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Study Cites Low Cost for Methanol Refueling Stations

5 February 1999

Study Cites Low Cost for Methanol Refueling Stations

    WASHINGTON, Feb. 4 -- A study by the environmental
engineering firm EA Engineering, Science, and Technology, Inc. found that
refueling stations for dispensing methanol are very similar to today's
gasoline fueling stations, and the capital costs to implement this new fueling
infrastructure are moderate.
    Given the strong commitment by the world's automotive industry to develop
methanol fuel cell vehicles, the study was prepared for the American Methanol
Institute (AMI) to address the need for fueling infrastructure to serve these
vehicles.  The researchers looked at the capital costs associated with various
ways adding methanol fueling capacity to existing retail gasoline stations.
    "There are a number of ways to turn corner gasoline stations into energy
stations that can pump methanol for fuel cell vehicles," said Irwin Weinstock,
Senior Project Manager for EA Engineering.  "Fortunately, there is a broad
experience base in methanol refueling developed in California, New York and
elsewhere to serve thousands of methanol vehicles sold in the late 1980s and
early 1990s.  From this past experience, we know how to build methanol
compatible refueling stations, and we know the costs are reasonable."
    The study identified five options for adding methanol capacity to existing
gasoline stations: installing a new underground storage tank; installing an
above-ground tank; cleaning and reusing an existing underground gasoline
storage tank; reusing existing gasoline tanks by constructing a new fiberglass
tank inside the existing tank; and replacing an existing underground gasoline
tank.  Each option includes the installation of a two-hose methanol compatible
fuel dispenser and associated piping.
    Converting an existing gasoline storage tank to methanol and installing
new piping and a dispenser is the lowest cost option.  An existing gasoline or
diesel tank can be cleaned and a methanol dispensing system added for slightly
less than $20,000.  The cost for installing a new fiberglass tank-within-a-
tank is around $30,000.
    The capital cost for adding methanol capacity to an existing gasoline
station by installing a new 10,000 gallon, double-walled underground storage
tank, piping and dispenser is about $62,400.  The cost to add an above-ground
storage tank (frequently used by fleet operators and rural retail stations) is
around $54,500.  Replacing an existing tank in a multi-tank field is a higher
cost option due to problems associated with excavating near other tanks, and
is estimated to be about $70,000.
    "Adding methanol pumps to existing gasoline stations is very doable," said
AMI President and CEO John Lynn.  "This study shows that there are a range of
inexpensive options for gasoline retailers looking to sell methanol for fuel
cell vehicles.  With major automakers like DaimlerChrysler, Ford, General
Motors, Toyota, Nissan, Honda, Volkswagen and Volvo looking to introduce
methanol fuel cell vehicles by 2004, this is the time to start thinking about
how we add the methanol pumps needed to serve the next generation of cars."
    The report was released in Washington today during a two-day conference
titled "The Road to Fuel Cell Vehicles: A National Forum."  Sponsored by the
American Methanol Institute, the forum is designed to help the nation build a
roadmap for the commercialization of fuel cell vehicles which have emerged as
a promising alternative to the internal combustion engine.