Green DME in a Renewable Energy System

Rising global temperatures, severe weather, sea-level rise, and ecological disruptions are driven by increased CO2 emissions, which have risen by about 63% from 1990 to 2022. The EU's Fit for 55 package aims to cut net GHG emissions by at least 55% by 2030 and achieve climate neutrality by 2050. Renewably-produced dimethyl ether (rDME) is highlighted as a promising solution, produced from biomass or green hydrogen and captured carbon. This chemical can be used in various markets, such as a substitute for diesel transport, in aerosols, and as a chemical feedstock to produce plastics. In our project, we evaluated rDME production pathways and their potential in the European market for liquefied petroleum gas (LPG).  

• Collaborator: TNO

• Students: Eva van den Assum, Bess Hovers, Gijs van Boxtel

• Supervisors: Jarik Guijt, Daniela Toribio Ramirez, Shiju Raveendran

• Cohort: 2024

Challenge 

The primary challenge of our project is to address the difficulty of reducing GHG emissions in sectors that are resistant to electrification. Despite the EU's ambitious Fit for 55 package, certain sectors like heavy transport, chemical production, and domestic heating remain challenging to decarbonize. These sectors continue to rely heavily on fossil fuels, making significant emissions reductions difficult to achieve. Our study will evaluate the potential of renewably-produced DME (rDME) as a viable alternative, providing a comprehensive assessment of its production pathways and suitability for diverse European markets. 

Approach 

To address this challenge, we conducted an extensive literature review and consulted with experts in the field to compile a report. This report features a techno-economic analysis, detailing the costs, efficiency, and carbon footprint of various rDME production methods. Following this, we performed a market analysis focused on a specific European market where rDME could potentially replace conventional fuels. We explored three scenarios: complete substitution of liquefied petroleum gas (LPG) with rDME, partial substitution, and full electrification of the market. Finally, we integrated these analyses by assessing the feasibility of rDME production technologies within the different scenarios.

Outcomes 

Our findings highlight both the promise and considerations for rDME implementation.  

• Technological Analysis: Our research identified several pathways for producing rDME, including using hydrogen and carbon dioxide, biomass, or water and carbon dioxide. Each pathway offers advantages and disadvantages. We calculated the levelized cost of DME (LCODME) across these pathways. Currently, fossil-based DME production boasts the lowest LCODME due to well-established technologies with high Technology Readiness Levels (TRLs). However, this advantage may diminish over time. The concept of learning curves suggests that with increased production volume, emerging rDME production pathways can experience cost reductions. As these technologies mature and production volumes rise, rDME could become more cost-competitive with fossil-based options. 

• Market Analysis: Focusing on rDME as a substitute for Liquefied Petroleum Gas (LPG) in the European off-grid heating market, we analyzed three scenarios: 100% replacement with rDME, a blend of rDME and BioLPG, electrification. Financial analysis revealed that a blend of rDME and BioLPG is currently more cost-competitive than a complete switch to rDME due to the aforementioned TRL differences. However, with learning curve effects considered, rDME may become more attractive over time. Some EU countries might prioritize electrification as their main strategy for decarbonizing off-grid heating, potentially bypassing rDME or BioLPG blends. Herein, we explored more scenarios: electrification with existing grid connection, and electrification for completely off-grid homes.  

• This research concludes that all EU countries can benefit from our findings as they develop strategies for a more sustainable energy future. By considering their unique circumstances, each country can make informed decisions regarding the most effective approach, whether it's rDME, BioLPG blends, electrification, or a combination of these options. 

Main conclusion

While our research identifies promising avenues for making energy options greener, it's crucial to acknowledge the ever-increasing demand for energy itself. This project, along with many others, highlights the importance of technological advancements and policy changes. However, the most significant transformation lies in a fundamental shift in societal mindset – a move away from a consumption-driven culture and towards a circular economy. 

We call upon the people to embrace a more mindful approach to consumption. By prioritizing responsible use, repair, and reuse, we can collectively minimize demand and maximize the effectiveness of these greener solutions. 

Impact and Contribution to Collective Futures 

This project contributes to Collective Futures' broader goals by: 

• Identifying Diverse Sustainable Options: We present rDME as a potential contender alongside other strategies like electrification, giving a more comprehensive toolbox for achieving a sustainable energy future. 

• Informing Policy Decisions: By analyzing the technological and financial considerations of rDME and its alternatives, we provide valuable insights for policymakers as they develop effective decarbonization strategies in the European context. 

• Promoting Long-Term Sustainability: Our research emphasizes the importance of considering learning curves and technological advancements when evaluating the cost-effectiveness of emerging technologies like rDME. This encourages long-term planning and investment in solutions that will become increasingly viable over time. 

Student team