FutureCoalFuels.org Update
January 27, 2009

A new report from the RAND Corporation, a leading think-tank that works closely with the Department of Defense, concluded that the creation of a domestic coal-to-liquid (CTL) fuel industry could dramatically reduce the nation's dependence on foreign oil and help reduce greenhouse gas emissions through the use of advanced technologies.

The study backed a targeted package of federal incentives designed to accelerate the construction of domestic CTL plants.

According to the study, a commercially competitive U.S. CTL industry could produce as much as 3 million barrels of high-quality liquid fuels per day by 2030, an amount equivalent to 15 percent of current U.S. oil demand. The study emphasized that "U.S. coal resources are sufficient to sustain liquid fuel production for a century, if not longer."

"At that level of production, a U.S. coal-to-liquids industry would benefit the nation by generating profits of between $20 billion and $60 billion per year," RAND said in a press release summarizing the study's results.

"Within a few years, CTL plants could begin to alleviate growing global dependence on conventional petroleum," said James Bartis, the report's lead author and senior policy researcher at RAND.

The RAND study found that the technology for producing liquid fuels from coal is ready for initial commercial applications in the United States. "The classic Fischer-Tropsch approach to produce diesel and jet fuels has advanced considerably since its introduction in Germany during the 1930s," while also noting that a newer methanol-to-gasoline approach using coal has been proven to be commercially deployable.

In examining the emissions profile of CTL plants, the report said the use of new technologies there is "a high probability" that the U.S. "can enjoy the benefits of a coal-to-liquids industry without worsening, and possibly greatly reducing, greenhouse gas emission levels."

THE GRIM REAPER