2009 Travel Reflections (From Hanoi to China)

The flight to Hanoi was crowded and the plane was delayed by 45 minutes. In the waiting area everyone was crowded around a TV watching a Jacky Chan movie. Especially the Buddhist monk who was in no hurry to board the plane as everyone tried to push their way to the front of the line only to find a bus to take everyone to the plane from the gate. Of course, the last ones on the bus were the first to the plane. And for those of us smart ones who choose the shorter of the two lines to get on the plane, were only disappointed to learn that sear 17a and c boarded through the rear of the 33 seat aircraft, the longer of the two lines. And so, after all the anticipation of being able to stow our carryons in the overhead luggage compartment, we were relieved to find the necessary room and were off.

Upon arrival, it became my mission to find the cheapest taxi possible. Relying on my memory (perhaps faulty) a 150,000 dong metered trip along the 32 km freeway into the center of town. Honey wanted to take a fixed rate cab, and after three brief interviews ranging from 180-240,000 it was my idea to take a little walk beyond the beaten track and grab a metered cab. Needless to say it had a cranky meter and so about 1/3 of the way into the journey I became cranky too and Honey indicated to the driver (who was driving at about 1/3 the posted speed limit) to let us out and after 180,000 big ones we were on a doggy street of urban sprawl and dust far away from our reserved hotel. A coffee and we were off again in another metered cab with a less cranky meter after a brief discussion over the use of old money that apparently was no longer acceptable in Hanoi but was perfectly legal tender in Saigon. And so we arrived at 11:15 and another 90,000 dong poorer to find a suitable and moderately overpriced $22 room with two beds and imperial Chinese amorior. For my humble expectations, it felt like a stately accommodations and I was overjoyed to find hot water in the shower.

The Hanoi/Saigon rift became a bit more evident as we exited our hotel in search of a hot meal. Unable to find her boon (thick noodle soup) we settled for some hot chicken and rice soup; a good choice as my hangover was beginning to escalate into a full on cold. Honey was unimpressed with the service or the food. Mind you we were eating at an outside café. And by out-side café, I am referring to small plastic chairs and tables spread haphazardly along a sidewalk corridor where food scraps are allowed to simply fall off the table to be swept up the following day. She was equally unimpressed with the 25,000 dong bill (around $1.17) which was far to steep by Saigon standards especially in light of the fact that when she order a bottle of coke, she was handed the unopened bottle with a bottle opener implying she would have to open the bottle herself; shitty service of the highest degree.

Our first week in China has proven to be all that is wasn’t expected to be. The train ride to Nanning from Hanoi provided our first taste of the Mainland. I was relieved to finally have a place to rest my head after taking a handful of cold medicine following our adventures through Hanoi, which included more cranky meters, four hours of walking, a few wrong turns and one ultimately successful dry run to obtain tickets from the correct station of departure. After an hour and a half in search of a place to change my (Vietnamese) Dong into (Chinese) Won, we gave up and like the professionals that we were quickly becoming, correctly managed the art of not getting overly ripped off on our final trip to the correct train station of departure located on the other side of the river and about 5 km from the center of town.

A grand total of seven passengers boarded the ten car train and we were off. (So much for our concern that there wasn’t going to be enough room). My headache and post birthday mysteries were gradually subsiding by about the time we reached the Chinese boarder. A half hour of paperwork and passport examination and we were off. The nice picture of Ho Chi Min waving a cordial farewell should have been the first clue that the Chinese would soon get a crack at us. We boarded the train around 3:00am and were given a fresh set of paperwork to fill out and enjoyed another 37 minutes of restful sleep before were would be taken off the train again and inspected by the Chinese passport officials. I was relieved that my third round of cold medication kicked in and I did not set off the thermal sensors and risk the possibility of quarantine or whatever it is they do with sick passengers these days. It was a close call given the fact that Honey messed up on her form and checked the boxes indicating that she had cold like symptoms. Her explanation to the Chinese authorities was flawless as she calmly explained her intention was to check every box that didn’t apply to her present condition.

We arrived in Nanning mid morning and enjoyed a day and a half of China’s national pastime; shopping. In our case we just walked around a lot and pretended to be interested clientele. It was kind of overwhelming at first to be the only white boy in a town of 3 million but what did I care? Just smile and enjoy the ride.

Off the next day on the night train to Kunming, a full moon illuminating the steep hillside along the river valley, pure exhilaration and anticipation. We arrived in the dark hours of the early morning, a fringed 40 degrees from my tropical traveling companion. And a friendly reminder not to trust everything you read on State sponsored travel-blogs which claimed Kunming was warm and temperate all year long.

