Blue Fuel /DME news, information — and opinion

New use for DME in biofuel production found in Japan

noreply@blogger.com (Blue Fuel Blog Team) — Mon, 29 Mar 2010 09:26:00 -0700

BLUEFUELENERGY.COM: In a potentially revolutionary use of dimethyl ether, the Central Research Institute of Electric Power Industry (CRIEPI) in Japan has developed a method using synthetic dimethyl ether to extract biofuel from algae. The Denki Shimbun is reporting that by using liquified DME in the oil extraction process, energy consumption can be reduced by more than 50% while extracting greater amounts of oil than conventional methods. CRIEPI will continue to verify the process and hopes for commercialization by 2013.

Vietnam slated for production of dimethyl ether

noreply@blogger.com (Blue Fuel Blog Team) — Sat, 20 Mar 2010 11:55:00 -0700

BLUEFUELENERGY.COM: As reported in the Viet Nam News, a consortium of international companies have formed a new energy company in Vietnam under the banner Sao Nam Petro. The conglomerate will focus on oil and gas exploration, pipelines and other projects. One of those other projects will be to build a plant producing dimethyl ether. Vietnam is a net importer of LPG and the production of dimethyl ether is seen as a way to reduce these imports using clean technology.

Dimethyl Ether Production is Out of This World

noreply@blogger.com (Blue Fuel Blog Team) — Mon, 8 Mar 2010 12:58:00 -0800

BLUEFUELENERGY.COM: At Blue Fuel Energy we are always anxious to promote Blue Fuel/DME production wherever it may be. And while we can't take credit for the discovery of this latest production location, we are happy to pass along the information. RedOrbit.com is reporting that the European Space Agency's Herschel Space Observatory has recorded the production of Dimethyl Ether in the Orion Nebula. So while we strive to encourage production of Blue Fuel/DME around the world, the universe is naturally creating it in deep space.

Mitsubishi Chemical and JGC to build pilot plant for methanol/DME to propylene production

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 5 Feb 2010 17:01:00 -0800

WWW.BLUEFUELENERGY.COM: Mitsubishi Chemical and JGC are forging ahead with plans to commercialize their proprietary technologies to use methanol and DME as feedstocks for the production of propylene. Click here to read more on this story.

Launch of the North American Affairs Committee (NAAC) of the International Dimethyl Ether Association (IDA)

noreply@blogger.com (Blue Fuel Blog Team) — Wed, 13 Jan 2010 10:19:00 -0800

WWW.BLUEFUELENERGY.COM: In December 2009 the drive to promote awareness and use of DME in North America went into high gear when the International DME Association (IDA) formed the North American Affairs Committee (NAAC), which promptly established internal working groups that were assigned specific tasks. To read more about the NAAC, please click here.

Stockpiling methanol and/or dimethyl ether for fuel and energy reserves

noreply@blogger.com (Blue Fuel Blog Team) — Tue, 5 Jan 2010 08:08:00 -0800

WWW.BLUEFUELENERGY.COM: According to a US Patent Application Publication (No: US2009/0320356 A1), Nobel Prize-winner George Olah and his Loker Hydrocarbon Research Institute colleage, G.K. Surya Prakash, authors of “Beyond Oil and Gas: the Methanol Economy”, have applied for a patent for an invention relating to “a method of stockpiling a fuel source by storing methanol or dimethyl ether in appropriate storage facilities to provide an alternative fuel source that can be used to avoid shortages due to unavailability, limited availability or excessive costs of oil.” These facilities can be natural or man-made, such as an underground tank, an above-ground tank, or a salt dome.

A fundamental premise behind the invention is that the world is facing an oil crisis and that the US’s Strategic Petroleum Reserve (SPR), established in the 1970s to maintain an emergency oil supply, is facing daunting challenges, including hurricanes, political unrest in oil producing countries, and overall oil shortages, as well as the fact that oil poses several safety issues, such as its extreme flammability. Another premise is that to mitigate climate change and pollution, renewable, alternative, clean-burning, low-carbon/carbon-neutral fuels need to be widely adopted. Professor Olah and his colleagues at Loker have also patented novel methods of production for methanol and/or dimethyl ether using the hydrogenative chemical recycling of carbon dioxide. To read more about the perspectives of professors Olah and Surya Prakash, click here.

