Contents

• Introduction.• Methods of Coal Liquefaction. • Benefits of Coal liquefaction Fuel.• Countries Using CLF.• Coal liquefaction Fuel in India.• Investment.

Coal Liquefaction• Coal liquefaction is the conversion of coal into a

synthetic oil.• Reasons for using coal liquefaction 1) it is well developed and thus could be

implemented fairly rapidly and 2) there are relatively large quantities of coal

reserves.Two methods of producing liquid fuels are:--DCL-Direct Coal Liquefaction.-ICL-Indirect Coal Liquefaction.

Direct & Indirect Coal Liquefaction.

• In DCL the coal is directly contacted with a catalyst at elevated temperatures in the presence of added hydrogen.

• The ICL process consists to two major steps: 1) gasification to produce a synthesis gas and 2) conversion of the gas to a liquid by synthesis over a catalyst in a Fischer-Tropsch process.

Coal Liquefaction process

• In 1923, German scientists developed the Fisher-Tropsch process for converting coal into the liquid fuels of dieThe process was used extensively by Nazi Germany during World War II.

• Sasol is having three operating plants with a total capacity of about 150,000 bbl/day.

China in Coal Liquefaction Fuel

• It is estimated that by 2013, 10 percent of oil imports will have been replaced by coal-liquefied oil.

• Presently, it costs around US$25 per barrel to produce one ton of coal-liquefied oil with three to five tons of coal used in the production.

Benefits

• CTL is a mature and economically viable technology-"Coal-to-liquids (CTL) technology is not an immature field. Germany and South Africa have been gasifying coal and turning it into low-sulfur diesel and jet fuel for decades. Based on an U.S. Department of Energy formula, it would be economical to produce fuel from coal when the price of a barrel of crude oil is at least $54. With oil hovering near $100 per barrel.

• CTL can help lower dependencies on foreign oil.• Coal liquids can be used for transport, cooking, stationary

power generation, and in the chemicals industry. • Coal-derived fuels are sulphur-free, low in particulates, and low

in nitrogen oxides.

• PHILIPPINES-, H&WB Corp. has announced a project for a hybrid production unit (60,000 bbld) combining direct and indirect coal liquefaction technologies.

• AUSTRALIA- Monash Energy has established a project to produce 62,000bbl/day of coal-derived diesel and other liquids

• Germany-A pre-feasibility study was undertaken for a 3000bbl/d facility at the Schwarze Pumpe industrial facility at Spreetal

• India imports over 70% of its oil, yet it has 92 billion tons of proven coal reserves. At current production and consumption rates, India has well over 200 years of coal available.

• The Government of India's Investment Commission envisages investments of around $6 billion, and a feasibility study has been ordered by the Minister of Coal.

• The government is understood to have awarded a coal block each to Tata Sons-Sasol joint venture and Jindal Steel and Power for converting coal to liquid petroleum, entailing an investment of $18 billion. The two projects would result in production of 1,60,000 barrels of crude oil a day.

• In 2008-three blocks of coal in Orissa for projects that will produce liquid fuel from coal, In an attempt to increase oil supply.

• 3 July 2008 - The sustained high oil prices and increasing oil imports, coupled with the country's rising demand for transportation fuels, has led to a perception that India's oil security is being threatened. CTL is also gaining currency as a commercially attractive proposition, primarily because high oil prices and the potentially cleaner characteristics.

• Oil India Limited (OIL) did some basic research on direct coal liquefaction, and they have now planned for a $2.5 billion project based on direct liquefaction of 3.5 million tonnes of (MT) low-ash, high-sulfur Assam coal to produce about 2 million barrels of diesel and naphtha.

Marketing Strategies

• Price-Conceptual plant designs estimate $3.5–4.5 billion required for initial 50,000-bpd plants , Per barrel cost is $60.

• Place -India• Promotion-Government as well as Industrial

efforts are needed for coal liquefaction promotion, consumers should be made educated about new technology.

• Product-Coal liquefaction fuel

55%

45%

AwarenessYes No

Yes 11

No 9

35%

65%

Cost effectiveYes No

Cost effective Response

Yes 7

No 13

Yes50%

No50%

Alternative to oil

Alternative to Oil Response

Yes 10

No 10

Yes55%

No45%

Awareness

Awareness Response

Yes 11

No 9

Yes95%

No5%

India should invest in CLF

India should invest in CLF Response

Yes 19

No 1

Yes80%

No20%

Environmental Problems

Environmental problems Response

Yes 16

No 4

Yes55%

No45%

CLF as Future Fuel

CLF as Future Fuel Response

Yes 11

No 9