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INTRODUCTION

production or as gasoline blending component and for manufacture of MTBE, which is again
an octane boosting additive for gasoline. It is also one of the major feedstock for biodiesel
production [23].
The non-fuel use of DME is mostly for aerosol preparation. The fuel related usage of DME is
as LPG and Diesel substitution or as blending component.
The different uses of Methanol are tabulated in Table 4.

TABLE 4

Use of Methanol for Different Applications
S. No Product 2007 2016 2025 Application Area
% MMTA % MMTA % MMTA
1 Formaldehyde 38 15.2 28 21.6 14.7 22 Pharma, Automobile, Wood Industry
(HCHO) (Adhesive), UF/PF Resin, Insulation Industry
2 Acetic Acid 11 4.5 9 7.0 8.6 8.8 PTA (Art Textile), Adhesive Paints
3 MTBE/TAME 11 4.5 8.5 6.5 7.5 7.9 As Oxygonte in Transport Fuel, replacement
of TEL
4 MeOH as Gasoline Blend 7 2.8 19 14.63 21.5 22.7 Transport Fuel Blend
5 Bulk Olefins for Polyolefins & NIL NIL 8 6.2 11.5 11.4 Polyolefins (PE, PPX other LVOC)
other LVOC (i.e. MTO/MTP)
6 Chloromethane/ Methyl A 5 2.0 4 3.1 3.9 4.1 Silicones
7 As solvents for Pharma, 16 6.4 11 8.5 10.1 11 Pharma Process + Construction chemicals
Construction Industry etc.
8 As fuel cell feed
Total 35.4 67.53 87.5
*These Facts Emerged During The Study (Some Methanex, Icis Etc) for Methanol Application Areas Including Forecast To
2025

1.3 GLOBAL DEMAND & PRODUCTION OF METHANOL AND DME

Till 2012, global methanol production was much less than the installed capacity but during the
last few years, the demand has increased and many new facilities are coming up around the
world. It is expected that by 2020, the production of methanol will exceed 100 MT. The global
production of methanol is going to be nearly doubled between 2011 and 2020. The rise in
demand will only come from fuel usage, while the use as feedstock for formaldehyde etc. will
decline significantly.
The present demand for DME is of the order of 5 MTPA, which is expected to grow by about
15% per year during the next few years. At this time the major use of DME is for blending with
LPG but the use as diesel substitute is expected to increase by many folds, in the near future.
In addition to the use of methanol and DME as transportation fuels, the recent trend is to use
methanol as a feedstock for olefin production, particularly in China. Several new gas based
methanol plants are coming up for exporting to China. In the last few years this application has
grown as the sixth largest methanol derivative. Methanol demand is expected to grow and it
is expected that during the next five years an average growth rate of almost 7% with usage of
methanol as feedstock for olefin production is likely to become the second largest methanol
derivative. [129]
The methanol industry spans the entire globe, with production in Asia, North and South America,
Europe, Africa and the Middle East. Worldwide, over 90 methanol plants have a combined

Methanol and DME Production: Survey and Roadmap | 2017 21