1. Introduction to the Project
1.1 Project Background
1.1. 1 P roduct Introduction
Dimethyl ether is the derivative of methanol. Its molecular structure is 1 methyl on both ends respectively and 1 oxygen in the middle (CH3-O-CH3), so it is also called methyl ether. It can be used as civil fuel to replace the liquefied petrol gas (LPG), so it is also an important chemical material . As daily-sue chemical raw material and chemical intermediate, dimethyl ether is a safe and clean chemical product with excellent performance.
1.1.2 Market Prospects
The production of dimethyl ether of our country was started at the end of the 20th century. In 2002, there were totally dozens of manufacturers, the total productivity was 31,800t/year and the output was about 20,000t. By now, the dimethyl ether market of our country has reached the productivity of hundreds of thousands of tons; there have been 4 or 5 manufacturers with the productivity of more than 100,000t and dozens of manufacturers with the productivity of 30,000t-50,000t . In the future, the scale of the dimethyl ether will be developed to be bigger and upgraded from the current tens of thousands of tons to 100,000t and th en 1 million tons.
Dimethyl ether has broad market prospect in two major application fields - substitute LPG and substitute diesel. In 2007 , presenting consumption of LPG in China was 23 million tons , and diesel 125 million tons . With domestic economy constantly developing, market demand for liquefied gas, petroleum gas and diesel will increase steadily . In 2010, domestic market demand for liquefied gas, petroleum gas and diesel will respectively reach 26 million tons and 140 million tons. However, due to lacking of petroleum resources in China , foreign-trade dependence of crude oil and LPG has increased continuously . Therefore, development of substitute products is good for relieving China's imbalance between petroleum supply and demand , and reducing the foreign-trade dependence of petroleum . Thus it can be seen that , as long as dimethyl ether can be promoted smoothly, and supporting facilities can be improved in the shortest time , market prospect of dimethyl ether will be very optimistic . In August 2007, Ministry of Construction published Standard for Dimethyl Ether for Fuel Gas in Cities and Towns . Implementation of this standard indicates that, as the substitute fuel of liquefied gas and petroleum gas, dimethyl ether has become legal and is allowed being used as substitute fuel in cities and towns . Moreover, implementation of this standard has paved the way of large-scope promotion of dimethyl ether . In addition to policy support , Chinese government invested more in technical development of dimethyl ether . In December 2006 , Jiutai Chemistry obtained 7.3 million yuan of financial support of the National Development and Reform Commission. In addition, the government also directly pushes central enterprises to attend dimethyl ether production. 5 enterprises including China Coal and Sinopec jointly established Zhongtian Hechuang 4 . 2 million tons / year methanol and 3 million tons / year dimethyl ether project, and have signed in Erdos, Inner Mongolia. This project owns capital, scale and resource advantages . Thus it can be seen that , the country has provided powerful support for development of substitute energy represented by methanol and dimethyl ether. In relative loose policy environment , it is estimated that dimethyl ether industry will realize stable increase. The country will further enhance energy conservation and emission reduction , vigorously develop low carbon and environmental protection economy . A utomobile tail gas causes serious pollution to urban environment , developing environmental protection vehicle substitute fuel is one of important means for improving environment, and can conform to the national policy of energy conservation and emission reduction ”. Due to complete burning and little emission of harmful gas , dimethyl ether will become main variety of city vehicle substitute fuel. In particular, dimethyl ether bus can replace diesel vehicle in city to realize the purposes of reducing pollutant emission and improving urban air quality .
The consumption of dimethyl ether as the substituting fuel mainly depends on the supply of dimethyl ether. If the price of dimethyl ether can reach the level competing against that of diesel or LPG, it is believed that the growth speed of consumption of dimethyl ether as fuel will be very fast, with the good market prospects .
1.1.3 Technical Analysis
The project is planned to take the two-step method to produce dimethyl ether. The one-step method is to conduct primary synthesizing of the material gas into dimethyl ether. The two-step method is to synthesize the synthetic gas into methanol and then dewater it to make dimethyl ether. The two-step method is the main process of dimethyl ether production at home and abroad at present. The method takes the pure methanol as material, with less byproduct in the dewatering reaction and the purity of dimethyl ether reaching 99.9%. The process is mature, the device has the wide scope of applicability and the post-treatment is simple .
1.1.4 A dvantageous Conditions of Project Construction
( 1 ) Policy advantage
The project meets the industrial development direction of Songyuan City and is favorable to transforming the resource advantages into the economic advantages .
