Green Petroleum Coke Market

Green Petroleum Coke Market Size (2023-2028):

The Global Green Petroleum Coke Market was worth US$ 15.10 billion in 2022 and is anticipated to reach a valuation of US$ 24.36 billion by 2028 and is predicted to register a CAGR of 8.30% during 2023-2028.

Green petroleum coke is a solid carbon material obtained as a by-product during the distillation of crude oil to produce lighter petroleum products such as gasoline and diesel. However, it has a high sulphur content and usually contains impurities such as metals, making it unsuitable for direct use in many industrial processes. Green petroleum coke is typically stored and transported in large piles or silos to make it usable. But over time, it is subjected to weathering and oxidation, causing the coke to lose its volatile components and become denser. This process results in a material known as calcined petroleum coke. Calcined petroleum coke is widely used in producing aluminium, steel, and other industrial applications. On the other hand, green petroleum coke is mostly used as a fuel for power generation and cement kilns.

Market Drivers:

The demand for green petroleum coke in the market is being driven by the expansion of the aluminium industry. Green petroleum coke is a crucial raw material in producing anodes, which are necessary components in producing aluminium. During the electrolysis process, anodes conduct electricity and convert alumina into aluminium.

The growth of the construction, automotive, and packaging industries is contributing to the expansion of the aluminium industry, thereby leading to a rise in demand for green petroleum coke. In addition, as the aluminium industry is becoming more environmentally conscious, it is shifting towards more sustainable production methods that require cleaner fuels such as green petroleum coke. This shift further drives the demand for green petroleum coke in the market.

As the aluminium industry continues to expand, the demand for green petroleum coke is expected to increase, which will further propel the growth of the green petroleum coke market. Therefore, the aluminium industry is a key factor in the growth of the green petroleum coke market.

Increasing demand for fuel-grade coke: The demand for green petroleum coke is increasing due to its cost-effectiveness and efficiency as a fuel in various industries, such as cement, power generation, and steel production. Green petroleum coke is used in kilns, calciners, power plants, and blast furnaces, which are critical components in production. The growth of the construction, automotive, and power industries drives the demand for green petroleum coke. As these industries expand, the demand for green petroleum coke will increase, leading to further market growth.

Market Restraints:

The green petroleum coke market is closely connected to crude oil prices, as it is a byproduct of the refining process. When crude oil prices are high, green petroleum coke costs increase, leading to higher consumer prices. Conversely, when crude oil prices are low, the cost of producing green petroleum coke decreases, leading to lower prices in the market. The volatility of crude oil prices significantly impacts the green petroleum coke market, and it is important for industry players to keep track of these changes when making business decisions. Understanding the relationship between crude oil prices and the green petroleum coke market can help companies develop effective pricing strategies, manage supply chains, and stay competitive.

Market Opportunities:

The green petroleum coke market has significant growth potential in emerging markets such as China, India, and Brazil. These countries are rapidly developing and industrializing, driving an increase in energy and raw materials demand. This presents an opportunity for suppliers and manufacturers of green petroleum coke to expand their market presence and tap into this growing demand. Additionally, these countries are increasingly focused on sustainability and adopting cleaner fuel sources, which could further drive demand for green petroleum coke.

Innovation in developing new products and applications for green petroleum coke presents significant market growth opportunities. One potential innovation area is using green petroleum coke in producing graphite electrodes for electric vehicles. As the demand for electric vehicles continues to grow, the demand for graphite electrodes used in their production is also expected to increase. With its high carbon content and low impurities, Green petroleum coke is a promising raw material for producing high-quality graphite electrodes. As a result, companies developing and offering innovative products and applications using green petroleum coke could gain a competitive advantage and capture a share of this growing market.

GREEN PETROLEUM COKE MARKET REPORT COVERAGE:

Market Segmentation:

Green Petroleum Coke Market - By Type:

• Calcined Coke
• Fuel Grade Coke

The fuel-grade coke segment dominates the green petroleum coke market due to its wide usage in various industries, such as cement, power generation, and steel production, as a cost-effective and efficient fuel. Fuel-grade coke is produced from high-quality green petroleum coke and is used in power plants, cement kilns, and blast furnaces.

Green Petroleum Coke Market - By End-User Type:

• Cement Industry
• Power Generation Industry
• Steel Industry
• Aluminium Industry

The cement industry dominates the green petroleum coke market because green petroleum coke is widely used as a fuel in cement kilns and calciners. These components are critical in cement manufacturing, and fuel-grade coke is the primary fuel used in these units. In addition, the growth in the construction industry, particularly in emerging economies, has increased the demand for cement, subsequently increasing the demand for the green petroleum coke market.

Market Regional Analysis: 

The Global Green Petroleum Coke Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

 The Asia-Pacific region dominates the green petroleum coke market due to its large and growing cement and steel industries. Countries such as China and India are major consumers of green petroleum coke as a fuel for cement kilns and blast furnaces, which are critical components in the production process. Additionally, the region's high population and economic growth have resulted in increasing electricity demand, driving the demand for the green petroleum coke market. North America and Europe are mature markets for green petroleum coke, with steady demand from various industries. The Middle East & Africa region is also a significant market due to the presence of major oil-producing countries such as Saudi Arabia and the UAE. The Latin America region is expected to show steady growth in the market due to increasing demand from the cement and power generation industries.

Impact of covid-19 on the Green Petroleum Coke Market:

The COVID-19 pandemic had a negative impact on the Green Petroleum Coke Market, leading to a decline in demand due to the global shutdown of economies and reduced industrial activity. As a result, the major consumers of green petroleum coke, such as aluminium smelters, cement plants, and steel mills, were forced to close down, resulting in an oversupply of the product in some regions and shortages in others. However, as the world begins to recover from the pandemic, the demand for green petroleum coke is expected to rebound, particularly as the construction and manufacturing sectors resume their operations. Additionally, the increasing focus on sustainability is expected to drive the demand for cleaner fuels like green petroleum coke. While the pandemic had a short-term impact, the long-term outlook for the green petroleum coke market remains positive.

Key Market Players:

1. Reliance Industries Limited
2. Indian Oil Corporation Limited
3. BP plc
4. Chevron Corporation
5. ExxonMobil Corporation
6. Royal Dutch Shell plc
7. Saudi Arabian Oil Co.
8. China National Petroleum Corporation
9. Gazprom Neft PJSC
10. Valero Energy Corporation

Market Key Development:

• In 2021, Indian Oil Corporation Limited (IOCL), one of India's largest oil refining and marketing companies, announced that it had signed an agreement with Saudi Arabian Oil Co (Aramco) to jointly develop and build a refinery and petrochemicals complex in Maharashtra, India. The complex is expected to produce various products, including green petroleum coke.
• In 2021, Rain Carbon Inc., a leading producer of calcined petroleum coke, announced that it had completed a major upgrade of its calcining plant in Germany. The upgrade has increased the plant's production capacity and improved energy efficiency, allowing Rain Carbon to meet the growing demand for high-quality calcined petroleum coke in Europe and other regions.