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Coal-to-Liquids and Lignite-to-Liquids - An Environmentally-Sound Solution for the Peak Oil Crisis

The possibility of the world facing a exist. Lignite is usually a high moisture
"peak oil crisis" is now widely fuel with moisture contents of up to 65%,
recognized as a clear and present danger for example the Victorian lignites have
in the fields of fuel and energy. around 60% moisture. Lignites also can
Unfortunately, many attractive and have high mineral matter (ash) content
widely-touted alternate fuel systems -- and have high sulphur contents, say to
such as a safe and practical 5%.
hydrogen-based transport fuel system -- The economics of Coal-to-Liquids are that
will remain a dream until the distant a crude oil price of between $US40 -
future. $US50 per barrel is required to provide
For this reason, many nations have been conditions where the process is viable.
re-examining other transport fuel This infers that coal should be provided
technologies, such as the Coal-to-Liquids at a relatively low cost; that favorable
(CTL) technology, as a near future source logistics such as transport, access to
of transport fuels. refineries and good proximity to markets
Coal-to-Liquids -- that is, the exist; and that there is a financial and
conversion of coal to liquid transport political will to invest in plant that
fuels -- is in fact not new a technology will have over a thirty year production
and has been practiced for a number of life. Industry wisdom is suggesting that
decades in countries such as South Africa the scale of successful Coal-to-Liquids
and Germany and will soon be adopted in plants will be a minimum production of
China. 50,000 barrels per day of synthetic crude
The most viable Coal-to-Liquids system plus 400 MWe of power available for
requires the conversion of coal into a export.
synthesis gas consisting of hydrogen and The introduction of CTL into the
carbon monoxide and then its synthesis developing countries of Asia that have
into long-chain liquid fuel molecules. suitable coal and/or lignite reserves
These processes produce excess heat that makes good sense.
can be used to generate electricity. The The replacement of traditional crude oil
synthetic petroleum products, and with CTL crude has positive economic,
especially synthetic diesel, have a environmental and security aspects for
number of unique environmental those countries. The co-generation of
advantages. These advantages include the electricity will also be positive, as
reduction of particulates, nitrogen will the co-production of by-products of
oxides and fugitive aromatic hydrocarbon sulphur, waxes and LPG (liquid petroleum
emissions of those associated with gas).
'natural crude'. The production of CTL also has strong
Although the technology of CTL is well security aspects, since indigenous liquid
understood, technological challenges fuel is generally less vulnerable to
regarding its application to specific disruption by terrorist action or
coal and lignite (brown coal) resources international political disputes.




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