The development of dimethyl ether (DME) blended with liquefied petroleum gas (LPG) is on the verge of a major breakthrough. A long-standing delay in establishing standardized procedures for blending DME and LPG is expected to be resolved soon. In the first half of 2013, two key industry standards—*Standard for LPG Dimethyl Ether Mixed Gas* and *Liquefied Petroleum Gas Dimethyl Ether Mixed Gas Cylinder Standard*—are set to be officially released. These standards were previously included in the second batch of energy sector regulations by the National Energy Administration.
These new guidelines are expected to address numerous challenges currently facing the DME-LPG blending process, helping the DME industry unlock its full production potential. The standards will not only bring much-needed clarity but also promote safer and more efficient use of this clean energy alternative.
As a clean and cost-effective fuel, DME offers several advantages over traditional fuels. It is easy to compress, safe to handle, burns efficiently, and has a high thermal efficiency. Its applications extend beyond industrial use, making it a promising option for urban gas supply.
Chi Guojing, secretary-general of the China City Gas Association, highlighted that the urban gas market is growing rapidly, yet current supply remains insufficient to meet economic demands. Traditional gas sources like artificial gas, LPG, and natural gas face various limitations. Artificial gas, for instance, is expensive and often contaminated, while natural gas supply is limited, requiring significant imports and leading to rising costs. Similarly, domestic LPG production struggles to keep up with demand, resulting in heavy reliance on foreign imports.
Chen Weiguo, deputy director of the DME Special Committee, noted that DME with a concentration above 95% can directly replace LPG as a clean fuel. However, the implementation of the *National Standard for Municipal Gas DME Emissions* on July 1 last year restricted its use to city gas only, requiring special cylinders. This effectively blocked the path for DME-blended LPG.
Despite this, many regions have continued to blend DME with LPG due to its significantly lower price—approximately 2,000 to 2,300 yuan per ton cheaper than LPG. This practice has become an unspoken norm within the industry. Li Fayou, sales manager at Shandong Qingda New Energy Co., Ltd., confirmed that such blending is widespread.
The surge in DME production has led to overcapacity, driven by strong economic incentives. Many companies have entered the market, causing a boom in DME projects. According to a researcher from Shandong Jiutai Energy Group, the production process of DME is relatively simple, which has attracted a flood of investments.
Data shows that by 2008, China's DME production capacity was 4.9 million tons. By the end of October this year, normal production capacity had increased to 12.118 million tons, with an additional 300,000 tons still under construction. Moreover, there are 20 million tons of DME plants currently under development.
In April last year, the National Development and Reform Commission issued a circular prohibiting the construction of coal-based DME projects with annual output below 1 million tons until new approval lists are issued. Despite this, local investment enthusiasm remains high, with many projects proceeding simultaneously.
Safety concerns remain a major issue. DME has a low flash point, posing risks during storage and transportation. Additionally, it is corrosive, making ordinary LPG cylinders unsuitable. Special steel cylinders must be used, and the lack of clear safety standards for blending levels adds to the risk.
With the completion of the two new standards, these issues are expected to be addressed, promoting safer and more regulated use of DME-blended gas. Li Fayou emphasized that DME is considered one of the cleanest fuels after hydrogen, with physical properties similar to LPG. It can be stored as a liquid under moderate pressure, making it a viable alternative to petroleum-based fuels.
Jiang Lianbao, deputy secretary-general of the Alcohol and Ethylene Cleaning Automobiles Committee, noted that the new standards will not only help establish a fair market order for DME-blended gas but also support the methanol industry by reducing overproduction. As DME production increases, so does the demand for methanol, creating a positive ripple effect across the energy sector.
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