North America Petcoke Market Size - By Grade (Fuel Grade, Calcined Grade), By Physical Form (Sponge Coke, Purge Coke, Shot Coke, Needle Coke), By Application (Power Plants, Cement Industry, Steel Industry, Aluminum Industry) & Forecast, 2023 - 2032

North America Petcoke Market Size

North America Petcoke Market was valued at USD 8 billion in 2022 and is predicted to expand at over 2.7% CAGR from 2023 to 2032. The increasing need to process heavy oil, resulting in a substantial expansion of refinery capacity, is poised to boost regional demand for petroleum coke. Petcoke has found widespread use in the cement and aluminum manufacturing sectors due to its high calorific value and minimal ash content which in turn will complement the industry dynamics owing to increasing spending in improving the regional infrastructure. For instance, the government of Canada, through its Infrastructure Program, will invest around USD 33 billion to improve the country ‘s infrastructure.
 

The product has received non-hazardous waste classification from several government agencies, including the EPA, leading to an increased demand. The burgeoning steel applications, driven by swift industrialization and commercialization, are set to drive the industry forward. Currently, petcoke has emerged as the favored raw material for steel manufacturers, owing to its affordability and abundant supply. It is being widely employed in electrode production within the steel industry. The enforcement of strict emission regulations pertaining to coal usage in power generation and other manufacturing facilities will further contribute to the growth of the petcoke market.
 

The U.S. Environmental Protection Agency (EPA) has introduced more stern and novel legislations for distinct aspects of coal combustion, including waste disposal, water usage, and harmful emissions under the Clean Air Act. The EPA has initiated significant amends to its regulation of emissions of conventional pollutants, consequently elevating the cost of coal-fired power production. The regulation of carbon dioxide emissions from coal-fired power plants is addressed by various recent EPA rules.
 

COVID- 19 Impact

The COVID- 19 outbreak has impacted the overall petcoke market along with cement industries. The market experienced demand fluctuations during the pandemic. As various countries implemented lockdowns and travel restrictions, economic activities slowed down, leading to reduced energy consumption and industrial production. This resulted in lower demand for petcoke in certain sectors, such as cement and aluminum.
 

North America Petcoke Market Trends

The regional growth in refining capacity is creating favorable conditions for the petcoke industry. Petroleum coke is one of the byproducts derived from the refining process and a significant portion of U.S. crude oil refineries employs a coking process to transform heavy oil into refined petroleum products, and this trend is expected to continue with more refineries adopting similar methods. In addition, petcoke production in the U.S. is experiencing substantial growth as domestic refineries continue to expand their coking capacities to take advantage of cost-effective crude oil from sources such as Canada's oil sands and other heavy oil reservoirs, thereby contributing to market expansion.
 

Cement, power, and steel industries stand as the primary users of petcoke, as they progressively shift away from coal in favor of more cost-effective fuels. The attractiveness of petroleum coke lies in its economical price, high heating value, and minimal ash content, making it a compelling alternative. It serves primarily as a carbon source for industrial needs and as an energy source as a result, petcoke finds extensive use as a fuel source in both electric power plants and cement kilns.
 

North America Petcoke Market Analysis

Based on grade, the fuel grade petcoke is anticipated to grow at a CAGR of over 2.6% through 2032. The increasing focus on adopting cleaner fuels has prompted cement manufacturers to elevate their utilization of petcoke in cement production. Many cement industries opt for a blend of petcoke and coal in their kiln fuels to reduce transportation costs and lower residual ash content. The higher calorific value of petcoke ensures efficient combustion, enabling the production of superior-grade cement using the same quantity of raw materials.
 

• Fuel grade finds a wider utilization in power plants and cement industries where petcoke is directly consumed regardless of its high sulfur content.
   
• Use of fuel grade reduces the manufacturing cost along with simultaneously enhancing the cement quality.
   
• However, high sulfur content of fuel grade calls for modifications in calciner, burner, and cooler to ensure a hassle-free and cost-effective operation.
   

Based on application, the cement application is set to register 3.4% CAGR up to 2032. Growing infrastructure needs coupled with escalating construction practices have significantly influenced the growth of cement industries. Robust investments are being made by existing players to increase their production capacity in response to the increased demand from the real estate sector. Rapid urbanization in growing economies has increased the adoption of power generating plants.
 

• Properties of petcoke to be used as a low-cost combustion fuel coupled with an absence of government regulations have propelled the product’s demand in the power sector.
   
• Regulations concerning coal emissions in coal-fired power plants are being efficiently met by using a blend of petcoke and coal as a powering fuel which reduces the waste ash content and subdues NOx emissions.
   
• Burgeoning demand of steel to supplement the infrastructure growth has led to an increased steel production simultaneously complementing the growth of calcined petcoke in the metal industry.
   

The U.S. petcoke market poised to witness around 2.7% CAGR through 2032. The region is closely linked to a set of driving factors that encompass economic growth, industrial advancements, environmental considerations, technological advancements, and the emergence of new applications. These applications extend to industries such as renewable energy and electric vehicles, which in turn will fuel the North America petcoke market outlook.
 

• The growth of refining capacity in the U.S. is contributing to increased petcoke production. This expansion is particularly driven by the efficient processing of heavy crude oil from sources like the Canadian oil sands.
   
• Industries such as cement, power generation, and steel are transitioning from coal to petcoke as a more cost-effective and environmentally friendly fuel source.
   
• The U.S. petcoke market is not only catering to domestic demand but also experiencing growth in global markets, with increased exports to countries where it is used in industrial applications.
   
• U.S. crude oil refineries are adopting coking processes to convert heavy oil into refined petroleum products, contributing to increased petcoke production.
   
• The growing demand for petcoke is in part driven by its use as an energy source for various industrial applications, in addition to its role as a carbon source.
   

North America Petcoke Market Share

The industry is marked by both established global players and regional companies, where the competition is driving innovation and efficiency, benefiting customers in terms of better technology and competitive pricing across the end use segment:

• Exxon Mobil
• Shell plc
• Saudi Aramco
• BP
• Reliance Industries
• Chevron Corporation
• Valero Energy Corp
• HF Sinclair Corporation
• Marathon Petroleum Corporation
• OXBOW CARBON
• Aminco Resources
• Shamokin Carbons
• Husky Energy
• Phillips 66 Company
• cocangraphite

North America Petcoke Market News

• In August 2023, ExxonMobil announced to overall its second largest 619,024 barrel per day Beaumont, Texas refinery. The refinery coker will convert residual crude oil into either feedstock for motor fuel or petroleum coke, that can be utilized as a substitute for coal.
   
• In January 2020, ExxonMobil subsidiary ExxonMobil Catalysts and Licensing LLC and Axens have signed a licensing alliance agreement to allow Axens to provide ExxonMobil’s FLEXICOKING™ technology and integrated resid conversion solutions. Under the agreement, Axens is granted a worldwide right to market, license and provide engineering work and technical support for the design, construction, and start-up of new FLEXICOKING units. The technology will be offered under a single license and engineering agreement to be provided by Axens. This new alliance leverages collective expertise to meet customer needs by providing a resid conversion solution that maximizes liquid yields and minimizes pet-coke production.
   

This North America petcoke market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MT & USD Million’ from 2019 to 2032, for the following segments:

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By Grade

• Fuel Grade
• Calcined Petcoke

By Physical form

• Sponge Coke
• Purge Coke
• Shot Coke
• Needle Coke

By Application

• Power Plants
• Cement Industry
• Steel Industry
• Aluminum Industry
• Others

The above information has been provided for the following countries across the region.

• U.S.
• Canada