Coal to Liquids Technology

First is China, but now it looks like the USA is moving in the coal to liquids area.

First there is this going on in Benwood WV

The nation’s first modern coal-to-liquids plant slated for construction in Benwood may be the savior of the Ohio Valley, but not for some time to come.

... Coal can be converted to a synthetic gas using SES proprietary technology. The syngas would be used to produce about 720,000-metric tons per year of methanol that can be used as a feedstock for the chemical industry. Officials expect the project will be capable of converting methanol to about 100-million gallons per year of 87 octane gasoline.

Then there is the Crow Indian Reservation, who are signing up Friday to put in a coal to liquids conversion plant that should produce about 50,000 barrels of fuel per day.

The Many Stars coal-to-liquids plant would initially produce 50,000 barrels a day of diesel and other fuels. Crow Chairman Carl Venne (VAN) says construction would begin in several years and coal for the project would come from a tribe-owned mine on the reservation.

The Crow Legislature on Thursday ratified a 50-year development agreement - capping months of negotiations between tribal leaders and the Australian-American Energy Co., a subsidiary of Australian Energy Co.

The train is leaving the station. One thing to note, is coal to liquids can produce a delivered barrel of oil for the barrel of oil equivalent price of $30-40 per barrel. Ethanol is in the $4.80 a gallon for fuel.

Coal is the ace in the hole, shale oil is the second hold card.