Driving forces and barriers in the development and implementation of coal-to-liquids (CtL) technologies in Germany

Daniel Vallentin

Energy Policy, 2008, vol. 36, issue 6, 2030-2043

Abstract: Because of a growing global energy demand and rising oil prices coal-abundant nations, such as China and the United States, are pursuing the application of technologies which could replace crude oil imports by converting coal to synthetic hydrocarbon fuels--so-called coal-to-liquids (CtL) technologies. The case of CtL is well suited to analyse techno-economic, resources-related, policy-driven and actor-related parameters, which are affecting the market prospects of a technology that eases energy security constraints but is hardly compatible with a progressive climate policy. This paper concentrates on Germany as an example--the European Union (EU)'s largest member state with considerable coal reserves. It shows that in Germany and the EU, CtL is facing rather unfavourable market conditions as high costs and ambitious climate targets offset its energy security advantage.

Date: 2008
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