To add insult to injury, the hotels saw white boy coming and offered astronomical room charges which compelled us to journey far from the station in search of humble abode. After Honey used her Chinese charm at one establishment to negotiate a moderately overpriced room rate, I agreed to wait on the street until she returned before entering the establishment to seal the deal. To my surprise and dismay, management swiftly back-paddled on the agreed room rate by claiming that they were unable to accommodate foreigners in their fine establishment. Hard to grasp as the word “Hotel” appeared in English on the façade of the building. My visions of a utopian civilization were beginning to fade quickly.

After another 20 minutes of wandering through back streets we finally arrived to another promising hotel. Needless to say, Honey was getting cranky and was willing to accept any accommodation by this time. So we opted for a room without a bathroom. No big deal. Well the room turned out to be missing a heater as well. When the issue was raised with the staff later in the evening as the temperature dropped off, I was informed that a heated room would be three times the cost.

Relying on my killer survival instinct, I decided to make a heater out of a hot water kettle rather than pay the exurbanite sum. The plan worked flawlessly albeit a little noisy.

Our plans to visit Shangra-la were nixed as this gateway city to Tibet is considerably higher in elevation and colder than Kunming. So we diverted southbound in search of warmer weather and happier times.

What Kunming lacked Jihong made up in great stride. A beautiful, vibrant town of comfort and good fortune. Many of Thailand’s populace lay claim to ancestral beginnings in this area. The weather is temperate and sunny and I have enjoyed two long bicycle rides. Today, I traveled about 15k down the Mekong River and found a dirt road leading into the mountains where the hills are carved away for rubber trees. I met a handful of hunters hunting wild bore along the highland trail.

The food and accommodations have been grand. I enjoyed a New York grade pepper stake cooked perfection for less than $5 and our room accommodation is hovering just above the $6 mark.

It will be hard to leave this place. I wish Honey was a jungle warrior or had the drive to hop on a road bike and visit many of the surrounding towns and villages. I could spend a month here easy.

Starting a Nail Salon Business from Scratch

Abstract:  Experiences gained and lessons learned from the first year from the conception to the successful launch of a family owned Nail Salon.

From Conception to Site Location

It was the second week of June 2013. I had just returned from a boys fishing trip in Minnesota and had the whole summer to look forward to. It had been less than two years since Tina’s arrival from Saigon. I was struggling to identify a new career path following our recent return to Colorado and the headwinds of a tight job market.  On my fishing trip, I was inspired by the Book “The Alchemist” by Paulo Coelho which evoked a burning desire to follow my heart and life deliberately.

Having tasted the good life and the adventure of leaving everything behind to pursue my dreams once before, I knew that something big was in-store.

The boy’s fishing trip was the first week that I had since Tina’s arrival and there is now doubt that our reunion would provide a catalyst for a new adventures that lied ahead.

She was overjoyed to see me and had many stories to share of her adventures on the notorious #15 Colfax bus to commute to her nail-tech job in Aurora from our home in West Denver. I was happy to know that she was preserving in my absence.

No sooner had I begun to unpack, she confided that we were going to open our very own Nail Salon and soon.  The thought was both exhilarating and scary. I knew that we would have to stake everything we owned and borrow to make it happen, not to mention the long-term commitment of nurturing a business from the ground-up. But there was no moving back or time to waste, she was 100% determined to never work for another Nail Salon except her own again.

Our new mission was an open shop within 90 days! That was a big hairy audacious goal which did not prove to be true. Nevertheless we were motivated.  Tina had already begun the process of acquiring inventory, furniture and salon equipment.

Our first two weeks were spent mostly in the car. Driving around and looking for places that would support our new venture. It was a good time for Denver. The economy was starting to rebound from seven years of financial turmoil. It was still a renters market but space was limited.

We soon discovered there’s a nail salon on just about every street corner.  We were entering a crowded market and the prospect of opening a new salon in the Denver metro area was far from an original idea. What’s more, most of the commercial space available was listed by professional brokers whose job was to extract the highest price from the most qualified lessee.  Sounds pretty straight forward, but for a new immigrant who has only began to establish credit with no verifiable track record of running a business in America, the prospects became more and more limited. In the end, the timing turned out to be to our advantage although it was a difficult process to face multiple rejections.

By the end of the month, we had found our place, or so we thought. It was not more than a mile from my parents’ home in an under-served prosperous residential neighborhood and the owners we flexible enough to consider Tina’s circumstances.  After passing the first test which involved a credit background and reference check, I was provided a lease to review. It was a tough pill to swallow. I took the time to red-line about 2/3 of it, especially the part which involved steep annual increases. In the end we did not come to terms and that is life.  What I learned is that relationships precede contracts. It doesn’t pay to be in a hurry.

By the middle of July we were running out of steam. With the slower colder months quickly approaching, it became apparent that our aspiration for a late summer opening was fading.  A second suitable option did not make it past the pre-approval process and Tina was quite disappointed by the rejection. This time for not enough established credit history.

Our expanding search area revealed the reality that commercial vacancy rates were shrinking before our very eyes.  We decided to refocus our search efforts to under-serviced residential areas rather than commercial centers on busy streets. This proved to be a successful strategy.