( 2 ) Related technical advantage
This project is planned to take the advanced methanol hydrogen chloridization process: the first step is methanol reacting with hydrogen chloride to generate methane chloride. The second step is methane chloride reacting with chloride to generate methane multi-chloride. Carbon tetrachloride generated in the reaction further reacts to generate chloroform, which prevents the second pollution of environment. Technical characteristics: the technical route is mature, the production process is simple and the product quality is stable .
( 3 ) Talent and market share advantage
Songyuan City has the sufficient human resources, with the low price. Songyuan Technical College and Songhua Technical School can provide the intelligent support for the top-grade administrators and senior technical workers needed by the enterprises. Songyuan Municipal Government has signed the personnel, science and technology cooperation framework agreements with Beijing Branch, Shenyang Branch and Changchun Branch of the Chinese Academy of Sciences, which provides the scientific and technological support for the development of enterprises. In order to protect the ozone sphere, the Montreal Protocol was signed internationally; carbon tetrachloride and its derivatives, that is, CFC-11 and CFC-12 have been listed as the controlled matters and will be prohibited from production and use. In some developed countries such as the US, limits are also presented in the application of methylene chloride in some fields (such as aerosol and electronic industry), making the production and consumption of methylene chloride in some developed countries influenced, to some extent. However, in some developing countries and regions such as Asia, East Europe, the Middle East and South America, the consumption growth of methane chlorides is very fast . In the world, methane chloride is used as the raw material of organic silicon and trichloromethane is used as the material of HCFC-22, the consumption still appears rapid increase trend .
( 4 ) Resource advantage
Changling County is rich in oil and gas resources, with reserve 82.5 billion m3. There are more than 40 production gas wells, with the daily output of more than 1 million m3 natural gas now, and can reach the daily output of 3 million m3 recently, and the connection with the trunk line of natural gas has been realized; the project construction site is featured by convenient traffic, and complete infrastructure and supporting facilities, having the construction conditions.
1.2 Content and Scale of Project Construction
1.2. 1 P roduct Scale
Annual production capacity is 100,000t dimethyl ether .
1.2. 2 Construction Content
This project has construction land 30,000m2 .
1. 3 Total Investment of the Project and Capital Raising
Total investment of the project is 482.59 million yuan, including construction investment 392.36 million yuan.
Table 1: Summary Table of Total Investment of the Project    Unit: 10, 000 Yuan
Expense Name
Amount of Investment
Proportion of Total Investment %
Construction investment
Interest incurred during construction
Circulating capital
Total investment of the project ( 1+2+3 )
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
After the project reaches the production capacity, it will realize annual sales income 562.16 million yuan, profit 143.31 million yuan, payback period 4 years ( after tax, including 1.5 years of construction period ) and ROI 22% .
Table 2: List of Major Indexes for Forecast of Financial Benefits
Sales income
10, 000/a
Normal year
Total profit
10, 000/a
Normal year
FIRR of all investments
After income tax
FNPV ( Ic=10% )
10, 000
After income tax
(operation period 10 years)
Period for recovery of all investments (after tax)
Including 1.5 years of construction period
Note: "RMB10, 000" in the Table shall be RMB.
1.4.2 Social Evaluation
Dimethyl ether, as the new matter, happened some problems at the beginning of development of the industry, but the active development of dimethyl ether can effectively reduce the impacts of the growth of the international crude price on the economy and society of our country .
The project takes natural gas and methanol as the main materials, with the low production cost. The product has the strong market competitiveness. It can create the good economic and social benefits for the country, the local area and the enterprise . After the project is put into production, it can employ over 100 persons.
1.5 Cooperative Ways
Joint venture
1.6 What to be Invested by Foreign Party
1.7 Construction Site of the Project
Natural Gas Development and Utilization Industrial Park of Changling County
1.8 The On-going Condition of Project
Cooperative plan for the project has been prepared
2. Introduction to Partner
2.1 Basic Conditions
Name: Natural Gas Development and Utilization Industrial Park of Changling County
Address: Jiti Township, Changling County
2.2 Overview
Natural Gas Development and Utilization Industrial Park of Changling County is a city-level industrial park approved and established by Songyuan Municipal Government in September 2004, which has total planned area 11km2 , including starting area 5km2 . By now, 18 enterprises, including Jiaheng Glass Products, Hongjutong Energy, Ruixin Chemical Industry and Hengxin Gas, have stationed in the park. In 2014, it realized gross value of production 450 million yuan and industrial added value 120 million yuan.
2.3 Contact Method
Contact Unit: Natural Gas Development and Utilization Industrial Park of Changling County
Contact Person: Cao Jun
Tel: 0438-7773302    13943305907
Contact Method of Project City (Prefecture):
Contact Unit: Economic and Technological Cooperation Bureau of Songyuan City
Contact Person: Han Baidong
Tel: 0438-2706617   13514384757
Fax: 0438-2706617
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