The document discusses introducing DME (dimethyl ether) as a cleaner fuel alternative in Mongolia. It summarizes that a joint venture is establishing a CTL (coal-to-liquids) plant to produce DME from coal and decrease air pollution in Ulaanbaatar. The plant will have a capacity of 100,000 tons of DME per year. Tests show DME stoves and heaters produce very low emissions and indoor air quality is not negatively impacted when using DME. Introducing DME fuel could help reduce dependency on imported fuels and coal use, which is a major source of air pollution.

1. INTRODUCTION OF DME

2. CTL Project
Project owners
• “Baganuur Energy Corporation” LLC
• 50:50 joint venture company between MCS (Mongolia) and POSCO (South
Korea)
Project progress
status
• Feasibility study of CTL plant was completed.
• The joint venture company is established.
• Acquired special license of "Produce petroleum products"
• Selecting main technology licensors
• Conducting environmental studies
Project site • 3rd khoroo, Industrial zone B, Baganuur district, Ulaanbaatar
Purpose
• To decrease fuel import dependency
• To decrease air pollution of Ulaanbaatar by introducing gas fuels
• To decrease foreign trade deficit and support economic development and
stability
CAPEX • USD 2 billion
Capacity
• Diesel 456 ktpa
• Gasoline 90 ktpa
• DME 100 ktpa

3. Ulaanbaatar (UB) air-pollution
• UB is the most air-polluted capital city in the world:
 The level of UB air-pollution is clearly exceeds all
international air-pollution standards.
 The Ger area households’ burning of raw coal is
the largest contributor to the ground level
pollution people inhale, which causes many
severe health problems
*Source: World Bank report
Air-pollution ranking of PM10
• Ger district is the main reason for air-pollution:
 Ger: (coal) 1.2 mil t/y
60%~90% of pollution
 HOB (heat-only boilers): 0.5 mil t/y (coal)
 Automobile: ~100,000 vehicles
 CHP: (coal) 3.4 mil t/y
Air-pollution contribution per each sector

4. Potential options
Improved stove Semi Coke
Build more apartments/ connect
to central heating system
Introduce gas fuel

5. What is DME?
DME:
– Chemical composition: CH3-O-CH3
– Chemical name: Dimethyl ether
– Clean, colorless liquid gas fuel.
– No Particular Matter (PM) during
combustion.
• No SОх , very little NOx.
– Similar to LPG /Liquefied Petroleum Gas/.
• Can be stored and transported as
same as LPG.
Usage:
•Residential gas (gas cooker, heater)
•Source of power
•Diesel substitution fuel
•Spray /non toxic for humans/
•Blend with LPG, etc
DME is the most suitable gas fuel to use in Mongolian ger households.
•Environment friendly:
 No PM, SОх and very little NОx
 No solid waste, therefore will decrease soil contamination.
•Economically beneficial:
 Can be produced by using low quality coal, and it can compete with raw coal.
 Easy to use, and usage can be monitored and controlled, therefore can be cost saving.

6. Coal gasification technologies
• Synthetic gas is main feedstock of fuel, gas, and chemicals production.
Coal Gasification
FT reaction
Methanol
synthesis
Methanazation
• Diesel
• Naphtha
• GasolineMTG
• DME
DME
synthesis
• SNG
Ammonia • Fertilizer
MTP
MTO
• Polypropyl
ene
• Olefins
Syngas
DRI • Steel
IGCC • Power

7. 2011-2013 Heating season
DME Tests at households 2011-2012
DME
Consumption
Test
Heating and
cooking test
House boiler
test -2
households
Small houses
/≤50m2/ -10
households
Traditional Ger – 20
households

8. DME Appliances for households
Heater Cooker /Cylinder Box
DME cylinder
№ Appliance Price
1 Heater $69
2 Cooker $42
3 Governor $10
4 Hose for heater and cooker $10
5 Safety sensor $7
6 Cylinder warmer $25
7 Cylinder box $60
8 Transportation $25
9 Installation $10
Appliance set for households $258

9. DME gas fuel consumption
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
August Sept Oct Nov Dec Jan Feb March April May June July
Consumption per day, kg 0.5 0.7 1.4 3.8 5.8 6.0 5.4 4.4 1.6 0.7 0.5 0.5
Heating usage, kg - 5.8 28.5 100.4 164.6 169.5 136.2 122.0 32.3 5.8 - -
Cooking usage, kg 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0
DME,kg
Household’s average DME consumption
DME consumption: 945 kg/year
Heating: 765 kg
Cooking: 180 kg