Tina came across a listing on Craig’s List. It was in a dumpy strip mall on a moderately busy side-street in a well-established yet under-served SE Denver neighborhood known as Virginia Village, several miles East of Washington Park/DU corridor. The neighborhood demographics represented a variety of ages and backgrounds with a sizable population of senior citizens.

The space had been vacant for several years and was zoned as a laundromat.  It was listed by a broker, but our timing was perfect- a major renovation to the center was underway and the owner was motivated to lease the space!

Lease Negotiation:

Fall was in the air and I became engulfed with a job teaching middle-school math.  Tina had thrown in the towel at the nail salon she was working for with the commitment that her next job title would be a Nail Salon owner. We were fully committed to the undertaking.

To demonstrate our understanding of launching the business, the owner of the strip-mall requested a work-plan and a meeting with our General Contractor (GC). What the heck do I need a GC to do some minor plumbing and electrical I thought?  I happened to do some carpentry work for a GC the previous summer so getting my former boss to show up to a meeting was no big deal.  The meeting went well but the prospect of getting through the red-tape to obtain a Certificate of Occupancy (CO) a non-negotiable condition of the lease was starting to cause me some heart-burn.

We were not going to figure it all out before signing the lease and the City of Denver would only provide vague information without a formal work-plan.  Right or wrong we wanted to ink the deal quickly before another prospective renter got in the mix.  Rather than playing hardball, we decided to tread softly and enlist the assistance of the broker to secure acceptable terms. Granted there was a fair amount of trust in this approach, we had a mutual interest in closing the deal.  In retrospect, we could have negotiated harder on the tenant improvements and free rent period. The owner agreed to reimburse our out of pocket costs on installing a water heater and 5% of all other improvements pending receipt of a CO in addition to two free months of rent including CAM.  This was favorable to the owner but acceptable to us. On November 1, the lease was executed and our work had only just begun.

The first concern was weather of not a change of zoning would require an a American with Disabilities (ADA) compliant bathroom.  Then there was the issue of plumbing for  pedicure chair installation not to mention ventilation (which turned out to be the biggest issue).

There were issues that I was determined to work out as cheaply as possible without the help of a GC. I was convinced to simply sub out the work and act as the GC following the advice of a friendly architect I had met at a networking Christmas party.

Before inking the contract I took a trip to the City and spoke with a City Engineer. He painted a very rosy picture which later turned out to be inaccurate. The biggest lesson I learned is that City Building Department has the last word on everything and that commercial codes can be interpreted differently depending who you talk to.

Now it was time to ink a contract. The broker previously requested a Letter of Intent (LOI) outlining the basic terms.  With several iterations, a formal contract was presented for final execution.

Before Signing the Lease!

  • Building a Nail Salon from the ground-up is a highly regulated activity. It is much easier to acquire existing salon or to lease a space that already has a CO and is zoned as a Nail Salon.
  • A good starting point when negotiating a Commercial lease is a rent free period of six-months and the reimbursement of 30% of tenant improvement costs (uncapped).  Best to define how and when a tenant will be reimbursed for improvements.
  • While it is impossible to forecast every likely scenario prior to signing a lease, a good rule of thumb is to assume things are going to take twice as long and cost twice as month as originally anticipated.
  • Commercial Tenant Finishes are much different that Residential Design/Build projects. City planners will require detailed blue prints prior to issuing building permits (but they do not need to be signed by a licensed architect or engineer). Nevertheless, plan on spending $2000 just for the plans with the understanding that very few GC’s or sub-contractors have the competency to produce technical blue prints that will gain city approval.
  • It’s good to have a renewable option agreement, low pre-negotiated rent increases and the option to transfer the lease to a third party. Owner will want to review acceptability of a third party buyer but anticipate a suitable criterion that defines a possible third-party acquisition.

Obtaining a Certificate of Occupancy (getting work plan approval, pulling permits, completing the work, rough & final inspections)

We signed the lease on November 1 with the hope of opening before Christmas. At least now we had a place to store all the equipment and supplies Tina had purchased.

My plan was to hire the sub-contractors to pull the permits and complete the work. The approach appeared to be working.  First the plumber, then the rest.

I remember the day, we were already a month in and it appeared that things were a OK. The water heater was signed off on, electrical upgraded and we found a guy who would install the chairs.

How demoralizing it was to go to the city for a simple mechanical permit on an exhaust fan only to get TKO’d into a new work plan requirement complete with scale drawings, engineering review requirements, unnecessary plumbing and the installation of a completely unnecessary heated air-exchange and exhaust system. It would be another two months and $10,000 but that is the price of progress.

Today, 3D Nails is a vibrant business with many happy customers that enjoy nothing but the best  (the subject of a future blog post).

