Coal to Liquid Market Outlook
The global coal to liquid market was valued at USD 3,870.9 Million in 2019 and is projected to reach USD 4,747.0 Million by 2027, expanding at a CAGR of 2.6% during the forecast period. Coal is a vital fuel utilized globally to generate electricity, while petroleum fuels are commonly utilized in vehicles. Moreover, coal and petroleum fuels majorly possess carbon (carbon-carbon bond (C-C)) hydrocarbons), which makes the conversion of coal to liquid fuel more feasible.
The production of liquid fuel from coal is also known as coal-to-liquid (CTL) technology or coal liquefaction, either by direct or indirect liquefaction. In this procedure, coal is dissolved in a solvent at high temperature and pressure, followed by hydrogenation to produce a high-grade, clean fuel suitable for use in transport. Moreover, the obtained liquid fuel tends to be ultra-clean, sulfur-free, low in particulates, causes low CO2, oxides, and nitrogen emissions through Carbon Capture and Storage (CCS).
Coal to Liquid Market Dynamics
Abundant availability of coal, declining levels of petroleum reservoirs, and increased awareness about the technical expertise related to the conversion process among industrialists, and growth of transportation sector in developing nations, such as India and China. As synthetic fuels obtained from the conversion of coal are cleaner (eco-friendly) than those extracted from natural reservoirs, the demand for coal liquefaction has increased, owing to wide support from regulatory authorities worldwide.
Coal to Liquid Market Segmental Outlook
Based on type, the global coal to liquid market is segmented as ultra-clean diesel, alternative liquid fuels, chemical feedstock, lubricants, and synthetic wax. The ultra-clean diesel segment is anticipated to expand at a CAGR of ~3.3% during the forecast period as ultra-clean diesel are renewable and it contains ultra-low sulfur. Ultra-clean diesel is a patent-pending fuel that delivers those enhanced benefits either as a standalone fuel or for easy blending with petroleum diesel. Ultra-clean diesel is an approved fuel by the California Air Resources Board (CARB).
Based on application, the market is segmented into biofuels, power generation, chemicals, and wax. The biofuels segment is projected to hold a major share of the market during the forecast period as there is presence of various supporting regulatory policies and tax incentives across the world which, in turn, increases the demand for biofuel.
By Application
Definitions
Biofuel
Biofuel, any fuel that is derived from biomass—that is, plant or algae material or animal waste. Since such feedstock material can be replenished readily, biofuel is considered to be a source of renewable energy, unlike fossil fuels such as petroleum, coal, and natural gas.
Power Generation
Power generation is the process of generating electric power from sources of primary energy. For utilities in the electric power industry, it is the stage prior to its delivery to end users or its storage. A characteristic of electricity is that it is not freely available in nature in large amounts, so it must be "produced" (that is, transforming other forms of energy to electricity).
Production is carried out in power stations (also called "power plants"). Electricity is most often generated at a power plant by electromechanical generators, primarily driven by heat engines fueled by combustion or nuclear fission but also by other means such as the kinetic energy of flowing water and wind.
Chemicals
Objects that can be inflated with gas, usually with air are called inflatables. Instead of air hydrogen, helium and nitrogen are also used. Inflation happens through several strategies as pumps, ram-air, billowing, and suction. Coal to Liquids are also used to inflate the inflatables. Especially electric Coal to Liquids are most commonly used because it exerts high pressure which saves time. The automated nature of electric Coal to Liquids is making it easier for the inflatables users to get the required pressure in these inflatables.
Wax
The others category involved different applications of Coal to Liquids such as football, rugby ball, Soccer Ball, and others. This helps to inflate the things with suitable pressures and maintain the desired shapes, size, and sturdiness.
Coal to Liquid Market Regional Outlook
In terms of regions, the market is fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. APAC is a promising region for the market. The region constituted a significant market share of the market in 2019. The market in the region is projected to expand at a CAGR of 4.5% during the forecast period as there is an increase in disposable income, rise in government initiatives are some of the factors expected to boost the market growth in the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Coal to Liquid Market
- Historical, Current and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Coal to Liquid Market Performance
Segments
By Type
- Ultra-Clean Diesel
- Alternative Liquid Fuels
- Chemical Feedstock
- Lubricants
- Synthetic Wax
By Application
- Biofuels
- Power Generation
- Chemicals
- Wax
By Region
- North America
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Europe
- U.K.
- France
- Germany
- Italy
- Spain
- Poland
- Rest of the Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- UAE
- Rest of MEA
Key Market Players Profiled in the Report
- Sasol
- Shenhua
- Yankuang
- DKRW Energy
- Altona Energy
- Bumi
- Monash Energy
- Linc Energy
- Pall
- TransGas Development Systems
Competitive Landscape
- Key players in the market include Sasol, Shenhua, Yankuang, DKRW Energy, Bumi, Monash Energy, Linc Energy, TransGas Development Systems, Pall, and Altona Energy. These companies are considered manufacturers of Coal to Liquid based on their revenue, research development (R&D) activities, regional presence, and supply chain management system.
- The players are adopting key strategies such as acquisition, and geographical expansion where the potential opportunity for the Coal to Liquid is added in the company’s capacity.
- For instance, in 2018, Yankuang Group and China Huaneng Group, has jointly build the top thermal coal supply-chain of coal and electric power. According to the investment agreements, on equal conditions, Yankuang Intelligent Logistics Company has the priority to supply Huaneng Group with thermal coal.
- In 20 November 2017, Shenhua Group and the China Guodian Corporation, completed a merger on valued at almost $273bn. The resulting entity, the China Energy Investment Corporation, became the world’s largest organisation in the coal mining, thermal power, renewable energy, and coal-to-liquid conversion industries.