Synthetic fuels in the United States
Encyclopedia
Synthetic fuels in the United States is an issue of rising importance due the crude oil prices, and geopolitical and economic considerations.
from coal
, but by 1873, cheap petroleum
caused the last coal oil
plant to close. The commercial scale shale oil extraction began in 1857 at shale oil
retorts retorting the Devonian
oil shale
along the Ohio River Valley. However, after crude oil discovery in Pennsylvania
in 1859, oil shale industries
found it difficult to compete and they were shut down by 1861.
The oil shale industry expanded immediately before World War I
because of limited access to conventional petroleum resources and the mass production of automobiles and trucks, which accompanied an increase in gasoline consumption. The Office of Naval Petroleum and Oil Shale Reserves
was established in 1912. The reserves were seen as a possible emergency source of fuel for the military, particularly the Navy
.
The United States Bureau of Mines
first studied the extraction of oil
from oil shale
between 1925 - 1928. Between 1928 and 1944, the Bureau experimented with coal liquefaction
by hydrogenation
using the Bergius process
. A small-scale test unit constructed in 1937 had a 100-pound per day continuous coal feed. The methodologies employed underwent extensive development in this period, delivering significant increases in efficiency, culminating in the Karrick process
.
The Synthetic Liquid Fuels Act approved on April 5, 1944, authorized the use of $30 million over a five year period for Between 1945 and 1948, new laboratories were constructed near Pittsburgh
. A synthetic ammonia
plant Louisiana, Missouri
(Missouri Ordnance Works) was transferred from the Army to the program in 1945. The plant was converted into a coal hydrogenation test facility. By 1949 the plant could produce 200 barrels (31.8 m³) of oil a day using the Bergius process
. Part of the personnel were German
scientists, who had been extracted from Germany by Operation Paperclip
.
In 1948, the program was extended to eight years and funding increased to $60 million. A second facility was constructed at the Louisiana plant, this time using the Fischer-Tropsch process
. Completed in 1951, the plant only produced 40000 gallons (151.4 m³) of fuel. In 1953 the new Republican-led House Appropriations Committee ended funding for the research and the Missouri plant was returned to the Department of the Army.
The United States Bureau of Mines
opened a demonstration oil shale mine at Anvils Point, west of Rifle, Colorado
, which operated at a small scale. In the early 1960s TOSCO (The Oil Shale Corporation)
opened an underground mine and built an experimental plant near Parachute, Colorado
. It was closed in 1972 because the price of production exceeded the cost of imported crude oil. In 1951, the United States Department of Defense became interested in oil shale as an alternative resource for producing a jet fuel.
Due to the 1973 oil crisis
, the Navy and the Office of Naval Petroleum and Oil Shale Reserves started evaluations of oil shale's suitability for military fuels, such as jet fuels, marine fuels and a heavy fuel oil. Shale-oil based JP-4 jet fuel was produced until the early 1990s, when it was replaced with kerosene-based JP-8. In 1974 the United States Department of the Interior
announced an oil shale leasing program in the oil shale regions of Colorado
and Utah
. In 1979, after the second oil crisis
, the U.S. Congress approved the Energy Security Act
forming the Synthetic Fuels Corporation
and authorized up to $88 million for synthetic fuels projects.
The United States synthetic fuels industry collapsed when oil prices fell in the early 1980s
. On 2 May 1982, known as "Black Sunday", Exxon
canceled its US$5 billion Colony Shale Oil Project
near Parachute, Colorado
because of low oil-prices and increased expenses, laying off more than 2,000 workers and leaving a trail of home-foreclosures and small-business bankruptcies. In 1986, President Ronald Reagan
signed into law the Consolidated Omnibus Budget Reconciliation Act of 1985
which among other things abolished the United States' Synthetic Liquid Fuels Program
. New synthetic fuel projects started in 2000s due the crude oil prices, and geopolitical and economic considerations.
