Opportunities for Coal-Based Products: Clean Coal and Coal

Report Highlights

• The overall U.S. market for coal-based products has grown from $3.38 billion in 2003 to an approximately $5.9 billion in 2006. By 2011, the U.S. market is expected to reach approximately $12.0 billion at an average annual growth rate (AAGR) of 15.1%.
• In 2006 the sales of coal gasification/liquefaction products account for 33.7% of the total sales for coal-based products. Coal carbonization products account for 54.9% and coal combustion products make up the remaining 11.4%.
• Coal carbonization products will have the highest growth rate throughout the forecast period, averaging a 20.0% AAGR through 2011. Coal combustion products will have the smallest with an AAGR of 3.3%.

INTRODUCTION

Coal-based products are products with at least one main ingredient made from coal. Coal is a type of carbonaceous rock that was formed from the remains of plants and animals over millions of years under pressure. Coal contains elements such as hydrogen, nitrogen and oxygen, and also has a multitude of trace minerals. Scientists believe that coal was formed during the Carboniferous period (280 to 345 million years ago) when an abundance of plant and animal life grew and thrived in swampy areas. These life forms eventually died and sank to the bottom of swamps to form peat (a soggy, sponge-like material). The peat eventually got buried and became compressed over millions of years. With heat and pressure, the peat eventually became coal; the greater the heat and pressure, the harder the type of coal that was formed.

The four main categories of coal are lignite, sub-bituminous, bituminous and anthracite. Lignite is the softest type of coal, and contains a lot of moisture and ash, and has the lowest carbon content. Also called "brown coal", lignite is mainly used at electricity-generating plants. Sub-bituminous coal has less moisture than lignite, and is generally used for producing steam for electricity generation. Bituminous coal has a high heating value and little moisture. It is primarily used to generate electricity and produce coke for the steel industry. Anthracite is the hardest type of coal, and has the lowest moisture and ash content. This coal type makes a good heating fuel for homes. All of these coal types can be used to produce many other coal-based products, such as chemicals, tars, oils and other coal products.

SCOPE OF STUDY

This report contains:

• A detailed description and overview of the coal-related product industry focused on the U.S. market
• U.S. market forecast with five-year projections to 2011, based on product application and sectors of the market, and the latest market drives
• Observations and predictiosn for the future of coal-based technology
• A review of the market shares including the top companies within the industry today
• A detailed patent analysis.

METHODOLOGY AND INFORMATION SOURCES

The findings and conclusions of this report are based on information gathered from manufacturers and users of coal-related products and other informed sources. Interview data were combined with information gathered through an extensive review of secondary sources, such as trade publications, trade associations, company literature, and on-line databases, to produce the market estimates contained in this report.

At the time this report was prepared, year-end data for 2006 were not yet available. Market estimates for 2006 were developed using interim (partial) data for 2006 where available, combined with data for the year 2005 and, in a few cases, 2004. Wherever possible, historical data through the end of 2005 were used as the basis for analysis and projections. However, for certain market segments, specific data beyond 2004 were incomplete or unavailable at the time this report was prepared. In these cases, year 2004 data were used and documented accordingly. In addition, certain coal-based products can also be produced through many raw material and manufacturing methods, and the market estimates may be based upon the total amount of that particular product produced, consumed or sold rather than just coal. In these cases, it is documented whether the statistics are solely from coal or also include other raw material sources as well.

Our final analyses and projections are based on a combination of a consensus among the primary contacts combined with our understanding of the impact of trends from an historical and analytical perspective. All dollar projections presented in this report are in 2006 constant dollars.

ANALYST CREDENTIALS

The author of this report is Colleen Spiegel, a chemical engineer with a broad-based background of the chemical industry. Colleen S. Spiegel is an engineering consultant for several industries. She has been an R&D manager and chemical engineer for over 7 years, and her expertise is in the areas of design and modeling. She has worked in several areas of research and process development and has been instrumental in establishing new ideas for several companies. Mrs. Spiegel has a BSChE and MSChE in Chemical Engineering from the University of South Florida, and is currently completing a PhD in Electrical Engineering at the University of South Florida. She is currently a member of the American Institute of Chemical Engineers (AICHE), the Institute of Electrical & Electronics Engineers (IEEE) and the National Association of Science Writers (NASW).