Presentation made to China National Development and Reform Commission at their request by Scott Charpentier and Steve Wittrig on the global experience and guidance to China for methanol as a transport fuel.

1. Methanol as a Fuel
Status of International Research
BP Presentation to NDRC
Beijing May 16, 2006
Steve Wittrig/Scott Charpentier

2. 2
Outline
• Methanol production technology and economics
• Methanol engine technology
• Issues associated with the use of methanol as a fuel (problem
definition, risks and mitigation strategies)
− Toxicity
− Methanol/Gasoline blends
− Methanol logistics and infrastructure cost
− Biodegradability in the environment
− Emissions and air pollution
− Corrosiveness/Materials compatibility
− Cold Start/Operability

3. Methanol production
technology and economics

4. 4
BP’s Trinidad-Based Methanol Projects
Lurgi Technology and Major Contractor
• Titan Methanol Plant
− 2500 tonnes/day (single train), largest in world at the time
− Natural Gas Consumption:80 MMSCFD
− Start up: Dec 1999
• Atlas Methanol Plant
− First implementation of Lurgi megamethanol technology
− 5000 tonnes/day (single train), currently largest in world
− Natural Gas Consumption:160 MMSCFD
− Start up: June 2004

5. 5
Methanol from Natural Gas
• Megamethanol technology recently commercialized in Trinidad
profitably produces methanol at $110 per tonne (using $1 / MMBTU
gas)
• $140 per tonne methanol from $2 / MMBTU gas (add $30 per tonne for
additional $1 / MMBTU gas)
• Technology breakthrough (20% lower cost than next best technology)

6. 6

7. 7

8. 8
Syngas/Methanol Synthesis Schematic
• Show gas cooled reactor

9. 9
Atlas Methanol Plant

10. 10
Lurgi Combined Reforming
Natural
Gas
Feed
From
NGC/BP
Syngas
Oxygen
Steam
Reformer
Autothermal
Reformer
Air Separation
Plant
Methanol
Synthesis
Methanol
Distillation
Storage and
Loading
Methanol
Exports
Natural
Gas
Feed
From
NGC/BP
Syngas
Owned by Atlas Partners
Oxygen
Atlas Methanol Plant
Steam
Reformer
Autothermal
Reformer
Air Separation
Plant
Methanol
Synthesis
Methanol
Distillation
Storage and
Loading
Methanol
Exports
Block Flow Diagram

11. 11
Syngas/Methanol Synthesis Schematic
• Show gas cooled reactor
Lurgi’s Combined Methanol Converter

12. 12
Cost breakdown- $/tonne
Titan Atlas
Capital cost 43.3 26.0
Fuel (gas $0.85/mmbtu) 27.3 27.3
Oxygen 7.3 8.3
Operating 19.3 18.0
− Critical factors
− Choice of technology
− Fuel costs
− Economies of scale

13. 13
Next Generation Technology
High Pressure POX (Another 10% lower cost?)
• Lurgi’s Pure ATR – eliminate steam reformer
− Lower capital costs
− Lower CO2 emissions
• Increased pressure to 80 bar
− Eliminate compressors
Demonstration plant for
production of Syngas from
Natural Gas, Liquid
Hydrocarbons/Slurries at
pressures up to 100 bar
sponsored by BMWA, SMWK, mg
technologies

14. 14
Methanol from Coal
• BP is not expert on coal conversion or the costs to produce
methanol from coal gasification.
• Some of our colleagues in China tell us that methanol can be
produced from coal at a cost of 800 – 1200 RMB per tonne.
• We are interested to know more about the costs and processes
used in China for producing methanol
• If methanol can be produced in China for 1200 RMB per tonne,
that is equivalent to gasoline at 1.5 RMB per litre.
• We are interested to know if China will use this opportunity for
transportation fuel made from coal in China.

