It’s not news that companies around the world are looking for ways to reduce their dependency on crude oil for the production of fuels, chemicals and their derivatives. Higher demand for sustainable energy sources, as well as more stringent carbon emissions laws are putting the onus on companies to look to renewable energy sources to drive their activities in the future.
Enter syngas. The Global Syngas Market, which is growing with a CAGR of 8.54 percent, has four major applications—chemicals, liquid fuels, power generation and gaseous fuels. Potential end uses for syngas derivatives range from plastics to pharmaceuticals to biodiesel. And while chemical production still accounts for a majority of the syngas market, its use in fuel production is making syngas a major player in the renewable energy field.
What is Syngas?
Syngas, otherwise known as synthesis or synthetic gas, is gas produced through high temperature gasification of carbon containing feedstock.
It sounds more complicated than it is. Basically, gasification is the process of using extreme heat to convert carbon-rich materials like coal, heavy oil or natural gas (aka feedstock) into carbon monoxide, hydrogen and carbon dioxide. This resulting gas mixture is syngas, which can be used to produce bulk chemicals, liquid and gaseous fuels, as well as for power generation. Additionally, the power derived from the gasification process itself is also an energy source.
A good example of this is coal polygeneration. In this process, coal undergoes gasification, resulting in syngas, which is simultaneously used for generating electricity and manufacturing liquid fuels like diesel, methanol and gasoline. In this circumstance, the raw material (coal) is optimized for maximum output. This, and other evolving technologies in the syngas sphere are helping to spur on the market.
However, even with huge strides being made in syngas usage as a fuel and power source, the current syngas market is a volatile beast, with high initial investment costs acting as a major hurdle for market growth. On the other end of the spectrum, advances in production technology and increased emphasis on more sustainable energy sources in countries with booming economies such as China and India are still driving the market.
There is consistent work being done to try and develop a more streamlined production process to create syngas from cost-effective and sustainable resources. Many organizations, including market heavyweights such as Royal Dutch Shell plc, Kellogg, Brown, and Root Inc, and General Electric are throwing their weight (and dollars) behind R&D activities, which will only serve to keep the market strong and growing.
For more information, see our Global Syngas Market report for 2014-2018.
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