Coal to Liquid Technology. Just Because We Can Do It Doesnt Mean We Should!

Australia is  eyeing Coal to liquid fuel technology as a way to offset oil imports and reduce their   dependence on imported fuels. The technology as the name implies turns coal into liquid fuels such as methanol or synthetic gasoline. However large scale use of this process will open up the worlds coal reserves as a replacement for dwindling oil supplies for heating and transportation fuels. If we do proceed down this road we will have no chance of controlling the concentration of atmospheric and ocean carbon dioxde produced. We will have effectively destroyed our chances at minimizing the global impact of destabilized climate change. Here is the press release.

Political unrest in the Middle East coupled with soaring oil prices has highlighted the need to develop a coal-to-liquids industry in Australia, according to Ambre Energy CEO, Edek Choros.

Mr Choros said coal gasification technology would enable production of local fuels from local coals, increasing Australia’s fuel security and potentially keeping a lid on rising bowser prices.

“The recent events in Egypt, Tunisia and Jordan and the subsequent rise in oil prices show the time has come for Australia to start getting serious about domestic fuel security,” Mr Choros said.

“The gap is widening between local production and the demand for imported crude and crude products. Our fuel security will depend on alternative technologies to produce our own liquid fuels.”

Ambre Energy is currently proposing a $3.5 billion project to construct and operate Australia’s first commercial-scale coal gasification facility near Pittsworth, 30km south west of Toowoomba.

The project, ambreCTL, has access to commercially-proven ExxonMobil technology that will be used to produce 940 million litres of high quality unleaded petrol and 150 million litres of LPG each year for 35 to 40 years.

The project comprises a liquid fuel production facility and an adjoining open cut coal mine. Coal from the mine will be gasified in the high-tech facility to produce a synthesis gas (or syngas) for conversion to methanol. Methanol will then be converted to high quality unleaded petrol and LPG.

Mr Choros said ambreCTL could meet more than 20% of Queensland’s demand for unleaded petrol and LPG by 2014.

“Producing unleaded petrol from an abundant resource will reduce our dependence on imported fuels and is a more environmentally-friendly option than traditional coal combustion.

“Our modelling shows this project will have substantial regional, state and national benefits in terms of jobs and ongoing economic activity associated with this new industry,” Mr Choros said.

Project construction is scheduled to start in 2012.

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Posted by Tracey A. Smith on Mar 20 2011. Filed under Moving Beyond Big Coal. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry