MI: Methanol: North America's Clean Fuel and Chemical Building Block BUILDING BLOCK

Methanol: North America's Clean Fuel and Chemical Building Block

METHANOL FUEL AND CHEMICAL USES

Methanol is a chemical building block for manufacturing a wide array of products used in our cars, homes and businesses:

More than 25% of the gasoline used in the U.S. is clean, reformulated gasoline largely made with MTBE (methyl tertiary butyl ether) produced from methanol.

As an alternative fuel, methanol is used in cars, trucks and buses to reduce tailpipe emissions and our dependence on imported oil.

Formaldehyde resins are used in engineered wood products like particle board made from waste wood, and in products like seat cushions and Spandex fibers.

Methanol-based acetic acid is used in making PET plastic bottles and polyester fiber in clothing and carpets.

Methanol is the principal ingredient in windshield wiper fluid, and is used in chlorine-free bleaches, paints, solvents, refrigerants, and disinfectants.

What do reformulated gasoline, PET plastic bottles, paints, plywood panels, bleached paper, Spandex tights, polyester carpets and windshield wiper fluid have in common? The answer is methanol, made from clean natural gas.

Methanol is a liquid chemical that can be made from renewable resources such as municipal solid waste and biomass crops. Today, methanol is primarily made from steam reformed natural gas and carbon dioxide. In fact, methanol production is a major market for U.S. natural gas, using over 194 trillion Btus of domestic natural gas in 1995.

The United States produces almost one-quarter of the world's supply of methanol. In 1998, methanol production capacity from 18 U.S. totaled more than 2.2 billion gallons. These plants meet three-quarters of U.S. methanol demand. The remaining supply comes from imports, of which Canada supplies well over one-half. In 1998, 90% of methanol supplied to the U.S. was produced in North America, 8% from Trinidad, Venezuela and Chile, with the remaining 2% produced in Europe, Asia and the Middle East.

The largest market for methanol in the U.S. is for the production of methyl tertiary butyl ether or "MTBE." Produced in nearly 50 U.S. plants in 14 states, it is estimated that 3.3 billion gallons of MTBE was in 1996 for blending in clean, reformulated gasoline serving 30% of the U.S. gasoline market. MTBE displaces 10 times more gasoline than all other alternative vehicle fuels combined.

The Methanol Institute (MI) serves as the voice of this important and growing industry in Washington and across the country. For more information, contact MI at (202) 467-5050 or MI@methanol.org. [July, 2000]

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