15. 15
Life Cycle Energy Balance - Fuel Yield
Methanol and Fischer Tropsch Diesel
5 Tonne Coal
2.5 Tonne
Methanol
0.9 Tonne
FT Liquids
Equivalent to
0.3 Tonne
Naphtha (not auto fuel)
1.1 Tonne
Diesel Equivalent
0.6 Tonne
FT Diesel
Fischer Tropsch
Methanol
Divide by 2.3
for conversion

16. 16
Life Cycle Energy Balance - Fuel Yield
Methanol and Fischer Tropsch Diesel
1 MM SCF Gas
29.9 Tonne
Methanol
11.1 Tonne
FT Liquids
Equivalent to
3.6 Tonne
Naphtha (not auto fuel)
13 Tonne
Diesel Equivalent
7.5 Tonne
FT Diesel
Fischer Tropsch
Methanol
Divide by 2.3
for conversion

17. Methanol engine technology

18. 18
Engines and Autos for methanol fuel
• Thousands of methanol flex fuel vehicles have been manufactured and sold in the
West in the last 20 years
• The technology exists to build consumer or commercial autos and trucks that
efficiently and safely use methanol and methanol/gasoline blends as fuel
• Engines that are designed and built specifically for methanol are probably not
generally more costly than gasoline or diesel engines. The technology is very similar.
There are some different materials that need to be specified for methanol service,
but they are not generally more expensive materials.
• The M85 FFV Ford Taurus sold in the US was $340 cheaper than the gasoline
version.
• Many companies and research entities have continued development of methanol
fueled engines and there are modern prototype methanol engines that take
advantage of methanol’s octane and vapor pressure characteristics to achieve very
high engine efficiencies.
• The potential relative cost of methanol fueled engines is an issue that can be
estimated from work done over the last 20 years by engine designers such as FEV
• The production of methanol fueled cars and buses could be a significant opportunity
for Chinese auto companies.

19. 1.LevelPresentation
© by FEV – all rights reserved. Confidential – no passing to
third parties
19
FEV China in Dalian

20. 1.LevelPresentation
© by FEV – all rights reserved. Confidential – no passing to
third parties
1. Level_Company Profile / Faensen / 08.02.2005
20
FEV Company Profile
LOCATIONS
GERMANY
Aachen Alsdorf Dalian
CHINA
Detroit
USA
Innovative Engine
Engineering Company
 Working for Major Car and
Engine Manufacturers Worldwide
1300 Employees
Engineering
Services and Products
 Engine and Powertrain
 Vehicle Integration, Application
and Electronics
 Test Systems

21. 1.LevelPresentation
© by FEV – all rights reserved. Confidential – no passing to
third parties
1. Level_Complete Development and Product Range/ Perseke / 16.12.2003
21
Complete Development and Product Range
End-of-Line
Hot Test Facility
Turn Key
Installation
Off-Tool
Development
Start Series
Production
SOP
Pre-Series
Development
First Engines of
Manufacturing Line
Prototype
Development
First Engines
Available
CONCEPT Production

22. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Alternative Fuels at FEV
Engineering Services and Competence
Methanol/
EthanolNatural Gas
GTL/CTL/DME
Hydrogen

23. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Diesel and Diesel Blends
Gasoline and Gasoline Blends
Biodiesel (RME)
GTL Fuels
Methanol
 Spark ignition
 Hot surface ignition
Ethanol
CNG
LPG
Hydrogen
Heavy Fuel Oil
Diesel / Water Emulsion
Experiences with different Fuels

24. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
1.1
FEV Methanol-Activities
Passenger Car Engines
1.9 l 4-Cyl DI HSI -66 kW@4000 rpm1.9 l 4-Cyl DI HSI -66 kW@4000 rpm
0.86 l 2-Cyl DI HSI -29 kW@4000 rpm
2.0 l 4-Cyl DI HSI -75 kW@4000 rpm
6.2 l 8-Cyl DI HSI -87 kW@3500 rpm
2.1 l 4-Cyl IDI HSI -66 KW@4200 rpm
2.2 l 4-Cyl IDI HSI -70 kW@4500 rpm
1.7 l 4-Cyl DI SI -60 kW@4000 rpm1.7 l 4-Cyl DI SI -60 kW@4000 rpm
Heavy Duty Engines
12 l 6-Cyl DI HSI -230 kW@1500 rpm
7.6 l 6-Cyl DI HSI -157 kW@2600 rpm
9 l 6-Cyl 2-Stroke DI HSI -192 kW@2100 rpm
4.5 l 4-Cyl DI HSI -60 kW@2400 rpm
durability criterias etc.)
Achievable Full Load Range
38.5%
68%
Rated Power: 66 kW
(as function of emission targets,
BMEP[bar]
Engine Speed [ rpm ]
Torque
Multiplication
Factor:

25. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Methanol: Efficiency maps of methanol engines
Methanol glow ignition engine Methanol spark ignition engine
Engine rpm
1000 2000 40003000 1min−
42
41
40
38
36
33
30
25
20
10
[ ]%eη
37
36
35
34
32
30
25
20
10
1000 2000 40003000
4
8
16
12
0
Engine rpm
4
8
16
12
0
1min−
[ ]%eη
bar
mep
bar
mep

26. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Low heat value
 Larger pump capacity required
Insufficient lubrication
 Common rail pump with oil sump
 Special injector design
 Higher wear
Corrosion
 Special materials, coatings and sealings
Cavitation in the fuel system
DME is gaseous under atmospheric conditions
 Low pressure fuel system under pressure (5 bar at 20.6°C or
10 bar at 45.3°C)
…
Open Items regarding Methanol and DME
Oxygenated Fuels
Fig. 6

27. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Electronically Controlled
Multi-Fuel Inline Injection Pump
1.4

28. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Methanol: Combustion process for internal mixture formation

29. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
E 6350
FEV-Methanol vehicle with direct injection
UKA

30. Methanol Toxicity

31. 31
Toxicity of Methanol
• Methanol is poisonous and should not be drunk
• The lethal dose of methanol ranges from 25-90 ml, the lethal
dose of gasoline in humans is approx. 400 ml (70 kg body),
• There have been reported instances of pure methanol being
intentionally mixed with drinks and poisoning people
• One very effective strategy for preventing these problems is
to add some gasoline or bitter additives (this is the strategy
used for ethanol fuel as well).
• Another strategy is for methanol to be used by professional
drivers (such as bus fleets or taxi drivers or delivery vehicles)
and only dispense it from a limited number of sites (e.g., 4-6
bus terminals in a city dispensing methanol for buses
designed for methanol fuel).

32. Methanol/Gasoline Blends

33. 33
Phase separation and water problems
• In low concentration blends, methanol/gasoline blends are not very stable
in the presence of water. The gasoline and the methanol can separate if
there is some moisture or water contamination. This is one of the
primary problems caused by mixing a small amount of methanol with
gasoline (M5 – M15).
• It can cause problems in retail or distribution storage
• It can cause problems in driveability of cars using blends.
• The primary strategies for dealing with the problem are compatibilizer
additives and special design and careful operation of storage and
dispensing infrastructure to keep out water.
• These problems with low fraction methanol/gasoline blends can be
managed, but they do cause extra expense and require attention.
• These problems are not particularly evident with M85 or not at all for
M100. One way that China might effectively use methanol would be as
M100 for city buses, taxis and delivery vehicles

34. Methanol Corrosiveness and
Materials Compatibility

35. 35
Methanol Corrosiveness
• Methanol has different chemical characteristics than gasoline.
It is not compatible with some elastomers and other materials
(notably aluminum) that are commonly used in gasoline cars
and distribution infrastructure.
• If a car or a dispensing system is designed with the knowledge
that it will be exposed to methanol, it is only a matter of proper
material selection and design.
• This problem leads to many of the problems that can occur
with the use of methanol blends (such as M15) in automobiles
that are not designed for methanol use. It is the main reason
that auto companies object to unregulated blending of
methanol into gasoline.

36. Methanol logistics and
infrastructure cost

37. 37
Moving, storing and distributing methanol
• Methanol is an item of commerce that is sold, shipped and stored around
the world
• BP is the largest buyer of methanol in the world (for our acetic acid
business)
• BP is part owner of the largest methanol plant in the world (Atlas in
Trinidad)
• BP has a lot of information and know-how on methanol shipping and
handling
• However, the major issues in the past for methanol as a fuel have been
associated with methanol blends (M5 – M15) (Phase separation, water take-
up and fuel quality and corrosiveness in systems not designed to handle
methanol).
• These are all issues that require attention and some cost to handle. There
is significant experience in the world in how to design and operate systems
to handle methanol/gasoline blends. BP can offer advice and guidance to
China if desired

