Methanol fuel from Alaskan natural gas : technical and economic analyses

This study addresses an Alaska methanol concept which involves the conversion of natural gas at the Alaskan North Slope into methanol, delivering it through the Aleyska pipeline (which at present is delivering crude oil) to Port Valdez, and transporting it to west coast ports by tankers.

This study includes both technical and economical evaluations. In the technical portion, the evaluation of existing technologies for methanol synthesis with emphasis on pre-fabricated technologies, the analysis of pump power along the pipeline, the separation of crude oil and methanol, additional needs for storage tanks, and shipment via tankers have been addressed.

In the economic evaluation, the estimation of all major unit costs involved in this project has been undertaken. The most important cost is that of methanol synthesis facilities at the North Slope. The financial analysis converts the cost data into estimated prices methanol per unit for selected cost criteria by use of the discounted cash flow method.

Although this study is an "order of magnitude” one, it suggests that the price per unit of methanol may be competitive with gasoline (the lower range of the price) subject to futher analytical study. A more detailed analytical study thus is recommended.