Global Coal Gasification Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Moving Bed, Fluidized Bed, Entrained Bed, and Molten Bed.By Feedstock ;
Bituminous Coal, Sub-Bituminous Coal, Lignite, and Petroleum Coke.By Application;
Fuel Gas, Feedstock, Power Generation, Fertilizer, and Chemical Making.By Geography;
North America, Europe, Asia Pacific, Middle East and & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Coal Gasification Market (USD Million), 2021 - 2031
In the year 2024, the Global Coal Gasification Market was valued at USD 508.79 million. The size of this market is expected to increase to USD 745.05 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 5.6%.
Coal gasification allows for the capture and removal of pollutants such as sulfur dioxide (SO2) and particulate matter. Thus, coal gasification helps in reducing the environmental impact and achieving sustainability goals. Syngas produced via coal gasification is used across different applications such as chemicals, and electricity generation which makes it a versatile gasification process to diversify energy production and minimize the dependence on fossil fuels. Gasification process generates cleaner liquid and gaseous fuels that can be used across chemicals, power, and other sectors. The coal gasification market is gaining huge popularity as it can address global energy security and environmental objectives. Notably, gasification installations could play a pivotal role in combating climate change due to their intrinsically lower costs for capturing carbon dioxide (CO2). In addition, the recent advancements in the integrated gasification and combined cycle (IGCC) power plants represent a remarkable shift from conventional power generation methods.
Modern gasification technologies exhibit noteworthy enhancements compared to their early counterparts, featuring heightened flexibility, considerably expanded scale, and novel applications. These advancements have propelled gasification technologies to unparalleled prominence. Furthermore, the widespread adoption of gasification methods can be primarily attributed to socioeconomic factors, concerns over energy security, and the imperatives of environmental stewardship. Moreover, the realm of gasification technologies has seen diversification, encompassing strategies aimed at cost reduction through integration as well as those emphasizing compact, modular gasifiers. These factors are anticipated to boost the market growth during the forecast period. Furthermore, as the demand for clean hydrogen rises, coal gasification could play a pivotal role in hydrogen supply, especially considering the projected increase in hydrogen demand by 2050. Coal-based hydrogen production through gasification has already proven effective, offering hydrogen of high purity for various industries, including refining, ammonia production, and fuel cells. This process, which involves converting coal into syngas rich in hydrogen and other components, has demonstrated its viability through successful implementations such as the Great Plains Synfuel Plant.
Another promising advantage lies in the field of Underground Coal Gasification (UCG). This process involves combusting coal in situ to create usable gas, offering the potential for various applications, including electricity generation, steam production, and chemical feedstock. UCG has demonstrated its capabilities through pilot projects and ongoing research, presenting a novel approach to harnessing coal's potential for energy and hydrogen generation. The integration of UCG with technologies like solid oxide fuel cells (SOFC) holds promise for efficient power generation and carbon-neutral processes. The high cost involved in setting up a coal gasification plant is estimated to hamper the market demand in the coming years. There is a significant amount of water required for the coal gasification process for cooling purposes. Thus, the countries facing water scarcity issues can find it difficult to setup the coal gasification plants. In addition, coal gasification is a complex process owing to which it requires proper monitoring of different parameters including temperature, gas composition, pressure, and others which is anticipated to hinder the market growth during the forecast period.
Global Coal Gasification Market Recent Developments
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In March 2022: Reliance Industries completed its coal-to-chemicals gasification plant, marking a shift towards value-added products
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In October 2023: China Shenhua Energy initiated a coal gasification pilot plant aimed at producing cleaner syngas for power generation
Segment Analysis
Moving Bed, Fluidized Bed, Entrained Bed, and Molten Bed. Moving Bed gasification involves the movement of coal through a fixed bed reactor, allowing for efficient conversion and gasification at controlled temperatures and residence times. Fluidized Bed gasification suspends coal particles in a fluidized bed of inert material, promoting rapid heat transfer and gas-solid reactions, ideal for low-rank coals and biomass feedstocks. Entrained Bed gasification entrains coal particles in a high-velocity stream of oxidant, facilitating complete combustion and gasification, suitable for high-moisture coals and petroleum coke. Molten Bed gasification utilizes molten salts or metals as a heat carrier and reactant, enabling high-temperature reactions and efficient tar removal, suitable for coal and heavy hydrocarbon feedstocks.
