Methanol Gasoline Promotion Speeds Up Methanol Industry

The reporter learned from an information source yesterday that the Ministry of Industry and Information Technology will organize the promotion of a high proportion of methanol gasoline M85 and M100 in Minhang District of Shanghai, Shanxi and Shaanxi in May this year. This is the first time that the Ministry of Industry and Information Technology has directly participated in the promotion of methanol gasoline and is also a national level. The first attempt to formally promote the use of alcohol ether fuels and alcohol ether vehicles means that methanol gasoline has been recognized at the national level after many years of provincial pilots.

Three provinces and cities will launch a pilot "this time, led by the Ministry of Industry and Information Technology, and initially decided to promote a high proportion of methanol gasoline M85 and M100 in the Minhang District, Shanxi, and Shaanxi Provinces in May this year. This is the first time that the Ministry of Industry and Information Technology has directly participated in methanol. The promotion of gasoline is also the official promotion of the first launch of alcohol fuels and alcohol ether vehicles at the national level,” the source said.

According to him, the Ministry of Industry and Information Technology had previously organized a related work conference and decided to set the next three years as a pilot year for high-proportion methanol gasoline vehicles. The Ministry of Industry and Information Technology has requested the relevant departments of the three pilot provinces and cities to complete the preparation of the pilot program for high-rate methanol gasoline vehicles and various preparations by the end of April this year. The comprehensive pilot project began in May.

Also at this meeting, three companies, Shanghai Maple and Chery, were designated as manufacturers of M85 and M100 high-proportion methanol gasoline vehicles.

"This is due to the fact that high-proportion methanol gasoline cannot be directly added to existing vehicles and needs to be modified for engines and vehicles," said an industry expert.

It is understood that the so-called M85 methanol gasoline is about 85% of the gasoline to add methanol, as well as a certain amount of additives, and M100 methanol gasoline is pure methanol gasoline. Previously, Shanxi, Zhejiang, Henan, Guizhou, and Shaanxi provinces have started trials of M15 methanol gasoline, but they are all at the provincial level.

The reporter then learned that the specific pilot models were heavy trucks and Chery cars in Shanxi, and Huapu cars in Minhang District in Shanghai.

The sources also revealed that the Shanxi New Energy Vehicles Leading Group is submitting to the Ministry of Industry and Information Technology the Overall Work Plan for the Pilot Operation of Methanol Gasoline. It is expected that the promotion of methanol gasoline at the national level will be significantly increased this year.

An undersecretary-general of the National Committee for Alcohol Ether Fuel and Alcohol Ether Clean Cars disclosed to the reporter that it is not difficult to promote high-proportion methanol gasoline, as long as suitable vehicles are produced. The relevant parties are still studying the proportion of M45 and M50 methanol gasoline, the higher proportion of methanol, without changing the vehicle, the significance of future promotion.

The methanol industry chain is an alternative energy source derived from coal. Methanol gasoline is regarded as an important solution in the context of China's increasing dependence on foreign oil and increasing demand for refined oil products. However, due to the problems of methanol gasoline's corrosiveness and low calorific value, its promotion has not been easy.

On December 4, 2005, a copy of the "Proposal on Promoting Coal-Based Alcohol Ether Fuels to Replace Gasoline and Diesel Fuel" was reported to relevant departments and received high attention. In 2007, the National Development and Reform Commission issued a document clarifying the status of alcohol ether fuels in China's alternative energy sources, emphasizing that “the development of coal-based alcohol ether fuels should be focused on fossil energy”. Since then, the Ministry of Industry and Information Technology has sent a working group to investigate Shaanxi, Shanxi, and Shanghai for the pilot project of high-rate methanol gasoline vehicles, and held related seminars to listen to opinions from various parties.

In the meantime, the state-owned oil company publicly expressed its resistance to methanol gasoline. The reason is also the problem of methanol gasoline.

However, the long-term expert demonstration and test results show that the current problems involving corrosion and swelling of methanol-gasoline vehicles have been basically solved, and relevant supporting infrastructure and technical standards for methanol-gasoline modulation centers and gas stations have been initially established and improved, and methanol gasoline is being developed. Car pilot work has conditions. The Ministry of Industry and Information Technology took the lead in organizing the trials to set the tone for the large-scale promotion of methanol gasoline.

Analysts expect that once methanol gasoline is promoted on a large scale, it will drastically boost the demand for upstream methanol. This year, vehicle methanol consumption is expected to reach 6 million to 7 million tons, accounting for 1/3 of the total methanol consumption, which is far from related listed companies. Xingxing Energy and Tianmao Group will bring significant benefits.

“According to the total gasoline consumption of 67 million tons in 2009, methanol gasoline blended with M15 will replace gasoline by about 10 million tons, equivalent to replacing the national standard gasoline consumption of about 2 months. It can be seen that no matter whether it is from refined oil, The application of economic aspects, or alternative social benefits, the prospects for the application of methanol gasoline will be very large.” Chief Economist of the East Oil and Gas Network, Zhong Jian, told this reporter.

“At present, methanol gasoline has occupied its own market with its unique advantages. The increase in methanol production capacity and the dependence on foreign crude oil is the main driving force for the promotion of methanol gasoline. It is expected that 2011 will be a year of large-scale promotion of methanol gasoline, and Policy is the biggest variable affecting its development,” said Gao Guoyun, an analyst at China Chemical Network.

According to statistics, as of November 2010, the domestic total production of methanol was 14.32 million tons and the apparent consumption was 18.909 million tons. The apparent consumption of the whole year is expected to exceed 20 million tons, an increase of 24% over the previous year.