The energy value of all the world's known recoverable coal is 27 zettajoules, which is expected to last 164 years. (See "Coal")
Of that, U.S. reserves alone comprise 7.02 zettajoules. The U.S. DOE estimates coal reserves at 1,081,279 million short tons (9.81 × 1014 kg), or about 4,786 billion (4.7 trillion) barrels of oil equivalent. The amount of coal burned during 2001 was calculated as 2.337 gigatonnes of oil equivalent, or about 46 Moilbbl of oil equivalent per day. Were consumption to continue at that rate, those reserves would last about 285 years.
Production of synthetic fuel
s from U.S. coal assets represents an effective means towards decreasing U.S. reliance on imported oil, reducing trade deficits and providing more economical energy than current markets offer. (See "Princeton University: Increased Automobile Fuel Efficiency and Synthetic Fuels; Alternatives for Reducing Oil Imports" below)
John Winslow, Laboratories Technology Manager for Coal Fuels at the U.S. DOE
National Energy Technology Laboratory
(NETL), estimates that a plant producing 30000 barrels (4,769.6 m³) of liquid coal per day (4,800 m³/d) can keep costs to $35–$40 per barrel. This finding was presented at the Coal Utilization Technologies Workshop, September 22, 2004, at the National Research Center for Coal & Energy, Morgantown, WV. This meeting was part of the Energy Roadmap Workshop Series commissioned by West Virginia Governor Bob Wise.
Potential market size is substantial, U.S. importation of petroleum products alone for 2005 being $251.6 Billion, $302.5 Billion for 2006, $331.2 Billion for 2007 and $386.3 Billion for 2008, all records, for a 4-year total of $1.27 Trillion. (See "U.S. Census Bureau 2008 Foreign Trade Statistics" below).
American Clean Coal Fuels, in their Illinois Clean Fuels project, is developing a 30000 barrels (4,769.6 m³) per day biomass and coal to liquids + carbon capture and sequestration project in Oakland Illinois. The project is expected to come online in 2013.
Baard Energy, in their Ohio River Clean Fuels project, are developing a 53000 oilbbl/d Coal and Biomass to Liquids project + Carbon Capture and Sequestration.
Rentech is developing a 29600 barrels (4,706 m³) per day coal and biomass to liquids + Carbon Capture and Sequestration plant in Natchez Mississippi. The project is in the permitting phase, with receipt of permits anticipated by Rentech in 2010.
DKRW is developing a 15,000-20000 barrels (3,179.7 m³) Per Day coal to liquids + Carbon Capture and Sequestration plant in Medicine Bow Wyoming. The project is expected to begin operation in 2013.
Substantial interest has also been shown from municipal and commercial vehicle fleet operations, railroads, and even refiners looking to use synthetic fuels as blendstock.
The United States Department of Energy
projects that domestic consumption of synthetic fuel made from coal and natural gas will rise to 3.7 Moilbbl per day in 2030 based on a price of $57 per barrel of high sulfur crude (Annual Energy Outlook 2006, Table 14, pg52).
, Marriott
) have also taken advantage of coal-based synfuel tax credits
established in the 1970s, however many of the products qualifying for the subsidy are not true synthetic fuels.
The coal industry currently uses the credit to increase profits on coal-burning powerplants by introducing a "pre-treatment" process that satisfies the technical requirements, then burns the result the same as it would burn coal. Sometimes the amount gained in the tax credit is a major factor in the economic operation of the plant. The synfuel tax credit has been used primarily in this manner since the cheap gas prices of the 1980s
stopped any major efforts to create a transportation fuel with the credit, and its continuation is seen as a major "pork project" win for coal industry lobbyists, costing $9 billion per annum. The total production of such synfuels in the US was an estimated 73 million tons in 2002.
