Tuesday, November 10, 2009

Change to BC energy policy could pave way for Blue Fuel/DME exports

WWW.BLUEFUELENERGY.COM: As reported in the Vancouver Sun and other media on Monday, November 2, British Columbia Premier Gordon Campbell has outlined a major change in BC’s energy policy which should have major and positive implications for all alternative energy suppliers in the province. According to their press release, the provincial government intends to create four green power task forces which “will consist of clean-energy experts, energy consultants, renowned climate experts, leading academics, First Nation representatives and environmentalists.” The stated goal of the task forces is to make “BC an international leader in green power development – both for the province and for export…”

These task forces fall under the overall responsibility of the Green Energy Advisory Task Force which was highlighted in the August BC Throne Speech and which was written about in this blog on August 28, 2009.The four task forces are to be organized in the following way:

• Green Energy Advisory Task Force on Procurement and Regulatory Reform. This task force will recommend improvements to BC Hydro's procurement and regulatory regimes to enhance clarity, certainty and competitiveness in promoting clean and cost-effective power generation; and identify possible improvements to future clean power calls and procurement processes.

• Green Energy Advisory Task Force on Carbon Pricing, Trading and Export Market Development. This task force will develop recommendations to advance British Columbia's interests in any future national or international cap and trade system, and to maximize the value of B.C.'s green-energy attributes in all power generated and distributed within and beyond B.C. borders. The task force will also develop recommendations on carbon-pricing policies and how to integrate these policies with any cap and trade system developed for B.C.

• Green Energy Advisory Task Force on Community Engagement and First Nations Partnerships. This task force will develop recommendations to ensure that first nations and communities see clear benefits from the development of clean and renewable electricity and have a clear opportunity for input in project development in their areas. It will work in partnership with first nations, not only to respect their constitutional right, but to open up new opportunities for job creation and reflect the best practices in environmental protection.

• Green Energy Advisory Task Force on Resource Development. This task force will identify impediments to and best practices for planning and permitting new clean, renewable-electricity generation to ensure that development happens in an environmentally sustainable way. The task force will also consider allocation of forest fibre to support energy development and invite input from solar, tidal, wave and other clean energy sectors to develop strategies to enhance their competitiveness.

Of particular note to companies interested in Blue Fuel/DME in general and export in particular are the task force on Carbon Pricing, Trading, and Export Market Development and the one on Resource Development. Let’s look at these two task forces separately.

The Green Energy Advisory Task Force on Carbon Pricing, Trading and Export Market Development shows promise in two areas. First, this task force states that it intends to develop recommendations relating to any future national or international cap and trade system. Clearly, the world is moving increasingly towards such a system (or a network of systems) and, as such, clean fuels have a central role to play not only on their own carbon-neutral merits but also because they offer value to companies and/or countries in need of carbon credits. It is by no means a stretch to imagine the day when clean DME/Blue Fuel producers are not only exporting their fuel but also their credits. The second way in which this task force may benefit clean energy producers in BC and their overseas off-takers is its focus on export development. Although it is unclear at this time how the task force intends to promote clean energy export, any energy-export-minded government organization is a welcome ally.

Now let’s look at The Green Energy Advisory Task Force on Resource Development. One of this task force’s stated goals is to develop strategies to enhance the competitiveness of clean energy sectors. This could mean a more efficient regulatory system which could make export easier either in terms of speed or cost. Moreover, this task force is also “considering the allocation of forest fibre to support energy development”, which immediately brings to mind the BioDME Project and their efforts to create carbon-neutral DME from biomass.

The long story is, of course, that these initiatives are in their very earliest stages in an ever-changing energy environment. The short story is that these initiatives are good news. Very good news indeed.

Monday, November 2, 2009

Production of liquid fuels from waste CO2 ramping up

WWW.BLUEFUELENERGY.COM: On May 23, 2009, a pilot plant at the Mitsui Chemicals Osaka Works became the first site in the world to synthesize methanol from its carbon dioxide exhaust. DME, of course, is a derivative of methanol, making this development highly significant for proponents of carbon-neutral DME.

