World Energy Outlook 2006

Figure 5.1: Share of Power Generation in Total Coal Consumption
by Region in the Reference Scenario
Latin America
Transition economies
Africa
China
OECD Pacific
World
India
OECD Europe
Middle East
OECD North America
Note: Power generation includes heat production.
0% 20% 40% 60% 80% 100%
2004 2015 2030
Box 5.1: The Economics of Coal-to-Liquids Production
Concerns about oil-supply security have recently led to renewed interest in
coal as an alternative feedstock for the production of transport fuels and
chemicals. Coal-to-liquids (CTL) technologies include coal gasification,
combined with Fischer-Tropsch synthesis to produce liquid fuels (in the
same way as gas-to-liquids), and direct coal-liquefaction technologies,
which are still under development. Coal gasification is already widely used
in the production of chemicals and fertilizers, notably in China, where
8 000 coal gasifiers are in operation. Sasol, a South African company,
operates two coal-to-liquids plants, with total capacity of 150 kb/d. Output
consists of 80% synthetic diesel and 20% synthetic naphtha. China is
building a 60 kb/d plant and has plans for further projects. In the United
States, coal companies are assessing the commercial viability of new projects
following the introduction of new incentives for CTL.
Process technologies for the production of synthesis gas from coal are well
established, but unit costs of CTL production remain high compared with
conventionally refined products. Nonetheless, where coal can be delivered
at low cost, CTL could be competitive. For example, at a steam-coal price
of $20 per tonne – less than half the current international price –
128 World Energy Outlook 2006 - THE REFERENCE SCENARIO
© OECD/IEA, 2007