Synthetic Gas (syngas)

Gasification technology offers the possibility to create a new domestic supply of gas. It works by converting the hydrocarbons in coal, natural gas, or biomass and waste petroleum products into a gas called "syngas" that can be used in place of natural gas to generate power, or used in manufacturing as fuel or feedstock.

Because the syngas is cleaned prior to combustion, it produces very little air pollution. It is also easier to capture greenhouse gas emissions from gasification power plants than from traditional coal plants, raising the possibility that, with additional technology development, gasification plants could generate power from coal with less contribution to global warming.

The U.S. Department of Energy sites several drivers that are promoting market interest in gasification systems which include:

Environmental Performance: Several factors are driving the need for improved environmental performance. In general, emission standards are tightening. Moreover, large portions of market growth are occurring in areas where total allowable emissions are “capped,” requiring near-zero-emission plants.

Improved Waste Management: Gasification systems can process a wide range of materials, including hazardous wastes. Materials that would otherwise require waste treatment can be turned into benign or value-added byproducts.

Energy Supply and Price Stability: Electricity supply shortages, and sharp natural gas price fluctuations nationwide, highlight the need for a secure energy supply at stable prices.

Market Flexibility: As more industries become self-generators of electricity, systems that enable electricity production with co-products (fuels, chemicals, hydrogen, and steam) are becoming more attractive.

Global Climate Change: The reduction of ambient CO 2 concentrations can be achieved in part by efficiency gains and the use of non-carbon fuels. The majority of reductions, however, must be achieved by the removal of CO 2 from fossil-energy systems.

Each of these drivers represents a major opportunity for gasification technology. For example, improvements from advanced gasifiers will yield improved efficiency and environmental performance, while improved integration and value-added byproducts will improve economics.

Coal Gasification
Coal gasification offers one of the most versatile and clean ways to convert the energy contained in coal into electricity, hydrogen, and other sources of power. Coal gasification plants are cleaner than standard pulverized coal combustion facilities, producing less smog and acid rain forming sulfur and nitrogen byproducts.

Coal gasification appeals to many as a way to utilize relatively inexpensive and expansive coal reserves, while still protecting the environment. With the success of Tampa Electric, Eastman Chemical, Willem Alexander and others coal gasification electric power plants have proven to be commercially viable and are now being implemented by nations around the globe.

Both China’s and the United States’ share of estimated world coal reserves are ample and in sharp contrast to their share of global oil and natural gas reserves.

Source: "Statistical Review of World Energy June 2005", BP.

Coal is the most available energy resource in China, supplying about 70% of primary energy consumption. It fuels 78% of power generation, 60% of raw chemical material, and 36% of household commercial energy. During the next 30 to 50 years, China plans that, coal will provide at least 50% of China's energy. With coal as China's major energy source, the coal industry will still maintain its fundamental position in China's economy.

Although China has established some modern coalmines, the coal industry concentration rate is still low. According to the research organization International Business Strategies, there are only a few large-sized coal mining firms among China’s 25,400 coalmines. With such a fragmented industry and lack of modernization China’s coal industry could represent a prime opportunity as governmental regulations are implemented.

President Bush's US energy program calls for an additional $2 billion in funding over the next decade for another round of the government's 20 year old Clean Coal Technology Program. This funding is particularly important when one considers that greater than half of the over 1,000 US coal-fired power plants are more than 30 years old and will require replacement in the next 20 years. With the President's 'Clear Skies' Initiative requiring 70% reductions of many emissions by 2018, a market for utilizing clean coal technologies over the long term will most definitely evolve.

Gas to Liquids
An exciting opportunity for future growth is in the new, high technology gas to liquids (“GTL”) market. GTL is a rapidly expanding sector manufacturing ultra clean diesel fuel from natural gas. This is an area that has strong environmental as well as energy security drivers. It provides a means to use the world’s massive reserves of stranded natural gas to make sulphur free diesel fuel. This extremely pure fuel can be blended with diesel produced via the traditional oil refining route to make the ultra low sulphur diesel that is increasingly mandated to help meet ever tightening vehicle emission standards around the world.

PIDC is working to become a supplier of engineered materials to the rapidly developing GTL market.