Methanol for Fuel Cell Vehicles

Agenda

Introduction
Methanol and Methanex Fuel Cell Overview Why Fuel Cells?
Air Pollution Energy Security Fuels for Fuel Cells

Why Methanol? Environment, Health and Safety

Considerations Conclusions
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Methanol

Methanol - Where does it come from?

Typically made from natural gas
coal, oil residues also used biomethanol has been demonstrated
q

Schwarze Pumpe (Germany)

Methanol - What is it?

A simple molecule - CH3OH A colorless liquid at ambient conditions Occurs naturally in the environment Biodegrades quickly in all environmental media Many end uses of methanol
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End Uses of Methanol

Methanol Derivatives
Formaldehyde Acetic Acid MTBE Other Chemicals Direct Uses Windshield Washer Fluid
330 MM gallons/year Methanol as a Fuel Solvent Use Sewage Treatment

1999 Global Methanol Demand by Primary Derivative

Other 27%

Formaldehyde 36%

Acetic Acid 8% MTBE 29%

Estimated Demand: 27.1 million tonnes (Source: CMAI)

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Methanex Dimensions
Methanex Capacity
Plant Kitimat, BC Medecine Hat, AB Fortier, LA New Zealand Chile Total Production Purchased CMC, Trinidad Total Capacity (tonnes/year) 500,000 470,000 570,000 2,430,000 3,000,000 6,970,000 Capacity (tonnes/year) 500,000 7,470,000

Global Market Share

Methanex 24 %

Saudi Arabia 15 % Trinidad 10 % +60 Others 47 % Venezuela 4%

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Why Fuel Cells? - Air Pollution

Persistent Urban Air Pollution

Ground-level ozone (NOx, VOC) Carbon monoxide (CO) Particulate Matter (PM)
Criteria Pollutants

Climate Change
Greenhouse gas emissions (CO2, CH4, N2O, CFC)

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Why Fuel Cells? - Energy Security

100%

Production as % of Consumption
90%

Net Imports as % of Consumption

Petroleum (Net Imports/Production) Energy as a % of Petroleum Energy Consumption

80% 70% 60% 50% 40% 30% 20% 10% 0% 1950 1955 1960 1965 1970 Petroleum: Crude oil and petroleum products

1975

1980

1985

1990

1995

(Source: Energy Information Agency)

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Auto Makers and Fuel Cells

The largest 16 Auto Manufacturers in the

world have active fuel cell development programs underway Over $2 Billion US has been spent developing fuel
cell vehicles (Source: AMI, 1998) The first fuel cell vehicles are expected to be available commercially by 2003

There is the potential for significant market

penetration by 2010 as they offer significant GHG reductions and local air quality improvements
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Fuels for Fuel Cells

Environmental Consideration Urban Smog Forming Emissions Greenhouse Gas Emissions Air Toxics Emissions Water Pollution Economic Considerations Energy Security Fuel Costs Vehicle Costs Health & Safety Consideration Fire Safety Human Intake Hydrogen Methanol 'Gasoline'

++ ++ ++ ++
Hydrogen

++ ++ ++ +
Methanol

+ + + 0
'Gasoline'

++ -0
Hydrogen

++ + Methanol

+ ++ -'Gasoline'

++

++ --

0 0
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*Here Regular Unleaded Gasoline for an Internal Combustion Engine is taken as the basis for this analysis.

Why Methanol?

Methanol is a leading candidate to power fuel

cell vehicles Existing methanol spec is suitable for fuel cells. Less complex onboard reforming than gasoline
Vehicles have been demonstrated Urban air emissions are only a fraction of the CARBs SULEV standard Potentially the lowest GHG emissions of viable fuel scenarios Economically viable option Methanol is an environmentally friendly product with an excellent safety record
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Technical Feasibility

Methanol reformers have already been

incorporated into small passenger vehicles and passenger buses

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CARBs Emissions Regulations

4.2 4 0.6 4.2 4.5 0.8 0.7

3.5

CO Emissions (g/mi)

3 0.5 2.5 2.1 0.4

2 0.3 1.5 0.156 1 0.2

0.09

0.1

0.055

0.07

0.0034

0.0025

0.0001

0.02

0.5

0.1

0.016

0.01

0 TLEV LEV ULEV SULEV IMFC LEV Standards/IMFC/DMFC

DMFC

(Source: Evaluation of Fuel Cell Reformer Emissions, Acurex - CARB/SCAQMD, 1999)

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NMOG and NOx Emissions (g/mi)

0.6

Georgetown University Bus Program

18 grams/brakehorsepower-hr 16 14 12 10 8 6 4 2 0 1998 Standard HC CO NOx PM 1.3 15.5 4 0.05 DD Series DD Series 50* 50 Diesel CNG 0.1 0.9 4.7 0.04 0.8 2.6 1.9 0.03 Cummins C8.3 Diesel 0.2 0.5 4.9 0.06 Cummins 94 Fuji Fuel 98 IFC Fuel C8.3 Cell Cell CNG Methanol Methanol 0.1 1 2.6 0.01 0.09 2.87 0.03 0.01 0.01 0.02 0 0

(Source: Georgetown University)

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GHG Emissions Reductions

Full report available at www.methanex.com/fuelcells/archivedreports/reports.htm 600
Base Case

