Coal to Olefins

CTO [Coal To Olefins] A general name for processes that convert coal to ethylene and/or propylene, used for making petrochemicals or fuels. Operated in South Africa, using catalysts developed and supplied by Siid-Chemie. 

Methane (the major component of natural gas) can also be converted into olefins via methanol or the Fischer-Tropsch process. These routes have much in common with the coal to olefins routes in that gas is converted into synthesis gas. Except for comparative production costs the gas based routes are oidy briefly discussed here. ... 

The second feedstock factor is the use of coal in China. The quantity is vast and the cost is low, both of these positive factors being offset by logistics (it is stranded coal) and concern about the quality of both the feedstock and the impact of the low quality on the environment. Oil has been the feedstock of choice for most of the world since WWII or earlier, except for a few countries, notably South Africa where political factors forced the development of an entire chemical industry based on coal. It has been remarkable to see the development of a chemical industry in China based on coal in perhaps just 10 or 15 years. Coal to olefins (CTO) is a realily there. Synthesis gas is produced from coal and then used to make methanol, which is then converted to olefins (ethylene or propylene). Coal to olefins is happening fast in China, it is happening widely (over three dozen projects are described), and it is likely to be as significant or more significant than the North American shale gas phenomenon. 

Both of these trends— shale gas and coal to olefins— will likely be impacted by the recent (2014) drop in oil price from over 100/barrel, down to (almost) 45/barrel. Such very low oil prices make shale oil, shale gas, and deep sea drilling less attractive or even uneconomic. 

Methanol production by origin. Adapted from Coal to olefins. SRI Consulting 2011. 

Lacson J. Process Economics Program Report 279 coal to olefins. Menlo Park, CA SRI Consulting, IHS 2011. 

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