The utility of the future will be powered by processed low-rank coal, America’s lowest cost and most abundant natural energy resource with reserves measured in centuries, not years or even decades. By utilizing technology developed by private industry as part of the US Department of Energy’s Clean Coal Technology Program and Clean Coal Power Initiative, tomorrow’s utility will meet the most stringent air, water, and solid byproduct standards ever promulgated by the US Environmental Protection Agency. Furthermore, this utility will not contribute to global climate change by releasing any green house gases, since the only fuel produced will be H2 (hydrogen), which yields water when combusted in a gas turbine or used in a fuel cell. All the CO2 (carbon dioxide) produced while making hydrogen from coal, air, and steam will be sequestered in underground reservoirs where it enhances oil recovery from the declining production of present day oil fields.

The coal conversion and power generation process consists of the following unit operations. As soon as bulk low-rank coal enters into Silverado’s utility the environmental drawbacks associated with the use of “dirty coal,” that is dust generation and tendency towards spontaneous combustion are eliminated. Low-Rank Coal is crushed, ground, and mixed with water, most of which is recycled from the process, then hydrothermally treated and formulated into a concentrated stable liquid fuel that is a low cost, non-hazardous alternative to oil. From this point forward the coal in low-rank coal-water fuel or Silverado’s (Green Fuel) is used sight unseen just like oil.

Green Fuel is then fed at elevated pressures to an advanced high temperature slagging gasifier originally developed by Texaco and now available from GE. During gasification the carbon and water in Green Fuel is reacted with oxygen to produce carbon monoxide and hydrogen. The temperature is maintained above the melting point of the ash, mineral matter in the coal, which is removed as molten slag. The slag is recovered as an inert glassy frit that can be sold for use in roadbeds and or high-strength concrete. Small quantities of impurities such as sulfur and nitrogen oxides and particulates from coal ash can be efficiently and cost effectively removed from the hot product gas by commercial processes.

In the next unit operation, synthesis gas (carbon monoxide and hydrogen gases) are reacted with water via the water gas shift reaction to generate additional hydrogen. (In the shift reaction, carbon monoxide reacts with additional water to produce more hydrogen and carbon dioxide.) The carbon dioxide can be separated efficiently from the hydrogen fuel via commercial processes and sold for use in enhanced oil recovery processes. The carbon dioxide will be used to repressurize oil fields thereby increasing oil production from declining US oil fields. The carbon dioxide remains sequestered in the underground formation.

In the last step hydrogen gas is the resultant fuel and can be used in an advanced GE gas turbine where it is burned in air to generate power and water. It could also be used to generate power in advanced fuel cells now under development. In either case, power is generated without the production of any greenhouse gases that could contribute to climate change. In addition to generating power cleanly from America’s most abundant natural energy resource this process would help to decrease dependence on imported oil, not only by the power generation, but by increasing production from our dwindling indigenous oil resources by means of repressurizing oil fields with carbon dioxide which is a recovered saleable by-product of this process. While repressurizing oil fields the carbon dioxide is sequestered in deep underground reservoirs, preventing its release to the atmosphere.

Silverado’s process coupled with readily available GE technology can lessen America’s dependence on foreign oil and products; increase energy self-sufficiency; and do these things in a manner that is totally compatible with our environment. In addition, by using inexpensive low-rank coals rather than costly oil and high-rank coals, Silverado can keep its costs of energy production significantly lower than its competitors.