History
Synthetic production of liquid fuels (i.e., gasoline and oil substitutes) in the United States has a long history. In the 19th century, dozens facilities produced oil, gas, grease and paraffinParaffin
In chemistry, paraffin is a term that can be used synonymously with "alkane", indicating hydrocarbons with the general formula CnH2n+2. Paraffin wax refers to a mixture of alkanes that falls within the 20 ≤ n ≤ 40 range; they are found in the solid state at room temperature and begin to enter the...
from coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, but by 1873, cheap petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
caused the last coal oil
Coal oil
Coal oil is a term once used for a specific shale oil used for illuminating purposes. Coal oil is obtained from the destructive distillation of cannel coal, mineral wax, and bituminous shale, while kerosene is obtained by the distillation of petroleum...
plant to close. The commercial scale shale oil extraction began in 1857 at shale oil
Shale oil
Shale oil, known also as kerogen oil or oil-shale oil, is an unconventional oil produced from oil shale by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock into synthetic oil and gas...
retorts retorting the Devonian
Devonian
The Devonian is a geologic period and system of the Paleozoic Era spanning from the end of the Silurian Period, about 416.0 ± 2.8 Mya , to the beginning of the Carboniferous Period, about 359.2 ± 2.5 Mya...
oil shale
Oil shale
Oil shale, an organic-rich fine-grained sedimentary rock, contains significant amounts of kerogen from which liquid hydrocarbons called shale oil can be produced...
along the Ohio River Valley. However, after crude oil discovery in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
in 1859, oil shale industries
Oil shale industry
Oil shale industry is an industry of mining and processing of oil shale—a fine-grained sedimentary rock, containing significant amounts of kerogen , from which liquid hydrocarbons can be manufactured. The industry has developed in Brazil, China, Estonia and to some extent in Germany, Israel and...
found it difficult to compete and they were shut down by 1861.
The oil shale industry expanded immediately before World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
because of limited access to conventional petroleum resources and the mass production of automobiles and trucks, which accompanied an increase in gasoline consumption. The Office of Naval Petroleum and Oil Shale Reserves
Office of Naval Petroleum and Oil Shale Reserves
The United States Office of Naval Petroleum and Oil Shale Reserves is part of the US Department of Energy. It was established in 1912 to monitor and analyse the US's oil shale reserves....
was established in 1912. The reserves were seen as a possible emergency source of fuel for the military, particularly the Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
.
The United States Bureau of Mines
United States Bureau of Mines
For most of the 20th century, the U.S. Bureau of Mines was the primary United States Government agency conducting scientific research and disseminating information on the extraction, processing, use, and conservation of mineral resources.- Summary :...
first studied the extraction of oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
from oil shale
Oil shale
Oil shale, an organic-rich fine-grained sedimentary rock, contains significant amounts of kerogen from which liquid hydrocarbons called shale oil can be produced...
between 1925 - 1928. Between 1928 and 1944, the Bureau experimented with coal liquefaction
Coal liquefaction
-Methods:The liquefaction processes are classified as direct conversion to liquids processes and indirect conversion to liquids processeses. Direct processes are carbonization and hydrogenation.-Pyrolysis and carbonization processes:...
by hydrogenation
Hydrogenation
Hydrogenation, to treat with hydrogen, also a form of chemical reduction, is a chemical reaction between molecular hydrogen and another compound or element, usually in the presence of a catalyst. The process is commonly employed to reduce or saturate organic compounds. Hydrogenation typically...
using the Bergius process
Bergius process
The Bergius Process is a method of production of liquid hydrocarbons for use as synthetic fuel by hydrogenation of high-volatile bituminous coal at high temperature and pressure...
. A small-scale test unit constructed in 1937 had a 100-pound per day continuous coal feed. The methodologies employed underwent extensive development in this period, delivering significant increases in efficiency, culminating in the Karrick process
Karrick process
The Karrick process is a low-temperature carbonization and pyrolysis process of carbonaceous materials. Although primarily meant for coal carbonization, it also could be used for processing of oil shale, lignite or any carbonaceous materials. These are heated at to in the absence of air to...
.
The Synthetic Liquid Fuels Act approved on April 5, 1944, authorized the use of $30 million over a five year period for Between 1945 and 1948, new laboratories were constructed near Pittsburgh
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
. A synthetic ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
plant Louisiana, Missouri
Louisiana, Missouri
Louisiana is a city in Pike County, Missouri, United States. The population was 3,863 at the 2000 census, making it the largest city in Pike Couunty. Louisiana is located in northeast Missouri, on the Mississippi River south of Hannibal....
