NETL SEEKS MORE INFO ON COAL-TO-LIQUID TECHNOLOGY

Tamar Hallerman
GHG Monitor
9/6/13

The National Energy Technology Laboratory is looking to issue a funding opportunity announcement later this fall related to the military’s potential for utilizing of coal-to-liquid-derived fuels. The Department of Energy-operated lab published a joint request for information (RFI) with the U.S. Air Force for “R&D Aimed at Greenhouse Gas Emissions Reductions and Cost Competitiveness of Mil-Spec Jet Fuel Production Using Coal-To-Liquid Fuel Technologies” late last week. The lab said it is seeking information by Sept. 30 on “new and innovative” technologies and “promising” research related to coal-to-liquid-derived (CTL) fuels ahead of issuing a funding opportunity announcement on behalf of the Air Force in November.

The request for information says that the lab anticipates the need for projects that cost “no less than” $3 million with a duration of “not more than” three years. “Specifically, information and ideas are sought for the best short-term (5-15 years out) technology solutions and longer-term (20-30 years out) technological paths forward leading to the commercial production of coal-derived mil-spec jet fuel with GHG emissions equal to or lower than conventional petroleum-based jet fuel production while also achieving cost-competitiveness with conventional petroleum-based jet fuel,” the RFI states.

CTL Provision Source of Fierce Debate

According to the RFI, the Continuing Resolution passed by Congress for Fiscal Year 2013 included $20 million in funding for the Air Force for R&D work that could reduce emissions and lower the costs of CTL production. However, under broad energy legislation passed by Congress in 2007, federal agencies are barred from entering into contracts for alternative or synthetic fuels beyond the research and testing phases if the greenhouse gas emissions are more than those produced from conventional fuel sources. Congressional Republicans have repeatedly tried—and failed—to repeal the provision in recent years.

CTL technology was initially deployed during World War II. It gasifies coal to produce synthesis gas, which is then treated through a chemical process that turns the gas into liquid fuels. The technology has never been widely utilized in the U.S. and has drawn controversy due to the large amount of greenhouse gas emissions generated from the process compared to conventionally-derived fuels. Others have emphasized the high costs associated with building and operating CTL facilities. But energy security concerns and the recent high price of oil have caused some members of Congress to reexamine the fuel source as a more secure and reliable option to imported oil, especially for military operations. South Africa and China are some of the only countries to have looked seriously at the technology in recent years.