·        Senate Finance Committee unanimously approves Bunning-Rockefeller amendment to extend critical CTL tax credit

·        Sen. Dorgan introduces new CTL legislation

·        Baard Energy Announces CTL Technology Deal

·        New federal interagency task force backs CTL production

·        Stay up-to-date on the latest news reports spotlighting CTL

·        Become a CTL grassroots supporter

Senate Finance Committee unanimously approves Bunning-Rockefeller amendment to extend critical CTL tax credit

The Senate Finance Committee on Oct. 4 unanimously approved an amendment offered by Sens. Jim Bunning (R-Ky.) and Jay Rockefeller (D-W.Va.) that extends until 2010 a critical alternative fuels tax credit that will help accelerate the production of clean, domestic coal-to-liquid (CTL) fuels. 

Finance Committee members approved adding the CTL tax credit amendment to a larger tax package primarily focused on aiding the reauthorization of federal agricultural support programs.  The amendment extends an existing 50 cent per gallon fuel excise tax credit for CTL until 2010 and requires CTL producers to capture and story 50 percent of carbon dioxide emissions.  CTL producers could be required to capture and store 75 percent of carbon dioxide emissions should an independent arbitration panel determine that such a level is commercially feasible.  Without an extension, the tax credit, created by the Energy Policy Act of 2005, is set to expire in September 2009.

Sen. Dorgan introduces new CTL legislation

Sen. Byron Dorgan (D-N.D.) on Oct. 4 introduced new legislation designed to reduce the nation’s dependence on foreign oil and demonstrate the effectiveness of critically important carbon capture and storage activities.  Dorgan’s bill, the “Coal Fuels and Industrial Gasification Demonstration and Development Act of 2007,” focuses on the development of a limited number of coal-to-liquid (CTL) and industrial gasification facilities in two five-year phases.   

In the first five-year phase, three competitively selected projects must achieve a 70 percent carbon capture rate, as well as a greenhouse gas emissions standard that is equivalent to the lifecycle greenhouse gas emissions of conventional fuels.  In the second five-year phase, three projects must achieve an 80 percent carbon capture rate, as well as a greenhouse gas emissions standard that is 15 percent below the lifecycle greenhouse gas emissions of conventional fuels.

The bill would give special consideration to projects that incorporate at least a 5 percent biomass feedstock, by weight, to further reduce a project’s greenhouse gas footprint, as well as for those projects that participate in the Department of Energy’s Carbon Sequestration Regional Partnership Program.

The bill authorizes $10 billion in loans to eligible facilities that can be used to cover 100 percent of the costs associated with reducing greenhouse gas emissions, but cannot exceed 50 percent of a project’s total cost.  The bill also authorizes $120 million in funding to help projects complete necessary front-end engineering and design work, with a maximum of $20 million being available for each eligible facility. 

In addition, the bill also provides various tax incentives, including a $20 credit for each metric ton of carbon dioxide that is geologically stored and a $10 credit for each metric ton of carbon dioxide used in Enhanced Oil Recovery operations.  

Baard Energy Announces CTL Technology Deal

Baard Energy LLC, an energy project development company headquartered in Vancouver, Wash., announced late last month that it had acquired a technology license from Shell U.S. Clean Coal Energy Inc. to use the Shell Coal Gasification Process in the gasification portion of its proposed $5 billion coal-to-liquid fuel (CTL) project located in Columbiana County, Ohio.

Baard’s Ohio project will produce over 50,000 barrels per day of jet and diesel fuel, and other liquid products from coal and biomass feedstock.  As a licensor, Shell will provide technical information and services for the installation of the Shell Coal Gasification Process technology at Baard Energy’s Ohio River Clean Fuels project.  Shell’s technology has been used in commercial operations to effectively convert a wide range of coals and solid carboniferous material, including biomass, into synthesis gas; a process that will be used at Baard’s CTL project.

“We are extremely pleased with our early decision to acquire this technology and to work with Shell,” said John Baardson, CEO of Baard Energy.  “Our company is focused on the production of alternative transportation fuels which are environmentally superior to the fuels produced from imported crude oil,” said Baardson.

More information is available here.

New federal interagency task force backs CTL production

An interagency federal task force comprised of senior administration officials and state governors recently released a strategic plan meant to dramatically increase the use of unconventional fuels, including coal to liquid (CTL) fuels, by permitting improved access to energy resources on public lands and streamlining permitting processes.  The Task Force on Strategic Unconventional Fuels, created by the 2005 Energy Policy Act, forwarded its report to Congress on Oct. 8.

The task force, which includes the secretaries of Defense, Energy, the Interior and five governors, concluded that domestic production of CTL and other unconventional fuels could total approximately 7 million barrels per day by 2035.  The report said “America's dependence on oil imports can be significantly reduced to the benefit of our economy, our security, and our standard of living” through the utilization of unconventional fuels.

The report calls on the federal government to assist the private sector with research and development projects that accelerate the development and use of these fuels and projects to further improve the environmental performance of these fuels.  The report also backs establishing a fiscal regime to attract private development, as well as a new permitting system that will expedite industry development.

A copy of the report is available here.

Stay up-to-date on the latest news reports spotlighting CTL

Through its web site, www.futurecoalfuels.org, the Coal-to-Liquids Coalition collects news stories from across the country that feature the latest information on how coal-to-liquid fuels will help reduce America’s dependence on foreign oil and yield important environmental benefits.  For access to recent CTL news items, please visit: http://www.futurecoalfuels.org/news.asp.    

Become a CTL grassroots supporter

The Coal-to-Liquids Coalition is working to build a strong network of grassroots supporters willing to contact federal and state lawmakers to voice their support for measures meant to spur the domestic production of affordable, clean-burning CTL fuels.  CTL grassroots supporters can include company employees, union members, retirees, their families, friends and others spread across the country who share a personal stake in the successful launch of a domestic CTL industry.

The coming months are likely to see continued congressional CTL activity; a time in which a robust CTL grassroots network can be an invaluable tool in helping to increase the bipartisan support for legislation designed to jumpstart the production of ultra-clean CTL fuels.  

To become a grassroots supporter visit: http://www.capitolconnect.com/futurecoalfuels/.

As CTL fuel developments transpire in 2007, be sure to regularly visit FutureCoalFuels.org for the latest news and information and learn how you can help strengthen America’s energy future.

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