Coal-to-Liquids-to-Profits (part 1 of 2)

By Luke Burgess
Tuesday, June 6th, 2006

The world's ravenous appetite for fossil fuels began over a hundred years ago with the Industrial Revolution.

The introduction of steam powered machinery (fueled primarily by coal) dramatically increased production capacity.

Then, in the first few decades of the 19th century the development of all-metal machine tools facilitated the manufacturing of more production machines for use in other industries. This essentially got the ball rolling.

The Industrial Revolution propelled the world into the fully functioning juggernaut that it is today. But without fossil fuels, it would have never gotten off the ground.

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Over a hundred years later, the world is at a crossroads. Today explorers and geologists are struggling to find the new oil and natural gas resources needed to sustain the energy demands of modern society.

These dwindling supplies in tandem with the ever increasing demand from almost every country in the world have put these fossil fuels in short supply.

The consequences of this shortfall are apparent in day-to-day life. Blackouts, power surges, and near vertical increases in energy prices now plague nations globally.

We've essentially painted ourselves into a corner as modern civilization has become almost fully dependant on oil and natural gas.

These fossilized fuels are the lubricant that greases the wheels of progress. And the catch-22 of it all...the never-ending use of these fossil fuels could doom us.

Something must be done.

 
 
Breaking the Addiction

There are many different technologies currently being developed to break our oil addiction.

One such technology is a process of turning solid coal, just like the coal that powered the first steam engine, into synthetic liquid fuels.

Coal?

You bet.

Coal-to-Liquid (CTL) technology is able to convert the black rocky fuel into valuable, high-quality synthetic fuels. These fuels include clean, sulfur-free synthetic diesel and jet fuel.

The most common way to convert coal into liquid fuels is the Fischer-Tropsch process, named after two German scientists who developed the technique back in 1925.

To create the synthetic fuel, coal is mixed with oxygen and steam at high temperature. Pressure is then added to produce carbon monoxide and hydrogen.

The second step, called Fischer-Tropsch synthesis, uses a catalyst to transform the gas into liquid synthetic crude, which is further refined into diesel or jet fuel. Along the way, mercury, sulfur, ammonia and other compounds are extracted and can be sold on the commodities market

Now, the diesel that produced using the Fischer-Tropsch process is a lot different than what you'd buy at a gas station today -- it's much better.

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You see, the shelf life on normal diesel fuel is only about three to four months. But using the Fischer-Tropsch process, companies can produce a synthetic diesel with a shelf life of up to eight years!

This will make these synthetic fuels the number one choice for military use and strategic reserves.

This would also enable the military to finally scrap the half dozen other different fuels they're currently using with a single battlefield fuel without having to switch engines or other parts as it works "as is" in any diesel engine in use today.

And that has the government eager to get this technology rolling...

(Author's Note: Tomorrow I'll be publishing the second part of this article.)

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