CHINA ENERGY LIMITED ("China Energy" or the "Group") pioneered the use of Dimethyl Ether ("DME") as an alternative source of clean energy in the People's Republic of China, and is the country's market leader for DME. Currently used as a blend stock for liquefied petroleum gas ("LPG"), this fuel has the potential to completely replace LPG, natural gas and diesel.
The Group uses its patented liquid phase dehydration technology in the production of DME. This technology allows the fuel to be produced under lower temperature and pressure, which results in significant cost savings and makes both the production and blending with LPG economically viable. This enables DME, which was once used mostly as an aerosol propellant, to enter the energy sector as a blend stock for LPG.
At present, most of the DME is sold to LPG distributors, who blend it with LPG to improve the product's combustion properties. This blended fuel is then sold to end-consumers for both household and industrial use. Over the years, consumers have grown accustomed to the blended fuel.
Carbon emissions from DME are about 44% lower than those from diesel and DME meets Euro IV standards without further processing. As a result, it also has the potential to become an environmentally friendly alternative for powering automobiles and public transport vehicles. In the long-term, it could well become a widely accepted alternative fuel for general household usage as well as to power vehicles.
The Group also produces methyl alcohol ("methanol"), which is used primarily in the production of other chemicals and also as a feedstock for DME production. At present, nearly all the methanol produced in-house is used as a feedstock in the production of DME.
The Group's production facilities are currently located in Linyi (Shandong Province), Nansha (Guangdong Province) and Zhangjiagang (Jiangsu Province). Our production capacities as at 31 December 2013 are summarised below:
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