Canadian company launches bio-DME project in British Columbia, Canada

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 18 Dec 2009 13:38:00 -0800

WWW.BLUEFUELENERGY.COM: GV Energy of Calgary, Alberta has launched its project to use the vast forests of British Columbia to produce DME. A November 30 media release announced the signing of a MOU with the City of Terrace, British Columbia to acquire land for a bio-refinery plant, and a subsequent December 17 CBC News article generated interest in the project amongst renewable energy writers around the world. The fact that two companies are now planning to use different feedstocks to produce DME in the same jurisdiction in North America bodes well for adoption of this emerging alternative fuel on the continent.

International DME Association Launches North American Affairs Group

noreply@blogger.com (Blue Fuel Blog Team) — Tue, 8 Dec 2009 12:58:00 -0800

WWW.BLUEFUELENERGY.COM: At the 2009 World Methanol Conference, which is now taking place (Dec 8-9) in Miami, Florida, key players on the North American and world DME landscape met and successfully formed a North American Affairs Group, a subgroup of the International DME Association (IDA) .

According to the IDA press release on December 8th, the North American Affairs Group (NAAC) was created “To actively promote the awareness and use of dimethyl ether (DME) as an ultra-clean, renewable, low-carbon diesel substitute throughout North America.”

Members of the IDA’s NAAC include companies leading DME’s development worldwide: energy and fuel producers Total and Methanex; engine technology companies Caterpillar, Volvo/Mack,
and Alternative Fuel Technology; process suppliers Chemrec, Lurgi and Haldor Topsoe; and renewable and biofuel producers Genifuel, LCE BioEnergy, Blue Fuel Energy, and Range Fuels; along with policy experts, The Methanol Institute, and academics from Penn State University and the University of Utah.

Appointed as the Group’s first-ever director was Richard J. LeBlanc, CEO, Chemrec AB, developer of pulp mill-integrated biorefineries that convert mill waste into BioDME. Said LeBlanc: ““The environmental benefits of DME are recognized around the world and we are pleased to be part of a trade organization that will help to build awareness and acceptance of DME in North America.” LeBlanc added that, “Many research universities and government laboratories already have confirmed the merits of DME, and now we hope to promote increased production, distribution and use of DME in North America as is happening in Asia.”

Commenting on the formation of the NAAC, IDA Chairman Jean-Alain Taupy of Total said that, “We have seen significant growth in DME’s use as a clean fuel in Asia over the past few years, and with major changes now being proposed to legislation and regulations in North America regarding transportation fuels and environmental issues, the International DME Association has formed a committee to facilitate the inclusion of DME in relevant legislation, projects, and programs now underway or proposed.”

Alberta Carbon Trunk Line project

noreply@blogger.com (Blue Fuel Blog Team) — Thu, 26 Nov 2009 06:03:00 -0800

WWW.BLUEFUELENERGY.COM: Capturing and transporting CO2 by pipeline is fundamental to Blue Fuel Energy’s plan to produce carbon-neutral DME/Blue Fuel in British Columbia. Recent announcements about Enhance Energy’s Alberta Carbon Trunk Line (ACTL) project, and support for it by the governments of Alberta (C$495m) and Canada (C$63m, from the Clean Energy Fund) have certainly caught our attention, even though the CO2 is slated for Enhanced Oil Recovery (EOR) and not the production of alternative fuels.

As regards the link between the ACTL and the production of DME/Blue Fuel, the key points are that the technologies for large-scale carbon capture and the pipelining of CO2 are ready to roll—and that energy companies that clearly understand that a carbon-constrained future is fast approaching have an opportunity to utilize recycled CO2 to produce an emerging carbon-neutral fuel that will have a significant role in mitigating climate change, enhancing air quality, and providing energy security in countries around the world.

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

noreply@blogger.com (Blue Fuel Blog Team) — Tue, 10 Nov 2009 12:38:00 -0800

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.

Production of liquid fuels from waste CO2 ramping up

noreply@blogger.com (Blue Fuel Blog Team) — Mon, 2 Nov 2009 08:57:00 -0800

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.

South Korean interest in DME continues to grow

noreply@blogger.com (Blue Fuel Blog Team) — Tue, 27 Oct 2009 10:27:00 -0700

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."

