Coal-to-Liquids

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Several countries with significant coal deposits but limited oil reserves are increasingly interested in coal-to-liquid (CtL) technologies, which can convert coal into liquid hydrocarbons and reduce crude oil imports. Following decades of successful operations in South Africa, CtL initiatives in the United States, China, and Germany have gained momentum due to rising oil prices. However, CtL presents challenges, including high capital costs, substantial greenhouse gas emissions, and significant water usage. The technology's adoption is heavily influenced by supportive policies and strong advocacy. Daniel Vallentin examines the interplay between technical and non-technical factors that impact the diffusion of CtL technologies in these three countries. Utilizing an interdisciplinary technological system approach, he identifies key determinants of CtL market potential, such as costs, coal reserve distribution, stakeholder dynamics, and relevant energy and climate policies. His study concludes with insights into the driving forces and barriers affecting CtL diffusion. Given that these countries are major energy consumers and significant greenhouse gas emitters, their approaches to replacing crude oil-based fuels have critical global implications. Vallentin's research is essential for experts, planners, decision-makers, and politicians focused on climate and resource protection.