On October 17, 2009 there was more good news as the Icelandic-American firm Carbon Recycling International (CRI) started construction of its CO2 to methanol plant at the Svartsengi Geothermal Power Plant of HS Orka in Iceland. Dignitaries on hand for the ceremony included the president of Iceland, Ólafur Ragnar Grímsson, and George Olah, Nobel Prize Laureate, Chemistry. Apart from being on the Advisory Board of CRI, Professor Olah is also co-author of “Beyond Oil and Gas: The Methanol Economy”, a groundbreaking work that promotes the production of methanol and DME from renewable energy and waste carbon dioxide.

Tuesday, October 27, 2009

South Korean interest in DME continues to grow

WWW.BLUEFUELENERGY.COM: Above and beyond the Asian DME Conference held in Seoul in September, two recent news items indicate that South Korean government and private interest in DME/Blue Fuel and its applications continues to grow.

The first story, which appeared in the Korean language Maeil Business Newspaper and was reported by Reuters in their daily press digest on Oct 21, said that the South Korean government is "working on commercialising dimethylether fuel, which is 20-30 percent cheaper than liquefied petroleum gas (LPG), by December, according to the Knowledge Economy Ministry."

The second story, also reported by both Maeil and Reuters, this time on Oct 20, said that "South Korea's state-run Korea Gas Corporation (KOGAS) will invest about 400 billion won ($344.9 million) to build an energy plant in Saudi Arabia, the company said on Wednesday."

Reuters also reported that, "Earlier in the day, the Maeil Business Newspaper cited sources at the economy ministry and KOGAS as saying that the company would sign a preliminary deal with the Saudi Arabian government on Nov. 2 for the plant in Jubail, which would have an annual capacity of 300,000 tonnes of dimethylether (DME) from 2013."

Tuesday, October 20, 2009

Japan's DME Vehicle Promotion Committee wins DME Clean Fuel Achievement Award

WWW.BLUEFUELENERGY.COM: During a special ceremony held during the 6th Asian DME Conference in Seoul, South Korea in September, 2009, Japan's DME Vehicle Promotion Committee (DMEVPC) was awarded the annual DME Clean Fuel Achievement Award.

Known as "The DME Award" and presented by the International DME Association, this award "recognizes companies, organizations, and individuals who have made noteworthy contributions to the development and commercialization of dimethyl ether as a clean fuel source.

The award was presented by IDA Executive Director, Christopher Kidder and was accepted on behalf of the DME Vehicle Promotion Committee by DMEVPC Chair Yasuhiko Mikita and Secretary-General Ryoji Wakasa. As stated on their website, the 2009-2010 objectives for the DMEVPC are:
  • To comply with a new subsidy plan by Japan's MLIT (Ministry of Land, Infrastructure, Transport and Tourism) and put forward a 2009 proposal for new project allowing DME trucks to operate commercially.
  • Demonstration of DME Trucks in a commercial transport operation covering the full production chain for DME fuel, including manufacturing, distribution, and relevant infrastructure for DME vehicles in Japan's Niigata region.
  • To support newly built DME (4 tons) trucks built by Isuzu for commercial use in 2009 and to introduce DME trucks to the transportation industry and general users.
  • To continue commerical operations using existing DME trucks (like those manufactured by Nissan Diesel) after MLITT’s subsidies ceased in Dec. 2008.
  • To support technical improvement of DME filling speed/measurement and development of low-priced sealing materials suitable for DME piping/storage tanks.
  • The advancement of deregulation reform on DME infrastructure in line with that of LPG.

Last year's winner of the DME Clean Fuel Achievement Awardwas China's ENN Group .

Friday, October 16, 2009

Alternative Fuel Technology develops revolutionary DME fuel pump

WWW.BLUEFUELENERGY.COM: On September 24, 2009 Alternative Fuel Technology announced that they have designed and successfully demonstrated a revolutionary new DME fuel pump. To read their media release, please click here.

