North America Dominates Global Solid Fuel Market as Coal Production Rises, Presenting Opportunities for Growth

DUBLIN, Aug. 9, 2023 /PRNewswire/ -- The "Solid Fuel Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Fuel Type" report has been added to  ResearchAndMarkets.com's offering. 

The solid fuel market is expected to grow from US$ 389.14 billion in 2022 to US$ 401.54 billion in 2028; it is expected to record a CAGR of 0.5% during 2022-2028.

There is an expansion and development of refineries across the world. In June 2022, the IEA oil market report predicted that net global refining capacity would expand by an extra 1.6 million b/d in 2023. The expansion or new refining capacity growth consists of various high-capacity refinery projects underway, especially in the Middle East and China. The aforesaid region and country have the potential to add over 4.0 million b/d of new capacity in next two years.

In China, it is projected that overall capacity would have a snowball effect owing to commence of minimum two new refinery projects and one major refinery expansion.

Substantial refinery capacity was extended in the Middle East in 2021. In Saudi Arabia, Jizan refinery with 400,000 b/d capacity came online by the end of 2021 and commenced exporting petroleum products at the beginning of 2022.

New refining construction with more than 2 million b/d capacity is estimated to come online to assist markets in Indian Ocean basin. Along with this, another major project is scheduled in Atlantic basin. After completion of the mentioned project, a 650,000 b/d Dangote Industries refinery in Lagos (Nigeria) will be the largest in the country. The development of a refinery would meet domestic and neighbouring African countries' demand for petroleum.

Therefore, the expansion of refineries would increase the use of solid fuels, which is expected to offer lucrative opportunities for the solid fuels market during the forecast period.

In terms of revenue, North America dominated the solid fuel market share. The production of coal is rising in North America. According to U.S. Energy Information Administration in January 2023, the coal production in the US was 139.97 MMt [154.3 million short tons (MMst)] in the third quarter of 2022, with an increase of 5.9% compared to its second quarter and growth of around 4.0% compared to the third quarter of 2021.

In addition, anthracite accounted for 1% of total coal mined in the US in 2021. Further, the total coal consumption in the US was 131.63 MMt (145.1 MMst) in the third quarter of 2022, with an increase of 23.1% compared to its second quarter. Thus, the rising coal production and consumption increase anthracite production, which boosts the solid fuel market growth in North America.

Coal is one of the largest sources of CO2 emission. According to a report by International Energy Agency (IEA) in November 2022, IEA's Net Zero Emissions by 2050 aims to reduce the use of coal and look for newer technologies. Moreover, the region is adopting hydropower electricity generation as it is one of the clean sources of energy and is extensively used for power system flexibility and resilience. 

Coal plays an integral part in electricity generation and iron and steel production. Steel is a crucial material in consumer and industrial products, including vehicles, appliances, and other. The US is one of the largest steel producers in the world.

Market Dynamics

Drivers

• Use of coal across different countries.
• Establishment of refineries driving the use of coal.

Restraints

• Availability of coal substitutes.
• Government mandates for limiting greenhouse gas emissions.

Opportunities

• Development and expansion of refineries.

Future Trends

• Rising demand for petcoke.

Companies Mentioned

• Indian Oil Corp Ltd
• Elinoil Hellenic Petroleum Company SA
• RESORBENT Sro
• JH CARBON PTY LTD
• Hargreaves (UK) Services Ltd
• Essar Global Fund Ltd
• BP Plc
• Lukoil Oil Co
• Valero Energy Corp
• Philips 66

For more information about this report visit https://www.researchandmarkets.com/r/91lf0v

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