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Renewable Methanol Report Figure 10. Cost savings from switching a 100 MW power plant from diesel to methanol 10 year total fuel costs – methanol vs. diesel (2006-2015, per 100MW of power generation) $1,100 $1,060 $904 $1,050 $1,000 $950 $900 $850 $800 Total fuel cost – diesel Total fuel cost – methanol Over the past decade, a hypothetical 100MW power plant in the Caribbean, operating on methanol vs diesel, would have saved ~US$156 million in fuel costs. Sources: Methanex, public data from Anguilla, St Lucia and Grenada eletricity generation utilities Power generation Much of the electricity generated around the world is still powered by highly polluting fossil fuels such as coal, diesel and fuel-oil. Renewable methanol is a readily available fuel that would drastically reduce harmful emissions. In Israel, a 50 MW plant that was converted from light fuel oil to methanol has completely eliminated sulfur oxide emissions, and reduced nitrogen oxide and particulate matter emissions by 85% and by 90% respectively. The conversion, which took place in 2014 and cost US$ 5 million, enabled the Israel Electric Company to comply with newly introduced stringent air pollution regulations. These regulations allowed the plant to operate only 300 hours a year whilst running on light fuel oil; once converted to methanol, it could operate without restrictions, improving the economic performance of the plant28. Island nations, which often rely heavily on diesel generators, could save money by switching to conventional methanol. According to Methanex, an 100 MW power plant operating in the Caribbean could have saved US$ 156 million in fuel costs between 2006 and 201529. As wind and solar prices drop, they are often cheaper than diesel, offering islands an opportunity to enjoy lower energy costs, reduce dependence on imported energy, and mitigate their impact on the environment. However, wind and solar are variable and might not be available when most needed, so islands need 28 DAY, William: http://www.methanol.org/wp-content/uploads/2016/12/Methanol-Nov-Dec-2016-GTW-.pdf 29 Methanex Corporation: https://www.methanex.com/sites/default/files/about-methanol/methanol-and-energy/Methanex_PowerBrochure.pdf As wind and solar prices drop, they are often cheaper than diesel, offering islands an opportunity to enjoy lower energy costs, reduce dependence on imported energy, and mitigate their impact on the environment. www.methanol.org 23 Total fuel cost (US$mm)PDF Image | Renewable Methanol Report
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