The needle coke market is in the process of a demand resurgence based both on

Chinese demand for graphite electrodes and additional diversification into lithium
ion battery anodes, driven by the market expansion of electric vehicles (EVs). This
demand will likely show sustained growth for the foreseeable future with associated
pricing support over the period.

There is a specific demand for ultra-premium, high purity needle coke from both
applications, driven by a requirement to derive maximum in-situ performance from
these materials. The two main ultra-premium needle coke precursors include high-
temperature coal tar pitch (HT-CTP) and fluidised catalytic cracker decant oil
(FCCDO), the latter enjoying market dominance (80%).

Quality issues associated with HT-CTP relate to technical issues stemming from
process origin, environmental concerns (carcinogenetic and emissions), and
inconsistent quality. Quality issues relating to FCCDO are generally associated
with heavier, higher sulphur crude oils and the competition (by the bunker fuel
market) for sweeter crude oil downstream derivatives.

The search for consistent quality, high purity needle cokes may in future broaden
the scope of potential precursors in line with the trend towards cleaner fuel
technology (such as natural gas) over the medium-term period at least. Utilising
natural gas as a source, gas-to-liquid (GTL) technology offers the automotive
industry a cleaner source of liquid hydrocarbon fuels. With the benefit of these
fuels being synthetic, their quality is less dependent on origin (as is much the
case with crude oil).

This not only relates to the lighter automotive fuels, but additionally applies to
the purity of the heavier residual waxy oil (C20+) streams. The lack of inherent
contamination (thermally stable nitrogen and sulphur heterocycles, which have a
detrimental effect on needle coke quality) makes this fraction an intriguing
prospect. However, the additional lack of any inherent aromaticity would seem to be
in contrast with historically desirable characteristics associated with needle coke
precursors.

What is needle coke?

Needle coke is produced in a delayed coker from aromatic petroleum or coal tar
heavy residues. They generally form as highly crystalline graphene-like carbons,
exhibiting long-range microstructural order with minimal impurities (sulphur,
nitrogen, and metals) and a low coefficient of thermal expansion (CTE).
Historically, needle cokes have been used to produce graphite electrodes for steel
smelting in an electric arc furnace (EAF). The advent of EVs has additionally
diversified the scope of application for needle coke (inclusion in graphite anodes
of lithium ion batteries).

Additionally, the needle coke market has utilised low sulphur vacuum residues
(LSVR) and ethylene tar pitches (ETP) precursors, although they have mostly been
associated with lower quality needle coke grades. Solvent refined coals (SRC) have
been trialled at a pilot plant scale, but there is no evidence of any sustained
commercial production. However, the two dominant ultra-premium needle coke
precursors stem from the petroleum industry (FCCDO) and the coal blast furnace
industry (HT-CTP).

These heavy liquid residuals are converted to solid coke and cracked distillates in
a delayed coker unit (DCU) in the temperature range of 450-500°C (dependent on the
thermal stability of the feedstock). Unlike other coke types, needle coke
microstructural and crystalline order is particularly important. The aromaticity
associated with most needle coke feedstocks infers a degree of thermal stability.

During polycondensation of higher molecular weight radicals, they form an

intermediate phase (mesophase). The longer the mesophase remains within an optimal
viscosity range, the greater the propensity to develop long-range microstructural
order (sometimes referred to as the carbon 'blueprint'). The structural order on a
micro-scale (10-6) translates to the crystalline scale (10-10). The crystalline
order is that of graphene (sp2 hybridised orbitals) and essentially exists as
layers of covalently bonded benzene sheets separated by interplanar spaces. The
microstructural and crystalline order determine the electronic and CTE
characteristics of both needle coke and consequently graphite electrodes.

Needle coke quality is generally classified into three quality grades (ultra
premium, super premium and intermediate premium), the specifications of which are
presented in Table 1.

The quality ascribed to needle coke grades is generally characterised by

differences in microstructural order, crystalline order, CTE, and impurities.
Higher quality needle coke grades are usually associated with larger diameter
graphite electrodes. Petroleum-based needle cokes have historically dominated the
market; however, all recent expansion initiatives in China are based on coal-tar
needle cokes (which have historically been plagued by inconstant quality and
problematic electrode graphitisation). A diagram showing highly ordered needle coke
microstructure with parallel aligned porosity is shown in Figure 1.

Being a speciality and derived from a by-product, needle coke exhibits a

concentrated supply structure. There are around 10 major producers globally, while
most refineries do not have delayed cokers (especially those suitable for needle
coke production) or calciners. Following delayed coking (450-480°C), the green
needle coke is calcined (1350°C) to reduce volatiles and promote microstructural
densification.

The science associated with the needle coke value chain is complex and beyond the
scope of this discussion, which merely serves to introduce the topic.