This paper presents a techno-commercial analysis of integrating petroleum coke (petcoke) gasification within U.S. refineries to produce high-value chemicals—such as methanol, acetic acid, monoethylene glycol (MEG), and glycolic acid—alongside hydrogen and power for internal use. Petcoke, a carbon-rich byproduct from delayed coking, represents over 60 million metric tons annually in the U.S., much of which is currently underutilized or combusted. With tightening environmental regulations and increasing pressure on refineries to decarbonize, gasification offers a strategic route to convert this low-value residue into economically and environmentally superior products. In this process, petcoke is gasified with oxygen and steam to produce synthesis gas (syngas), a mixture of hydrogen and carbon monoxide that forms the basis for methanol synthesis. Methanol, in turn, serves as a platform chemical for several downstream derivatives used in sectors ranging from packaging and textiles to pharmaceuticals and cosmetics. The hydrogen content in syngas supports internal refinery processes such as hydrocracking and hydrotreating, reducing reliance on traditional steam methane reforming. Additionally, co-generation of electricity and steam enhances energy efficiency and reduces external utility dependence. A major economic advantage lies in integrating carbon capture directly into the syngas stream. The high CO₂ concentration and pressure of syngas allow for more efficient and lower-cost separation than flue gas-based systems. Capture costs can range from $30 to $50 per metric ton, and current U.S. policy incentives offer tax credits up to $85 per ton for CO₂ sequestration. These factors significantly improve the viability of producing low-carbon hydrogen and chemicals. Gas cleanup systems further allow for sulfur recovery and trace metal removal, ensuring compliance with environmental standards. The economics are further strengthened by the diversified product slate. Revenues are generated not just from methanol and derivatives, but also from hydrogen, CO₂ credits, power, and sulfur. This multi-product basket provides a natural hedge against commodity price fluctuations. For instance, if methanol margins decline, stable hydrogen demand and carbon credit revenues can sustain overall project economics. Under optimized configurations, such systems can achieve attractive internal rates of return with capital payback periods of five to seven years, particularly when leveraging existing refinery infrastructure. While challenges such as capital intensity, technical complexity, and market volatility remain, the integration of petcoke gasification with carbon capture represents a robust pathway for U.S. refineries to reduce emissions, monetize waste streams, and enhance long-term competitiveness. The approach aligns with circular economy principles by transforming a carbon-intensive byproduct into a portfolio of clean, high-value outputs—positioning refineries for a more sustainable and profitable future.
