WA being considered for world's first large-scale dimethyl-ether plant - Minister

5/06/01
A consortium of Japanese companies has started detailed studies into establishing the world's first, large-scale dimethyl-ether (DME) plant at Karratha in Western Australia, State Development Minister Clive Brown announced today.
The partners - Mitsubishi Gas Chemical, ITOCHU Corporation, JGC Corporation and Mitsubishi Heavy Industries - who each have a 25 per cent interest in the project, plan to finalise their studies in 2002. They will then decide whether to develop a US$500 - US$600 million plant on the Burrup Peninsula.
"If the plant goes ahead, it will come into operation at the end of 2006," Mr Brown said.
"To get a large-scale DME plant in this State, the world's first of its type, would be a real coup for Western Australia.

"The fact that these highly reputable companies are considering building a plant here highlights the growing interest in WA as a destination for a new gas-to-liquids industry which would draw upon the State's vast gas and other natural resources.
"It also shows that we provide the kind of stable and productive business environment which is favourable to offshore investors."
The joint venture has begun a full feasibility study on building a plant which would produce 1.4 million to 2.4 million tonnes per year of DME by means of the methanol dehydration process.
Methanol, a product which already has established markets, is used to prepare industrial chemicals and fuel additives. DME is currently used as an aerosol propellant and is being tested as a potential new fuel source.
DME is seen as new generation fuel for power production and a substitute for liquefied petroleum gas (LPG), diesel oil.
"This fuel is a potential new source of clean power with very positive environmental benefits," Mr Brown said.
He said the WA State Government had already allocated 60ha of land on the Burrup Peninsula for the project and was handling the proposal as a high priority project.
The Minister said he was briefed on the project during his recent visit to Japan.
"The Federal Minister for Industry, Science and Resources, Nick Minchin, has granted the venture 'Major Project Facilitation' status," he said.
Mr Brown said Mitsubishi Gas Chemical was a world leader in the production and marketing of a wide range of commodity chemicals. It was the first company to successfully create methanol from natural gas in 1951. The group currently operated a 6,000 tonnes-a-year DME plant in Japan, with the product used for aerosol propellant.
World-wide there are a handful of other existing dimethyl-ether plants in operation but all are small-scale plants, none the size of the proposal for WA.
The WA plant would need between 170 to 300 terajoules of gas per day.
If the project gets the green light, more than 2,000 people would be employed during the construction phase, with approximately 150 workers being permanently employed when the plant is in operation.
"The project would provide a welcome boost to jobs and a major injection into the State's economy," said Mr Brown.
Media contact: Bev East on 9222 9699