Methanol April 2013 Report Contents

Methanol
Table of Contents
A Report by Nexant’s CHEMSYSTEMS
Process Evaluation/Research Planning (PERP) Program
PERP 2012-5– Published April 2013
www.chemsystems.com

Section Page

1 Executive Summary ................................................................................................. 1

1.1 CONVENTIONAL TECHNOLOGIES......................................................... 1
1.1.1 Licensor Market Share ....................................................................... 1
1.1.2 Major Technology Licensors and Methanol Production Processes ... 2
1.2 TECHNOLOGY DEVELOPMENTS ........................................................... 2
1.3 ECONOMIC ANALYSIS ............................................................................. 2
1.4 COMMERCIAL APPLICATIONS ............................................................... 4
1.5 MARKET ANALYSIS .................................................................................. 4
2 Introduction .............................................................................................................. 6
2.1 METHANOL PHYSICAL PROPERTIES .................................................... 6
2.2 METHANOL SPECIFICATIONS ................................................................ 6
2.3 CHEMISTRY ................................................................................................ 7
2.4 GAS-BASED PROCESSES .......................................................................... 10
2.4.1 Reformer Options............................................................................... 10
2.4.2 Converter Type .................................................................................. 12
2.4.3 Steam.................................................................................................. 12
2.5 COAL/PETROLEUM COKE GASIFICATION-BASED PROCESS .......... 13
2.5.1 Coal Gasification ............................................................................... 13
2.5.2 Commercial Gasification Systems ..................................................... 17
3 Conventional Technologies ..................................................................................... 22
3.1 LICENSOR MARKET SHARE .................................................................... 22
3.2 LARGE SCALE (5 000 TONS PER DAY) EXPERIENCE ......................... 23
3.3 DAVY PROCESS TECHNOLOGY (DPT) AND JOHNSON
MATTHEY (JM) METHANOL TECHNOLOGY ....................................... 24
3.3.1 Introduction ........................................................................................ 24
3.3.2 Low Pressure Methanol (LPM) Process ............................................ 24
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3.3.3 Leading Concept Methanol (LCM) Process ...................................... 35

3.3.4 Improved Low Pressure Methanol (ILPM) Process .......................... 38
3.3.5 Compact Methanol (MCR) Process ................................................... 41
3.3.6 Combined Reforming Process ........................................................... 44
3.3.7 Offshore Methanol Production .......................................................... 50
3.3.8 Changing Feedstocks ......................................................................... 51
3.4 UHDE METHANOL TECHNOLOGY ......................................................... 54
3.4.1 Synthesis Gas Generation .................................................................. 55
3.4.2 Steam Reforming ............................................................................... 55
3.4.3 Combined Reforming......................................................................... 55
3.4.4 Combined Autothermal Reforming (CAR®) ..................................... 55
3.4.5 Methanol Synthesis ............................................................................ 58
3.4.6 Methanol Distillation ......................................................................... 58
3.5 JACOBS METHANOL TECHNOLOGY ..................................................... 60
3.6 LURGI MEGAMETHANOL TECHNOLOGY ............................................ 61
3.6.1 Pre-Reforming.................................................................................... 67
3.6.2 Synthesis Gas Production .................................................................. 67
3.6.3 Methanol Synthesis ............................................................................ 68
3.6.4 Methanol Distillation ......................................................................... 70
3.6.5 Supply of Power and Oxygen ............................................................ 70
3.7 MITSUBISHI GAS CHEMICAL METHANOL TECHNOLOGY .............. 70
3.7.1 Introduction ........................................................................................ 70
3.7.2 Synthesis Gas Preparation.................................................................. 71
3.7.3 Methanol Synthesis ............................................................................ 71
3.7.4 Recovery ............................................................................................ 71
3.7.5 Distillation.......................................................................................... 71
3.8 HALDOR TOPSOE METHANOL TECHNOLOGY ................................... 73
3.8.1 Introduction ........................................................................................ 73
3.8.2 Synthesis Gas Preparation.................................................................. 73
3.8.3 Methanol Synthesis ............................................................................ 78
3.8.4 Methanol Distillation ......................................................................... 78
3.8.5 Co-Production of Methanol in Ammonia Plants ............................... 78
3.9 METHANOL CASALE................................................................................. 78
3.9.1 Introduction ........................................................................................ 78
3.9.2 M-3000 Methanol Process ................................................................. 78
3.9.3 M-7000 Methanol Process ................................................................. 82
4 Technology Developments ....................................................................................... 85
4.1 SELECTED RECENT PATENTS ................................................................ 85

