185
Dimethyl Ether
feedstock price is a much lower fraction of the total cost while maintenance
and depreciation are much higher. This is a reflection of the more complicated process involved in making clean syngas from coal, and a higher need
for maintenance due to the impurities in the coal and the need to remove
them. An additional aspect of the coal process is that there is a substantial
amount of heat produced in the gasification process, which has a much
lower efficiency (70–80%) than the natural gas. It was proposed that waste
heat could be used to generate steam and eventually produce electricity,
and an estimate of the effect of selling this electricity was a reduction in
the FOB price of DME produced from coal of about 10%. This depends on
the plant being located where there is a market for this amount of electricity. The amount of electricity generated was estimated to be on the order of
500 kWh per ton of DME produced for a plant producing 5000 tons of DME
per day. This corresponds to an electrical power production on the order
of 100 MW.
Since it is likely that DME would be produced at locations remote from the
final user, transportation costs need to be considered as well. International
DME transport would be made by ship to ports in the receiving country
using ships similar to current tankers that ship LPG under low pressure.
These tankers are estimated typically to have a capacity on the order of from
45,000 to 65,000 tons of DME. For transport distances on the order of 7000 km,
the transport cost was estimated to be on the order of 15–18% of the total
DME price.
In the production of DME/methanol from the paper industry, estimates
of project economics have been made (Landälv 2006). For a DME production on the order 500 tons/day an investment is required on the order of
135 million €. Using economic conditions valid for Sweden, it was calculated that the payback time on this investment was less than 4 years. For
a 2000 ton/day plant the investment was estimated to be 280 million €. In
this case, the DME plant was assumed to be a replacement for a worn out
black liquor boiler, which would have cost about 110 million €. This savings was applied to the total investment, and the total investment of about
170 million € was calculated to have a payback time of under 4 years. Prices
of the fuel generated were stated to be equivalent to gasoline from oil at
$30/bbl. In light of the above, this is a very attractive price at current oil
price levels.
It is nearly impossible to give a definite price for DME, as there are
many variables, and all of the costs involved are strongly related to the
price of crude oil, as many energy prices are tied to this. What can be
said from the studies presented is that DME produced in large quantities
from stranded gas and coal can be quite competitive with other energy
sources such as crude oil and LNG, and somewhat cheaper than LPG. It is
the author’s best estimate that DME would retain its competitive position
in the case of rising oil prices, and probably be cheaper than very high
priced oil.
Dimethyl Ether
feedstock price is a much lower fraction of the total cost while maintenance
and depreciation are much higher. This is a reflection of the more complicated process involved in making clean syngas from coal, and a higher need
for maintenance due to the impurities in the coal and the need to remove
them. An additional aspect of the coal process is that there is a substantial
amount of heat produced in the gasification process, which has a much
lower efficiency (70–80%) than the natural gas. It was proposed that waste
heat could be used to generate steam and eventually produce electricity,
and an estimate of the effect of selling this electricity was a reduction in
the FOB price of DME produced from coal of about 10%. This depends on
the plant being located where there is a market for this amount of electricity. The amount of electricity generated was estimated to be on the order of
500 kWh per ton of DME produced for a plant producing 5000 tons of DME
per day. This corresponds to an electrical power production on the order
of 100 MW.
Since it is likely that DME would be produced at locations remote from the
final user, transportation costs need to be considered as well. International
DME transport would be made by ship to ports in the receiving country
using ships similar to current tankers that ship LPG under low pressure.
These tankers are estimated typically to have a capacity on the order of from
45,000 to 65,000 tons of DME. For transport distances on the order of 7000 km,
the transport cost was estimated to be on the order of 15–18% of the total
DME price.
In the production of DME/methanol from the paper industry, estimates
of project economics have been made (Landälv 2006). For a DME production on the order 500 tons/day an investment is required on the order of
135 million €. Using economic conditions valid for Sweden, it was calculated that the payback time on this investment was less than 4 years. For
a 2000 ton/day plant the investment was estimated to be 280 million €. In
this case, the DME plant was assumed to be a replacement for a worn out
black liquor boiler, which would have cost about 110 million €. This savings was applied to the total investment, and the total investment of about
170 million € was calculated to have a payback time of under 4 years. Prices
of the fuel generated were stated to be equivalent to gasoline from oil at
$30/bbl. In light of the above, this is a very attractive price at current oil
price levels.
It is nearly impossible to give a definite price for DME, as there are
many variables, and all of the costs involved are strongly related to the
price of crude oil, as many energy prices are tied to this. What can be
said from the studies presented is that DME produced in large quantities
from stranded gas and coal can be quite competitive with other energy
sources such as crude oil and LNG, and somewhat cheaper than LPG. It is
the author’s best estimate that DME would retain its competitive position
in the case of rising oil prices, and probably be cheaper than very high
priced oil.