Coal: Liquid Fuels
In October 2006, the World Coal Institute published a new report "Coal: Liquid Fuels" [PDF file] reviewing the potential of coal to liquids, or coal liquefaction, in meeting future demand for oil.
Global demand for oil is rising at a rapid rate. More oil is used today than at any other time in history– daily oil consumption has risen by over 20% in the last ten years.
Oil prices have also risen dramatically as concerns mount over security of oil supplies. Ongoing political instability in major oil producing regions is forcing governments worldwide to consider how they are going to meet future demand.
One option is to look at alternative ways of producing crude oil – such as coal to liquids (CTL) technology.
Coal liquefaction is not a new technology – it was developed and has been utilised since the early 20th century. In South Africa, for example, coal liquefaction already meets 30% of oil demand.
Elsewhere, high oil prices and energy security concerns have led to renewed interest in CTL technology. Using coal to produce an alternative to crude oil has many benefits:
There is a lot more coal than either oil or gas – around 155 years of coal reserves remain, compared to 40 years of oil and 65 years of gas.
Coal has a broad geographic distribution - there are coal reserves in more than 70 countries. There is also a well-established, well-supplied and historically reliable international market. In contrast, 80% of the world’s total oil reserves are found in just 11 countries (OPEC).
CTL utilises indigenous coal resources or the international coal market to reduce the risks associated with oil import dependence.
Coal prices are generally lower and more stable than oil prices. CTL can produce oil at $25 - $45 per barrel of oil equivalent – including the costs of carbon capture and storage. In 2006 oil prices reached highs of $78 per barrel and could exceed $90 per barrel by 2030.
CTL fuels are ultra clean to use - no sulphur, significantly reduced NOx, particulate matter and carbon monoxide emissions. CTL fuels offer higher efficiencies than conventional oil resulting in lower CO2 emissions when used.
Carbon dioxide capture and storage offers the potential for major reductions in CO2 emissions from coal. CCS may result in greenhouse gas emissions being some 20% lower over the full life cycle than fuels derived from crude oil.
Governments in Australia, China, the USA and India have all been taking serious steps towards CTL development.
A copy of the full report is available to download in PDF format, but please note it is around 1.5Mb and may take a little while to download, depending on your connection.
http://www.worldcoal.org/pages/content/index.asp?PageID=428