Other Lessons:

Location, location, location. There are advantages in selecting a shop location in residential area. Rent is generally cheaper and terms can be more flexible than larger commercial centers. But the greater advantage to opening shop in a residential neighborhood is you become an integral part of the neighborhood’s daily life.

It pays to be picky. Like it or not, your selection is a long-term relationship. Have a “need to have” and a “nice to have” criteria before you see the place.

Relationships precede negotiations. Everything is flexible if you are well received.  Impressions are critical.

Is there a better alternative to ethanol in gasoline? The Dimethyl Carbonate Story

The following is an excerpt from a Technical Research Proposal I helped to develop and submit in conjunction with the National Alternative Fuels Foundation (now defunct). Although some of the content is a bit dated, it speaks to a promising pathway to lower gasoline costs and provide clean energy from other sources such as coal, natural gas and biomass (assuming research success).

Background & Research Concept (The Need, The technology and its Benefits, Research)

Dimethyl Carbonate (DMC) is a biodegradable, high-octane compound that can be used to significantly reduce U.S. dependency on foreign oil, assuming an economically feasible and environmentally acceptable catalyst and process for its manufacture. The research project described in this proposal (“Research”) will explore two catalytic/process pathways that have a high probability of achieving this end. These pathways (assuming success) would enable economically production of large quantities of DMC from synthesis gas or methanol (either of which can be produced from renewable biomass, including forest products and agricultural wastes, as well as from domestic coal or natural gas) and sequestered CO2.

There is a need for a domestically produced, renewable fuel to reduce national dependency on imported fuels.
In 1985, imported petroleum represented only 4 million barrels/day (hereinafter “b/d”) or 27% of US domestic consumption. In 2002, it represented nearly 11.4 million barrels per day or 58 % of US domestic consumption. At the same time, US dependency on Middle East oil increased by more than five times to approximately 2.3 million b/d (from .35 million b/d).  In-spite of improvements to today’s energy diversity, a clear and present need exists to reduce this dependency, while simultaneously mitigating environmental risk.
An emission-reducing low-cost fuel component that can replace MTBE and be used immediately in existing vehicle/ fuel distribution system, absent engine or system modification, is needed.

DMC can be blended into gasoline at the refinery level and utilized within existing fleet and fuel distribution systems without modification or retrofit. It has the potential to improve the combustion and fuel efficiency of the entire gasoline pool, simultaneously reducing harmful emissions. MTBE was phased out due to concerns over its toxicity and groundwater contamination. The other major oxygenate, ethanol, while environmentally sound fuel, is solely dependent upon tax subsidy, and has deleterious hydroscopic tendencies, which make it unsuitable for pipelines. Furthermore, ethanol is not readily used in diesel, fuel oils and/or aviation fuels.

DMC is a low vapor pressure, low-toxicity, higher boiling point, non-hygroscopic, fully miscible/fungible fuel component, having attractive octane, cetane and emissions characteristics, especially when used in gasoline, diesel, fuel oils, aviation and other transportation fuels. DMC can be manufactured from domestic and renewable feedstock, transported in existing fuel pipelines and be used without any modification to engines or fuel distribution systems.
There is a need for a New Fuel and supplement to Ethanol?

US refining capacity is close to maximum capacity and ethanol production has recently declined.  The “newest” refinery in the United States began operating in 2008 in Douglas, Wyoming.  However, the newest refinery with atmospheric distillation capacity greater than 100,000 barrels per day began operating in 1977 in Garyville, Louisiana (source: EIA). As energy demand is likely to increase,  octane costs associated with high severity processes, shrinking the pool even more is likely to persist beyond the replacement potential of Ethanol.

A large viable economic fuel use of sequestered CO2 is needed.

Due to environmental greenhouse concerns, there is justification to remove and sequester large quantities of CO2. However, there is a challenge in finding acceptable places to dispose of CO2. If successful, the proposed catalyst/process would use massive amounts of CO2 as feedstock. The prospect of such significant CO2 use in the economic production of transportation fuels represents a break-through in alternative fuel production.

There is a need for a hydrogen carrier fuel (HCF) that is safe, affordable, and widely distributable before the US’s conversion to a hydrogen economy:

Title VIII Hydrogen provisions require the DOE to encourage programs that would facilitate the production of hydrogen carrier fuels from diverse sources, and to support the research, development, and demonstration activities necessary to meet these program goals. DMC is potentially one of the most attractive hydrogen carrier fuels anywhere. It is potable, relatively non toxic and can be manufactured from a host of different feeds (assuming success of this project). As additive to hydrocarbon fuels, it could drive the creation of large-scale HCF production facilities, enable utilization of existing distribution systems, and create the preexisting HCF supply necessary for easy transition to a hydrogen fuel economy.

There is a need for a safe, potable, low toxic, fungible, non-hygroscopic fuel for future fuel cell vehicles.

