Comparative Analysis of Costs of Alternative Coal Liquefaction Processes - Energy & Fuels (ACS Publications)
We have previously documented West Virginia University's participation in China's ambitious plans to establish a major industry based on the conversion of coal into liquid fuels and chemicals.
WVU and the Chinese principals have not neglected the economics of the coal conversion industry, as they have worked on refining the technology to effectively and efficiently accomplish the transmutation.
As evidence that the conversion of coal into liquid fuels has the true potential to be commercially viable, we present the enclosed article, published jointly by WVU and Shenua, a Chinese coal mining corporation heavily involved in China's coal-to-liquid conversion industry.
An excerpt:
"Comparative Analysis of Costs of Alternative Coal Liquefaction Processes
Qingyun Sun* and Jerald J. Fletcher
Natural Resource Analysis Center, West Virginia University, P.O. Box 6108, Morgantown, West Virginia 26506
Yuzhuo Zhang and Xiangkun Ren
Shenhua Group Corporation, Shenhua Tower, 22 Xibinhelu, Andingmen, Dongcheng District, Beijing 100011, China
Abstract
As the cost of production is a key determinant of long-term viability, developing methods that reduce the cost of direct coal liquefaction has posed a challenge to scientists and industrial organizations worldwide. This paper summarizes recent developments in technology and processes and explores the overall economic competitiveness of direct coal liquefaction using the China Shenhua Group Corp. (Shenhua) project as a case study. A comparative analysis of the costs and economic competitiveness of the Shenhua approach and a variety of conceptual designs outlined in U.S. studies is presented. The comparison shows that the economic competitiveness of direct coal liquefaction is dependent on production costs that consist primarily of raw material, operation and management, and capital costs. Capital cost is shown to be a primary determinant of the cost of production. The relative competitiveness of the plant and supporting facilities depends heavily on the economic alternatives relevant to a particular plant site. Initial results indicate that the Shenhua direct coal liquefaction plant is relatively competitive given the cost allocation assumptions made. Long-term financial markets as well as safety and environmental factors are all issues that may affect the analysis and ultimate conclusions."