The Shanghai Chemical and Coal Company in China has announced plans to produce a new type of fuel known as dimethyl ether. This new fuel will replace diesel and be used as fuel for buses. The use of this fuel could save the city $37,000 per year.
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| The first bus using dimethyl ether fuel designed by a team of experts from the University of Transportation (Photo: VNN) |
Next week, the Shanghai Chemical and Coal Company, part of the Hyundai Group, will commence the production of 5,000 tons of dimethyl ether (DME) fuel.
This production is taking place amid rising crude oil prices worldwide, which have exceeded $70 per barrel, alongside increasing trade demand in Shanghai. Bus companies are facing challenges in meeting customer needs under these conditions.
Dimethyl ether (DME) is a clean fuel intended to replace liquefied petroleum gas, liquefied natural gas, diesel, and gasoline. This fuel is produced from natural gas, coal, or organic materials.
Fuel market experts indicate that dimethyl ether (DME) can be produced as a substitute for diesel and can keep global crude oil prices above $40 per barrel. Currently, crude oil prices are around $70 per barrel, nearly tripling since 2002.
The new dimethyl ether (DME) fuel costs approximately 1,000 yuan per ton (equivalent to $123), making it cheaper than diesel. If dimethyl ether is implemented as a replacement for diesel in all the buses in Shanghai, it could save over 300 million yuan (approximately $37,000) annually.
Currently, Shanghai has 15,000 out of 19,000 buses running on diesel fuel. The company’s current production capacity can supply hundreds of buses, and it can expand production if market demand significantly increases.
The city government has listed the dimethyl ether (DME) fuel industry as one of its key initiatives to reduce costly fuel expenses, decrease environmental pollution emissions, and minimize noise.
However, bus engines will need some modifications before using this new fuel. Mr. Huang Zhen, a specialist in alternative fuels at the University of Transportation, stated, “To use dimethyl ether (DME), we need to redesign the engine for each bus, and the cost is about 10,000 yuan (equivalent to $1,230) per vehicle. This cost is not too high.”
Dimethyl ether (CH3OCH3), also known as methoxymethane, oxybismethane, methyl ether, wood ether, or DME, is a colorless gas that can be processed into a liquefied gas. DME is produced from natural gas, coal, or organic substances.
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Ngoc Huyen