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

noreply@blogger.com (Blue Fuel Blog Team) — Tue, 20 Oct 2009 06:00:00 -0700

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 .

Alternative Fuel Technology develops revolutionary DME fuel pump

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 16 Oct 2009 05:23:00 -0700

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.

DME rebounding as alternative to diesel for trucks and cars

noreply@blogger.com (Blue Fuel Blog Team) — Tue, 13 Oct 2009 09:32:00 -0700

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.

Volvo Trucks takes next step in Bio-DME future

noreply@blogger.com (Blue Fuel Blog Team) — Wed, 7 Oct 2009 10:08:00 -0700

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.

BioDME production generously supported in Sweden

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 2 Oct 2009 09:19:00 -0700

WWW.BLUEFUELENERGY.COM: In a September 28 release in the Latest News section of its website, gasification technology company Chemrec announced a SEK 500 million (US$73 million) investment grant to Domsjo Fabriker to build an industrial scale, renewable motor fuels BioDME and Biomethanol demonstration plant based on Chemrec technology. Click here to read the full release.

An Integrated Approach to Energy in BC

noreply@blogger.com (Blue Fuel Blog Team) — Wed, 30 Sep 2009 06:01:00 -0700

WWW.BLUEFUELENERGY.COM: Though few people are aware of it, British Columbia has the potential to become a clean energy superpower, the antithesis of our neighbor to the east mired in the tar sands. But to realize this potential, the BC Government, BC Hydro and BC businesses need to—dare we say it—”think outside the box”. Though the shameless use of the tired cliche in the previous sentence suggests otherwise, we have distinctive ideas, particularly about how to optimally use the bountiful energy resources with which this province is blessed. We have summarized these ideas in a short document which you can view by clicking here. Feedback, of course, is heartily encouraged.

California’s Renewable Energy Portfolio Good News for BC’s Renewables Sector

noreply@blogger.com (Blue Fuel Blog Team) — Wed, 23 Sep 2009 06:48:00 -0700

WWW.BLUEFUELENERGY.COM: In the September 16 post of Megawatt, the British Columbia renewable energy blog, Warren Brazier notes that California Governor Arnold Schwarzenegger’s signing of an executive order requiring California utilities to obtain 33% of their electricity from renewable sources by 2020, including out-of-state sources, is good news for BC’s renewables sector. Absolutely true, especially in combination with the BC government’s promotion of clean energy exports. At the end of the post, however, he comments, “Next up, signing some EPA’s (Energy Purchase Agreements) with the California utilities and building the transmission infrastructure.” This reference to transmission infrastructure gives rise to the question, Can the transmission infrastructure between BC and California be sufficiently upgraded within the next 10 years to enable BC renewables to play a major role in helping California reach the 33% by 2020 target? We’re skeptical, because of costs, as well as various political, environmental, and social issues.

Given the obstacles to short-term, large-scale expansion of the grid between BC and California, we believe that California utilities would be advised to weigh the merits of converting BC renewables such as hydro and wind to carbon-neutral Blue Fuel for the purpose of power generation. A superb energy carrier, Blue fuel is, in essence, liquid electricity. To put its energy carrying capacity in context, a single 80,000 tonne ship loaded with Blue Fuel could carry from Prince Rupert to Los Angeles the equivalent amount of energy that a 500 kV line could transmit between these cities. A truly multipurpose fuel, Blue Fuel can replace natural gas for power generation without modification to turbines or combustors. Manufacturers such as Mitsubishi, Hitachi, and General Electric have all approved Blue Fuel for their gas turbines. Apart from being carbon-neutral, Blue Fuel burns much cleaner than natural gas, enhancing air quality and thus human health. Further, Blue Fuel produced in BC can be delivered to California using existing rail and shipping infrastructure. California utilities could begin using Blue Fuel with little capital investment. What’s more, because Blue Fuel feedstocks are renewable energy, water, and waste carbon dioxide, BC producers will be able to offer California utilities stable long-term pricing. By contrast, natural gas prices have a history of volatility. Although natural gas is currently inexpensive, the Conference Board of Canada has forecast much higher prices by 2013.