(Missouri Ordnance Works) was transferred from the Army to the program in 1945. The plant was converted into a coal hydrogenation test facility. By 1949 the plant could produce 200 barrels (31.8 m³) of oil a day using the Bergius process
Bergius process
The Bergius Process is a method of production of liquid hydrocarbons for use as synthetic fuel by hydrogenation of high-volatile bituminous coal at high temperature and pressure...
. Part of the personnel were German
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
scientists, who had been extracted from Germany by Operation Paperclip
Operation Paperclip
Operation Paperclip was the Office of Strategic Services program used to recruit the scientists of Nazi Germany for employment by the United States in the aftermath of World War II...
.
In 1948, the program was extended to eight years and funding increased to $60 million. A second facility was constructed at the Louisiana plant, this time using the Fischer-Tropsch process
Fischer-Tropsch process
The Fischer–Tropsch process is a set of chemical reactions that convert a mixture of carbon monoxide and hydrogen into liquid hydrocarbons. The process, a key component of gas to liquids technology, produces a petroleum substitute, typically from coal, natural gas, or biomass for use as synthetic...
. Completed in 1951, the plant only produced 40000 gallons (151.4 m³) of fuel. In 1953 the new Republican-led House Appropriations Committee ended funding for the research and the Missouri plant was returned to the Department of the Army.
The United States Bureau of Mines
United States Bureau of Mines
For most of the 20th century, the U.S. Bureau of Mines was the primary United States Government agency conducting scientific research and disseminating information on the extraction, processing, use, and conservation of mineral resources.- Summary :...
opened a demonstration oil shale mine at Anvils Point, west of Rifle, Colorado
Rifle, Colorado
The City of Rifle is a Home Rule Municipality in Garfield County, Colorado, United States. The population was 6,769 at the 2000 census. Rifle is a regional center of the cattle ranching industry located along Interstate 70 and the Colorado River just east of the Roan Cliffs, which dominate the...
, which operated at a small scale. In the early 1960s TOSCO (The Oil Shale Corporation)
Tosco Corporation
Tosco was an independent US based petroleum refining and marketing corporation. It was founded in 1955 in Santa Monica, California by A&P heir Huntington Hartford, and originally focused on extracting oil from oil shale and developing alternative energy sources.-Oil shale operations:In 1964...
opened an underground mine and built an experimental plant near Parachute, Colorado
Parachute, Colorado
The Town of Parachute is a Statutory Town in Garfield County, Colorado, United States. The population was 1,006 at the 2000 census.-Geography:Parachute is located at ....
. It was closed in 1972 because the price of production exceeded the cost of imported crude oil. In 1951, the United States Department of Defense became interested in oil shale as an alternative resource for producing a jet fuel.
Due to the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
, the Navy and the Office of Naval Petroleum and Oil Shale Reserves started evaluations of oil shale's suitability for military fuels, such as jet fuels, marine fuels and a heavy fuel oil. Shale-oil based JP-4 jet fuel was produced until the early 1990s, when it was replaced with kerosene-based JP-8. In 1974 the United States Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
announced an oil shale leasing program in the oil shale regions of Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
and Utah
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
. In 1979, after the second oil crisis
1979 energy crisis
The 1979 oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil...
, the U.S. Congress approved the Energy Security Act
Energy Security Act
The Energy Security Act was signed into law by U.S. President Jimmy Carter on June 30, 1980.It consisted of six major acts:* U.S. Synthetic Fuels Corporation Act* Biomass Energy and Alcohol Fuels Act* Renewable Energy Resources Act...
forming the Synthetic Fuels Corporation
Synthetic Fuels Corporation
The Synthetic Fuels Corporation was a U.S. government-funded corporation established in 1980 by the Synthetic Fuels Corporation Act to create a financial bridge for the development and construction of commercial synthetic fuel manufacturing plants that would produce alternatives to imported fossil...
and authorized up to $88 million for synthetic fuels projects.
The United States synthetic fuels industry collapsed when oil prices fell in the early 1980s
1980s oil glut
The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s Energy Crisis. The world price of oil, which had peaked in 1980 at over US$35 per barrel , fell in 1986 from $27 to below $10...