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4.1.1 Davy Process Technology Limited .................................................... 85

4.1.2 Haldor Topsoe A/S ............................................................................ 85
4.1.3 INEOS Europe Limited...................................................................... 88
4.1.4 Lurgi GmbH ....................................................................................... 88
4.1.5 Methanol Casale S.A. ........................................................................ 88
4.1.6 Mitsubishi Gas Chemical Company .................................................. 92
4.1.7 Mitsubishi Heavy Industries Ltd. ....................................................... 92
4.2 DIRECT METHANOL SYNTHESIS FROM CARBON DIOXIDE ........... 96
4.2.1 Mitsui Chemicals Incorporated .......................................................... 96
4.2.2 Carbon Recycling International ......................................................... 96
4.2.3 Others ................................................................................................. 96
4.3 CARBON DIOXIDE REFORMING ............................................................. 97
4.4 SELECTIVE LIQUID-PHASE DIRECT OXIDATION OF METHANE
TO METHANOL ........................................................................................... 97
4.5 BIOMETHANOL .......................................................................................... 99
4.5.1 Biomass Gasification ......................................................................... 99
4.6 POLYGENERATION FROM COAL ........................................................... 104
4.7 LIQUID-PHASE METHANOL TECHNOLOGY ........................................ 104
5 Economic Analysis ................................................................................................... 109
5.1 BASIS ............................................................................................................ 109
5.1.1 Investment Basis ................................................................................ 109
5.1.2 Pricing Basis ...................................................................................... 109
5.1.3 Cost of Production Basis .................................................................... 110
5.2 COST OF PRODUCTION ANALYSIS ........................................................ 111
5.2.1 Coal-based Methanol Cost of Production Estimates - China............. 111
5.2.2 Coal-Based Methanol Cost of Production Estimates – United
States Mountain West (USMW) ........................................................ 116
5.2.3 Natural Gas-based Methanol Cost of Production Estimates –
China .................................................................................................. 121
5.2.4 Natural Gas-based Methanol Cost of Production Estimates –
USGC ................................................................................................. 124
5.2.5 Natural Gas-based Methanol Cost of Production Estimates –
Central America ................................................................................. 128
5.2.6 Natural Gas-based Methanol Cost of Production Estimates –
Middle East ........................................................................................ 131
5.3 COMPARISON OF PROCESS ECONOMICS ............................................ 135
6 Commercial Applications ........................................................................................ 138
6.1 CHEMICAL APPLICATIONS ..................................................................... 138
6.1.1 Formaldehyde .................................................................................... 138

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6.1.2 Acetic Acid ........................................................................................ 139

6.1.3 Methyl Methacrylate .......................................................................... 140
6.1.4 Dimethyl Terephthalate ..................................................................... 141
6.1.5 Methyl Halides ................................................................................... 141
6.1.6 Methylamines ..................................................................................... 141
6.1.7 Other Uses .......................................................................................... 141
6.2 FUEL APPLICATIONS ................................................................................ 142
6.2.1 MTBE Overview ................................................................................ 142
6.2.2 Biodiesel ............................................................................................ 145
6.2.3 Gasoline Blending .............................................................................. 147
6.2.4 Methanol to Gasoline (MTG) ............................................................ 148
6.2.5 Dimethyl Ether (DME) ...................................................................... 148
6.3 OLEFINS ....................................................................................................... 150
6.4 FUEL CELLS ................................................................................................ 151
6.5 METHANOL TO POWER ............................................................................ 151
7 Regional Market Analysis ....................................................................................... 152
7.1 GLOBAL ....................................................................................................... 152
7.1.1 Consumption ...................................................................................... 152
7.1.2 Supply ................................................................................................ 153
7.1.3 Supply, Demand, and Trade............................................................... 153
7.2 NORTH AMERICA ...................................................................................... 154
7.2.1 Consumption ...................................................................................... 154
7.2.2 Supply ................................................................................................ 154
7.2.3 Supply, Demand, and Trade............................................................... 155
7.3 WESTERN EUROPE .................................................................................... 156
7.3.1 Consumption ...................................................................................... 156
7.3.2 Supply ................................................................................................ 156
7.3.3 Supply, Demand, and Trade............................................................... 157
7.4 ASIA PACIFIC (EXCLUDING CHINA) ..................................................... 158
7.4.1 Consumption ...................................................................................... 158
7.4.2 Supply ................................................................................................ 158
7.4.3 Supply, Demand, and Trade............................................................... 159
7.5 CHINA ........................................................................................................... 160
7.5.1 Consumption ...................................................................................... 160
7.5.2 Supply ................................................................................................ 161
7.5.3 Supply, Demand, and Trade............................................................... 167
8 Glossary .................................................................................................................... 168
9 References ................................................................................................................. 169

