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A02390 | Pages: 233 | Charts: 40 | Tables: 178 |
The global coal to liquid fuel market size was valued at $3.4 billion in 2021, and coal to liquid fuel industry is projected to reach $7.7 billion by 2031, growing at a CAGR of 8.7% from 2022 to 2031.
Coal to liquid fuel process is also known as coal liquefaction. Coal liquefaction is any process of turning coal into liquid products resembling crude oil. The two procedures that have been most extensively evaluated are carbonization heating coal in the absence of air, and hydrogenation causing coal to react with hydrogen at high pressures, usually in the presence of a catalyst.
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The European Union recorded approximately 79 billion metric tons of proved coal reserves in 2020. Germany is the largest coal producer in Europe. This region most of the oil & gas resources are imported from Russia. The outbreak of Russia-Ukraine war has led to the ban of the export of oil & gas resources from Russia to Europe mainland. This led to the energy crisis in Europe which led the government to come up with various initiatives such as investment in the renewable power, and investment in the construction of the liquid fuel production plant from coal. The surge in demand for liquid fuel in the transportation and power generation sector has driven the growth of coal to liquid fuel market. Furthermore, low oil & gas resources in European Union have led to the demand for alternatives which are cost-effective and eco-friendly compared to the conventional fossil fuels have driven the demand for the market growth. The EU government initiatives to gradually shift from the coal based thermal power generation plant to the renewable energy power generation have positive impact on the market.
South Africa has been producing liquid fuels from coal since 1955, using the indirect conversion process. South Africa company Sasol has three CTL plants that produce more than 160 thousand barrels of liquid fuel per day from coal, which provides 30% of South Africa’s transport fuel requirements. Increasing need to reduce carbon footprints and stringent government policies for energy conservation has led to shutdown of coal based thermal power plant, hence there is a decline in the demand for coal which led to increase in the search for alternatives such as production of liquid fuel from coal. The presence of abundant coal reserves in this region and the presence of investments among the major companies to break through various technologies to commercialize the coal to liquid fuel production, thereby providing lucrative growth opportunities for the development of the market.
The global coal to liquid fuel market forecast is segmented into technology, application, and region. By technology, the market is bifurcated into direct liquefaction and indirect liquefaction. By application, the market is classified into transportation fuel, cooking fuel, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest coal to liquid fuel market share, followed by North America, Europe, and LAMEA.
[TECHNOLOGYGRAPH]
The indirect liquefaction segment dominates the global Coal to liquid fuel market. Indirect liquefaction technology is also known as Fischer-Tropsch technology. Fischer-Tropsch technology is being used today to produce liquid fuels from both coal and natural gas. The Fischer-Tropsch technology can provide liquid fuels at prices competitive with petroleum today. Estimates indicate that Fischer-Tropsch technology is borderline competitive with crude oil at $20 per barrel. The increase in demand for fossil fuel in transportation and power generation drives the growth of the market. The presence of strong supporting technological infrastructure for indirect liquefaction than direct liquefaction technologies is another factor driving the market growth. Developing countries such as China and India are mostly reliant on indirect liquefaction due to low technological content have led to increase in the construction of coal to liquid fuel facilities. The above-mentioned factors will provide ample opportunities for the development of the market during the forecast period.
[APPLICATIONGRAPH]
The transportation fuel segment dominates the global coal to liquid fuel market. Transportation fuel is widely used in transportation sector. The transportation sector is an important industry sector in the economy that deals with the movement of people and products. These includes companies such as airlines, trucking, railroads, shipping, and logistics firms, as well as those that provide transportation infrastructure. Transportation fuel consists of petroleum products which are used to power the transportation vehicles. Rise in the investment of the developing and developed countries towards the development and upgradation of transportation infrastructure will increase the demand for the transportation fuel. The decline in the natural petroleum resources across the globe and increase in the cost price of crude oil across the globe due to increase in the demand for crude oil in various sectors have created positive impact for the development of the coal to liquid fuel market. The above-mentioned factors will provide ample opportunities for the development of the coal to liquid fuel market growth during the forecast period.
[REGIONGRAPH]
Asia-Pacific dominated the global Coal to liquid fuel market. China and India are some of the fastest developing countries in this region. The low presence of petroleum resources in this region have increased the need for coal to liquid technology which is a strategic response to the shortage of oil and gas resources in China and India, to guarantee for national energy security. China Energy a company in China has realized localized, clean and efficient coal conversion technology. This company now operates world’s biggest single indirect liquefaction demonstration project with an annual output of 4 million tons in Ningxia and the world’s only direct liquefaction demonstration project with a production capacity of 1million tons of liquid fuels in Inner Mongolia.
In 2020, China Energy produced 16.56 million tons of coal derived chemicals. India is heavily dependent on petroleum imports. It has been hit very badly due to the recent surge in crude oil prices and uncertainty over future supplies on account of proposed American sanction on Iranian crude. India has significant coal reserves. CTL plants could be an alternative source of liquid fuels in India. It is reported that South African major, Sasol, was willing to invest in Indian coal liquefaction plants. The above factors drive the growth of the coal to liquid fuel market in this region during this forecast period.
Impact of Covid-19 on Global Coal to Liquid Fuel Market
The global COVID-19 pandemic has negative impact on the coal to liquid fuel market. The pandemic outbreak has not only caused infections and deaths but also created havoc in the global economy. Mining companies have been severely affected by the pandemic outbreak. Global restrictions to encourage social distancing have negative impact on mining and construction projects, which have either slowed or put on hold for further notice. The above-mentioned factor seriously affected the growth of the coal to liquid fuel market.
However, after the vaccination initiatives among the developed and developing countries has led to gradual decline over the restriction over social distancing. Furthermore, the government has invested huge revenue in order to kick start the stagnant global economy through construction and mining industries. In addition, developing countries such as India and China have invested in the development of the alternative fuel production plants while gradually reducing the fossil fuel imports in order to improve the national energy security. The presence of above-mentioned initiatives and policies will provide lucrative opportunities for the development of the market.
The major companies profiled in this report includes Sasol Energy, Cleanse Corporation, Shenhua Group, Yitai Coal OIl Manufacturing Co. Ltd., Jincheng Anthracite Mining Co., Ltd., Shanxi Lu'an Co. Ltd., Bumi Plc, Envidity Energy Inc., Altona Energy, DKRW Energy, and Monash Energy. Due to increase in the demand for eco-friendly and presence of abundant coal, deteriorating levels of petroleum reservoirs, increased awareness about the technical expertise related to the conversion process among the industrialists, and growth of transportation sector in developing countries, such as India and China, drive the coal to liquid fuel market. The above-mentioned factors will have positive impact on the demand for coal to liquid fuel market. Additional growth strategies such as expansion of storage capacities, acquisition, partnership and research & innovation in the optimization and improvement in efficiency of the conversion of coal to liquid fuel have led to attain key developments in the global coal to liquid fuel market trends.
Key Market Segments
Key Market Players
Other Key Market Players