Coal conversion to liquid fuels grows worldwide to meet increasing demand for energy and make coal more environmentally friendly amidst climate change and other ills blamed on carbon dioxide from smokestacks of plants that burn coal and other fossil fuels.
CHARLESTON, W.Va. -- Coal conversion to liquid fuels grows worldwide to meet increasing demand for energy and make coal more environmentally friendly amidst climate change and other ills blamed on carbon dioxide from smokestacks of plants that burn coal and other fossil fuels.
By accounts from West Virginia to China and other coal producers on the globe, coal conversion suffers from the lack of capital input by private investors. The hitch so far comes less from opposition in this country by advocates of the energy mix of nuclear, wind and solar.
Coal figures as a must in the mix as indicated by action and attitudes in other countries to convert coal into gasoline and similar products. West Virginia knows of the worldly competition in coal conversion.
Last year, Synthesis Energy Systems (SES) pulled out of a deal with Consol Energy to build an $800 million coal-gasification plant in Northern West Virginia. Getting money for the project was cited as the main reason for bowing out before the cold indifference of investors.
Yet, in almost no time flat, SES had a bid to develop a similar plant in China. China's YIMA Coal agreed to guarantee bank loans for the project.
Fortunately for West Virginia and the U.S. coal industry, New York-based TransGas Development Systems LLC (TGDS) stepped up with a plan on the heels of the SES letdown. TGDS proposed to build a $3 billion coal-gasification plant in Mingo County's new energy park near Gilbert.
The project calls for a work force of 200 employees to turn 8,500 tons of coal into 18,000 barrels of gasoline a day by 2013. Nonetheless, realization of the goal rides on the availability of public and private money for financing.
Gov. Joe Manchin and TGDS President Adam Victor spoke with confidence of obtaining capital for the project. Manchin said the project was eligible for state tax credits and similar subsidies available to any new project for jobs and investments.
CHARLESTON, W.Va. -- Coal conversion to liquid fuels grows worldwide to meet increasing demand for energy and make coal more environmentally friendly amidst climate change and other ills blamed on carbon dioxide from smokestacks of plants that burn coal and other fossil fuels.
By accounts from West Virginia to China and other coal producers on the globe, coal conversion suffers from the lack of capital input by private investors. The hitch so far comes less from opposition in this country by advocates of the energy mix of nuclear, wind and solar.
Coal figures as a must in the mix as indicated by action and attitudes in other countries to convert coal into gasoline and similar products. West Virginia knows of the worldly competition in coal conversion.
Last year, Synthesis Energy Systems (SES) pulled out of a deal with Consol Energy to build an $800 million coal-gasification plant in Northern West Virginia. Getting money for the project was cited as the main reason for bowing out before the cold indifference of investors.
Yet, in almost no time flat, SES had a bid to develop a similar plant in China. China's YIMA Coal agreed to guarantee bank loans for the project.
Fortunately for West Virginia and the U.S. coal industry, New York-based TransGas Development Systems LLC (TGDS) stepped up with a plan on the heels of the SES letdown. TGDS proposed to build a $3 billion coal-gasification plant in Mingo County's new energy park near Gilbert.
The project calls for a work force of 200 employees to turn 8,500 tons of coal into 18,000 barrels of gasoline a day by 2013. Nonetheless, realization of the goal rides on the availability of public and private money for financing.
Gov. Joe Manchin and TGDS President Adam Victor spoke with confidence of obtaining capital for the project. Manchin said the project was eligible for state tax credits and similar subsidies available to any new project for jobs and investments.
"We don't believe that energy projects need any subsidies from the state, so we seek and ask for no government subsidies or tax credits," Victor said, but such would be accepted "as long as it doesn't slow us down," he added.
In South Africa, Exxaro, one of the largest coal suppliers in that country, has a joint venture with Sasol Mining to develop a mine to supply Sasol's latest coal-conversion project, reports Coal Age magazine.
Sasol has a history of coal conversion since before World War II. Also, Germany since has been converting coal to liquid fuels for transportation and manufacturing.
Despite its own colossal coal industry at home, China is reported to be investing in African coal-producing countries with an eye on expanding China's interest in coal conversion.
Observe China's interest in foreign coal and other industries is beyond, say, buying up U.S. bonds and like securities to become one of the biggest foreign holders of U.S. debt.
Developers of solar and wind power projects face heavy capital needs for transmission lines and, above all, for storage facilities and maintenance.
The sun doesn't shine every day, nor does the wind blow to spare need for power storage. But coal abounds to supply power daily, rain or shine.
Peeks is a retired business/labor editor of the Gazette.
Post a comment
Sounds like it is not being supported by the free market; no need to slam it.