The prospects of methanol-to-gasoline production
Thread Content
At present, there are several companies that produce gasoline from methanol, and there are also technology providers in China, such as the Shanxi Coal Chemical Research Institute and Dalian Evolution. However, with low oil prices and high methanol prices at present, do people think that such facilities will still exist in China in the long run?
Methanol-to-oil synthesis technology is divided into two main categories: the one-step method and the two-step method. The two-step process first converts methanol into dimethyl ether, which is then dehydrated to produce the oil product. The one-step process eliminates the dimethyl ether conversion step, producing gasoline directly from methanol. Taking the 1 million tons per year MTG project being developed by the established Jinmei Group as an example for equipment investment, the total investment in this project is approximately 3 billion yuan. The total investment in the first 100,000-ton/year production facility introduced by Tianxi Company of Jinmei Group was nearly 1 billion yuan. Currently, there are many domestic promotions for such projects with a capacity of 100,000 tons per year, stating that the investment required is less than 200 million yuan; however, due to the lack of operational data, the risks associated with these projects are high. The next few years will see a significant increase in China’s coal-based olefin production capacity. The expansion of methanol-based olefin production facilities could drive up methanol prices, which in turn will greatly reduce the competitiveness of MTG! Based on economic calculations, when international oil prices are below $70 per barrel, the MTG project is unprofitable!
It is possible to invest less than 200 million yuan for a capacity of 100,000 tons per year; however, it is indeed not profitable when oil prices are below $70 per barrel.
I heard that Shenhua has a coal-to-oil project in Ordos; I’m not sure what the benefits of it are
Oh, it looks like that. I’ve learned it. Thank you
In Shangwan, there is a facility capable of producing 1 million tons of oil through direct coal liquefaction, using Shenhua’s own technology; plans are now in place to build phases two and three of this facility. In Ningdong, there is another facility that can produce 4 million tons of oil through indirect coal liquefaction, utilizing China National University of Science and Technology’s synthetic oil technology. The fact that money is being invested in indirect liquefaction technology speaks volumes about its importance