Global Gasification Market - Growth, Trends, and Forecast (2018 - 2023)
Irrespective of the increasing policies and regulations limiting emissions of pollutants and the concerns over price and availability of natural gas or oil or coal, the demand for low-cost power production in an environment friendly way is certain. Gasification is not only capable of producing power in an efficient and environment-friendly manner, but also supports the production of wide range of chemicals, fertilizers, liquid fuels, among others. The continuous evolvement of gasification technology has attracted interest, particularly in countries with vast coal reserves, for the conversion of coal to gas and coal to liquid conversion. In 2016, there were approximately 1,099 gasification projects with around 2,866 gasifiers, which are expected to increase further during 2018-2023 (the forecast period). Factors, such as availability of abundant deposits of coal, demand for clean energy, lack of feasible alternatives to gasification, increasing government participation, coupled with growing inclination environmentally friendly power generation, are expected to supplement the gasification market during the forecast period.
High Capital & Production Cost Restrains the Market
Even though Asian countries have huge electricity and climate-related issues, despite the use of conventional coal power plants, coal gasification capacities have not picked up as expected, due to the high capital and production costs involved in the process. Integrated gasification combined cycle (IGCC) coal plants are the primary users of the coal gasification technology to generate power. Although IGCC is promoted as ‘clean coal’, it is many times more carbon-polluting than renewable alternatives, such as wind and solar. The technology is expected to be 35% more expensive than conventional coal technology. Adding carbon capture and storage (CCS) technology makes it even more costly. Evidence from the United States suggests that the electricity produced from IGCC plants, with CCS, is likely to cost twice as much as electricity from wind or commercial-scale solar plants. This is straining the growth of the gamification market in the power industry. However, with the technological evolution and government support, the condition is expected to increase during the forecast period.
Europe to Witness Modest Growth
In spite of the high growth of renewables in the European region, natural gas is expected to maintain a significant share in its energy generation mix. Many countries in the European region remain dependent on the other regions for natural gas imports. With the expected increase in the demand for natural gas, implementation of gasification projects is expected to increase in Europe. The region is home to numerous idled coal-fired electric generation, which could be integrated into services through the integration of gasification technology, during the forecast period.
China to Register Highest Demand
The Chinese government’s initiatives in its 11th and 12th five-year plans have boosted the gasification industry in the country. China produces more than 90% of its ammonia through coal gasification process, owing to the availability of huge amounts of inexpensive coal in the country. Although the coal-to-chemical gasification has taken a significant leap during the recent years, gasification used for power production has not shown much promise and its low growth rate is expected to improve during the forecast period. China is expected to increase the uptake of large-scale coal-to-SNG projects and possibly scale up various coal-to-oil technologies projects, which in turn, would supplement the gasification market during the forecast period.
Key Developments in the Market
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