Coal Gasification Market: Current Analysis and Forecast (2022-2028)

Coal gasification is the process in which coal is partially oxidized with oxygen, air, carbon dioxide, and/or steam to form fuel gas. Also, coal gasification is the combination of molecular chemical reactions in which complex hydrocarbon and lower energy sources produce syngas which is primarily a mixture of carbon dioxide, hydrogen, carbon monoxide, methane, and water vapor. In recent times, coal gasification has witnessed significant demand owing to the increasing demand for syngas in the manufacturing of fuels, fertilizers, and synthetic & solvent materials. Also, the increasing demand for coking coal in the steel companies for the production of steel and use of the syngas as the production of chemical feedstocks is expected to support the market growth. However, the higher installation cost is expected to hamper the market growth.

The Coal Gasification Market is expected to grow at a steady rate of around 5% owing to the increasing demand for energy around the world coupled with the increasing utilization of syngas for the production of electricity, ammonia, and chemical feedstocks. Major companies in the market are focusing to provide coal gasification with technologically advanced features along with new product launches, collaboration, and mergers & acquisitions. For instance, according to the report published by the Ministry of Coal on October 2022, Coal India Limited signed an MoU with the IOCL, BHEL, and GAIL Ltd. to set up the coal gasification plants and achieve 100 MT coal gasification by 2030.

Based on the gasifier, the market is segmented into the fluidized bed, fixed bed, and entrained flow. The fluidized bed segment is expected to register significant market growth during the forecast period owing to the higher efficiency during the heat exchange. Also, the fluidized bed segment offers better temperature control attributed to the turbulent gas flow along with the rapid circulation. Additionally, the fluidized bed gasifier offers other significant advantages including high heat transfer rate & load flexibility, fuel flexibility, and moderate oxidant & steam requirement and is expected to support the market growth in the coming time.

Based on the feedstock, the market is bifurcated into petroleum, natural gas, coal, and waste/biomass. The coal segment is expected to witness significant CAGR during the forecast period due to the lower price and innovative technological advancements such as the thermochemical process which convert the coal into valuable gases without the need for mining. Additionally, underground coal mining has the ability to retrieve the material from the deep length below the earth and is expected to support growth during the forecast period.

Based on the industry vertical, the market is bifurcated into chemical, power generation, gaseous fuel, and liquid fuel. The chemical segment is expected to witness significant growth during the forecast period owing to the increasing demand for chemicals in several industries for the production of ammonia, liquid fuels, hydrogen, and others. Also, the increasing chemical demand for fertilizer production across the world is expected to propel the demand. For instance, according to the UN Food & Agriculture report 2022, the demand for Nitrogen, Phosphorus & Potassium was 110193 thousand tons, 48264 thousand tons, and 39473 thousand tons respectively for the year 2021 whereas it was 108744 thousand tons, 47402 thousand tons, 38711 thousand tons respectively for the year 2020.

For a better understanding of the market adoption of the coal gasification industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing demand for energy and the increasing adoption of coal gasification for energy generation in the region. Also, the presence of large coal reserves across the region is expected to propel growth during the forecast period. For instance, according to the GSI Coal Inventory 2020, India has approximately 340,000 million tons of coal resources including proved, indicated, and inferred. Additionally, the government support for coal mining and allowance of the FDI will support the exploration and production activities of the coal and subsequently provides lucrative opportunities for coal gasification. For instance, in August 2019, the Indian government allows 100% of FDI in coal mining, and in May 2020, the Ministry of Coal announced incentives for coal gasification and liquefaction. Furthermore, technological advancements such as the development of coal to hydrogen production technology and increasing research & development activities in the continent will support the expansion of the existing and new markets.

Some of the major players operating in the market include: General Electric Company, Mitsubishi Heavy Industries Ltd., Shell Plc., Oil and Natural Gas Corporation Limited, SEDIN Engineering Co. Ltd., KBR Inc., Air Products and Chemicals, Inc., ANDRITZ, Air Liquide, and Synthesis Energy Systems, Inc.