Dimethyl Ether (DME): Exploring an Alternative Fuel

Dimethyl Ether (DME) –An Alternative Fuel

Dimethyl ether (DME), also known as methoxy methane is a precursor to many organic compounds and aerosol propellants (fuel applications). DME is a clean source of energy that generates no sulphurOxides (SOx) or black smoke (soot) when burned and is generally manufactured by dehydration of methanol or directly from synthesis gas. 

DME has been used as a propellant in household and personal care products; the paints industry and in the food & beverages industry. Currently China is the largest consumer of DME and the main application include fuel for cooking and heating. Rising consumer preferences and growing environmental concerns for less hazardous and improved quality fuel are the major drivers for the DME market.

Dimethyl Ether Regional Demand Split – 2023 (Around 8000 KT)

On account of economic reasons and government support, China has been using a blend of DME produced from Coal and imported LPG. Asia-Pacific region is the largest market for DME as the demand for domestic fuel is higher and is estimated to gradually increase due to increase in population. In terms of consumption, China, Japan, South Korea, and Indonesia hold a significant share. DME is majorly used for LPG blending and aerosol propellant purposes. 

The global dimethyl ether demand is estimated to be around 8000 Kiloton where Asia Pacific leads the DME market with 85% of the global consumption. Major DME manufacturers include Zagros, Jiutai Energy Mangolia, DME International, and Akzo Nobel. Most of the plants are based on Haldor Topsoetechnology from Denmark. Other popular technologies include Toyo Engineering, Udhe, Mitsubishi, and DME China Energy.

The Major Dimethyl Ether (DME) Manufacturers:

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