. On 2 May 1982, known as "Black Sunday", Exxon
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
canceled its US$5 billion Colony Shale Oil Project
Colony Shale Oil Project
Colony Shale Oil Project was an oil shale development project at the Piceance Basin near Parachute Creek, Colorado. The project consisted of an oil shale mine and pilot-scale shale oil plant, which used the TOSCO II retorting technology, developed by Tosco Corporation...
near Parachute, Colorado
Parachute, Colorado
The Town of Parachute is a Statutory Town in Garfield County, Colorado, United States. The population was 1,006 at the 2000 census.-Geography:Parachute is located at ....
because of low oil-prices and increased expenses, laying off more than 2,000 workers and leaving a trail of home-foreclosures and small-business bankruptcies. In 1986, President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
signed into law the Consolidated Omnibus Budget Reconciliation Act of 1985
Consolidated Omnibus Budget Reconciliation Act of 1985
The Consolidated Omnibus Budget Reconciliation Act of 1985 is a law passed by the U.S. Congress on a reconciliation basis and signed by President Reagan that, among other things, mandates an insurance program giving some employees the ability to continue health insurance coverage after leaving...
which among other things abolished the United States' Synthetic Liquid Fuels Program
Synthetic Liquid Fuels Program
The Synthetic Liquid Fuels Program was a program run by the United States Bureau of Mines to create the technology to produce synthetic fuel from coal. It was initiated in 1944 during World War II...
. New synthetic fuel projects started in 2000s due the crude oil prices, and geopolitical and economic considerations.
Coal reserves
The United States has 26% of Earth's known coal reserves. This is sufficient to last hundreds of years by the lowest estimates and accounts for 90% of U.S. energy reserves. Coal is, of course, a fossil fuel and as such is therefore subject to possible depletion within a few hundred years. In terms of energy obtained, coal peaked in 1998 and though production volumes have increased, the net energy has not, which could be explained by decreasing production of high quality coal, such as bituminous and anthracite. U.S. reserves are approximately 45% bituminous and anthracite.The energy value of all the world's known recoverable coal is 27 zettajoules, which is expected to last 164 years. (See "Coal")
Of that, U.S. reserves alone comprise 7.02 zettajoules. The U.S. DOE estimates coal reserves at 1,081,279 million short tons (9.81 × 1014 kg), or about 4,786 billion (4.7 trillion) barrels of oil equivalent. The amount of coal burned during 2001 was calculated as 2.337 gigatonnes of oil equivalent, or about 46 Moilbbl of oil equivalent per day. Were consumption to continue at that rate, those reserves would last about 285 years.
Production of synthetic fuel
Synthetic fuel
Synthetic fuel or synfuel is a liquid fuel obtained from coal, natural gas, oil shale, or biomass. It may also refer to fuels derived from other solids such as plastics or rubber waste. It may also refer to gaseous fuels produced in a similar way...
s from U.S. coal assets represents an effective means towards decreasing U.S. reliance on imported oil, reducing trade deficits and providing more economical energy than current markets offer. (See "Princeton University: Increased Automobile Fuel Efficiency and Synthetic Fuels; Alternatives for Reducing Oil Imports" below)
Economic viability
Oils, including petroleum, have long been extracted from coal. Production plants were merely shut down in the 1880s because crude oil became cheaper than coal liquefaction. The capability itself, however, has never disappeared. Eight years of pilot plant tests by Karrick attest that states, cities or even smaller towns, could make their own gas and generate their own electricity.John Winslow, Laboratories Technology Manager for Coal Fuels at the U.S. DOE
United States Department of Energy
The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
National Energy Technology Laboratory
National Energy Technology Laboratory
The National Energy Technology Laboratory is a science, technology, and energy laboratory owned and operated by the U.S. Department of Energy . As part of DOE's national laboratory system, NETL supports DOE's mission to advance the national, economic, and energy security of the United States...
