Shell Converts Australian Coal

Shell wins coal gasification and gas treatment technology contract - Coal Mining

 

We had earlier reported on Shell Oil's Middle Distillate System (MDS(r)), and how they are employing that technology to convert low-rank coal, in Bintulu, Malaysia, and natural gas, in Qatar, into liquid fuels. We had also informed you of Perdaman Chemicals, in Australia, and their work there to convert coal into chemicals and fertilizers.

 

The two companies are combining their expertise in a new Australian coal conversion enterprise, as per this enclosed report.

 

An excerpt: 

 

"COLLIE Urea Project developer Perdaman Chemicals and Fertilisers has announced that Shell has signed a contract to provide coal gasification and gas treatment technology.

The Western Australian-based company also announced two other major contracts for the $3.5 billion plant to Danish company Haldor Topsoe A/S and Netherlands company Stamicarbon BV.

(We had earlier reported to you on the expertise in this field of Haldor Topsoe.)

Perdaman Chemicals and Fertilisers says that each of the technology providers is a world leader in its field and they will all work closely with the contractors to complete the detailed engineering design work for the 2 million tonne per annum plant.

The urea plant will transform sub-bituminous coal into urea - a widely used form of fertiliser - and is slated to generate more than $850 million a year in export earnings for the state.

We'll note, again, that much of China's extensive coal conversion effort is directed to the production of fertilizer. Regardless of what they're making from the coal, though, wouldn't it be a good thing if West Virginia were somehow able to generate an additional "more than $850 million a year in export earnings" for herself?