Distribution Systems and Costs for a Regional Fuel Methanol Market

This paper describes a methanol distribution system (equipment, logistics, and costs) for the California South Coast Air Basin which will provide up to 250 million gallons per year of fuel methanol for motor vehicle use. The capital cost of upgrading existing fuel distribution systems (terminals, truck fleets, and retial outlets) for methanol service are estimated at $5 to $28 million depending upon the adaptability of existing gasoline systems. For these volumes of fuel methanol, distribution and retail operations are expected to add between 9 and 14 cents to the price of each gallon.