ably be somewhat less than those predicted for the F-T process because of lower synthesis gas consumption.

Current Programs

The U.S. Congress, in EPACT, directed DOE to examine the potential of coal refineries, evaluate their potential for meeting new markets, outline R&D needs for potential commercialization, and prepare a report on the subject for congressional consideration (see Appendix B). DOE activities related to this directive have included continuation of the program sponsored by DOE's Morgantown Energy Technology Center aimed at commercialization of the mild gasification process, which is based on pyrolysis and is directed toward producing specialty cokes and tars for production of chemicals. No further funding for the program has been requested for FY 1995. In addition, the ENCOAL mild coal gasification project is being funded by DOE on a 50/50 cost-share basis with ENCOAL Corporation under Round III of the CCT program. The two year operational test period began in July 1992, and solid process-derived fuel and coal-derived liquids have been produced. DOE has also issued the mandated report to Congress (DOE, 1991).

DOE coal R&D funding for systems for coproducts is divided into two categories: the mild gasification program and conceptual studies of coproduction of electricity and coal liquids. The former activity at the Illinois Mild Gasification Facility is cost shared with Kerr/McGee. It received $1.5 million in FY 1993 and $3.9 million in FY 1994; no funding was requested for FY 1995. A similar process is addressed in the ENCOAL CCT project, thereby reducing the incentive for major continuation of funding under the coal R&D program. A conceptual study of electricity and coal liquids production—as proposed in the FY 1995 congressional budget request—could extend the existing preliminary studies. In FY 1995, $0.6 million was requested for this study; there was no funding for this activity in FY 1993 and FY 1994.

FINDINGS

Coal Gasification Technology
  1. Technology for the manufacture of clean gas is unique to coal-based systems; technology development is not addressed in DOE Fossil Energy programs other than those relating to coal (FE coal R&D and CCT).
  2. The expected major future use of coal gasification in power generation has stimulated industrial R&D for gasification systems tailored to high-efficiency power generation requirements. Seven systems are scheduled for demonstration in the CCT program. However, further improvements in gasifier performance are


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