Some experts agree that the ultimate solution for a clean, sustainable transportation system will be a conversion from internal combustion engines to fuel cells. Methanol and hydrogen are both currently used in fuel cells. However, each has it limitations. Methanol is toxic and highly hydroscopic (therefore not fungible). Hydrogen, on the other hand, is a gas that requires special handling, which is highly explosive. DMC, is a potable liquid, which is a non-hygroscopic/fully fungible, relatively non-explosive and non-toxic, essentially consisting of two molecules of methanol and one of CO2.

“Toyota is moving away from building longer-range battery-electric vehicles (EV) in favor of its effort in hydrogen fuel cell vehicles, its top North American executive said.  Jim Lentz, CEO of Toyota’s North American region, said Toyota sees battery-electric vehicles as viable only in “a select way, in short-range vehicles that take you that extra mile, from the office to the train, or home to the train, as well as being used on large campuses.” 5/20/2014  autonews.com

 The Technology and its Benefits (Advantages over current technologies)

The benefits a potential new pathway for the safe and economical (fuel commodity) production of DMC are substantial and many. They fall into two categories: “process benefits” and “usage benefits.” Each of these includes “stand-alone” and “combined technology” benefits, as discussed below:

 Stand alone process benefits

These benefits are defined as those based solely on production/use of DMC as a refinery stream component:

Reduction in the use/or supplement of petroleum based fuels from DMC produced from natural gas, coal, biomass feedstock (either directly or indirectly via methanol or ethanol) and CO2

These feedstock are not traditional petroleum material and represent alternative fuel sources. As a fuel additive DMC could easily replace/supplement the equivalent of 4.47 million barrels per day of finished US petroleum products within the next decade (1.48 million b/d biomass, 0.490 sequestered CO2, 2.5 million b/d natural gas or coal).

DMC from Biomass

The DOE estimates over 2.45 billion metric tons of biomass are available for methanol conversion each year . Assuming a 5% conversion rate, an additional 1.48 million b/d of methanol derived from biomass could be produced within the next decade. Given the expected conversion rates, DMC catalyst process should be the same as methanol’s. Thus, 1.48 million b/d of DMC could be realistically produced from biomass within the next decade.

DMC Produced from Sequestered CO2

Proposed DMC reaction pathway (equation 11 Appendix 1), will utilize CO2 as a feed material. For every 1.0 kilogram (kg) of DMC produced 0.5 kg of sequestered CO2 will be consumed. The use of sequestered CO2 to produce DMC effectively reduces energy/fuel otherwise required to produce CO2 from non-sequestered sources. This translates into annual energy process savings of 0.89 quadrillion BTU (or about 490 thousand b/d) within the next decade. Moreover, the net effect of using sequestered CO2 and biomass in the production of DMC, effectively results in net zero CO2 emissions when DMC is ultimately combusted as additive.

DMC from Natural Gas
The quantity of recoverable natural gas in the United States is vastly greater than that of petroleum. To the extent clean natural gas can substitute for petroleum feedstock in transportation fuels, it could greatly improve both our domestic energy and environmental sustainability. Alternatively, clean coal syn-gas may be used. A successful DMC production pathway from synthesis gas or methanol will create an unprecedented use for natural gas or clean coal syn-gas with a realistic potential of displacing 2.5 million b/d of the US petroleum based fuels by 2020. According to Lurgi (a proposed industry process engineering contractor – see below) by 2030, the share of European petroleum-based fuels will drop from its current 90% to below 40%, while the share of natural gas-based synthetic fuels will rise by a similar percentage.

2.) Significant reductions in environmentally harmful by-products and energy requirements (compared to current DMC processes)

Reductions in environmentally harmful by-products:
Compared to the phosgene DMC process, based on the NAFF’s proposed catalyst/process pathways, there is a reduction of 1.3 g of NaCl per g of DMC formed, as well as the elimination of hazardous HCL as a byproduct.. Additionally, because CO2 is used instead of CO and NO, the risk of explosion and accidental release of toxic CO and NO during manufacture is virtually eliminated.

Reduced Energy Requirements
Current DMC production technologies are geared more for pharmaceutical grade production, and hence are energy/capital intensive, unable to deliver DMC in volume and at prices competitive to other fuel additives (ethanol, MTBE, and petroleum based octane enhancers).

Under NAFF’s proposed development plan, stringent decision points will be required/maintained (see below) to insure that critical yields/costs can be demonstrated (to insure that NAFF’s catalyst/process can distinguished over the existing uneconomical processes) prior to entry into Phase II catalyst improvement/development, or Phase III pilot plant feasibility studies. Anticipated reductions in energy requirements are dependent upon selected starting material, catalytic efficiency and process conditions. [It is believed Dow invested $8MM in DMC process research, which lead to energy cost reductions from over $1.00/lb to less than $0.10/lb, before abandoning its effort in the mid 1980’s after MTBE became the premier oxygenate. A NAFF team member [Harold Myers] was intimately involved in Dow’s effort. Another team member [Dr. Scott Cowley] was intimately associated with another big dollar dialkyl carbonate catalyst/process initiative. Based on the combined expertise of NAFF’s team, which has benefited from substantial preexisting research, that NAFF’s proposed research pathways could result savings of between 58 and 93 percent over existing DMC processes. Such savings are necessary if DMC is to become a low cost commodity fuel or fuel additive.

