Shell to Test Methanol-Gas Fuel in State

Shell Oil Co. on Thursday became the fourth oil company to say it will sell a methanol-gasoline fuel at California service stations as part of a California Energy Commission project to test the cleaner-burning fuel as a solution to smog problems.

In about three months, Shell will begin marketing M85--a blend of 85% methanol and 15% unleaded gasoline--at four California service stations as part of a 10-year program to test the feasibility of methanol fuel as a lower-emission alternative to gasoline.

Shell joins Atlantic Richfield Co., Chevron Corp. and Exxon Corp., which have already agreed to work with the energy commission to install methanol-gasoline fuel pumps to be used by drivers of so-called flexible fuel vehicles--vehicles equipped to run on a variety of fuel mixtures.

So far, Arco has installed eight M85 fuel stations and Chevron has built 10 throughout the state, commission spokeswoman Susan Patterson said. About half of the 18 pumps are in Southern California; Shell and Exxon are still studying where to put their new pumps. The commission is also talking with Mobil Corp., but no agreement has been reached, Patterson said.

The energy commission, which administers the methanol demonstration program in partnership with oil and auto companies, has set a goal of 50 methanol pumps in the state by 1992, Patterson said.

“Shell’s participation significantly expands California’s clean fuels program,” said commission Chairman Charles R. Imbrecht in a statement.

Fuels made with methanol, a highly toxic, colorless liquid refined from natural gas and other hydrocarbons, deliver only about half the mileage of gasoline but are considered good candidates to meet stringent air-quality regulations being considered by the California Air Resources Board and federal legislators.

So far, there are about 500 vehicles on the road in California that use 100% methanol and another 230 flexible-fuel vehicles, Patterson said. The commission has set a goal of 5,000 flexible-fuel vehicles by 1993.

In addition to installing methanol pumps, Houston-based Shell said it would buy up to 10 flexible fuel vehicles for its own use--starting with two to be used at Shell’s Wilmington refinery. Shell also said it would lend the energy commission the services of a chemical engineer for six months.

Shell’s total investment in the project will be about $450,000, company spokeswoman Dee Dee Taylor said.

The energy commission pays for the cost of equipment used in methanol stations; the private oil companies pay for installation, maintenance and operations. Each side contributes about $30,000 per station, Patterson said.

The commission also operates the California Fuel Methanol Reserve, an 8-million gallon store of methanol from different makers.

Auto companies--including General Motors, Ford and Nissan--have agreed to make and deliver flexible-fuel vehicles to fleet users. The auto companies and the state pay part of the cost of the vehicles.