MEO Australia - About Methanol

Methanol Forecasted Demand
Methanol is a primary feedstock for the chemical industry. This industry utilizes methanol to produce base chemicals such as acetic acid and formaldehyde, which are then processed to manufacture many common products used by each of us every day such as paints, resins, plastic containers, silicone, window cleaners, adhesives and as an automotive fuel enhancer (MTBE). The primary uses of methanol in the 2000/2001 year were in the following categories (amounts shown in million tonnes per annum):

Formaldehyde 10,084
MTBE 8,100
Acetic acid 2,531
DMT 339
MMA 802
Gas/Fuels 189
Solvents 1,137
Others 4,836

However, there is a forecast for rapid growth in demand relating to the use of methanol as a highly efficient, low emission fuel replacement, especially for the emerging fuel cell technologies. The majority of fuel cell designs require methanol as the fuel input, particularly in commercial and domestic vehicles. Methanol is safe to store and can readily be incorporated into the existing retain fuel outlets.

Fuel cells are an electrochemical battery, where the hydrogen derived from the methanol is passed over one electrode and air containing oxygen passed over the other. As combustion occurs within the fuel cell, free electrons pass across the electrodes providing constant electrical energy as long as the fuel and air are provided. The energy conversion efficiency levels of fuel cells are over three times higher than traditional motor vehicle engines and produce a fraction of the emission levels.

The new Clean Air Acts throughout Europe and the United States are predicted to result in the rapid introduction of the fuel cell technologies. Some commercial vehicles already operate with fuel cells (in California approximately 10,000 such vehicles currently use fuel cell technologies and purchase their methanol fuel from over 200 retail outlets) and both Chrysler and Mercedes Benz have announced the introduction of domestic cars fitted with the fuel cell drives as early as 2003. Most other car manufacturers have also indicated introduction by 2006.

Given the likely introduction of domestic vehicles powered by methanol fuel cells from the middle of this decade, the forecasts for demand noticeably exceed existing and planned production. To avoid shortages and the upward pressure on methanol pricing, new plants must be developed over the next 5 years.

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