product, should be viewed rationally, and a more cautious approach should be taken when making investments in it. Zou Benzhen, assistant to the board of directors of SNOW Group, told reporters that projects related to dimethyl ether, launched in a rush without taking into account actual resource availability, are unlikely to withstand market challenges. It is understood that in 2008, 80% of the dimethyl ether production facilities across the country relied on purchased methanol for production. Industry experts generally believe that, on the premise of rational investment, for dimethyl ether to overcome its current difficulties, it is necessary to intensify market development in downstream application areas and seek new ones. According to experts, dimethyl ether is not only a new energy source but also an important chemical raw material. By utilizing dimethyl ether, a range of bulk basic chemical raw materials and fine chemical products with wide applications and promising market prospects can be produced, such as N,N-diamines, vinyl acetate, esters, and carbonates. Using dimethyl ether as a starting material for the production of these products represents a new low-cost manufacturing route. According to investigations by journalists at various universities and research institutions, the development of these downstream products is currently still at the laboratory stage, with the research findings presented in the form of research papers. At the same time, the process route using dimethyl ether as a raw material has not yet attracted the attention of relevant experts and manufacturing enterprises. Dimethyl ether can be used to synthesize ethyl acetate, but reporters learned from two large domestic manufacturers of ethyl acetate that \"no research has been conducted on this production route yet.\" Other application markets such as dimethyl ether as a foaming agent, dimethyl ether batteries, dimethyl ether generator sets, and dimethyl ether boilers have not yet been developed; they remain at the stage of theoretical analysis by experts, and have not attracted the attention of relevant companies. Two years ago, Professor Jia Runli, director of the Plastic Research Institute at North University of China, demonstrated through pilot tests that dimethyl ether, when used as a foaming agent for polyurethane, offers better product performance and economic advantages compared to similar products. Professor Jia Runli told reporters that for this technology to be applied in actual production, the cooperation of manufacturing enterprises is also required. Due to a lack of enthusiasm among companies to get involved, this technology has not yet been put into practical use. According to investigations by reporters, the disconnect between dimethyl ether application technologies and the development of downstream products and corporate needs is the main reason why the exploration of new application areas remains at the \"theoretical\" or \"laboratory\" stage. On the one hand, dimethyl ether companies lack advanced application technologies and suitable downstream products; they want to invest in development but do not know where to focus their efforts ； On the other hand, research activities in some scientific institutions and universities are facing funding difficulties. A professor at Shantou University who studies the synthesis of dimethyl carbonate from dimethyl ether told reporters that their application for research funding from Guangdong province was rejected last year. Therefore, some dimethyl ether producers also suggest that since **huge investments are being made to stabilize the market, and dimethyl ether holds strategic value as a new energy product**, financial and policy support should be provided for the development of new areas of application for it.