The case for Blue Fuel as a power generation fuel is convincing. If California utilities are not convinced, however, perhaps Japanese utilities will be. Market research to date is encouraging. Japan, after all is arguably the world leader in DME R&D and generates about one-quarter of its power with natural gas. In addition, the new government has determined that Japan will assume a leadership role amongst developed countries in reducing GHG emissions. More on this topic in upcoming posts . . .

President Obama and Prime Minister Harper release joint statement on clean energy

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 18 Sep 2009 10:43:00 -0700

WWW.BLUEFUELENERGY.COM: Canadian Prime Minister Stephen Harper recently returned from an official visit to Washington, DC, to meet with US President Barack Obama. As is customary, the two leaders released a joint statement at the end of Mr. Harper's trip, and included in their statement was a mention of the two countries' progress on clean energy since President Obama's visit to Ottawa in February 2009.

Specifically, the statement referenced a report on the US - Canada Clean Energy Dialogue written under the names of US Energy Secretary Steven Chu and the Canadian Minister of the Environment Jim Prentice, as well as a related report the US - Canada Clean Energy Dialogue Action Plan.

Of the two reports, the Action Plan is longer, more detailed, and more relevant. It states that the two governments have identified "key opportunities for joint collaboration in each of the following priority areas: 1) Developing and deploying clean energy technologies; 2) Building a more efficient electrical grid based on clean and renewable generation; and 3) Expanding clean energy research and development.

Of significant interest to the DME/Blue Fuel world is a section of the Action Plan that deals with carbon capture and storage (CCS). As the report states, "CCS holds tremendous promise for North American climate and energy security, and is a critical technology for significantly reducing carbon dioxide (CO2) emissions from large industrial point sources that use fossil fuels." What is described above is a perfect match for Blue Fuel Energy's Corporation's plans to use renewable energy, such as wind and hydro, as well as water and waste carbon dioxide (in a process called active sequestration) to produce carbon-neutral DME/Blue Fuel in British Columbia, Canada.

Until now, natural gas processors and other industrial plant operators have considered CO2 a waste by-product and simply released it into the atmosphere, contributing to global warming. The alternatives are to sequester it underground or, as Blue Fuel Energy will do, to recycle it for energy use. Of all the CCS choices, we believe our active sequestration process makes the most sense both environmentally, politicallty, and economically, particularly since it utilizes renewable electricity, an important plank in the US-Canada joint plan platform.

The US-Canada Action Plan makes the following five recommendations in order "to realize a reliable, adequate, and secure North American electrical system - which will support a cleaner energy portfolio while providing cost effective energy solutions to consumers."

1. Increasing Opportunities for Trade in Clean Electricity.
2. Advancing Smart Grid and Clean Power Technologies
3. Realizing the Potential of Power Storage
4. Building the Power Work Force of Tomorrow
5. Keeping the Dialogue Going - the Canada-US Electricty/Smart Grid Forum.

According to the Joint Action Plan, implementation of these recommendations is scheduled to begin in the fall of 2009.

Although none of the objectives or recommendations in the Joint Plan mention DME/Blue Fuel specifically, in principle they speak directly to DME/Blue Fuel's strengths as an ultra-clean-burning, environmentally benign alternative fuel derived from waste CO2 and renewable electricity - and that spells good news indeed not only for the DME/Blue Fuel industry, but for consumers and citizens of both countries as well.

Bolivia seeks to become DME producer

noreply@blogger.com (Blue Fuel Blog Team) — Thu, 10 Sep 2009 08:26:00 -0700

BLUEFUELENERGY.COM: The Tarija Chamber of Commerce and Industry and Metrotec Energy in Bolivia are jointly promoting the use of Bolivia’s extensive natural gas reserves (100TCF) to produce DME for export to countries in Asia and the US. At this stage the concept is still being explored, but it is encouraging to note that proposals to produce DME are now emerging from around the world. To read more about this endeavor in Latin America please look at this presentation.

