Dimethyl Ether Production Rises as Coal-to-Chemical Production Increases in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--With the production of methanol from coal on the rise in China, dimethyl ether production is also increasing as these units are being built at the same sites as the new methanol plants. The Chinese are showing their ability to be extremely efficient as the coal-based methanol feeds the dimethyl ether units directly on-site, thereby utilizing the coal-based methanol to produce an alternative fuel. In 2007, Industrial Info tracked more than $2.275 billion in investments planned for dimethyl ether grassroot plants and unit additions across China.

The money will be spread out over 14 projects and seven states (provinces). Four dimethyl ether plants are planned for Shanxi Province, and three are planned for Guangdong Province. Hunan Province will see the majority of the capital with $1.1 billion earmarked for dimethyl ether plant construction. The largest single investment will be an $800 million unit addition that will produce 1 million metric tons per year of dimethyl ether. The unit will be financed and owned by Shengda Ningdong Chemical Company Limited (Ningxiang, China) and will be built in Hunan. The second largest investment is less than half of the previously mentioned project with $330 million required to build a 400,000-metric-ton-per-year plant. Construction of all the projects is expected to begin in 2008-09.

As the fear of oil shortages continues to rise and national reserves are being filled, the Chinese are planning ahead by using diverse technologies and products to move beyond the possible oil depletion. Dimethyl ether can be used as a fuel for diesel and petrol engines as well as in gas turbines. It serves as an environmentally friendly replacement for liquefied natural gas, liquefied petroleum gas, diesel and gasoline. Dimethyl ether offers a diversified end-use and is produced by a coal-to-chemical product.

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