ASSESSMENT OF COSTS AND BENEFITS OF FLEXIBLE AND ALTERNATIVE FUEL USE IN THE U.S. TRANSPORTATION SECTOR. TECHNICAL REPORT THREE: METHANOL PRODUCTION AND TRANSPORTATION COSTS

The Department of Energy (DOE) in 1988 undertook a comprehensive technical analysis of a flexible-fuel transportation system in the United States. To keep interested parties informed about the progress of the DOE Alternative Fuels Assessment, the Department periodically publishes reports dealing with particular aspects of this complex study. This report provides an analysis of the expected costs to produce and ship methanol. It examines the conversion costs for natural gas to methanol, coal to methanol, and natural gas to liquefied natural gas (LNG), as well as shipping costs for both methanol and LNG. In developing the conversion costs for use in the Alternative Fuels Trade Model (AFTM), assessments have been made of what types of cost improvements might be achieved in the future given the likely expansion of the methanol industry required to supply a motor fuel market. Since a major portion of the conversion costs is related to the required capital investment, construction costs are estimated for various locations around the world. From this and estimates of process efficiencies and other operating cost requirements, methanol production costs are estimated and then simplified into a generalized formula for incorporation into the AFTM. A similar type of analysis has been done to estimate methanol transportation costs, assuming that a substantial market would justify construction of large dedicated vessels specifically for transporting methanol fuel. To estimate the cost of producing methanol from coal, plants that produce only methanol and those that coproduce methanol with electricity are evaluated and compared. This report also analyzes the cost to convert natural gas to LNG, along with LNG shipping costs.

• Corporate Authors:

  Department of Energy

  1000 Independence Avenue, SW
  Washington, DC  United States  20585
• Publication Date: 1989-11

Media Info

• Features: Figures; References; Tables;
• Pagination: 58 p.

Subject/Index Terms

• TRT Terms: Alternate fuels; Costs; Estimating; Liquefied natural gas; Methanol; Production; Transportation
• Subject Areas: Transportation (General); Vehicles and Equipment; I96: Vehicle Operating Costs;

Filing Info

• Accession Number: 00491935
• Record Type: Publication
• Report/Paper Numbers: DOE/PE-0093
• Files: TRIS
• Created Date: Mar 31 1990 12:00AM