BUSINESS TECHNOLOGY; Making Coal More Useful By Cooking Out the Water - The New York Times
From the New York Times comes this article about the "Encoal", USDOE-sponsored coal-to-liquid conversion project we previously alerted you to.
Some excerpts:
"An experimental process by Encoal at a Wyoming plant and enables low-energy, low-sulfur coal to be refined into a liquid resembling heavy fuel oil and (a residual - JtM) coal that contains about 45 percent more energy per pound than the raw material. The pyrolyzer subjects the coal to light heat and pressure and separates the resultant hydrocarbon gas from the coal solids. (Source: Department of Energy)"
"The raw material is low-sulfur coal with a heat content of 8,300 British thermal units a pound -- about half the energy in a pound of gasoline. Some 30 percent of the coal's weight is moisture. The coal can be pyrolyzed -- subjected to heat and pressure -- to give off a gas rich in water and hydrocarbons. The hydrocarbons are condensed into a liquid that resembles heavy fuel oil."
"The remaining coal, which weighs less because it has much less moisture, has a heat content of about 12,000 B.T.U.'s a pound. The lighter weight cuts about 45 percent off the price of shipping a million B.T.U.'s. More important, once processed, the coal can be used in the boilers of utilities in the East and Midwest that are designed for local grades of coals."
"The SGI process is the only one that produces two products from coal, said William M. Owens, chairman and chief executive of the company. "Even if oil is at $10 a barrel, this has the potential to be competitive," he said."
(Please note, again: "Even if oil is at $10 a barrel", this coal conversion process "has the potential to be competitive". However, we suspect this statement is based on an analysis of actual production costs only, and does not include amortization of capital. Still... - JtM)
Well, if liquid fuel derived from coal can "compete" with petroleum-based fuels when "oil is at $10 a barrel", it should really be able to kick some butt nowadays, shouldn't it?
And, also note, we get an improved solid coal fuel as a co-product of the liquid extraction process.