(NETL), estimates that a plant producing 30000 barrels (4,769.6 m³) of liquid coal per day (4,800 m³/d) can keep costs to $35–$40 per barrel. This finding was presented at the Coal Utilization Technologies Workshop, September 22, 2004, at the National Research Center for Coal & Energy, Morgantown, WV. This meeting was part of the Energy Roadmap Workshop Series commissioned by West Virginia Governor Bob Wise.
Potential market size is substantial, U.S. importation of petroleum products alone for 2005 being $251.6 Billion, $302.5 Billion for 2006, $331.2 Billion for 2007 and $386.3 Billion for 2008, all records, for a 4-year total of $1.27 Trillion. (See "U.S. Census Bureau 2008 Foreign Trade Statistics" below).
Proposed projects
In the United States, a number of different synthetic fuels projects are moving forward, with the first expected to enter commercial operation starting in 2013.American Clean Coal Fuels, in their Illinois Clean Fuels project, is developing a 30000 barrels (4,769.6 m³) per day biomass and coal to liquids + carbon capture and sequestration project in Oakland Illinois. The project is expected to come online in 2013.
Baard Energy, in their Ohio River Clean Fuels project, are developing a 53000 oilbbl/d Coal and Biomass to Liquids project + Carbon Capture and Sequestration.
Rentech is developing a 29600 barrels (4,706 m³) per day coal and biomass to liquids + Carbon Capture and Sequestration plant in Natchez Mississippi. The project is in the permitting phase, with receipt of permits anticipated by Rentech in 2010.
DKRW is developing a 15,000-20000 barrels (3,179.7 m³) Per Day coal to liquids + Carbon Capture and Sequestration plant in Medicine Bow Wyoming. The project is expected to begin operation in 2013.
Initial consumers
In the United States, the aviation community has taken a leadership role in establishing a major US market for synthetic fuel. In addition to their certification efforts, the United States Air Force has publicly stated their intention to fuel half of their domestic US flights with synthetic fuel by 2016. The commercial aviation industry, working with potential suppliers via CAAFI, is also pushing hard to secure sources of fuel.Substantial interest has also been shown from municipal and commercial vehicle fleet operations, railroads, and even refiners looking to use synthetic fuels as blendstock.
The United States Department of Energy
United States Department of Energy
The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
projects that domestic consumption of synthetic fuel made from coal and natural gas will rise to 3.7 Moilbbl per day in 2030 based on a price of $57 per barrel of high sulfur crude (Annual Energy Outlook 2006, Table 14, pg52).
Non-transportation "synfuel"
Numerous US companies (TECO, Progress Energy, DTEDTE
DTE may refer to:* Data terminal equipment, an end instrument used in telecommunication and data transmission* Distance to empty, a feature in an automobile electronic instrument cluster* Dithioerythritol, a chemical...
, Marriott
Marriott International
Marriott International, Inc. is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. Marriott, Jr...
) have also taken advantage of coal-based synfuel tax credits
Synthetic Liquid Fuels Program
The Synthetic Liquid Fuels Program was a program run by the United States Bureau of Mines to create the technology to produce synthetic fuel from coal. It was initiated in 1944 during World War II...
established in the 1970s, however many of the products qualifying for the subsidy are not true synthetic fuels.
The coal industry currently uses the credit to increase profits on coal-burning powerplants by introducing a "pre-treatment" process that satisfies the technical requirements, then burns the result the same as it would burn coal. Sometimes the amount gained in the tax credit is a major factor in the economic operation of the plant. The synfuel tax credit has been used primarily in this manner since the cheap gas prices of the 1980s
1980s oil glut
The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s Energy Crisis. The world price of oil, which had peaked in 1980 at over US$35 per barrel , fell in 1986 from $27 to below $10...
stopped any major efforts to create a transportation fuel with the credit, and its continuation is seen as a major "pork project" win for coal industry lobbyists, costing $9 billion per annum. The total production of such synfuels in the US was an estimated 73 million tons in 2002.
External links
- DOE EIA Annual Energy Outlook 2006, section on synthetic fuels
- Synfuel Producers Hit Paydirt! (NCPA Policy Digest) - an analysis of synfuel subsidies in the USA
- US DoD launches quest for energy self-sufficiency Jane's Defence Weekly, 25 September 2006