The segmentation by application showcases the versatility of coal gasification across multiple industries. Fuel Gas production involves the conversion of coal into syngas (synthetic gas), comprising hydrogen and carbon monoxide, for use as a clean-burning fuel in industrial boilers, furnaces, and gas turbines. Feedstock applications utilize syngas as a versatile precursor for producing various chemicals, fuels, and materials, including methanol, ammonia, hydrogen, and synthetic fuels. Power Generation employs syngas to generate electricity through integrated gasification combined cycle (IGCC) plants, offering higher efficiency and lower emissions compared to conventional coal-fired power plants. Fertilizer production utilizes syngas-derived ammonia for manufacturing nitrogen-based fertilizers essential for agricultural productivity and food security. Chemical Making applications encompass a wide range of industries, including petrochemicals, plastics, and pharmaceuticals, where syngas serves as a vital feedstock for producing a diverse array of chemicals and intermediates.
Global Coal Gasification Segment Analysis
In this report, the Global Coal Gasification Market has been segmented by Type, Feedstock, Application, and Geography.
Global Coal Gasification Market, Segmentation by Type
The Global Coal Gasification Market has been segmented by Type into Moving Bed, Fluidized Bed, Entrained Bed, and Molten Bed.
Moving Bed gasification involves the gradual movement of coal feedstock through a fixed bed reactor, facilitating controlled reactions and efficient conversion into syngas. This method is characterized by its simplicity, reliability, and flexibility in handling various coal types and feedstocks, making it suitable for both small-scale and large-scale gasification plants. Fluidized Bed gasification suspends coal particles in a fluidized bed of inert material, promoting rapid heat transfer and gasification reactions at relatively low temperatures, which is advantageous for low-rank coals, biomass, and waste feedstocks. Entrained Bed gasification entrains coal particles in a high-velocity stream of oxidant, achieving rapid and thorough gasification at high temperatures and pressures, ideal for high-moisture coals and petroleum coke feedstocks. Molten Bed gasification employs molten salts or metals as a heat carrier and reactant, enabling high-temperature reactions and efficient tar removal, making it suitable for coal and heavy hydrocarbon feedstocks with high tar content.
This segmentation not only reflects the technological diversity within the coal gasification industry but also highlights the versatility and adaptability of gasification processes to different coal types, feedstocks, and operational requirements. Each gasification technology offers distinct advantages in terms of efficiency, reliability, environmental performance, and scalability, catering to specific needs and preferences of gasification plant developers and operators. By understanding the characteristics and capabilities of each gasification technology, stakeholders in the Global Coal Gasification Market can make informed decisions regarding technology selection, investment strategies, and project development, thereby maximizing the economic viability and sustainability of coal gasification projects worldwide.
Global Coal Gasification Market, Segmentation by Feedstock
Global Coal Gasification Market, Segmentation by Feedstock into Bituminous Coal, Sub-Bituminous Coal, Lignite, and Petroleum Coke.
The global coal gasification market is segmented by feedstock into four key categories: bituminous coal, sub-bituminous coal, lignite, and petroleum coke, each playing a significant role in driving the growth and dynamics of the market. Bituminous coal, known for its high carbon content and energy density, is one of the most commonly used feedstocks in coal gasification processes. Its abundance and relatively high calorific value make it a preferred choice for large-scale industrial applications, including power generation and the production of chemicals such as methanol and ammonia. Bituminous coal’s high efficiency in gasification processes and its widespread availability, particularly in regions like North America and Asia-Pacific, contribute significantly to the market’s expansion.
Sub-bituminous coal, though having a lower carbon content compared to bituminous coal, is also extensively utilized in coal gasification due to its lower sulfur content and reduced environmental impact. This type of coal is particularly favored in countries aiming to reduce greenhouse gas emissions while still leveraging coal resources for energy and industrial applications. Sub-bituminous coal is predominantly found in regions like the United States, Australia, and Indonesia, where it is increasingly being adopted for coal gasification projects that prioritize cleaner and more sustainable energy production methods.
Lignite, often referred to as brown coal, represents another critical feedstock segment in the global coal gasification market. Despite its lower energy content and higher moisture levels compared to bituminous and sub-bituminous coal, lignite is extensively used in gasification processes due to its large reserves and cost-effectiveness. Lignite is particularly prominent in regions like Germany, China, and certain parts of the United States, where it serves as a crucial resource for producing synthetic natural gas, hydrogen, and other valuable chemical products. The ongoing advancements in gasification technologies are further enhancing the efficiency and feasibility of utilizing lignite, thereby boosting its demand in the global market.
Petroleum coke, a byproduct of oil refining processes, also plays a significant role in the coal gasification market as a feedstock. With its high carbon content and low cost, petroleum coke is increasingly being integrated into gasification systems to produce a range of energy products and industrial chemicals. Its utilization is particularly notable in regions with substantial oil refining activities, such as the Middle East, North America, and parts of Asia. The growing focus on reducing waste and optimizing resource utilization in the oil refining industry is driving the adoption of petroleum coke in gasification, thereby contributing to the overall growth of the market.
