Gasification is a process by which carbon containing materials can be converted into syngas (CO + H2), that can then be used to produce a range of synthetic fuels and chemicals. These feedstocks can include coal, natural gas, petroleum refining residues, carbonaceous wastes and biomass. For coal, besides traditional products such as ammonia or chemicals derived either during coke production or from acetylene based on calcium carbide, there is a significant new chemical industry being established, based around modern gasifier systems for the production of fertilisers, hydrogen, petrochemical substitutes such as aromatics, ethylene glycol, olefins and synthetic natural gas together with liquid transport fuels (Figure 1).
This approach provides the means to monetise low-value, low-grade coal assets into high value, more amenable products. That said, the modern gasification-based coal conversion systems require significant upfront capital investment. While the costs of the end products should be reasonably predictable, their economic viability is less certain since the prices of the alternative competing sources of the end products, such as petroleum refining residues and natural gas, can be very volatile. Over the lifetime of the coal-based conversion process, this can make for a difficult investment decision. Consequently, many such projects are undertaken for strategic reasons such as the need to limit imports of natural gas and oil, while providing some level of national energy security, with the end products offering a significant amenity value and potentially a more positive environmental impact than the original coal source.
Scope of the study
This study provides a global review of the technological development of coal-to-chemicals, with an emphasis on future fuels systems, their potential attractiveness for countries with limited oil and natural gas supplies, and the inherent economic risks due to the international price volatility of processes that use alternative oil and natural gas as the primary feedstocks. The focus is on China where the national government is pursuing the establishment of a modern coal-to-chemicals (CTC) industry, based on using low-grade coals. This has included testing a wide range of process options at the large industrial pilot scale, followed by the upgrade of those demonstration projects, which have shown higher energy conversion efficiency and adequate environmental performance, to initiate the introduction of commercial prototype plants. This has included the identification of suitable geographical locations, with both adequate coal supplies and water availability, as well as offering prospects for extending the industrial chain to promote local economic and social development.
The major impact of falling oil prices on the profitability of the sector and the steps being taken by the Chinese government to counter these problems are also considered. At the same time, using such processes to demonstrate lower cost CCUS operation through CO2 enhanced oil recovery has been considered as an early opportunity route for lowering process carbon intensity in this large industrial sector.
The 10 largest coal producers and exporters in the Indonesia:
- Bumi Resouces
- Adaro Energy
- Indo Tambangraya Megah
- Berau Coal
- Bukit Asam
- Baramulti Sukses Sarana
- Harum Energy
- Mitrabara Adiperdana
- Samindo Resources
- United Tractors
Source: IEA Clean Coal Centre