US Energy Secretary Chu Announces Nearly $300 Million in Grants to Support Clean Fuels, Vehicles, and Infrastructure Development

noreply@blogger.com (Blue Fuel Blog Team) — Wed, 2 Sep 2009 10:42:00 -0700

BLUEFUELENERGY.COM: On Wednesday, August 26, the US Energy Secretary Steven Chu announced in a speech and on the US Department of Energy (DOE) website the selection of 25 cost-share projects under the Clean Cities program that will be funded with nearly $300 million from the American Recovery and Reinvestment Act. These projects will speed the transformation of the nation’s vehicle fleet, putting more than 9,000 alternative fuel and energy efficient vehicles on the road, and establishing 542 refueling locations across the country. The Department of Energy also estimates they will help displace approximately 38 million gallons of petroleum per year.

“The Clean Cities program is helping give state and local governments the tools they need to build a greener transportation system that will create new jobs and help to put America on the path to a clean energy future,” said Secretary Chu. “Advancing the number of alternative fuel and advanced technology vehicles on the road will increase our energy security, decrease our dependence on oil, and reduce pollution across the country.”

Under the Recovery Act, the Clean Cities program will fund a range of energy efficient and advanced vehicle technologies, such as hybrids, electric vehicles, plug-in electric hybrids, hydraulic hybrids and compressed natural gas vehicles, helping reduce petroleum consumption across the U.S. In addition, funding will support refueling infrastructure for various alternative fuel vehicles, including biofuels and natural gas. Other efforts under the Clean Cities program include public education and training initiatives to further the program’s goal of reducing the national demand for petroleum.

The projects announced by Secretary Chu will support a combined total of more than 9,000 light, medium and heavy-duty vehicles and establish 542 refueling locations across the country. The vehicles and infrastructure being funded include the use of natural and renewable gas, propane, ethanol, biodiesel, electricity, and hybrid technologies. And with the cost share contributions from the recipients, every federal dollar spent will be matched by nearly two dollars from the project partners.

The DOE announcement has several implications for Blue Fuel/DME producers. First, it means that the United States government is taking alternative fuels seriously - clearly a good thing. Secondly, because Blue Fuel/DME is hydrogen rich and can readily be reformed into hydrogen, it is an excellent fuel for onboard hydrogen reforming in hydrogen-powered vehicles. Finally, since natural-gas vehicles are being promoted by the DOE, the need for carbon capture of excess CO2 from natural gas processing plants becomes even more critical. Through the process of active sequestration - the recycling of carbon dioxide for the production of commercial products - combined with renewable energy, we can produce an alternative fuel (Blue Fuel) that represents an immediate solution to the CO2 emissions problems facing natural gas producers all over North America - and, hopefully, even beyond.

BC Government forges ahead with clean energy plan

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 28 Aug 2009 06:00:00 -0700

BLUEFUELENERGY.COM: The summer of 2009 has certainly been a tumultuous one for the renewable energy industry here in British Columbia. On July 26 the British Columbia Utilities Commission (BCUC)—an independent regulatory agency of the provincial government—shocked the industry and the government by rejecting the 2008 Long Term Acquisition Plan (LTAP) of BC Hydro, a BC crown corporation, saying that it was not in the public interest and ordering BC Hydro to deliver a new LTAP by June 30, 2010. That myopic decision completely ignored the BC Government’s 2007 Energy Plan and various other progressive policies. It also dropped a wet blanket on billions of dollars in investment in green power generation. Appalled by this cheeky pulling of the plug on its initiatives, the government boldly stated its resolve to pick the plug up off the floor and jam it back in the socket.

A mere month after the BCUC decision debacle, the BC Government appears ready to deliver; in its August 25 throne speech (outlining the agenda for the upcoming session of the legislature) the government clearly states what it plans to do to ensure that BC is a leader in renewable energy and climate change mitigation. Sections of the speech most germane to the renewable energy industry are as follows:

