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Coal gasification for power generation has been under development for some time now; however, the new twist is using the syngas in fertilizer and methanol plants that have been shutdown because of high gas prices, especially in the United States. Syngas Refiner Newsletter is dedicated and committed to finding and reporting new applications across a wide variety of feedstocks and end products. In future issues, we will develop what we call matrix reporting on markets, products and companies as well as on other industries that will impact utilization of syngas.

With oil prices at $50 per barrel and gas prices over $5 per thousand cubic feet, the door is open for other sources of hydrocarbons to make an entrance. Natural gas, coal, petroleum coke, refinery bottoms and even biomass may be converted into synthetic liquid products that can compete with conventional refined products.

Methanol and dimethyl ether (DME) are now being touted for power generation. Several DME plants have been and are being built in China to utilize that country's coal in a more environmentally friendly way. The petrochemical markets are shifting to use these other sources of hydrocarbons for basic feedstock in the face of higher prices for oil and natural gas. With energy security and diversity of energy supply continuing to be issues in countries such as Japan, South Korea and the United States, and the burgeoning growth of energy demand in China, the use of coal could surge.

DME could be used for power generation or as a replacement for diesel fuel, propane and town gas. Methanol could be used for power generation and as the major fuel in power cells. And hydrogen, that's the next major source of energy for the coming century.

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