Global Coal Gasification Market, Segmentation by Application
The Global Coal Gasification Market has been segmented by Application into Fuel Gas, Feedstock, Power Generation, Fertilizer, and Chemical Making.
In Fuel Gas applications, coal gasification plays a crucial role in converting coal into syngas, a clean-burning fuel composed of hydrogen and carbon monoxide. This syngas can be utilized in industrial boilers, furnaces, and gas turbines, offering an alternative to traditional fossil fuels while reducing emissions and environmental impact. In Feedstock applications, syngas serves as a valuable precursor for producing a wide range of chemicals, fuels, and materials. Industries such as petrochemicals, plastics, and pharmaceuticals utilize syngas-derived intermediates to manufacture products essential for modern society.
Power Generation represents a significant application area for coal gasification, particularly through integrated gasification combined cycle (IGCC) plants. These plants utilize syngas to generate electricity with higher efficiency and lower emissions compared to conventional coal-fired power plants, contributing to energy security and environmental sustainability. Additionally, coal gasification finds application in Fertilizer production, where syngas-derived ammonia serves as a key ingredient in nitrogen-based fertilizers essential for agricultural productivity and food security. Lastly, in Chemical Making applications, syngas acts as a versatile feedstock for producing various chemicals and intermediates, including methanol, ammonia, hydrogen, and synthetic fuels. Industries ranging from agriculture to automotive rely on these chemicals for manufacturing processes, highlighting the critical role of coal gasification in supporting global economic development and industrial growth.
Global Coal Gasification Market, Segmentation by Geography
In this report, the Global Coal Gasification Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Global Coal Gasification Market Share (%), by Geographical Region, 2024
APAC is estimated to contribute 78% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Several countries such as China and India rely extensively on coal to meet their energy demand which is contributing to the market growth in the region. In addition, China has been the largest coal producer in the world since 1985. Therefore, coal plays a significant role in China's energy mix.
Moreover, the coal-to-ethanol plant in Indonesia has enabled the country to meet the rising demand for affordable, high-quality, locally sourced, and safe liquid transportation fuels. In addition, high-octane fuel ethanol enables improvements in air quality by reducing the emissions of particulate matter (PM) nitrogen and sulfur oxides. Therefore, the syngas derived from coal have allowed Indonesia to meet the country's energy demand, especially with regard to liquid fuels, thus simultaneously reducing the dependence on imports. Hence, such factors are driving the market growth in APAC during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global coal gasification market witnessed a significant slowdown due to the decline in demand for coal gasification from consumers and manufacturing industries in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of demand from manufacturing units. Such factors are expected to drive the market during the forecast period.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Coal Gasification Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Energy Security and Diversification
- Environmental Concerns and Emission Reduction
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Syngas Production for Chemicals and Fuels- Syngas, a mixture of hydrogen and carbon monoxide, serves as a versatile feedstock for producing a wide range of valuable chemicals and fuels essential for various industries. One of the primary drivers behind this demand is the increasing need for clean and sustainable alternatives to traditional fossil fuels. Syngas derived from coal gasification offers a viable solution, providing a cleaner-burning fuel option that can be used in place of coal, oil, or natural gas in industrial processes, power generation, and transportation. Moreover, syngas serves as a fundamental building block for chemical synthesis, enabling the production of essential chemicals such as methanol, ammonia, hydrogen, and synthetic hydrocarbons. These chemicals are used in diverse industries, including petrochemicals, pharmaceuticals, agriculture, and transportation, for manufacturing a wide range of products, from plastics and fertilizers to pharmaceuticals and synthetic fuels. The versatility of syngas allows for customization and flexibility in chemical production processes, enabling manufacturers to tailor their products to meet specific market demands and regulatory requirements.
Syngas production for chemicals and fuels drives innovation and technological advancements in coal gasification processes. Companies invest in research and development to improve gasification efficiency, increase syngas yields, and develop novel catalysts and process technologies to enhance product quality and reduce environmental impact. Additionally, syngas production incentivizes investment in coal gasification projects and infrastructure, spurring economic growth, job creation, and industrial development in regions with abundant coal reserves.
Restraints
- High Capital Costs
- Competitive Pressure from Alternative Energy Sources
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Resource Availability and Security Concerns- The availability of coal resources, which serve as the primary feedstock for coal gasification, is subject to geographical constraints, depletion of reserves, and environmental regulations. As coal reserves are finite and unevenly distributed across regions, the reliance on coal as a feedstock for gasification processes raises concerns about long-term resource availability, particularly in regions with limited coal reserves or where coal extraction is economically or environmentally challenging. Additionally, the extraction and transportation of coal entail logistical challenges, infrastructure investments, and environmental impacts, further complicating resource availability and accessibility for coal gasification projects.
