Most U.S.-Produced Petcoke Exported, Remains Steady Over Last Decade: EIA

U.S. petroleum coke, or petcoke, production on an annual basis remained relatively flat over the last decade (2014-2023) and averaged 46 million tons, according to an Nov. 14 report published by the U.S. Energy Information Administration. The majority of the petroleum coke produced in the U.S. is exported. During 2023, the U.S. exported around 41 million tons, marginally above the 10-year average of 40 million tons.

U.S. electric generators usage of petcoke has declined steadily over the last decade. The usage has declined from 4.4 million tons during 2014 to 1.8 million tons during 2023. The decline in demand can be attributed to higher competition from renewable energy sources and natural gas.

Petcoke is an energy source utilized for power generation and industrial applications and in contrast to most other fuels it is not only determined by consumer demand. Refiners operate a coking unit to churn out additional high value products such as diesel and gasoline.

Petcoke’s high carbon characteristics, in addition to relatively cheap cost of production as well as low risk of combustion during transport makes the fuel a cost effective and efficient thermal input. The high sulphur and carbon content of petcoke does mean it can be affected by environmental regulations in some markets.

Majority of U.S. petcoke is produced in the upper Midwest  and along the Gulf Coast at refineries that operate coking units. The refiners have accessibility to the Great Lakes and Gulf of Mexico, which is vital since majority of the sales are made to overseas customers, who put high regard to the high heat content and low price of the fuel. As it stands, petcoke usually sells at a discounted rate of around 15 to 20 percent to the thermal coal price, due to its higher sulphur and carbon content requiring it to be utilized mainly as fuel plants that can deal with more impurities.

Yearly exports of U.S. sourced fuel grade petcoke, which accounts for 90 percent of total petcoke exports has been constant since 2014 at 37 million tons. Fuel grade petcoke is mostly utilized as a fuel at power and cements plants. India is a significant importer of U.S. petcoke and requires the fuel for energy requirements of cement kilns and other industrial processes.