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Coal Liquefaction Market Segment, Trends, Growth and Analysis 2025

Press Release   •   Jan 17, 2018 03:39 EST

Large quantities of coal deposits are available around the globe. Thus, global demand for energy could be met by the usage of coal. The process of converting coal into liquid hydrocarbons such as petrochemicals and liquid fuels is termed as coal liquefaction. The key purpose of coal liquefaction lies in generation and production of synthetic oil, which is a partial substitute resource for aromatic hydrocarbons. They are used as a feedstock used in organic chemical industry. Commercialization of coal liquefaction has been taking place across the globe in order to meet the rising demand for energy.

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The coal liquefaction market can be segmented based on type of liquefaction process, application, by-product, and region. Specific liquefaction processes are of two categories: direct coal liquefaction (DCL) and indirect coal liquefaction (ICL). Direct coal liquefaction process is based on approaches such as pyrolysis, carbonization, and hydrogenation. Indirect coal liquefaction occurs in multiple phases, which primarily produce syngas. It is then further modified to obtain liquid hydrocarbons. Byproducts obtained from liquefaction processes include lubricants, alternative liquid fuels, synthetic wax, chemical feedstock, and ultra clean diesel. Syngas generated through the Fischer Tropsch (F-T) technique is used in chemicals, wax, power generation, and biofuels. The methanol to gasification (MTG) technique is usually employed for manufacturing LPG from coal in industrial scale that can be utilized in modified transportation vehicles and heating and cooking processes. Newer technologies and advancements are being introduced for efficient and effective coal liquefaction processes.

Coal liquefaction provides various benefits. It helps reduce dependency of energy on import of oil and gas. In terms of power generation, coal liquefaction is considered less expensive. Infrastructure and logistical requirements for processing and transportation of coal are lower than that for other fossil fuels such as oil and gas. By-products obtained after several processes of coal liquefaction are higher in number. Coal liquefaction, if processed systematically, is expected to lower environments hazards.

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The coal liquefaction market also has certain restraints. These include environmental pollution if coal is burned in the atmosphere. Coal liquefaction may cause health problems and optimum air quality issues if handled inappropriately. Risk associated with soil and water contamination in the process of coal liquefaction is high. High capital investment in setting up liquefaction plants and technology implementation are also hampering the coal liquefaction market.

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