Tuesday, October 13, 2009

DME rebounding as alternative to diesel for trucks and cars

WWW.BLUEFUELENERGY.COM: An article in the newsletter Fleet Owner (written for executives and managers of commercial-trucking fleets) posted in the News section of the International Dimethyl Ether Association website speaks of a growing interest in the use of DME as a transportation fuel.

Wednesday, October 7, 2009

Volvo Trucks takes next step in Bio-DME future

WWW.BLUEFUELENERGY.COM: Following on from our last blog post regarding developments by the gasification technology company, Chemrec, Volvo Trucks made a recent announcement regarding their involvement with Bio-DME. We find their press release most encouraging and include excerpts from it here.

“Volvo Trucks is now taking the next concrete step towards carbon dioxide-neutral road transport. Within the framework of a broad-based joint project, field tests are being conducted with 14 trucks running on Bio-DME – a fuel that combines a low environmental imprint with high energy efficiency.

In August 2007, Volvo Group unveiled seven demo trucks from Volvo Trucks each running on a different type of biofuel, one of which was DME (Di-Methyl-Ether). This initiative demonstrates Volvo has the technical solutions for running an efficient diesel engine on virtually all existing renewable fuels.

Today, in a joint project including the EU, the Swedish Energy Agency, fuel companies, and the transport industry, Volvo Trucks is investigating the potential for large-scale investment in DME produced from biomass, a fuel known as Bio-DME.

Volvo Trucks is participating in the project by contributing 14 Volvo FH trucks that will be tested by selected customers at four locations in different parts of Sweden between 2010 and 2012. The first field-test truck is being shown today in Piteå, where the production of Bio-DME will take place in Chemrec's plant. The Volvo Group, of which Volvo Trucks is a part, is a co-owner of Chemrec via its subsidiary, Volvo Technology Transfer.

From a facility beside the Smurfit Kappa Kraftliner pulp plant, the project will produce four tonnes of Bio-DME per day. The raw material used is black liquor, an energy-rich, highly viscous by-product of the pulp industry. Through gasification of the biomass in the black liquor, what emerges is a particularly clean and energy-efficient fuel. The plant is being inaugurated today by the King of Sweden, renowned for his keen interest in environmental issues.

"From the holistic viewpoint, Bio-DME is one of the most promising second-generation biofuels. Bio-DME provides both high energy efficiency and low emissions of greenhouse gases. We value these two properties particularly highly as we analyse various possible alternative fuels," says Lars Mårtensson, environmental affairs director at Volvo Trucks.

Compared with a conventional engine, Bio-DME as a fuel in diesel engines provides the same high efficiency rating but also a lower noise level. In comparison with diesel fuel, Bio-DME generates 95 percent lower carbon dioxide emissions. What's more, the combustion process produces very low emissions of particulates and nitrogen oxides. All this makes Bio-DME an ideal fuel for diesel engines.

The field test gets under way in 2010 and encompasses the entire technological chain from biomass to fuel in trucks, in other words including distribution and filling stations. Fuel company Preem will build filling stations so the trucks can be used in regular regional and local operations. The other companies involved in the project are Chemrec, Delphi, ETC, Haldor Topsoe and Total who are contributing as partners.

Inspections and evaluations of the fuel, truck technology, customer perceptions and distribution system will provide answers as to whether Bio-DME may emerge as one of the fuels that can partially reduce dependence on diesel oil.

The project will continue for a specific period and its evaluation as well as the long-term decisions of the authorities will determine whether full-scale industrial production will become reality. The challenges facing new fuels lie primarily in taking a long-term view, producing sufficiently large quantities of biofuels, and handling distribution via a suitably large number of filling stations.

"The field test will give us valuable new insight into the potential of Bio-DME as a future vehicle fuel. The project still requires many tests, larger-scale fuel production and an extended infrastructure. And, perhaps most of all, clear guidelines from the authorities on how they view the fuel," says Volvo Trucks' President and CEO, Staffan Jufors.”

Click here to see a video about Volvo Trucks and Bio-DME.