Coal to Liquid Fuel Market By Technology (Direct Liquefaction, Indirect Liquefaction), By Application (Transportation Fuel, Cooking Fuel, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031
The global coal to liquid fuel market size was valued at $3.4 billion in 2021, and projected to reach $7.7 billion by 2031, with a CAGR of 8.7% from 2022 to 2031.
Coal and liquid petroleum fuels are among the two most used fuels all over the world. Coal is the major fuel type used around the world to produce electricity, while petroleum fuels are common in automobiles of all kinds. Coal can be converted into liquid fuels due to their similar composition as they consist of carbon. This process has gained attention in recent years due to the increase in acknowledgement of the declining levels of petroleum reservoirs. Since petroleum is more valued at present than coal due to its usage in transportation, the coal to liquid fuel process (CTL) is gaining increasing demand.
The major driver of the global coal to liquid fuel market is the abundant availability of coal, particularly compared to liquid fuels. While the dropping levels of crude oil reservoirs have made headlines recently, coal reserves have remained productive enough for coal to remain the most widely used fuel type for power generation. Therefore, the idea of converting coal to liquid fuels has picked up speed in recent years.
Synthetic fuels obtained from the conversion of coal are often cleaner than those extracted from natural reservoirs. This has led to coal liquefaction gaining increased support from regulatory authorities all over the world.
The technological advancement of the oil & gas industry has also helped this idea establish a foothold, since the technological knowhow of the conversion process is relatively easily available. However, the high costs of the process have not gone down significantly since it began to be utilized. This leads to the process only being economically feasible when oil prices are high. Currently, with oil prices facing record lows, even multinational giants may find it hard to fund industrial-scale production of liquid fuels from coal. This has emerged as a major restraint on the global coal to liquid fuel market.
Most CTL plants are concentrated around China and a few in India and Indonesia. The abundant availability of coal reserves in these countries is responsible for rapid growth of the sector. China and India are expected to be the dominant regional coal to liquid fuel markets in the coming years due to the growing transportation sector in these countries. In September 2020, Coal India Ltd has launched a global tender inviting potential bidders to build country’s first coal to methanol plant in West Bengal, with an investment of $813.1 million. The presence of above-mentioned initiatives has driven the market growth.
North America also accounted for a significant share of the global market revenue in 2021. The coal to liquid fuel market in North America is experiencing enormous growth due to the presence of demand for liquid fuel in the transportation and power generation industry. 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 to the North America. The above factors drive the growth of the coal to liquid fuel market in this region during this forecast period. On the other hand, the market in Asia Pacific is estimated to register the fastest growth rate over the forecast period.
The global coal to liquid fuel market is segmented based on by technology, application, and region.
On the basis of technology, the market is segmented into direct liquefaction and indirect liquefaction. In addition, on the basis of application, the market is segmented 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 share of the market, followed by North America, Europe, and LAMEA.
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.
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.
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the coal to liquid fuel market analysis from 2021 to 2031 to identify the prevailing coal to liquid fuel market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the coal to liquid fuel market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global coal to liquid fuel market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Technology
Direct Liquefaction
Indirect Liquefaction
By Application
Transportation Fuel
Cooking Fuel
Others
By Region
North America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
Rest of LAMEA
Key Market Players
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
Monash Energy
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