Coal-to-chemicals cools as energy tactic
But, technology modifications will expand chemicals output
Tom Stundza -- Purchasing, 9/18/2009 10:10:18 AM
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The use of coal to produce various chemicals is technically feasible but somewhat costly because of the high capital costs in building coal gasification projects. That's why "coal to chemicals has gone from a red-hot to a slightly cool topic within the chemicals industry," says Michael Kratochwill, vice president of finance and strategy practice within Nexant's energy and chemicals consulting practice.
However, coal-gasification efforts will rebound as the nation exits the recession, he tells the Chemical Purchasing Summit II organized in Boston by ICIS Chemical Business and Purchasing magazines. That's because coal supply is abundant, market prices are expected to rise only slowly and the need for moderately priced chemicals will keep interest active for reduced-cost coal gasification projects. That's especially true since 60% of the worlds' reserves of coal are in the North America and Europe.
Already used to make methanol, methyl acetate and acetate anhydride, he sees expanded use of coal through gasification to make olefins, dimethyl ether (DME), ammonia, urea, ammonium nitrade, hydrogen, acetic acid, acetic anhydride, formaldehyde, and the propionic, metracrylic and acrylic acids.
Kratochwill reminds the audience that "chemicals production via coal gasification isn't as mature as conventional petrochemicals routes." That's why, in his opinion, coal gasification "represents an opportunity for improvement in technology and capital construction costs."
He says that coal gasification is a highly flexible technology that is expected to advance to produce synthetic gas cheaper in coming years. Thus, he says, the cost-of-production economics will decline.
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