After LNG, China test drives methanol-fuelled cars

China, after implementing the use of liquefied natural gas (LNG) powered public buses in Beijing, will conduct a trial run of methanol-fuelled cars in three provinces effective March 2012.

The Ministry of Industry and Information Technology (MIIT) of China announced on Tuesday the trial runs of the methanol-fueled vehicles will be staged in the northern Shanxi and Shaanxi provinces and eastern Shanghai city in a bid to evaluate the safety of the vehicle and the alternative fuel. The evaluation period could last in two to three years, the official Xinhua news agency reported.

“Shaanxi, Shanxi and Shanghai all have accumulated abundant experience in developing methanol-related technologies including methanol-fuelled cars,” the MIIT said.

Coal-rich Shanxi province, according to MIIT, has a total of over 40 methanol fuelling stations, while neighbouring Shaanxi province has seven existing methanol gasoline blending centers.

Methanol is a high-octane fuel that is most efficiently and inexpensively made from converted natural gas, according to the New York Times. However, methanol produces half the energy per gallon compared with gasoline.

But according to calculations by the Methanol Institute, the alternative fuel is still cheaper than gas. Currently, global spot price for methanol made from natural gas is priced at $1.13 per gallon. Including taxes, distribution and retail markup, plus to be able to sufficiently travel the same distance on methanol versus gasoline, the institute surmised it would cost at least $3 at present.

Based on the outcome after two to three years, the government will decide if it will extend the trial period or expand the application to other provinces, the MIIT added.

Earlier, China announced its intent to slash total energy consumption per unit of industrial value-added output during the 12th Five-Year Plan period 2011 to 2015 by 21 per cent, which could save the country of up to 670 million metric tonnes of coal during the same period.

China, which has overtaken the US and EU as the world’s largest consumer in 2010, has been looking at various and alternative solutions to support its energy requirements as it also works to boost a greener economic growth roadmap.

In December 2011, the Asian tiger said it aims to reduce by 2 per cent its sulfur dioxide (SO2) and chemical oxygen demand (COD) as well as ammonia nitrogen by 1.5 per cent for 2012, apart from maintaining zero growth in the emission of nitrogen oxides. In the same month, under the Kyoto Protocol, China swore to cooperate toward an international treaty that would include limiting the fossil fuel emissions of both industrialised nations as well as emerging economies like theirs.

Of the test drives, MIIT said it expected the trials to help establish a standard criterion for methanol-fuelled cars, provide solutions to modify, build and manage necessary infrastructure, as well as shape industry policies.

In early February, the Beijing Municipal People’s Government signed a framework agreement with the country’s state-owned oil and gas giant China National Petroleum Corporation (CNPC) to enable the promotion of LNG-powered clean energy buses. Under the agreement, CNPC, through its listed arm PetroChina Company Limited, will supply 100 LNG-powered buses during the first half of 2012.

The MIIT, in its statement, said it started researching on the probability of methanol-fuelled vehicles in 2009 in response to China’s rapid developing car industry, tightening crude oil supplies, call for energy conservation and emission reductions.

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