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Appendix Page

A Definitions of Capital Cost Elements ..................................................................... A-1

B Definitions of Operating Cost Elements ................................................................ B-1
C Coke Oven Gas to Methanol in China ................................................................... C-1
D About the Author ..................................................................................................... D-1
E PERP Program Title Index (2003 - 2012) .............................................................. E-1

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Figure Page

1.1 Methanol Licensor Market Share in 2012 ................................................................. 1

1.2 Comparison of Methanol Cost of Production ............................................................ 3
1.3 Methanol Demand Drivers ......................................................................................... 4
1.4 Global Methanol Supply, Demand, and Trade Balance ............................................ 5
2.1 Selected Methanol Reformer Options ........................................................................ 11
2.2 Flow Scheme for the Production of Methanol from Coal or Petroleum Coke .......... 14
2.3 Three Main Gasification Processes ............................................................................ 15
2.4 GE Energy Gasifier .................................................................................................... 17
2.5 Lurgi Dry-Ash Gasifier .............................................................................................. 18
2.6 Shell Gasification Process.......................................................................................... 20
2.7 E-GAS Gasifier .......................................................................................................... 21
3.1 Methanol Technology Licensors................................................................................ 22
3.2 Methanol Licensor Market Share in 2012 ................................................................. 23
3.3 Davy Process Technology (DPT) & Johnson Matthey Catalysts (JM) Technology
Evolution Timeline .................................................................................................... 25
3.4 Johnson Matthey Catalysts Low Pressure Methanol Process ................................... 26
3.5 ARC Converter .......................................................................................................... 27
3.6 Methanol Equilibrium Profile in Quench Converter ................................................. 28
3.7 Toyo Engineering Corporation MRF-Z® Converter .................................................. 29
3.8 Temperature Profile of MRF-Z® Converter ............................................................... 29
3.9 Tube Cooled Converter .............................................................................................. 30
3.10 Methanol Equilibrium Profile in Tube Cooled Converter ......................................... 31
3.11 Radial Steam Raising Converter ................................................................................ 32
3.12 Axial Steam Raising Converter ................................................................................. 32
3.13 Davy Process Technology Distillation System for Methanol ................................... 34
3.14 Johnson Matthey Catalysts Leading Concept Methanol Process ............................. 36
3.15 Johnson Matthey Catalysts AGHR System ............................................................... 37
3.16 Davy Process Technology Improved Low Pressure Methanol ................................. 39
3.17 Steam Reformer ......................................................................................................... 40
3.18 Davy Process Technology Compact Methanol Process............................................. 43
3.19 Compact Reformer ..................................................................................................... 44
3.20 DPT & JM Combined Reforming with Conventional Steam Methane Reformer
Process ....................................................................................................................... 45
3.21 Davy Process Technology Combined Reforming Process ....................................... 46
3.22 SMR and ATR in Combined Reforming DPT Process ............................................. 47
3.23 Davy Process Technology Combined Reforming with GHR and ATR Process ...... 48
3.24 DPT & JM Gas Heated Reformer plus Autothermal Reformer System .................... 49
3.25 Davy Process Technology Series Loop ..................................................................... 53

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3.26 Uhde Combined Autothermal Reformer (CAR®) ...................................................... 56