38. 38
CONCAWE/EUCAR study
• Conventional fuels, bio-fuels, synthetics fuels (from gas, coal and
biomass) and hydrogen
• Assessment of future vehicle technologies
• Based on European Resources and product infrastructure
• Results - Life cycle costs, Energy efficiency and GHG emissions
• Analysis of light duty market only
• Methanol results based on 100% methanol for Fuel cell use.
• Results are not directly applicable to China. But do show the
type of analysis that needs to be done and demonstrates the
potential of BP and Ford sponsored work at Tsinghua
University with Zhang Aling’s group

39. 39
Economic analysis and Life cycle energy
balance
• EUCAR, CONCAWE and JRC have performed a joint evaluation of
the Well-to-Wheels energy use and greenhouse gas (GHG)
emissions for a wide range of potential future fuels and powertrain
options.
• 2005 Revision http://ies.jrc.cec.eu.int/wtw.html
• Objectives
− Establish, in a transparent and objective manner, a consensual
well-to-wheels energy use and Greenhouse gas (GHG) emissions
assessment of a wide range of automotive fuels and powertrains
relevant to Europe in 2010 and beyond.
− Consider the viability of each fuel pathway and estimate the
associated macro-economic costs

40. 40
Incremental Well-to-Tank costs for coal
derived fuels
$25 / bbl Oil
0
2
4
6
8
10
12
14
16
18
F
T
diesel
M
ethan
ol
D
M
E
Euro/GJ
Production Distribution
Refueling
$50 / bbl Oil
0
2
4
6
8
10
12
14
16
18
F
T
diesel
M
ethan
ol
D
M
E
Euro/GJ
Production Distribution
Refueling
Incremental Vehicle Costs – DME 2995 Euro/unit (6.3
Euro/GJ), methanol 1990 Euro/unit (est)
Methanol at
$250/tonne
Assume an extra
500,000 RMB for
one retail station

41. 41
BP/Ford/Tsinghua University Programme
• Replicate the CONCAWE/EUCAR study showing Economics,
Energy Efficiency and GHG Emissions for a range of Chinese fuel
options including methanol in gasoline vehicles and DME for diesel
vehicles.
• Primary resources – Oil, Naturals gas, coal, and renewables
(biomass, solar, wind etc.)
• 1 year programme
• Completion due in June 2006

42. Methanol and the Environment

43. 43
Methanol and the environment
• Ground Water and Spills
− Methanol biodegrades very quickly in soil and water.
− Methanol and water are the major components of windshield
washer fluid around the world. All of the methanol used in
this application end up in soil or water and quickly are
consumed by natural bacteria.
− Any cases of environmental damage or poisoning or toxic
effects to humans caused by methanol spills or accidents
are extremely rare, if ever (I’m not aware of any).

44. 44
Methanol and the environment
Combustion emissions and air pollution
− Methanol burns very cleanly and is generally a better fuel for air
pollution than either gasoline or diesel
− If methanol is used in poorly designed or tuned engines and
without catalyst aftertreatment, the incomplete combustion of
methanol can lead to somewhat elevated levels of formaldehyde.
− This is reported to be about the same level or less of formaldehyde
from diesel combustion.
− The issue of formaldehyde emissions from methanol engines is
well studied and there are well known solutions that can be applied
to design and operation of methanol fueled cars.

45. 45
A study from the US Dept of Energy

46. Cold Start and Operability

47. 47
Cold Start
• Methanol (and ethanol) have low vapor pressure in cold (e.g., -20
C) temperatures. This can cause problems with starting a
methanol engine in a cold environment.
• If methanol is used as M85 or M100 for city buses or taxi fleets,
the vehicles will typically be started once a day, they can be
parked in heated garages if the weather is very cold and they
can be started and warmed up according to established
procedures to solve this problem.
• There are also straightforward engineering solutions to this
problem for cars and buses that will operate in cold
environments (just as there are for gasoline and diesel engines).
One example is shown on the next slide.

48. AlternativeFuelsatFEV
© by FEV – all rights reserved. Confidential – no passing on
third parties
Start-heating systems for Ethanol engines
Cold-start system for Ethanol
engine for 1.6 l with central injection
Cold-start system for Ethanol
engine for 2.0 l with multi-point injection
To control unit
Injection nozzle
Fuel
Fuel
supply
PTC - Heating
part
PTC - Heating element
(120W)
Air from idle actuator
Cold-start
injector