Syngas, also known as synthesis gas, is a blend of components such as carbon dioxide, carbon monoxide, and hydrogen. Syngas is manufactured by gasification of carbon consisting of fuel to a gaseous component with the heating value. Examples of syngas production are steam reforming of coke, waste emissions to energy gasification, and gasification of coal emission. Further, 50% of the energy density of natural gas is present in syngas. It is mainly used as a fuel but cannot burn directly. Apart from this, syngas has several applications such as gas turbine fuel and raw material for liquid fuel & synthetic natural gas. All these applications require syngas cleaning to eradicate contaminants such as mercury, hydrogen halides, sulfur compounds, trace elements, and alkali. Moreover, precise and efficient containment control is necessary for syngas application such as fuel synthesis, coal gasification energy production, and much more.
Forecast Analysis of Syngas Market
The global syngas market is projected to augment in the forthcoming years due to the rise in the demand for syngas in the chemical industries. Furthermore, syngas market is reaching newer heights due to its wide range of benefits in the gas engines such as:
- Good stability, predictability, and minimum energy costs
- Independent power supply
- Efficient electricity and heat supply
- Works exceptionally well for an electric output range of 100 kW to 30 MW
- Assures high electrical efficiency as compared to the rest of the power generation technology
- Low gas pressure
- A substitute to conventional fuels
- Reduction in greenhouse gases
- Generating renewable energy
- Decrease in transmission losses and economical onsite power production
- Transformation of problematic waste to good fuel
Due to these benefits, the global syngas market is estimated to upsurge during the forthcoming years. Apart from this, the market is driven by various applications associated with syngas production. It is used for various industries and sectors. Some of the major application areas include:
1. Methanol from syngas is used for –
- DME (Dimethyl Ether)
- Acetic acid
2. Through Fisher Tropsch process syngas is used in
3. Synthetic natural gas
Usage of syngas for a range of applications is fueling the growth of the market in the coming years. Also, low energy and stability are added benefits of syngas that are likely to boost the global market in the coming years. Apart from this, a new report published by Research Dive states that the global syngas market is anticipated to augment at a CAGR of 6.1% during the 2020-2027 estimated timeframe. Further, the Asia-Pacific regional market is projected to grow due to a rise in demand for syngas in industries such as chemical, fuel, and electricity.
Latest Developments in the Market
The leading players of the global syngas market are as follows:
- Methanex Corporation
- Linde plc
- Air Liquide S.A.
- Air Products and Chemicals, Inc.
- The Chiyoda Corporation
- Haldor Topsoe A/S
- Syngas Energy Holdings LLC
- OQ Chemicals GmbH
- John Wood Group PLC
- SynGas Technology, LLC (SGT)
These prominent participants of the market are projected to enhance rapidly due to various strategies applied by them such as mergers of promising companies, novel product launches, collaborations, and research projects. For instance, in April 2021, Air Products, a leader in industrial gases execution and megaproject development, declared that the Kochi Industrial Gas Complex is deploying syngas to the PDPP at Bharat Petroleum Corporation Limited, Kochi. This is the second supply of the company at BPCL. Furthermore, in May 2020, Linde plc, a German-based multinational chemical company, declared the initiation of a syngas production plant at Geismar, Louisiana. This industrial expansion of the company will aid in the market growth.
Covid-19 Impact on the Market
The global syngas market is witnessing a negative impact during the Covid-19 crisis due to lockdown norms initiated by all government bodies to curb the infection rate. Also, lockdown led to the shutdown of several industries and factories, resulting in disruptions of the demand and supply chain of the market. However, effective strategies such as business expansions outlined by key players are likely to boost the market in the forthcoming years.
Future Scope of the Market
The amount of time required to create a syngas operational plant and heavy capital investments are estimated to hinder the market growth in the coming years. However, the presence of proficient market players is expected to open up several opportunities for the market in the coming years.