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Hydrocarbon Liquefaction: Viability as a Peak Oil Mitigation Strategy

Philosophical Transactions of the Royal Society: A, Forthcoming

33 Pages Posted: 14 May 2013  

Mikael Höök

Uppsala University, Department of Earth Sciences - Global Energy Systems

Dean Fantazzini

Moscow School of Economics, Moscow State University; National Research University Higher School of Economics

Andre Angelantoni

Post Peak Living

Simon Snowden

University of Liverpool - Management School (ULMS)

Date Written: May 13, 2013

Abstract

Current world capacity of hydrocarbon liquefaction is around 400,000 barrels per day (kb/d), providing a marginal share of the global liquid fuel supply. This study performs a broad review of technical, economic, environmental, and supply chains issues related to coal-to-liquids (CTL) and gas-to-liquids (GTL). We find three issues predominate. First, significant amounts of coal and gas would be required to obtain anything more than a marginal production of liquids. Second, the economics of CTL plants are clearly prohibitive, but are better for GTL. Nevertheless, large scale GTL plants still require very high upfront costs, and for three real world GTL plants out of four, the final cost has been so far approximately three times that initially budgeted. Small scale GTL holds potential for associated gas. Third, CTL and GTL both incur significant environmental impacts, ranging from increased greenhouse gas emissions (in the case of CTL) to water contamination. Environmental concerns may significantly affect growth of these projects until adequate solutions are found.

Keywords: hydrocarbon liquefaction, gas-to-liquids, CTL, GTL, coal-to-liquids, peak oil

JEL Classification: Q42, Q48

Suggested Citation

Höök, Mikael and Fantazzini, Dean and Angelantoni, Andre and Snowden, Simon, Hydrocarbon Liquefaction: Viability as a Peak Oil Mitigation Strategy (May 13, 2013). Philosophical Transactions of the Royal Society: A, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2264419

Mikael Höök

Uppsala University, Department of Earth Sciences - Global Energy Systems ( email )

Olofsgatan 10B, 753 12
Uppsala
Sweden

Dean Fantazzini (Contact Author)

Moscow School of Economics, Moscow State University ( email )

GSP-2, Leninskie Gory
Moscow, 119992
Russia
+7 495 5105256 (Phone)
+7 495 5105267 (Fax)

HOME PAGE: https://sites.google.com/site/deanfantazzini/

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

HOME PAGE: http://www.hse.ru/org/persons/11532644

Andre Angelantoni

Post Peak Living ( email )

743 Portola Street, Suite B
San Francisco, 94129
United States

Simon Snowden

University of Liverpool - Management School (ULMS) ( email )

Chatham Street
Liverpool, L69 7ZH
United Kingdom

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