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PEP Review 78-1-4

Synthesis Gas Costs

Published: May 1979

Natural gas is generally preferable to coal or coke for the production of synthesis gas. At a natural gas price of $2.00/1,000 scf, an H2/CO mol ratio of 5/1, and an output of 120 million scfd, the fixed capital investment is lower and the syngas value (production cost plus a 25%/yr pretax ROI) is lower than for bituminous coal.

However, for syngas H2/CO ratios less than about 2/1, and when additional carbon dioxide is not available and there is no requirement for hydrogen gas, bituminous coal may be the preferable source for synthesis gas.

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