Showing posts with label Dimethyl Ether Market. Show all posts
Showing posts with label Dimethyl Ether Market. Show all posts

Monday, 10 August 2015

Dimethyl Ether (DME) to Power Heavy Vehicles – A Clean-Fuel Trend Set by Volvo but Yet to be Followed by Industry Majors

In the continuing quest for alternative fuels—especially in the transportation sector where heavy vehicles guzzle hundreds of gallons of diesel every year—dimethyl ether (DME) holds a veritable solution. According to the findings of a report published by Transparency Market Research (TMR), the global DME market stood at US$4.46 billion as of 2013, and is pegged to top US$ 8.37 billion by the end of 2020, exhibiting a 9.4% CAGR between 2014 and 2020. The numbers make a strong case for global dimethyl ether market.

This probably explains why Volvo Trucks North America choose to use DME over options such as propane and natural gas. And in doing so, it has set a precedent of sorts for other vehicle makers.
Browse Market Research Report of Dimethyl Ether Market: 
http://www.transparencymarketresearch.com/dimethyl-ether-market.html

Volvo Roots for Dimethyl Ether for its Trucks, EPA Approval for the Fuel Strengthens Prospects

Volvo, one of the largest truck manufacturers in the world, partnered with US-based chemical company Oberon Fuels to formulate DME that could be used commercially to power trucks over long distances. The results have been encouraging – and have paved the way for some game-changing developments in the alternative fuel industry.

Although the recent drop in the prices of diesel have caused companies to cut back on their emphasis on alternative fuels, Volvo continues to stay firm on its argument that DME could become a mainstream fuel thanks to the many advantages and operational efficiencies it offers. In September 2014, the Environmental Protection Agency (EPA) gave its stamp of approval to Oberon Fuels’ DME (which is biogas-based) fuel, clearing the way for the fuel to be included in the Renewable Fuel Standard.

EPA Cites Reduction in Greenhouse Gas Emission as Greatest Advantage of Dimethyl Ether

During its examination, the EPA came up with several factors that tilted the balance in favor of DME. These factors will likely drive the interest in DME further. The EPA said that biogas-based DME that was submitted for approval by Oberon Fuels showed 68% less greenhouse gas emission as against baseline diesel fuel. The other attributes of dimethyl ether, such as its simple composition and ease of handling (comparable to propane) and the ability to work efficiently with a simple diesel engine, all heighten the appeal of DME.

Buoyed by these developments, Volvo has decided to continue working closely with Oberon Fuels and Martin Energy Services to make the fuel available to the commercial vehicle industry.

What Potential Does DME Hold for the Trucking Industry?

The use of dimethyl ether as a trucking fuel could prove surprisingly beneficial – from the standpoint of both performance and profitability. Here are a few advantages of dimethyl ether that the trucking industry is betting on:

· DME features a high centane number and boasts extremely low carbon monoxide (CO) and NOx emissions

· DME is biodegradable and it does not produce sulfur when it burns; it also burns without producing soot

· The handling properties exhibited by DME are similar to propane; however, the former efficiently burns in a compression ignition engine, making it a suitable candidate to substitute diesel with very minor modifications to engine design
Browse Press Release of Dimethyl Ether Market: 

However, thus far, Volvo has been the only major name in the trucking industry to have taken concrete steps in exploring dimethyl ether (DME) as a fuel for trucks of different kinds. The lack of competition in this particular space could prevent the dimethyl ether market from expanding rapidly and bringing more consumers in its folds.

Friday, 27 March 2015

Global Dimethyl Ether Market is Expected to Reach US$ 8.37 Bn in 2020: Transparency Market Research



Global Dimethyl Ether Market is Expected to Reach US$ 8.37 Bn in 2020: Transparency Market Research

Transparency Market Research has published a new report titled “Dimethyl Ether Market by Raw Material Types (Fossil Fuel Based and Bio Based) for LPG Blending, Aerosol Propellants, Transportation Fuel, Industrial Applications and Other Applications - Global & China Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020.” According to the report, the DME market in China and across the globe was valued at US$ 4.46 Bn in 2013 and is likely to reach US$ 8.37 Bn in 2020, expanding at a CAGR of 9.4% between 2014 and 2020. 


Dimethyl ether (DME) is a downstream derivative of methanol and is used in a number of applications such as LPG blending, aerosol propellants, transportation fuel, industrial, and others. LPG blending is the largest application of DME on the global scale. However, the DME market is highly region-oriented, with China alone accounting for over 80% of the global market. Domination of China in terms of production and demand is ascribed to the high demand for LPG –DME blended domestic cooking fuel in the country. China has the largest coal reserves in the world. The country also accounts for the highest coal output every year. Furthermore, China has high coal-based methanol manufacturing capacity in the country. Manufacture of DME from its existing methanol capacity results in lower LPG import burden on China. However, the recent government regulations have banned blending of DME and LPG for domestic use. The country had rapidly expanded DME manufacturing capacities in anticipation of high growth from the LPG blending application. Strict government regulations adversely affected the DME market in China, thereby hampering market growth. Illicit blending of DME in LPG exists in the country. The DME market is experiencing a slowdown of late. It is anticipated to pick up pace after the announcement of clear government directives pertaining to DME-LPG blends.

 
Fossil fuel based DME is the largest segment in terms of raw materials in the world. Its dominance can be ascribed to China’s dominance in the market. Demand for bio based DME is higher in developed regions such as North America, Europe, Japan and South Korea due to its lower carbon footprint. Aerosol propellants is the major application segment in North America and Europe. Akin to global trends, transportation fuel is the fastest growing application in these regions.
 
Key players operating in the DME market include China Energy Ltd., Jiutai Energy Group, Shenhua Ningxia Coal Industry Group Co., Ltd., Korea Gas Corporation, Guangdong JOVO Group Co. Ltd. and Akzo Nobel N.V.

The report segments the global DME market as:
Dimethyl Ether Market - Application Analysis
o          LPG blending
o          Aerosol propellants
o          Transportation fuel
o          Industrial
o          Others (Including chemical feedstock, etc.)

Dimethyl Ether Market - Raw Material Analysis
o          Fossil fuel based DME
o          Bio based DME

Dimethyl Ether Market - Regional Analysis
o          North America
o          Europe
o          Asia Pacific
o          China
o          Rest of Asia Pacific
o          Rest of the World



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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information. 

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