GreatPoint's bluegas™ technology is designed to produce pipeline-quality SNG — the cleanest, lowest carbon commercial fuel in use today. According to the U.S. Energy Information Administration 2011 International Energy Outlook, the global market for natural gas was nearly $1 trillion in 2008. Worldwide total natural gas consumption is expected to expand to 169 trillion cubic feet in 2035 from 111 trillion cubic feet in 2008. Much of this growth will come from natural gas consumption in emerging economies like China and India, where consumption is forecast to grow three times faster than industrialized countries from 2008 to 2035.
GreatPoint Energy is primarily focused on deploying its technology in countries that import LNG, which generally trades at oil parity (>$13.00 / MMBtu at $80 / barrel), making LNG import markets highly attractive for deployment of bluegas™ plants. One of the largest and fastest growing opportunities is China as its appetite for LNG is increasing rapidly.
China's dependence on natural gas imports is expected to rise sharply over the next decade and demand is projected to drastically outpace domestic production. China's natural gas consumption is forecast to grow at an average rate of 5 percent annually—the highest growth rate worldwide—to a total of 9.7 trillion cubic feet in 2035, reaching a level that is 39 percent of US consumption in that year. By that time, China is expected to be dependent on imports for more than one-third of its total natural gas consumption, providing a significant market opportunity for bluegas™ coal-to-SNG technology.
In addition to China, other attractive Asian markets include South Korea, Japan, Taiwan and Indonesia which, although well-endowed with domestic gas resources, is unlikely to be able to meet rising domestic demand along with contractual commitments to LNG exports. India is also an ideal candidate for the application of the bluegas™ technology. With high rates of economic growth and over 15% of the world's population, India has become a significant consumer of energy. The country currently lacks sufficient domestic energy resources and must rely on imports to meet the increasing demand.
The tremendous pressure for the adoption of cleaner coal technologies, and volatility in international energy prices, has prompted India to seriously consider coal gasification as an alternative for power generation, fertilizers production, and other applications. The significant demand / supply gap in power generation and the abundance of domestically available coal and petroleum coke present attractive potential for bluegas™ in India.
In Europe, declining natural gas production coupled with rising energy consumption and tightening environmental regulations will result in rising demand for low-emissions use of natural gas imports. According to the 2011 EIA Energy Outlook, OECD European natural gas import demand will increase from 9 trillion cubic feet in 2008 to 14.1 trillion cubic feet in 2035.
Energy security concerns caused by increasing dependency on imports from Russia and other former Soviet Union countries, along with the high costs of LNG imports, have prompted governments in the region to seek alternative sources of energy supply. Given the significant coal reserves in the region, bluegas™ is a natural solution.