DOE - Fossil Energy Techline - Issued on:  July 3, 1995

Wyoming Clean Coal Technology Project Sets New Test Run Record

Prototype Coal "Refinery" Operates for 800+ Hours

Gillette, WY - A record-breaking test run at a Wyoming Clean Coal Technology project has added important new data to the development of the innovative Liquids from Coal (LFC) process, enhancing prospects for its future use in both domestic and international markets.

The world's first demonstration plant using the Liquids from Coal process, the ENCOAL Corp.'s project near Gillette, Wyoming, operated continuously for more than 800 hours. The test run, completed in April, broke the plant's previous record of 650 hours set in 1994.

The plant is a prototype coal "refinery," producing a multiple slate of products from coal much like an oil refinery produces various petroleum products. The solid fuel product, which has been substantially cleaned of impurities by the process, can be used as a boiler fuel or for other applications. A liquid low-sulfur coal oil can be used as a petroleum substitute.

During its most recent record run ENCOAL was producing product for more than 90% of the 800 hours.

As a result of tes project, the LFC technology is expected to open new markets for United States' companies to utilize low-sulfur coals throughout the world.

Since the plant began operation in July 1992 under Round III of the Department of Energy's (DOE) Clean Coal Technology Program, ENCOAL has logged more than 6500 hours of operation. With recent schedule extensions to produce more testing data, the demonstration program is scheduled to conclude in September 1996.

The plant's solid product - Process Derived Fuel (PDF) - was recently tested by Western Farmer's Hugo Power Plant in Oklahoma, Muscatine Power in Iowa, and Omaha Public Power District in Nebraska. All utility tests have confirmed that loading, shipping, dust generation, sulfur content, and heating value characteristics for this solid fuel are significantly better than run-of-mine Powder River Basin coal.

The liquid product - Coal Derived Liquid (CDL) - is being sold to several industrial customers in the Midwest. The recent plant operation and product availability milestones continue to affirm ENCOAL's commitment to meeting the projects objectives and providing high quality products to the commercial marketplace.

The Clean Coal Technology Program combines industry and government funding to demonstrate advanced coal technologies that can improve environmental protection while keeping down costs to consumers and ratepayers. The initiative, which has completed its project selection phase, includes 43 projects in 20 states valued at nearly $7 billion.

Process Description

In the LFC process, coal is dried and heated so that part of the coal is converted to a gas. The gaseous vapors are cleaned and cooled, then condensed to form a liquid that can be used in place of fuel oil. This low-sulfur coal oil has already been shipped and successfully used by industrial customers. A low-sulfur, clean-burning process derived fuel is also produced which has a much higher heating value than the raw coal.

Both products have large potential markets in the United States and abroad.

The low-sulfur solid fuel can be used directly in coal-burning boilers. It may be particularly attractive for power-generating companies that must reduce sulfur dioxide emissions to comply with the 1990 Clean Air Act Amendments. The high-quality liquid can replace petroleum-based fuels in numerous industrial and utility applications.

In addition to marketing the high-value products in the United States, TEK-KOL, owner and licensor of the LFC technology, is also pursuing promising opportunities overseas. TEK-KOL recently entered into letters of intent with P.T. Berau and ROSUGOL to perform engineering and economic assessments for building plants in Indonesia and Russia, respectively. These agreements are in addition to previously announced assessments underway for a plant in China. Assessment costs for these ventures are jointly shared by TEK-KOL, Mitsubishi Heavy Industries, and the site companies (P.T. Berau and ROSUGOL).

The LFC technology was developed by SGI International and SMC Mining Company. ENCOAL Corporation owns the demonstration plant and licenses the LFC technology from TEK-KOL. TEK-KOL is jointly owned by a Ziegler subsidiary, SMC Mining Company and SGI International.

Funding for this $90 million project is shared equally by DOE and ENCOAL. The ENCOAL Clean Coal Technology project is administered by DOE's Morgantown (WV) Energy Technology Center (METC). METC currently oversees 16 Clean Coal Technology projects.

- End of TechLine -

Contact: Doug M. Jewell, Morgantown Energy Technology Center, 304/285-4720