Methanol One Product - Many PossibilitiesMethanol One Product - Many Possibilities-2015 Methanol Technology and Policy Congress Frankfurt, December 2 nd, 2015 l Dr. Matthias Stein

MethanolOne Product - Many PossibilitiesMethanol -

y2015 Methanol Technology and Policy Congress

Frankfurt, December 2nd, 2015 l Dr. Matthias Stein l Air Liquide Global E&C Solutions, , q

1 11/11/2015 Air Liquide, world leader in gases, technologies and services for Industry and Health

What is Methanol?

One of the largest organic chemicals (by volume)One of the largest organic chemicals (by volume)

Natural Gas in Liquid Form or Liquid Synthesis Gasq q y

Building Block for other Chemicals/ PolymersBuilding Block for other Chemicals/ Polymers

Global“ Product Easy to transport and to store„Global Product- Easy to transport and to store

Energy CarrierEnergy Carrier

Competitor to Crude OilCo pet to to C ude O

Alternative Energy


The Chemistry of Methanol: Versatile and Future oriented2014 Global consumption: 64 mil tonnes 2015 forecast: 73 mil tonnes

Formaldehyde Olefins

MTBE Ethylene glycol

MMA

Syngas

Methyl amines

MMA

HydrocarbonsyChloro methanes

yGasoline

Acetic Acid Aromatics


The Methanol Market tomorrow: Double Digit Growth

Global Methanol Consumption (mil tonnes pa)

11%11%

28%2%11%

31%4%

11%

FormaldehydeMTBE

22%15% OthersAcetic AcidOlefins

9%

10%11%10%

OlefinsGasolineGasoline Blend

18%18%

2014: 64 mil tonnes pa 2020: 94 mil tonnes pa


Sources: ICIS, IHS, AL Intelligence

Air Liquide Global E&C Solutions Technology Package

■ Lurgi Technologies■ Cryogenic Technologies■ Cryogenic Technologies

We are designing your success

■ The world leader in gases for industry, health andi tenvironment> 50,000 employees in over 80 countries worldwideGroup Revenue of €15 2 billion (2013)Group Revenue of €15,2 billion (2013)

■ Technologies in the World Business Unit of Air■ Technologies in the World Business Unit of Air Liquide Global E&C Solutions

4,000 employees in 15 engineering centersworldwideRevenue of € 646 million (2013)

Air Liquide Global E&C Solutions provides solutions from technology licensing to EPC project services for the Air Liquide Group and third party customers.


Portfolio of Technologies

Ai Li id id it t ithAir Liquide provides its customers with the best value in advanced innovative technology.

■ Natural gas conditioning■ Synthesis Gas Production (SMR, ATR,

■ Acrylic acid, Butadiene, Melamine

y (Gasification) and Purification (Rectisol, PSA, Cold boxes)

■ Oleochemicals, Biodiesel■ Air Separation Plants

■ Fischer-Tropsch GTL■ Methanol and Methanol-to-Propylene


Key Messages

1 Methanol to Olefins became a success1. Methanol-to-Olefins became a success. Today it satisfies China´s large Olefins Appetite.


Methanol-to-Olefins: Growth Driver for Methanol

Focus on large commodities ethylene and propylene,

All world scale plants in operation are in ChinaAll world scale plants in operation are in China,

MTO/ MTP using coal (and cheap natural gas) as feedstock inMTO/ MTP using coal (and cheap natural gas) as feedstock in competition to oil based products (steam cracker, PDH),

Significant technology developments from 2000,

M l fi l t h b d 1 6 1 8 il t M OHMany olefins plants are somehow based on a 1.6-1.8 mil tpa MeOHstandard plant size.


The MTO Success Story begins in China

■ China is operating a significant number of MTO plants( i l th l ) b d h t M th l(mainly ethylene), based on merchant Methanol.

Another 1 mil tpa

A growing number ofolefin plants are

5 MTO plantsoperating based on

Another 1 mil tpamerchant MeOHcapacity for MTO will

developed along theChinese coast toconsume importedoperating based on

2.1 mil tpa merchantMeOH (Q1 2015),

start up in 2015,co su e po edMeOH


Sources: IHS, Asiachem, AL Intelligence

…and it continues even more massive in China.