 

Usage Benefits (benefits associated with the use of DMC as a Fuel Additive)

 

DMCrepresents a new, commercially-viable pathway for the creation of a near-term hydrogen carrier fuel production. Furthermore, this pathway may represent the safest, fastest, and potentially the most cost-effective way to deliver hydrogen into the marketplace.
Why the safest? Unlike pure hydrogen or compressed natural gas, DMC does not require costly/potentially dangerous high-pressure storage and delivery tanks. For safety reasons, federal regulations prohibit siting hydrogen-fueling equipment within 75 feet of gasoline fueling equipment, effectively pushing hydrogen out the footprint of most existing energy retailers. Moreover, the storage of gaseous hydrogen at pressures of 5,000 to 10,000 psi on board vehicles represents a considerable danger, since a traffic accident or an intended act of terrorism could rupture the storage tank and cause a large explosion, potentially killing hundreds.

Ethanol, MTBE, and natural are among the leading commercial hydrogen carrier fuels currently in the marketplace. Like DMC, ethanol and MTBE do not require high-pressure storage/transport and delivery tanks. However, MTBE will gradually be phased out. Ethanol, a safer alternative is limited due to feedstock limitations and need for Federal subsidies. Natural gas requires special handling and distribution facilities. Conversion of natural gas, and MTBE to hydrogen yields CO2, a green house gas. The conversion of DMC to hydrogen would not yield any new CO2, as sequestered CO2 was the original feed.

Why the Fastest? Safe and economical “near term” fuel additive demand for DMC will drive plant construction. Given DMC’s superior energy and environmental advantages, DMC supplies will likely grow faster than any other HCF.

Why the most cost effective? Domestic natural gas prices are now quite high. Reliance upon natural gas as the premier HCF (even assuming cost effective hydrogen conversion) would translate into extremely high hydrogen fuel costs. Other the hand, relying upon DMC, which can be produced from a basket of feed stock material, including biomass and coal, would tend to hedge against price swings of a single feed. Furthermore, unlike hydrogen or any other commercially available hydrogen carrier fuels, DMC is the only fuel that can be used safely and seamlessly in current transportation fleets and fuel distribution networks. The US fuel distribution system is a major piece of our national energy infrastructure. Replacing it with a separate hydrogen system will require massive expenditures. (Unlike natural gas or hydrogen, DMC can be supplied at existing fueling facilities and be potentially utilized in a yet to be invented “on board” hydrogen fuel conversion/energy system, negating the hazards of converting to hydrogen before delivery).

• Superior Oxygen content can translate into superior emission benefits

DMC’s superior oxygen content can result in significantly lower CO2, CO, NOx, and toxic emissions. DMC contains 53.3% oxygen by weight, far greater than any other available oxygenate. By comparison, ethanol contains 34.8% oxygen by weight, and MTBE contains 18.2% oxygen by weight. According to the EPA: “Oxygen helps gasoline burn more completely, reducing harmful tailpipe emissions from motor vehicles. In one respect, the oxygen dilutes or displaces gasoline components such as aromatics (These aromatics such as benzene are responsible for disproportionate amounts of carbon monoxide and hydrocarbon exhaust emissions) and sulfur. In another respect, oxygen optimizes the oxidation during combustion. Oxygenates can increase the combustion efficiency of gasoline, thereby reducing vehicle emissions of carbon monoxide. ” It has been established that tail pipe emissions are generally independent of the type of oxygenate added to gasoline (Reuter et al 1992), thus making DMC the most valuable oxygenate on a weight basis, assuming all else is equal.

• DMC has low toxicity and is biodegradable.

Unlike MTBE, there is no ground water contamination risk associated with DMC as a fuel additive. DMC is biodegradable and reacts in the presence of a catalytic amount of base thereby avoiding the formation of undesirable inorganic salts as by-products. Unlike MTBE and certain petroleum-based fuels, DMC is not especially carcinogenic. In laboratory toxicology tests, the lethal dose of DMC required to kill 50% of rat population is 13,000 mg/kg, more than 3.25 the amount of MTBE (4000mg/kg) required.

