Gas Treating Amine Market Trends

Growth Drivers

• Increase in biogas and renewable energy production: The global shift towards renewable energy sources has increased investments in biogas and syngas production. This presents a unique opportunity for the gas treating amine market due to the use of amine-based solutions for purifying biogas. Market players are projected to benefit from the expanding green energy industry owing to the increasing use of amine-based treatments for renewable energy applications.
  
  Additionally, amine treatment significantly increases the methane content of biogas, improving its valuation as a fuel. It can enhance the calorific value and combustion properties of syngas, making it a more efficient fuel. Research and development of amine-based CO2 capture is poised to increase the adoption rate of amine-based treatments.
• Increase in gas power plant capacity: Globally, heat waves are pushing gas-based power plants capacity utilization increasing demands for amine-based solutions. The increase in construction of gas-fired power plants is owed to meet the rising energy demands globally, led by APAC countries, and to reduce dependency on thermal power plants. Gas-fired power plants require high-quality natural gas free from impurities such as CO2 and H2S to maintain optimal capacity utilization. The gas treating amine market benefits from the adoption of amine-based treatment to ensure natural gas in the plants meets the necessary purity standards.
  
  Additionally, global data indicates the construction and development of new gas-fired power plants that will significantly benefit the gas treating amine market. For instance, in March 2023, the Global Energy Monitor indicated a surge in the development of gas-fired power plants with a 22% increase in global capacity compared to the previous year. The gas power plants in pre-construction and construction phases would add an estimated 748 gigawatts (GW) of new capacity and capital expenditure was estimated at USD 601 billion.
• Stringent enforcement of environmental regulations: Increasing government and international agencies' scrutiny over greenhouse gas emissions in power generation and industrial sectors has fueled the adoption of amine-based gas treatment solutions. Consumer behavior trends globally have shifted to demands for sustainable supply chains, and companies with end-products utilizing supply lines with greater GHG emissions are under greater scrutiny. In December 2023, The United Nations Climate Change Conference (COP28) recognized the science indicating GHG emissions to be cut by 43% by 2030 to limit global warming. This fuels the demand for effective amine-based gas-treating solutions boosting the robust growth of the gas-treating amine sector.
  
  Additionally, stringent fines associated with violations of environmental decrees are hastening the adoption of amine-based gas treatment. For instance, in May 2022, more than 30 companies were issued with fines amounting to USD 35.2 million by the Environment Agency under the European Union Trading System.

Challenges

• Competition from alternative treatment technology: The gas treating amine market faces fierce competition from alternative gas treatment technologies such as gas membrane separation that can be more cost-effective. Gas membrane technologies can prove to challenge the adoption of amine-based solutions in certain regions and stymie the gas treating amine market growth. Manufacturers look for gas treating solutions that are less labor-intensive and cost-efficient. Market players are positioned to answer the challenge by offering innovative amine-based solutions that can be cost-effective and with reduced environmental impacts.
• Volatile raw material prices: The fluctuating cost of raw materials can challenge the growth of the gas treating amine market. Monoethanolamine (MEA), Duethanolamine (DEA), Trierhanolamine (TEA) are primary raw materials used in amine-based gas treating solutions. Price volatility of these chemicals can adversely affect production costs and profit margins, making it difficult for manufacturers to maintain competitive pricing. These trends can adversely affect the sector’s steady growth.