3.27 Uhde CAR®-Based Methanol Plant ........................................................................... 57
3.28 Uhde 3 and 4 Column Grade AA Distillation Section .............................................. 59
3.29 Uhde Fuel Distillation Section ................................................................................... 60
3.30 Lurgi MegaMethanol Process Autothermal Reforming ............................................ 62
3.31 Lurgi MegaMethanol Process Combined Reforming ................................................ 63
3.32 Lurgi MegaMethanol Process Flow Diagram Reforming ......................................... 64
3.33 Lurgi MegaMethanol Process Flow Diagram – Methanol Synthesis and
Distillation.................................................................................................................. 65
3.34 Lurgi Water- and Gas-Cooled Methanol Synthesis Reactor..................................... 66
3.35 Lurgi Combined Converter Synthesis ........................................................................ 69
3.36 Flow Scheme of the Mitsubishi Methanol Process .................................................... 71
3.37 Process Flow Diagram of the Mitsubishi Methanol Process ..................................... 72
3.38 Mitsubishi Superconverter ......................................................................................... 73
3.39 Haldor Topsoe Methanol Production by One-Step Reforming Process ................... 75
3.40 Haldor Topsoe Methanol Production by Two-step Reforming Process ................... 76
3.41 Haldor Topsoe Methanol Production by Autothermal Reforming and Hydrogen
Recycle Process ......................................................................................................... 77
3.42 Haldor Topsoe Co-production of Methanol Process in Ammonia Plants................. 79
3.43 Methanol Casale M-3000 Methanol Process ............................................................. 80
3.44 Methanol Casale IMC Converter ............................................................................... 81
3.45 Cooling Plate of IMC Converter ................................................................................ 82
3.46 Methanol Casale M-7000 Methanol Process ............................................................ 83
4.1 Schematic of Flow Diagram Haldor Topsoe Patent (U.S. 2006/0235090 A1) .......... 87
4.2 Simplified Flow Diagram Lurgi GmbH Patent (US2012/0129958 A1) .................... 89
4.3 Simplified Block Diagram Methanol Casale Patent (EP 2 450 100 A1) ................... 91
4.4 Simplified Flow Diagram Methanol Casale Patent (EP 1 762 555 A1) ................... 93
4.5 Simplified Flow Diagram Methanol Casale Patent (EP 2 505 574 A1) ................... 95
4.6 Simplified Flow Diagram UOP Patent (U.S. 7 288 684 B1) .................................... 98
4.7 Process Schematic - CHOREN Syngas Production from Biomass ........................... 101
4.8 LPMEOH™ Facility Integration into Existing Facilities .......................................... 105
4.9 LPMEOH™ Facility Simplified Process Flow Diagram .......................................... 106
4.10 LPMEOH™ Reactor Schematic ................................................................................ 107
5.1 Effects of Coal Price on Gasoline Cost of Production ............................................... 114
5.2 Effects of Total Capital Employed on Methanol Cost of Production ........................ 115
5.3 Effects of Capacity on Methanol Cost of Production ................................................ 116
5.4 Effects of Coal Price on Gasoline Cost of Production ............................................... 119
5.5 Effects of Total Capital Employed on Methanol Cost of Production ........................ 120
5.6 Effects of Capacity on Methanol Cost of Production ................................................ 120
5.7 Effects of Natural Gas Price on Methanol Cost of Production .................................. 123
5.8 Effects of Total Capital Employed on Methanol Cost of Production ........................ 123
5.9 Effects of Capacity on Methanol Cost of Production ................................................ 124
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5.10 Effects of Natural Gas Price on Methanol Cost of Production .................................. 126
5.11 Effects of Total Capital Employed on Methanol Cost of Production ........................ 127
5.12 Effects of Capacity on Methanol Cost of Production ................................................ 127
5.13 Effects of Natural Gas Price on Methanol Cost of Production .................................. 130
5.14 Effects of Total Capital Employed on Methanol Cost of Production ........................ 130
5.15 Effects of Capacity on Methanol Cost of Production ................................................ 131
5.16 Effects of Natural Gas Price on Methanol Cost of Production .................................. 133
5.17 Effects of Total Capital Employed on Methanol Cost of Production ........................ 134
5.18 Effects of Capacity on Methanol Cost of Production ................................................ 135
5.19 Comparison of Methanol Cost of Production ............................................................ 136
6.1 Methanol Demand Drivers ......................................................................................... 138
7.1 Global Methanol Consumption by End-Use .............................................................. 152
7.2 Global Methanol Supply, Demand, and Trade Balance ............................................ 154
7.3 North American Methanol Supply, Demand, and Trade Balance ............................. 156
7.4 Western European Methanol Supply, Demand, and Trade Balance .......................... 157
7.5 Asia Pacific Methanol Supply, Demand, and Trade Balance (Excluding China) ..... 160
7.6 China Methanol Supply, Demand, and Trade Balance .............................................. 167