Fuel Extr/Prod/Distr
-8.5 %

Vehicle Operation

Vehicle Matl & Assembly

500

-13.8 % -22.5 % -21.9 % -25.8 %

gm CO2 eq/mile

400

300

-41.7 % -44.5 %

200

100

0 1. Gasoline 2. CH2 3. CH2 4. LH2 5. CH2 6. Methanol 7. Sulfur Free Gasoline 8. FTD

1. Gasoline: Produced from crude oil (Baseline) 2. CH2: Produced from NG in a small decentralized SMR. 3. CH2: Produced from NG in a small decentralized POX reactor. 4. LH2: Produced from NG in a large decentralized SMR. 5. CH2: Produced by electrolysis with the electricity being produced from a NG turbine. 6. Methanol: Produced from NG in a SMR based process. 7. Sulfur Free Gasoline: Produced from crude oil. 8. FTD: Produced from NG in a SMR based process. (Source: (S&T)2 Consultants Inc., 2000)

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Methanol vs. Gasoline Pricing

5.50

5.00

cents/mile

4.50

Gasoline: 4.21 cents/mile

4.00

3.50

Methanol: 3.67 cents/mile

3.00 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997

1. USGC Wholesale Pricing plus taxes along a 3-year moving average 2. Assumes a Corporate Average Fuel Economy (CAF) of 27.5 mpg 3. Energy Efficiency Ratio (EER) of 1.78 for the methanol fuel cell vehicle (49 mpge) 4. Energy Equivalent Taxes: Gasoline = 40 cpg, Methanol = 20 cpg 5. Retail Margins: Gasoline = 10 cpg, Methanol = 15 cpg 6. Distribution Costs: Gasoline = 3 cpg, Methanol = 10 cpg

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Methanol Economics

Since 1975 - delivered bulk pricing has

averaged 47 cpg Future, Larger scale more efficient plants (i.e. 1 MM 3 MM tpa plants) Natural Gas Costs Delivered methanol Plant Operating Costs costs continue to Distribution Costs (100 kT vessel) decrease year over year Capital Cost Recovery Retailing considerations taxation, local distribution, retailer return

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Retail Infrastructure

Cost estimates for installing methanol retail

systems.
Methanol Retail System Cleaning a gasoline tank Install new fiberglass tank liner Add a new tank Replace an existing tank
(Source: EA Engineering, 1999)

Cost (USD) $19,000 $31,000 $55,000 $70,000

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Environment, Health and Safety

Environmental Fate of Methanol

Rapid dilution and biodegradation of methanol Natural methanol production - 2.4 billion tpa Human Exposure Ingestion is exposure route of highest importance. Fire Safety Methanol has numerous advantages Methanex Approach to EH&S Issues Education/Public Awareness Engineering Safeguards
Anti-siphoning devices/High integrity storage Potential Use of Additives
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Biodegradation

Methanol biodegradation is rapid

Estimated Half-Lives of Methanol and Benzene in the Environment Environmental Medium Methanol HalfLife (days) 1-7 Benzene Halflife (days) 5 - 16

Soil

Air

3 - 30

2 - 20

Surface water

1-7

5 - 16

Groundwater

1-7

10 - 730

(Source: Handbook of Environmental Degradation Rates, 1992) www.methanex.com/fuelcells

Fire Safety

Much Less Risk of Fire

Vapor pressure (4% vs. 7-9%) LFL (6% vs. 1%) Molecular weight of methanol Much Less Hazardous Fire Speed/Size of fire Flame temperature/Heat release Combustion by-products Much Easier to Extinguish A methanol fire can be easily extinguished with
water
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Fuel Related Vehicle Fire Statistics

250,000 200,000 Vehicle Fires Deaths 150,000 206,740 195,707 211,468 158,638 100,000 50,000 0 1997 1996 1995 1994 450 400 350 300 387 412 1994 250 200 150 100 50 0 1997 1996 1995 262

Gasoline (FEMA/NFIRS)
1,600 1,400 1,200 Injuries 1,000 600 400 200 0 1997 1996 1995 1994 830 1,180 1,239 800 1,462

Methanol (EPA Projections)

Due to the lower volatility and higher flammable limit of methanol, pure methanol is projected to result in as much as a 90 percent reduction in the number of automotive fuel related fires relative to gasoline. (Machiele - EPA, 1990)
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Flame Luminosity

Flame Luminosity
methanol burns with a light blue flame that is not
easily seen in bright sunlight During an accident burning materials other than the fuel (such as paint, plastics, upholstery, engine oil, etc.) would produce both smoke and a visible flame Additional mitigation methods being considered Flame luminosity is a problem common with H2

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Concluding Summary

Methanol is an Environmentally attractive

Fuel It is an existing product with an excellent
environmental track record Virtual elimination of tailpipe emissions Offers good CO2 reduction potential Renewable resources and flared gas options for methanol production Methanol is readily biodegradable and relatively environmentally benign

Methanol offers an excellent means of

diversifying automotive fuel supply
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Concluding Summary

Methanol is Technically Feasible

Low temperature reforming advantage DMFC potential for future Methanol is Economically Feasible Substantial production capacity exists with world
wide distribution of homogeneous product Distributed and retailed in much the same way as gasoline Methanol can be cost competitive

Methanol is ready today to meet the needs of

Fuel Cell Vehicles
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