■ Far bigger are integrated Coal-to-Olefins capacities in China- 7 World S l Pl t i ti (Q4 2014)Scale Plants in operation (Q4 2014);

9+ plants areunder engineering/

3 MTP plantsbased on Lurgi

First MTO plant based on UOP technology start upin 2013 (Wison)

under engineering/ construction

First MTO was Shenhua Baotou MTO, InnerMongolia start up

based on LurgiTechnology startedin 2010-2014

in 2013 (Wison).

Mongolia, start-upin 2010

Plants in China are mainly coal based, MeOH MTO/ MTP integration in remote (coal mining) areas gives mostcompetitive cost structure,Product focus is on regional markets in order to avoid transportation cost.


Sources: IHS, Asiachem, AL Intelligence

Where is the technology coming from?

Air Liquide´s Lurgi MTP TechnologyIntegrated into Lurgi Mega Methanol Technology, main product is

Dalian MTO (DMTO) TechnologyFirst MTO plant in China (Shenhua Baotou) is based on DMTOgy p

propylene, small volume of ethylenepossible, gasoline and LPG as co-products

FCC like, fluidized bed reactor, mixture of propylene and ethylene

UOP´s MTO TechnologyMixture of 1:1 ethylene andpropylene that can be brought

Sinopec MTO (SMTO) TechnologySeveral references in China,

FCC likepropylene that can be broughtto a higher yield of propylenein an olefins cracking process(converting of higher olefins to

)

FCC like, fluidized bed reactor,mixture of propylene and ethylene

ethylene and propylene)

Several other MTP and MTO technologies without references are existing


Several other MTP and MTO technologies without references are existing.

Gas-to-Propylene Plants in the Western Hemisphere

Engineering is ongoing for BASF´s Gas-to-Propylene plant to be built at US G lf C tUS Gulf Coast:

475 ktpa propylene plant based on Air Liquide´s Lurgi Mega MeOH475 ktpa propylene plant based on Air Liquide s Lurgi Mega MeOHTechnology as well as Lurgi MTP Technology,

First Gas-to-Propylene plant outside China,

BASF at its Investor Day 2014:BASF at its Investor Day 2014:”MTP is best in class technology- up to 20% lower in total cost compared tonext best technology.“

Fred Festa, CEO of catalyst producer WR Grace in ICIS News:“…FCC units… remain “the cheapest way to get propylene”. The next cheapest process is methanol to olefins (MTO)…PDH ranks third.”


Advantaged Feedstock Countries: Next MTP/ MTO Plants

Russia

Iraq

CentralAsia

USA qIran


Key Messages


2. Methanol-to-Gasoline is one channel to the Fuels Market for Feedstock Gas and CoalMarket for Feedstock Gas and Coal.


Methanol-to-Gasoline: ExxonMobile and Air Liquide together

Synthetic gasoline as competitive alternative to refinery gasoline,M t d d i ti li t d dMeets and exceeds existing gasoline standards,Also suitable for diluting highly viscous oil, or blending into the refinery gasoline pool.p

■ ExxonMobile is offering a well proven technology, basedh i f 10 f i f i lon the experience of 10 years of operation of a commercial

plant in New Zealand.

■ Air Liquide is marketer of EM´s MTG technology in connection with Lurgi Mega Methanol,

■ 5,000 tpd Mega MeOH plant is producing 16,500 bpd or650 ktpa of gasoline,

■ MeOH based gasoline is practically free of sulfur,■ MeOH based gasoline is practically free of sulfur,■ 1 plant operating (100 ktpa), 1 plant under construction

(1 mil tpa), both in China.


Methanol-to-Gasoline: More Technology

Other MTG technology providers:

■H ld T■ HaldorTopsoe: TIGAS™ Process, is an integrated Syngas-MeOH-Gasoline process

■ Reference plant based on 5,000 tpd under construction in Turkmenistan.

■ ICC-CAS together with SEDIN Engineering developed a process in China,9 plants bet een 100 and 200 ktpa capacit each are■ 9 plants between 100 and 200 ktpa capacity each areoperating.


