S. Korea to develop eco-friendly fuel for widespread use

South Korea plans to develop an eco-friendly fuel for wide-spread commercial use, the government said. The Ministry of Commerce, Industry and Energy said a demonstration plant that can produce 10 tons of dimethyl ether (DME) a day will be built in May 2008, with pilot commercial operations using the fuel to begin the following year. Full-scale use of the fuel is expected to start in 2012 with annual output reaching 1 million tons, the ministry said. DME is a clean, colorless gas made with liquefied natural gas (LNG), coal and biomass that releases less carbon dioxide than diesel fuel, and can help the country reduce its greenhouse gas emissions. DME can replace diesel fuel in vehicular engines that already run on the fuel and it can be mixed with liquefied petroleum gas (LPG) to reduce costs since it is about 20% cheaper than LPG. “Commercial use of DME is not only good for the environment, but can also help South Korea diversify its energy sources, insulating it from sudden surges in crude oil prices,” said Cheong Seung-il, head of the ministry’s gas industry team. (August 26, 2007)