Converting Coal Into Fuel

MONTANA, Nov 16 (Neo Natura) - Governor Schweitzer is planning on creating three coal-to-gas plants which would transform coal into gasoline and jet fuel.

Schweitzer envisions a plant where the state-owned Otter Creek coal reserves are located in Powder River County. It would cost $2.5 billion to build a private project over two years with 5,000 construction workers, he said, citing Pentagon estimates. About 1,000 people would operate the plant permanently, not counting those working to mine the coal to fuel the plant. Such a plant would produce 30,000 barrels of fuel daily.

The Fischer-Tropsch process is a catalyzed chemical reaction in which carbon monoxide and hydrogen are converted into liquid hydrocarbons of various forms. Typical catalysts used are based on iron and cobalt. The principal purpose of this process is to produce a synthetic petroleum substitute, typically from coal or natural gas, for use as synthetic lubrication oil or as synthetic fuel. The process was originated in 1923 by two german scientists. Hitler used the process to power German tanks and other vehicles during World War II when the country was short of oil.

Two companies are being helped by Schweitzer in order to implement the projects.

While there's been no firm commitment from Peabody Energy or Rentech Inc., Schweitzer told reporters here that the prospects for a plant being built -- likely in southern or eastern Montana -- are "very promising."

Rentech Inc. is a developer of coal-to-liquids and gas-to-liquids technologies, and Peabody Energy calls itself the world's largest private-sector coal firm. A telephone message left for a Peabody Energy spokesman was not immediately returned Tuesday morning.

However, optimism can only build so much. A late envionrmental-oriented permit has delayed the first plant, and has caused X-cel, the financial investor, to reconsider the project.

Montana Gov. Schweitzer’s ambitious plans to create a coal-to-liquid-fuel industry in the state have also largely been derailed. Last month the backers of a $1.5 billion coal gasification plant near Roundup abandoned their attempt to use an expired air quality permit to build the station. A second new-age coal plant, announced by Schweitzer last October, has become an embarrassment: the companies cited by the Governor’s office as “primary developers” of the Bull Mountain facility denied any involvement when contacted recently by the Missoula Independent.

Other arguments include environmentalists that say the technology is not as clean as it is purported to be, while political foes said the governor has unrealistic expectations.