Security concerns related to coal supply chains, geopolitical tensions, and market volatility pose significant risks to the stability and reliability of coal gasification operations. Dependence on coal imports from geopolitically unstable regions or countries with erratic supply patterns can expose coal gasification projects to supply disruptions, price fluctuations, and geopolitical risks. Additionally, regulatory uncertainties, trade disputes, and shifts in energy policies can impact the availability and cost of coal feedstock, creating uncertainties for coal gasification investors and stakeholders. Furthermore, concerns about energy security and diversification drive the exploration of alternative feedstocks and clean energy sources, potentially limiting the growth prospects of coal gasification technologies in regions seeking to reduce dependence on coal and transition to more sustainable energy sources.
Opportunities
- Energy Security and Diversification
- Syngas as a Feedstock for Chemicals
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Integration with Carbon Capture and Storage (CCS) Technologies- As the world seeks to mitigate climate change and reduce greenhouse gas emissions, CCS technologies offer a promising solution for capturing and storing carbon dioxide (CO2) emissions generated from coal gasification processes. By integrating CCS with coal gasification plants, companies can effectively mitigate the environmental impact of coal-derived syngas production, thereby enhancing the sustainability and acceptability of coal gasification as a viable energy and chemical production technology. One of the key benefits of integrating CCS with coal gasification is the potential to achieve carbon neutrality or even carbon negativity by capturing and permanently storing CO2 emissions underground. This not only helps to reduce the carbon footprint of coal-based industries but also contributes to overall global efforts to combat climate change. Moreover, CCS technologies can enhance the economic viability of coal gasification projects by providing additional revenue streams through carbon capture credits or utilization of captured CO2 for enhanced oil recovery or industrial processes, thereby improving the competitiveness of coal gasification relative to other energy and chemical production technologies.
The integration of CCS with coal gasification enables companies to future-proof their operations and adapt to evolving regulatory frameworks and market demands for reduced emissions and sustainability. By proactively addressing environmental concerns and demonstrating a commitment to carbon mitigation, companies can enhance their social license to operate and strengthen their position in the market. Additionally, investments in CCS technologies for coal gasification projects can stimulate innovation and technological advancements, driving down costs and improving efficiency over time, thereby unlocking further growth opportunities and ensuring the long-term viability of coal gasification as a sustainable energy and chemical production solution in the global transition to a low-carbon future.
Competitive Landscape Analysis
Key players in Global Coal Gasification Market include:
- Sedin Engineering Co Ltd
- Sasol Limited
- Shanxi Lu'an Mining Group Co., Ltd
- Dakota Gasification Company
- Thyssenkrupp Uhde GmbH
- Andritz
- Mitsubishi Heavy Industries Ltd
- Air Products
- Linc Energy Ltd
- Air Liquide
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Feedstock
- Market Snapshot, By Application
- Market Snapshot, By Region
- Global Coal Gasification Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Energy Security and Diversification
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Environmental Concerns and Emission Reduction
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Syngas Production for Chemicals and Fuels
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- Restraints
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High Capital Costs
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Competitive Pressure from Alternative Energy Sources
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Resource Availability and Security Concerns
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- Opportunities
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Energy Security and Diversification
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Syngas as a Feedstock for Chemicals
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Integration with Carbon Capture and Storage (CCS) Technologies
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Coal Gasification Market, By Type, 2021 - 2031 (USD Million)
- Moving Bed
- Fluidized Bed
- Entrained Bed
- Molten Bed
- Global Coal Gasification Market, By Feedstock, 2021 - 2031 (USD Million)
- Bituminous Coal
- Sub-Bituminous Coal
- Lignite
- Petroleum Coke
- Global Coal Gasification Market, By Application, 2021 - 2031 (USD Million)
- Fuel Gas
- Feedstock
- Power Generation
- Fertilizer
- Chemical Making
- Global Coal Gasification Market, By Geography, 2021 - 2031 (USD Million)
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North America
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United States
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Canada
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Europe
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Germany
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United Kingdom
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France
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Italy
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Spain
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Nordic
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Benelux
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Rest of Europe
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Asia Pacific
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Japan
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China
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India
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Australia & New Zealand
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South Korea
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ASEAN (Association of South East Asian Countries)
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Rest of Asia Pacific
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Middle East & Africa
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GCC
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Israel
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South Africa
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Rest of Middle East & Africa
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Latin America
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Brazil
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Mexico
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Argentina
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Rest of Latin America
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- Global Coal Gasification Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
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Sedin Engineering Co Ltd
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Sasol Limited
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Shanxi Lu'an Mining Group Co., Ltd
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Dakota Gasification Company
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Thyssenkrupp Uhde GmbH
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Andritz
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Mitsubishi Heavy Industries Ltd
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Air Products
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Linc Energy Ltd
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Air Liquide
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- Company Profiles
- Analyst Views
- Future Outlook of the Market