Di-methyl Ether Market is Growing Rapidly as Chemicals Giant BSAF SE signs Memorandum of Understanding (MoU) with Lutianhua Group Ltd Boost Production of DME

Di-Methyl Ether is the compound name for the compound CH₁OCH₁, with the abbreviation CCHH₀. It's the simplest compound, it's a yellowish colored gas that is an aerosol propellant and a precursor to more complex organic substances. It's an isomer of acetaldehyde. The synthesis gas transformed into methanol in the presence of catalysts with consequent methanol dehydration under various catalysts namely silica-aluminum. Since the liquefaction of di-methyl ether is comparatively easy, it is convenient to store and transport. DME is typically used in automotive motors, power generation, and domestic applications. Acetaldehyde is used in many things such as paint, ink, and other organic products and also as a gasoline additive. It's been used for years as an oxidizing agent for rocket propellants and has even been used in space for its oxidizing properties.

Increasing coal production in Asia Pacific countries is expected to drive growth of the global di-methyl ether market during the forecast period. According to the Statistical Review of World Energy by British Petroleum, in 2016, India produced over 761 million tons of coal, which ranked 2nd in the world. According to the same source, global coal production increased by 1.5% with Indonesia and China's significant increase of 1.3EJ and 3.2 EJ respectively. Such massive production of coal has led to increase in the production of di-methyl ether. Thus, these factors are expected to drive growth of the global di-methyl ether market during the forecast period. Furthermore, increasing use of DME in LPG blending application is expected to propel the global di-methyl ether market growth in the near future.

However, challenges associated with alteration of existing infrastructure is expected to hinder the global di-methyl ether market growth in the near future. Furthermore, high demand and untapped potential in emerging economies can provide lucrative growth opportunities in the global di-methyl ether market. In fact, growing use of DME as an alternative fuel for transportation and in the power sector can present significant business opportunities in the near future. Among regions, Asia Pacific is expected to witness significant growth in the global di-methyl ether market, owing to rapid growth of paints and coatings in the region.

Major companies involved in the global di-methyl ether market are BSAF, Akzo Nobel N.V., Zagros Petrochemical Company, China Energy Limited, Oberon Fuels, Ferrostaal GmbH, The Chemours Company, Royal Dutch Shell plc, Grillo Werke AG, and Mitsubishi Corporation.

For instance, in June 2019, BASF SE, a Germany-based chemicals company, entered into a memorandum of understanding (MoU) with Lutianhua Group to build a pilot plant for the synthesis of di-methyl ether using an energy-efficient one-step process.

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