Cumberland Times-News - Liquefied coal aids U.S. energy independence, helps environment

Prof. Frank Clemente, Penn State University
Complaints about gas prices, SUV owners, Washington politics and oil companies echo across the land. We argue and point fingers but do little to improve the situation. There is one technology, however, that should be expanded immediately to all of our benefit. States such as Maryland can liquefy coal and create thousands of new manufacturing jobs. Converting coal to liquid fuel is an established technology which can significantly increase petroleum supply, lower prices and improve the environment. The United States can use coal to produce over 2.5 million barrels per day of gasoline, diesel and jet fuel equivalents - and the resulting fuels will be cheaper, more efficient and cleaner than those we now use. Fuel scientists at the University of Kentucky have demonstrated that carbon dioxide and sulfur can be readily captured and safely stored in a coal to liquids (CTL) facility. In short, we can produce more fuel and improve air quality at the same time. The Department of Defense recognizes this win-win situation and the rest of the nation should follow suit. In a world of $70 oil, threats from Iran, hurricanes and terrorism, Pentagon officials are worried about our increasing dependence on foreign energy sources. DoD is promoting the Fischer-Tropsch (FT) process to assure military fuel supply and use our country's greatest energy resource - coal. The military is particularly interested because liquid fuel from coal produces more energy per gallon than traditional fuels, has a much longer shelf life and is less likely to freeze. Further, FT products are compatible with our current fuel distribution infrastructure -unlike ethanol. Coal liquefaction was developed in Germany in the 1920s and used to fuel the Luftwaffe during WWII. Several energy companies are currently deploying the technology around the world, with projects in China, India, Australia and Europe. There are now at least 14 CTL projects in the U.S. But we need more of these CTL plants. The United States is a growing nation. The Department of Energy projects that by 2030 our need for petroleum products like gasoline and diesel fuel will increase 33 percent - 7 million barrels per day of new demand. Converting coal to liquids is one way we can meet a demand increase of this magnitude. Our research at Penn State indicates that coal liquefaction can be a significant source of new fuel supply: Coal is affordable. Oil is now over $ 70 a barrel. Natural gas prices have increased 150 percent in just the last four years. Coal is much less expensive and has far less price volatility. In 2005, for example, the cost of producing electricity from natural gas was $8.33 per million Btu. The cost for coal? - $1.54 per million Btu. Coal is available. U.S. oil and natural gas production both peaked in the 1970s, but we have enough coal to last more than 200 years. We now use 1.1 billion tons of coal per year but have a reserve base of over 500 billion tons distributed across 30 states. With over 650 million tons, Maryland has more than enough coal to support a thriving coal liquefaction industry.Coal is secure. We are increasingly dependent on foreign oil. DOE has projected that we will soon be importing almost 60 percent of our petroleum and 21 percent of our natural gas. At today's prices, in just the next decade we will be spending over $2.6 trillion to import energy - more than $25,000 for every household in America. Coal liquefaction will stimulate the economy. CTL plants create hundreds of new well-paying jobs in local communities. The recently announced Rentech CTL plant near Natchez, Miss., for example, will have an average salary of $45,000 and generate far reaching economic benefits throughout Mississippi. Using clean coal to produce liquid fuel can do all this - more jobs, higher incomes, new businesses, lower energy costs, a reduced trade deficit, enhanced national security and a major step toward less dependence on foreign countries - all the while assuring environmental quality. It has often been said that coal built America. As a Nation, we now have the technology to cleanly utilize this abundant resource and regain control of our energy destiny.