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Table Page

1.1 Comparison of Methanol Cost of Production ............................................................ 3

1.2 Global Methanol Supply/Demand and Trade Balance .............................................. 5
2.1 Typical Properties of Methanol ................................................................................. 6
2.2 United States Methanol Specifications ...................................................................... 7
2.3 International Methanol Producers and Consumers Association Methanol
Reference ................................................................................................................... 7
2.4 Gasifier Types ............................................................................................................ 15
2.5 Gasifier Typical Characteristics ................................................................................. 16
2.6 Syngas Compositions for Entrained-Flow Gasifiers.................................................. 16
2.7 Syngas Compositions for Moving and Fluid-Bed Gasifiers ...................................... 16
3.1 Syngas Composition for Different Reforming Processes .......................................... 52
3.2 Typical Syngas Compositions Including Coal Gasification ...................................... 54
3.3 Cooling Factors for Methanol Converters ................................................................. 54
3.4 Typical Process Parameters of Uhde CAR® Configuration....................................... 56
3.5 Jacobs Summary of Performance of Battery Limit Units .......................................... 61
3.6 Operating and Design Parameters for Pre-Reforming and Autothermal
Reforming of Lurgi MegaMethanol Process ............................................................. 68
3.7 Operating and Design Parameters for Methanol Converter of Lurgi
MegaMethanol Process .............................................................................................. 70
4.1 Pre-Converter Effects on Methanol Synthesis ........................................................... 85
4.2 Effect of Hydrogen Separation Unit on Production Capacity ................................... 92
5.1 Prices of Raw Materials, Utilities, and Labor ............................................................ 110
5.2 Cost of Production Estimated for: Syngas (H2:CO = 2:1)
Process: Coal Gasification and Water-Gas Shift, China (Shanxi Province) .............. 112
5.3 Cost of Production Estimated for: Methanol
Process: Methanol Synthesis via Syngas (H2:CO = 2:1), China (Shanxi Province) .. 113
5.4 Cost of Production Estimated for: Syngas (H2:CO = 2:1)
Process: Coal Gasification and Water-Gas Shift, USMW ......................................... 117
5.5 Cost of Production Estimated for: Methanol
Process: Methanol Synthesis via Syngas (H2:CO = 2:1), USMW ............................. 118
5.6 Cost of Production Estimated for: Methanol
Process: Steam Methane Reforming Followed by Methanol Synthesis, China
(Shanxi Province)....................................................................................................... 122
5.7 Cost of Production Estimated for: Methanol
Process: Steam Methane Reforming Followed by Methanol Synthesis, USGC ....... 125
5.8 Cost of Production Estimated for: Methanol
Process: Steam Methane Reforming Followed by Methanol Synthesis, Central
America ...................................................................................................................... 129
5.9 Cost of Production Estimated for: Methanol
Process: Steam Methane Reforming Followed by Methanol Synthesis, Middle
East ............................................................................................................................. 132
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5.10 Comparison of Methanol Cost of Production ............................................................ 136

6.1 LPG and DME Bottles Comparison .......................................................................... 149
7.1 Global Methanol Supply, Demand, and Trade Balance ............................................ 153
7.2 North American Methanol Capacity, 2012 ................................................................ 155
7.3 North American Methanol Supply, Demand, and Trade Balance ............................. 155
7.4 Western Europe Methanol Capacity, 2012 ................................................................ 157
7.5 West European Methanol Supply, Demand, and Trade Balance ............................... 157
7.6 Asian Pacific (Excluding China) Methanol Capacity, 2012 ...................................... 159
7.7 Asia Pacific Methanol Supply, Demand, and Trade Balance (Excluding China) ..... 159
7.8 China Methanol Capacity, 2012 ................................................................................ 161
7.9 China Methanol Supply, Demand, and Trade Balance .............................................. 167

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recognized globally as the industry standard source for information relevant to
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Contact Details:

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Phone: + 44-(20)-7950-1570, e-mail: acoker@nexant.com

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Phone: + 1-914-609-0381, e-mail: hcoleman@nexant.com

Shanghai: Dr. Y. Larry Song, General Manager, Nexant China

Phone: +86 21 6182 6791, e-mail: ylsong@nexant.com
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