Analysis of rationality of coal-based synthetic natural gas (SNG) production in China

Hengchong Li, Siyu Yang, Jun Zhang, Andrzej Kraslawski and Yu Qian

Energy Policy, 2014, vol. 71, issue C, 180-188

Abstract: To alleviate the problem of the insufficient reserves of natural gas in China, coal-based synthetic natural gas (SNG) is considered to be a promising option as a source of clean energy, especially for urban use. However, recent study showed that SNG will not accomplish the task of simultaneous energy conservation and CO2 reduction. In this paper, life cycle costing is made for SNG use in three main applications in residential sector: heating, household use, and public transport. Comparisons are conducted between SNG and coal, natural gas, liquefied petroleum gas (LPG), diesel, and methanol. The results show that SNG is a competitive option only for household use. The use of SNG for heating boilers or city buses is not as cost-effective as expected. The biggest shortcoming of SNG is the large amount of pollutants generated in the production stage. At the moment, the use of SNG is promoted by the government. However, as shown in this paper, one can expect a transfer of pollution from the urban areas to the regions where SNG is produced. Therefore, it is suggested that well-balanced set of environmental damage-compensating policies should be introduced to compensate the environmental losses in the SNG-producing regions.

Keywords: Synthetic natural gas (SNG); Life cycle costing; Environmental emission (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:71:y:2014:i:c:p:180-188

DOI: 10.1016/j.enpol.2014.04.018

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