Coalbed Methane

OUTREACH PROGRAM

U.S. EPA

Coal Mine Methane Use in Methanol Production

July 2010 Why Consider Coal Mine Methane in Methanol Production?

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Coal mine methane can be an attractive alternative to conventional natural gas for small methanol plants.

Methanol is used widely (about 37 million tonnes per year) as a raw material and a key component of many products. Approximately 40 percent of methanol is converted to formaldehyde, which is then used in a diverse range of products such as plastics, plywood, paints, explosives, and permanent press textiles. Methanol also is used in the production of acetic acid, an important chemical in the paint and adhesive industries. A number of new markets for methanol are emerging, such as production of dimethyl ether (DME), a chemical derivative of methanol. DME is used as a clean burning alternative to liqueed petroleum gas, liqueed natural gas, diesel, and gasoline, as well as a propellant and refrigerant. Another new market opportunity could be methanol to olen (MTO) projects. Olens such as ethylene, propylene, and butylenes are basic building blocks for petrochemicals. MTO is a two step process that converts Sand Creek Chemical Plant in Commerce City, Colorado methane into methanol, followed by the (uses conventional natural gas to produce methanol) conversion of methanol to light olens. MTO plants can be located near (or integrated with) a methanol plant or they can be located separately (with the methanol plant located near the gas source and the MTO plant located near the olen markets or olen derivative plants). Advancing methanol opportunities are methanol to gasoline (MTG) projects, as well as the use of methanol in fuel cells. Methanol fuel cells are appealing, as storage of methanol is much easier than hydrogen as it does not require high pressures or low temperatures. Currently methanol fuel cells are being tested for use in hybrid vehicles and are already ideal for consumer electronics.

The cost of coal mine methane is often less than conventional natural gas.

A Viable Solution for Conventional Natural Gas in Methane Production...

The methanol market is robust and growing worldwide Methane from coal mines often costs less than conventional natural gas The use of coal mine methane reduces greenhouse gas emissions

EPA Coalbed Methane Outreach Program Technical Options Series

www.epa.gov/cmop

Coalbed Methane
OUTREACH PROGRAM

U.S. EPA

Coal Mine Methane Use in Methanol Production

www.epa.gov/cmop

The market for methanol is increasing worldwide.

Most of the worlds production of methanol uses natural gas as a feedstock, and natural gas typically represents the most important cost component. Coal-based methanol plants, however, are in operation and large scale methanol production from coal is being developed. Many countries produce methanol, although production tends to be concentrated in areas where natural gas is abundant. For safety reasons, many gassy underground coal mines must drain methane from their coal seams. Most coal mines vent this methane to the atmosphere. This represents not only the loss of a valuable fuel source, but also contributes to global warming, as methane is a potent greenhouse gas. A growing number of mines in many parts of the world, however, recover the drained methane for sale to market via pipelines, or for heat or electricity generation. To date, no methanol producers have used coal mine methane; however a project is planned at the mines of Shaanxi Coal and Chemical Industry Group in Shaanxi province China. Coal mines do not produce enough methane to fuel large methanol plants, but one or more very gassy mines typically produce enough methane (2.53.0 bcf/year) to fuel a small (2530 million gallons/year) methanol plant. Alternatively, smaller (35 million gallons methanol/year) mobile methanol plants are currently being developed for use at offshore oil rigs and may eventually be an option for use at coal mines. These plants require 300500 mcf methane/year.

Some Facts about Methanol Production

1 mcf (28.32 m3) of methane will produce 10 gallons (38 liters) of methanol. Production costs are $US 1.00$1.30/gallon ($US 0.26$0.34/liter), assuming natural gas prices of $5.00$6.00/mcf ($1.88$2.10/thousand m3). At $5.00/mcf, natural gas typically accounts for about half of production costs at small plants. Typical 2010 methanol prices are around $US 1.05/gallon ($US 0.28/liter). Methanol prices can be volatile. Gassy mines are often located near methanol markets, potentially reducing transportation costs. Small plants produce 2530 million gallons (95114 million liters) per year. Methane requirements for small plants range from 78 million ft3 (200226 thousand m3) per day. Startup costs are approximately $US 6.7 million for each million gallons of annual plant capacity ($US 200 million for a 30 million gallon/yr plant). Ideally, gas quality should be high in methane and low in nitrogen, but can contain other trace impurities such as oxygen at low levels. CO2 levels as much as 25 percent are benecial, providing capital and energy saving.

EPA Coalbed Methane Outreach Program Technical Options Series

www.epa.gov/cmop

Coalbed Methane
OUTREACH PROGRAM

U.S. EPA

Coal Mine Methane Use in Methanol Production

www.epa.gov/cmop

How is Methane Converted to Methanol?

The rst step in producing methanol is converting methane to syngas, either by steam reforming methane and carbon dioxide, or by catalytic conversion of methane. (Conventional technologies for this part of the process can be expensive; however, several companies are demonstrating new technologies to reduce this expense.) Next, a catalytic process converts syngas to crude methanol. Finally, distillation puries the crude methanol to chemical grade.
Catalyst

Methanol

Water Syngas

Steam

Converting syngas to methanol

For More Information

Changing energy markets worldwide are prompting producers of coal and other fuels to look at new markets for coal mine methane. Coal mine methane is a potential feedstock for methanol and other products. Use of coal mine methane is also benecial in that it reduces emissions of this potent greenhouse gas to the atmosphere. To obtain more information about methanol production, contact: Greg Dolan VP Communications & Policy Methanol Institute 4100 North Fairfax Drive, Ste. 740 Arlington, VA 22203 phone: (703) 248-3636 fax: (703) 248-3997 e-mail: MI@methanol.org http://www.methanol.org Phil Eastland Business Manager Methanol Davy Process Technology Limited 20 Eastbourne Terrace London W2 6LE UK phone: +44 (0)20 7957 3956 fax: +44 (0)20 7957 3922 http://www.davyprotech.com

Contact U.S. EPAs Coalbed Methane Outreach Program for information about this and other protable uses for coal mine methane. U.S. EPAs Coalbed Methane Outreach Program Washington, DC USA http://www.epa.gov/cmop Dr. Jayne Somers e-mail: somers.jayne@epa.gov Ms. Felicia Ruiz e-mail: ruiz.felicia@epa.gov Dr. Pamela Franklin e-mail: franklin.pamela@epa.gov
The mention of products or services in this case study does not constitute an endorsement by EPA.

EPA Coalbed Methane Outreach Program Technical Options Series

www.epa.gov/cmop