Key Messages



3 T d Chi i d l i MEG iti f3. Today China is developing more MEG capacities from Coal through Syngas than from cracker ethylene.


Ethylene Glycol is made from Coal: Coal-to-MEG

Coal-to-MEG is a syngas based technology with MeOH appearing as an intermediate.

Oxygen Methanol

Carbon MEGDimethylmonoxideCoal

MEGyOxalate

NG HydrogenNG

The alternative is Eastman/ JM Davy Methanol to Glycol Process:

CoalCoal

NGSyngas Methanol MEG


7 Companies offer Oxalate Technology for MEG

6 Chinese Companies and Institutes as well as one Japanese companyff t h l i l 4 f d d f loffer a technologies, only 4 are referenced and successful:

Fujian Institute of Research (FJIRSM)Fujian Institute of Research (FJIRSM)6 plants are operating

Shanghai Huayi (Shanghai Coking)2 plants operating

Sinopec1 plant operatingp p g

Ube IndustriesA 50 ktpa plant is operating since 2013, showing constistentlyfibre grade MEG production, 2 plants are operating,3 plants are under construction (total of 1 mil tpa).


From 2011 until today: CTMEG became significant in China

After2011 2015 2016 After 2016

First demonstration 11 operating plants 21 operating plants There are 23 plantsFirst demonstrationplant based on FJIRSM-CAS technology(F ji I tit t f

11 operating plantsexpected with a total of 2 mil tpa capacity, 7 technology providers

21 operating plantsexpected to be on stream with a total of3.8 mil tpa capacity,

There are 23 plantsstudied with >10 mil tpacapacity,

(Fujian Institute ofResearch, Chinese Academy of Science)

Plants are very small (100-200 ktpa),New MEG capacity in China is mainly based on CTMEG,New MEG capacity in China is mainly based on CTMEG,More capacity than demand growth,Low operating rate due to quality issues (no fibre grade MEG) (except Ube Technology)China will be self suffcient in MEG by 2020


Key Messages

1 Methanol to Olefins became a success Today it satisfies1. Methanol-to-Olefins became a success. Today it satisfies China´s large Olefins Appetite.


3 T d Chi i d l i MEG iti f3. Today China is developing more MEG capacities from Coal through Syngas than from cracker ethylene.

4. Methanol-to-Aromatics will become reality in Future. T t d t i X lTarget product is para-Xylene


Methanol-to-Aromatics is at the beginning

■ Aromatics are mainly BTX- Benzene, Toluene and Xylenes,

■ Most wanted product is para-Xylene for PTA and polyesters,

■ Chinese institutes have developed Coal-to-MeOH-to-Aromatics pProcesses,

■ First large pilot plant started in 2013 (30 ktpa) based on the FMTA g p p ( p )Process of Huadian Group and Tsinghua University,

■ Shanxi Coal Chemical and Sinopec operate plants with 100 ktpa and p p p p200 ktpa capacity,

■ All technologies suffering from low PX yields and unfavorable ec o og es su e g o o y e ds a d u a o ab eeconomics at this time.

■ Promising may also be the modification of Methanol-to-Gasoline o s g ay a so be e od ca o o e a o o Gaso eprocesses to produce aromatics.


Conclusion

„New“ Methanol Derivatives provide strongest demand growth for thedit M th lcommodity Methanol,

China with its strong „appetite“ for commodity chemicals is the maindriver for developments,

Lack of natural gas in China is focusing on coal as feedstock,ac o a u a gas C a s ocus g o coa as eeds oc ,

The „Old World“ is cautiously looking at the application of newtechnologies clearly driven by economicstechnologies, clearly driven by economics,

Beside fuel applications, chemicals provide double digit growth ofM th lMethanol.

Future technology developments may skip Methanol as an intermediate and convert syngas directly to chemicals!?


Cornelis Willems de Man(1621-1706)(1621-1706)

Delft Pharmacy, 1670


National Museum Warsaw

Documents

Methanol One Product - Many PossibilitiesMethanol One Product - Many Possibilities-2015 Methanol Technology and Policy Congress Frankfurt, December 2 nd, 2015 l Dr. Matthias Stein