1. ifier technology for power generation. However, gasification efficiency improvements are also needed to produce clean gaseous and liquid fuels. The proposed FY 1995 budget reductions are not consistent with this need.
  2. Materials research leading to membrane diffusion techniques for recovering a by-product hydrogen stream is a major opportunity for DOE coal research relating to the production of pure hydrogen from coal-derived gas.
  3. Production of SNG from coal is not expected to be of importance until late in the long-term.
  4. The major opportunity to improve thermal efficiency and cost in SNG production is in the gasification step.
  5. High-efficiency oxygen-blown gasifiers developed for combined-cycle power generation would also be applicable to use in SNG manufacture.
  6. For large single-product plants, direct coal liquefaction offers a 5 to 10 percent higher efficiency with correspondingly less CO2 production than coal-based F-T syntheses, with production of methanol falling between these two limits. Similarly, the cost of producing a slate of refined transportation fuels by direct liquefaction is potentially lower than for the coal-based F-T synthesis gas-based fuels.
  7. An estimate of the petroleum crude oil prices at which the products from a large direct liquefaction plant meeting current refined fuel specifications could compete is around $30/bbl using Western coal and utility financing. For F-T liquids the equivalent crude oil price would be approximately $5/bbl higher (i.e., $35/bbl), with methanol production about the same as direct liquefaction. With typical oil industry financing, the equivalent crude prices would be on the order of $5 to $10/bbl higher.
  8. Recent cost estimates for coproduction of coal liquids and electric power indicate that coal liquids might compete with petroleum at $25/bbl or less, with the possibility of coal-derived liquid fuel production at about the same time as installation of advanced IGCC power generation facilities.
  9. Continued research in conversion chemistry and process optimization have the potential to reduce the cost of coal liquids from large liquefaction plants to the DOE goal of $25/bbl (1991 dollars).
  10. There is little need, at this time, for large pilot plant or demonstration programs, but a bench-scale and small pilot plant program is needed to evaluate promising leads and provide focus for laboratory-scale research in direct liquefaction.
  11. Advances and maintenance of core competencies in direct coal liquefaction technology in the United States depend increasingly on DOE activities, since R&D on direct coal liquefaction has dwindled to a very low level in industry.
  12. Continued reductions in funding will cause a major degradation in the effectiveness of the DOE coal liquefaction program. This trend places the nation's long-term coal liquefaction option at risk because government support has become critical in sustaining U.S. competency in this area.


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