10. Heater and fuel test
DME heater test
1. Stove testing laboratory - ADB.
2. Environment and Energy Project - MCA
Mongolia
3. National Emergency Management Agency’s
test
Result:
- DME has very low emissions of particulate
matter(PM) and carbon monoxide(CO).(Traditional
stove: 10,000ppm.)
- DME heater will reduce PM and CO concentrations
in ger.
DME fuel test
1. DME heating and cooking test to identify
availability and fuel consumption in 2011-
2013 in 30 households. (gers, small houses
and house)
2. Joint study with Mr. Kirk Smith and Mr.
Rufus D. Edwards (University of California)
on indoor air quality test on DME heater.
3. Joint study with Mongolian University of
Science and Technology (MUST) on DME
heating test in ger and small houses.
4. Joint study with Building Energy Efficiency
Center (MUST) on indoor air quality test.
Result:
o DME heater is suitable for gers and small
houses (till 50m2)
o DME boiler is suitable for houses (50m2-250m2)
o No negative impact in indoor air.

11. DME EMISSIONS MONITORING RESULTS
MCA Mongolia – Environment and Energy Project - Social Impact
Elaborated by: Mike Duthie1, Cleo Roberts, Rufus Edwards, Jay Turner, and Dustin Homer1
University of California – Irvine
Washington University – Saint Louis
Stove Type
Dwelling
Type
NCE Coal (kg) Coal type Wood (kg) CO2 CO CH4 NMHC PM2.5 SO2
MCA-approved ger 0.85 8 Nalaikh 0 1579 173.6 3.3 0.33 2.9 0.47
MCA-approved ger 0.85 6.9 Nalaikh 1.9 1975 211.4 3.1 0.42 1.3 0.32
MCA-approved ger 0.94 6.1 Nalaikh 0.5 1877 70.8 0.0 2.14 0.6 0.02
MCA-approved ger 0.96 7.2 Nalaikh 0.5 1897 52.8 0.0 0.56 0.3 0.09
Traditional ger 0.88 1.63 Nalaikh 1.5 2864 231.4 3.5 7.00 8.2 0.25
Traditional ger 0.87 10.95 Alagtolgoi 0.53 2038 186.3 1.8 0.37 12.7 no data
Traditional ger 0.84 7.5 Nalaikh 0.2 1598 184.8 2.0 0.07 6.1 0.25
MCA-approved house 0.88 24.2 Nalaikh 2.3 1799 146.0 5.2 0.12 0.5 0.26
MCA-approved house 0.87 24 Nalaikh 0.8 1663 155.9 2.9 1.22 7.0 1.34
MCA-approved house 0.94 24* Nalaikh 2 1792 75.2 1.2 0.18 1.4 0.17
MCA-approved heating wall house 0.90 22.5 Nalaikh 4.5 1987 121.4 5.6 1.78 5.6 0.28
traditional heating wall house 0.82 17.94 Nalaikh 0.3 1527 194.7 6.9 5.62 12.5 0.18
traditional heating wall house 0.73 18.6 Nalaikh 1 1421 311.9 16.1 0.24 5.8 0.20
DME ger 0.98 6.05 0 1189 -0.35 0.8 5.15 0.3 0.00
DME ger 0.97 5.55 0 1174 -0.76 1.0 9.54 0.0 0.00
*estimated based on typical consumption
a
comparison with tradional stoves in gers
Emissions (g substance/kg fuel)

12. Cost comparison (Coal vs. DME)
Raw Coal
1. One Household uses 4 tone Coal in
heating season. (coal price is 100USD/t)
2. Also uses 1 bag wood/day for fire
ignition. (wood price 1 USD/bag)
3. Total cost is 624USD for heating season
DME fuel (produce locally)
1. Household will use 870 kg DME for heating
and cooking for heating season.
2. DME price for households will be 700 USD/t
from CTL plant.
3. Total cost is 609USD for heating season
• DME can compete with raw coal when produced locally or subsidized.

13. DME implementation cost
Costs 1household 100 households 200 households
DME Price in China (USD/t) 680 680 680
Transportation cost (USD/t) 250 250 250
Storing, Filling, distribution cost in UB (USD/t) 266 266 255
DME cost (USD/t) 1,196 1,196 1.185
DME consumption (t) 0.87 87 174
Appliance price (USD/set) 258 25,800 51,600
Total cost for heating season (USD) 1,298 129,852 257,790

14. DME distribution and sales network
14
Distribution
Distribution center
Transportation
DME storage, filling station
Transportation Storage
Customer
DME tank capacity:
100m3 or 50 tons
DME distribution truck:
50 cylinders at one time
delivery.
DME filling station
Compressor capacity: 1,1m3/min
Pump capacity: 15m3/hour
Number of cylinder filling: 36pieces/hour
DME cylinder sales center-
10:
Capacity to deliver to 25
households.
DME truck:
27 tons capacity.
Usage
Heating DME heater
Cooking DME cooker

15. Thank you for your attention