• DMC has no transportability or RVP disadvantages (unlike ethanol)

Transportability Advantages: Unlike ethanol, DMC is not hydroscopic and does not separate from gasoline if stored for an extended period of time, or if exposed to water or water vapor (as in a pipeline). Because of its inherent problems, ethanol is shipped separately from gasoline (typically by rail car or truck but not in pipelines) and is blended with the gasoline at the distribution terminal. This disability costs ethanol 2 cents a gallon or more, in terms of additional handling.
RVP Advantages: EPA regulates the vapor pressure of all gasoline during the summer months (June 1 to September 15 at retail stations). These rules reduce gasoline emissions of volatile organic compounds (VOC) that are a major contributor to ground-level ozone. DMC is a desirable fuel additive because (unlike ethanol) it does not increase fuel vapor pressure (evaporative emissions), which makes it particularly attractive in RFG fuels. With DMC, low cost, high vapor pressure components such as butane and pentanes may not need to be removed, translating into greater profitability and reduced petroleum waste. (See Attachment 1, Letter from Herb Bruch, Former Technical Director, National Petroleum Refiners Association)

Why a DMC pathway from Methanol?
Methanol, a chemical that may be produced from biomass, coal, fuel oil, or natural gas is likely to be the principal feedstock in NAFF’s DMC catalyst/process effort. According to the Methanol Institute, US methanol capacity totals 2.2 billion gallons/annually, meeting ¾’s of US demand, of which, MTBE production accounts for 41%.

Because of MTBE phase out, methanol prices have softened. At the same-time, at least 12 million tonnes/year (88 million barrels) of new capacity worldwide is expected. Chemical Market Associates predicts a significant over capacity of methanol will exist, unless a new market is found/created.

Assuming success of NAFF’s effort, limited industrial-scale production of DMC could be in place as early as 2008. In view of the anticipated increases in both domestic and worldwide methanol capacity, as well as the phase-out of MTBE, methanol should be in sufficient quantities for the near term and intermediate production of DMC. Intermediate and longer term DMC production from methanol will almost certainly require significant new methanol production.

Why a DMC pathway from Synthesis gas?

While technically more challenging, DMC produced directly from syn-gas represents the lowest possible cost option (One-Step Syn-Gas Process). Biomass syn-gas to DMC would be a highly desirable option and is an integral component of NAFF’s Research effort. Lurgi would be a particularly suitable down-stream process engineering contractor, due to their experience in biomass and other synthesis gas to methanol.

Notes

EIA country [US] Analysis Brief October 2003 at http://www.eia.doe.gov/emeu/cabs/usa.html

This is defined as benefits associated with a successful DMC process development according to proposed catalytic pathways, the use of desired feedstocks, and projected market conditions.
http://www.ott.doe.gov/biofuels/pdfs/methanol_from_biomass.pdf (1995)

According to DOE: “One ton of biomass feedstock can be converted to 721 liters (186 gallons) of methanol.” Source: http://www.ott.doe.gov/biofuels/pdfs/methanol_from_biomass.pdf

Given the current availability of sequestered CO2 coupled with the fact that through international mandates, sequestered CO2 capacity is quickly emerging, it is anticipated that sufficient CO2 will be commercially available at competitive prices to meet 100% of the capacity to produce DMC derived from a biomass feedstock by 2024.

This assumes that the marketplace for sequestered CO2 will be sufficiently large and prices competitive.

On a BTU energy basis, the energy available from US proven natural gas reserves (183 TCF) exceeds the amount of available energy from US proven petroleum reserves (22.4 billion barrels) by approximately 182,900 quadrillion BTU (or 1694 times) (5.83 mbtu = 1 barrel petroleum, 1000 cuft= 1MBTU natural gas) sources EIA country Analysis Brief October 2003 and EIA “Apples, Oranges and Btu” doc at http://www.eia.doe.gov

“Official Inauguration of the HP POX High Pressure Synthesis Gas Plant Built by Lurgi and the IEC in Freiberg on 21 November 2003” at http://www.lurgi.com/english/nbsp/index.html

EIA, “ Motor Gasoline Outlook and State MTBE Bans” Table 1 , April 6,2003 at http://www.eia.doe.gov

Increased olefins translate into increased profitability due to decreased processing requirements in addition to the cost savings associated with the reduced amount of paraffin required.

Reduced aromatic content is not required to meet complex model emissions under Phase II of CAA as long as VOC’s and NOx emissions are met.

Dolan, Gregory “In search of the Perfect clean-fuel options” Hydrocarbon Processing, March 2002 at http://www.methanol.org/pdf/HP03Editorial.pdf p.2

Pacheco, Michael A. “Review of Dimethyl Carbonate Manufacture and Its characteristics as a Fuel additive” Table 5 American Chemical Society, 1997.
http://www.epa.gov/mtbe/faq.htm

Cleaner Gasoline for Cleaner Air Better for Your Health EPA 420-F-95-005 April 1995 EPA Office of Mobile Sources at http://www.epa.gov/otaq/rfgheal.htm