“Green energy will be a cornerstone of British Columbia's climate action plan.”
“Electricity self-sufficiency and clean, renewable power generation will be integral to our effort to fight global warming.
“The BC Utilities Commission will receive specific direction.”
“Phasing out Burrard Thermal is a critical component of B.C.'s greenhouse gas reduction strategy.” (Burrard Thermal is an archaic natural gas power generation facility that BCUC proposed ramping up.)
“Further, this government will capitalize on the world's desire and need for clean energy, for the benefit of all British Columbians.” (Clean power exports . . . )
“Whether it is the development of Site C, run-of-river hydro power, wind, tidal, solar, geothermal, or bioenergy and biomass — British Columbia will take every step necessary to become a clean energy powerhouse, as indicated in the BC Energy Plan.”
“We will build on past successes with new strategies aimed at developing new clean, renewable power as a competitive advantage to stimulate new investment, industry and employment.”
“New energy producers will be looking for long-term investments leveraged through long-term power contracts that give them a competitive edge in our province.”
“We will open up that power potential with new vigour, new prescribed clean power calls and new investments in transmission.”
“A new Green Energy Advisory Task Force will shortly be appointed to complement the work of the BCUC's long-term transmission requirement review. That task force will be asked to recommend a blueprint for maximizing British Columbia's clean power potential, including a principled, economically-viable and environmentally-sustainable export development policy.”
“It will review the policies, incentives and impediments currently affecting B.C.'s green power potential, and it will identify best practices employed in other leading jurisdictions.”
“Low-carbon gas development is the key to maximizing B.C.'s energy potential where it can occur with minimal environmental impact.”

Although the government does not specifically mention carbon-neutral Blue Fuel/DME in this speech from the throne, it does support its production by:

1) Vigorously promoting expansion of renewable electricity generation above and beyond large-scale hydro, which is currently the basis for Blue Fuel/DME production in the province;
2) Recognizing that gas is a key to maximizing the province’s energy potential, but that this gas must be low-carbon (for example, natural gas in which the CO2 is “actively sequestered” or recycled, as it would be to produce Blue Fuel/DME.

We at Blue Fuel Energy look forward to learning more about the “specific direction” that the BC Government will shortly be providing BCUC.

Methane recovery and monitoring systems may have Blue Fuel/DME implications

noreply@blogger.com (Blue Fuel Blog Team) — Wed, 26 Aug 2009 10:30:00 -0700

BLUEFUELENERGY.COM: As reported recently on the website, Mineweb, the advance of methane recovery and monitoring equipment technology is helping companies in a broad range of fields to improve safety and generate new revenue.

In terms of background, coal mine methane (CMM) is a greenhouse gas (GHG) with a global warming potential 21 times greater than that of CO2. Author John Chadwick estimates that by 2020 CMM emissions from the world's coal mines will increase by 30% from current levels and represent about 8% of methane emissions generated by human activity.

Although capturing methane emissions is both a mine safety issue and a necessity for decreasing GHG emissions, it is also a business opportunity. For example, methane gas can be burnt to create electricity. In 2007 UK Coal, a pioneer in the use of this technology, earned a US$10m profit by using gas extracted from its mines to power over 40,000 hones.

Chadwick also asks the question: what are the wider opportunities which this advanced method of methane monitoring is now helping facilitate? To give some examples, captured methane can be used for natural gas pipeline injection, electric power generation, co-firing in boilers, district heating, mine heating, coal drying, vehicle fuel, and manufacturing uses such as feedstock for carbon black, methanol - and, most importantly for readers of this blog, the production of dimethyl ether.

Also, for the very low concentration methane in mine ventilation air, technological development has progressed to the point that this CMM source can be oxidised and the resulting thermal energy used to produce heat, electricity, and refrigeration.

Although the Mineweb article does not state specifically that methane drainage techniques are being used for Blue Fuel/DME production, it is interesting to note that China - the world's leading DME producer - is also the leader in purchasing this new-generation methane capture equipment.

Perspectives on methanol

noreply@blogger.com (Blue Fuel Blog Team) — Fri, 21 Aug 2009 09:15:00 -0700

BLUEFUELENERGY.COM: Although DME can be manufactured directly from synthesis gas produced by the gasification of coal or biomass, or through natural gas reforming, world production today is primarily through the catalytic dehydration of methanol. Given that Blue Fuel Energy will produce methanol to produce Blue Fuel/DME, it is important to be informed about methanol because it too is an alternative fuel garnering considerable attention. It is certainly not lost upon Blue Fuel Energy that if demand for methanol were to escalate, being in a position to introduce a carbon-neutral version of it into the marketplace would have its advantages.

Methanol, of course, has its detractors and proponents. The monthly magazine Energy Tribune has recently presented articles from both camps in the methanol debate. To learn the views of detractor Geoffrey Styles, please read this July 16 piece; in response, the Methanol Institute has responded to Styles article in this July 29 article by John Lynn.