Abstract

The Liquid Phase Methanol (LPMEOH(TM)) Demonstration Project at Kingsport, Tennessee, is a $213.7 million cooperative agreement between the U.S. Department of Energy (DOE) and Air Products Liquid Phase Conversion Company, L.P. (the Partnership). The LPMEOIWM Process Demonstration Unit is being built at a site located at the Eastman Chemical Company (Eastman) complex in Kingsport. During this quarter, the Cooperative Agreement was modified (Mod AO11) on 8 October 1996, authorizing the transition born Budget Period No. 2 (Design and Construction) to the . final Budget Period (Commissioning, Start-up, and Operation), A draft Topical Report on Process Economics Studies concludes that methanol coproduction with integrated gasification combined cycle (IGCC) electric power utilizing the LPMEOW process technology, will be competitive in serving local market needs. Planning for a proof-of- concept test run of the liquid phase dimethyl ether (DME) process at the LaPorte Alternative Fuels Development Unit (AFDU) was recommended; and a deeision to proceed is pending. Construction (Task 2.2) is 97'Mo complete, asof31 December 1996. Completion of pipe pressure testing has taken longer than expected. This will delay completion of construction by about three weeks. Commissioning activities (Task 2.3) commenced in mid-October of 1996, and the demonstration unit is scheduled to be mechanically complete on 24 January 1997.

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