Tundo P. “New Developments in DMC chemistry” pure Appl Chem Vol. 73 No.7 pp.1117,2001 at http://www.iupac.org/publications/pac/2001/pdf/7307×1117.pdf
Oxford Physical and Theoretical Chemistry Lab

http://physchem.ox.ac.uk/MSDS/DI/dimethyl_carbonate.htmland http://ptcl.chem.ox.ac.uk/MSDS/BU/tert-butyl_methyl_ether.html
http://www.eia.doe.gov/emeu/steo/pub/special/mtbeban.html#MTBE%20Supply%20and%20Demand
http://www.epa.gov/otaq/volatility.htm
Katrib Y. “Uptake measurements of carbonates by aqueous phase” Universite louis Pasteur, Strasbourg at http://imk-aida.fzk.de/CMD/AR2000/HEP06.pdf
The Federal RFG program requires a minimum 2.1 percent oxygen by weight when averaging. This minimum oxygen requirement can be satisfied by blending approximately 5.5 volume percent ethanol or 11 volume percent MTBE.
http://www.eia.doe.gov/emeu/steo/pub/special/mtbeban.html#MTBE%20Supply%20and%20Demand

http://www.methanol.org/methanol/fact/methanol.cfm
Oil & Gas Journal Week of November 17’th 2003 (Industry Trends) p.7
It is anticipated that the catalyst/pathway converting methanol into DMC would also likely include an ability to convert ethanol into diethyl carbonate (DEC). Thus, ethanol may also be included as a possible feed, if DEC was the desired product.

Repatriation (Again)

Few American businessmen make mid-career decisions to relocate overseas. Making sense of other cultures and associated market opportunities takes time.  A great American virtue has been to take pride in measured accomplishments. But this vision can often run into diversions and road blocks in the emerging world. Rather than letting frustration get the better, I had the good fortune to enjoy a road less traveled.

There are several chapters worth mentioning. The first and perhaps most refreshing is the travel & leisure stage. This included the first 12 months of my journeys throughout Asia and Australia.

The second chapter encompassed roughly the second year abroad which included my transition from “traveler” to a known fixture. Like Cheers, its nice to go to a place where everyone knows your name. Getting rock-star attention and learning enough of the language to express a personality and become a legend of sorts evokes a uniqueness beyond monetary value. No longer considered a transaction or a walking ATM, life as it is experienced outside the boulevards of tourist street brings forth new dimensions and generates ideas that have value here at home.

The third (and current) chapter includes the years following repatriation. Although much less glamorous than trekking through the Mekong or navigating my way to work along with 2 million other motorbikes, I now posses an semi-conscious awareness of life on the other-side.  While the grass certainty wasn’t greener, the possibility to make more green now seems endless. 

 But there is a rest of the story. Its not about satisfying the ego to buy enough stuff to be judged by others as “successful” than it is wake up each day invigorated and engaged in solving problems that improve the quality of life and embrace the endless variations of creative expression that defines each of us an individuals. 

 

 

 

Becoming Change Agent

The first step is to change ones-self. External change may be good or bad relative to any number of factors. People do not care about achieving external goals unless compelled to do so. Motivation is a question of desire or a fear of loosing something. Desire is the more powerful motivator in the long-run. People either have it or they don’t. It is definitely contagious and when you got it, others know. Start with a smile and good sense of humor that gets others to laugh and smile too. Good ideas and teamwork happens when the barriers of fear and intimidation of not having the “right” answer melt away.  What are we really after any-way? I would much rather be happy than “right” any day of the week.

daveorr@msn.com

My dream job- What is Metagiving?

Get connected through a variety pack of entertainment.  No it is not about HDTV or paid broadcasting. No folks, I am talking about two feet and the rest of the show that coalesces the being; the human being.

Not a skill set, a commodity or an automatic teller machine, but a complex multidimensional corporeal spiritual form which manifests more than the sum of its parts and the experiences derived from its senses.

The post contemporary job posting looks something like a wish list from with little consideration for critical reflection.

To complicate matters, very few organizations get to the heart of the matter. How refreshing it would be if my job posting looked something like this:

We are an idea dissemination organization. Our goal is grow the level of human consciousness by practicing deliberate acts of kindness. The byproduct of our activities has inspired individuals to develop sustainable community activities, refine business practices to deliver both profitability and well-being. Our corporate giving program has created thousands of lasting partnerships generating food, jobs, education and a better way of life positively impacting each and every person on this planet. We have overthrown despotic practices with consideration and respect.

The transition is two fold. Its is both a formal practical approach to solving complex problems that most organizations are faced with  as much as it is a change mechanism that shifts conscious activity from working to live to living to work. The shift involves a willingness on the part of private enterprises, schools and individuals to get together on a mostly informal basis to address a set of mutually beneficial topics and agree to an obtainable road map to achieve specific and measurable results that improve both the quality of lives as well as the financial well-being of the partnership.

The concept of metagiving connects both service providers, with donors, volunteers, intermediaries and recipients; a portal of giving and a forum for innovation.

For more information contact: daveorr@msn.com