As always RBA, great post.Had to dig this one out again but...

As always RBA, great post.

Had to dig this one out again but worth reviewing, my appologies for the length of paste/post. But this ties in the ECT's Coldry tech to Coal to oil processing. 1.3tT is a cr@p load, this is emphisises that the efficiency of the process is paramount. Poising ECT right there in the thick of it.


www.coal2oil.com

Coal to Oil Coal 2 Oil Explained The lack of stability in the Middle East and demand pressures from India and China has caused dramatic increases in the price of oil which has affected the global economy. However there are alternative resources that can be used for the production of oil – the main ones being black and brown coal. It just so happens that Australia and particularly the Latrobe Valley and Gippsland Basin in Victoria have some 500+ years of low cost, low sulfur, high moisture Brown Coal that is ideal for conversion to quality gasoline, aviation fuel and carbon fibers. The history of ‘coal 2 oil’ is not unlike the VHS v Beta phenomena whereby Beta had the best tape product but marketing and circumstances of the day lead VHS to dominate as the commercial product of choice. In ‘coal 2 oil’ there are two main technologies – 1) Fischer-Tropsch (VHS) & 2) Bergius Hydrogenation (Beta) ECT’s unique de-watering ‘Coldry’ process is applicable to both technologies; however we are proposing to pursue the 2nd and less popular Hydrogenation process which has been developed by the Japanese after many years of testing using Brown Coal from the Latrobe Valley (1988-95). Why are we choosing the less proven process? The reported differences between the processes show that Hydrogenation has a higher yield of petroleum per tonne of coal, lower cost and lower greenhouse output than its Fischer-Tropsch counterpart.
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The economics of CTL depend strongly on coal costs and this coal must be delivered to the plant at a low price – this is the advantage of Victorian brown coals. Since coal is more difficult to transport than oil, it would, as a general principle, be better for CTL to be carried out in the country of origin and preferably close to the resource. CTL Production Costs The use of the Hydrogenation process and low cost brown coal (USD $4/t) and ECT’s front end ‘Coldry’ drying / de-watering process is predicted to achieve a production cost of around USD$25 - $30 per barrel (crude oil equivalent) which is a remarkable improvement over the last couple of decades costs. Production costs for the Fischer-Tropsch process using mainly black coal are purported to be around USD$40+/barrel. Latest News - Japan Ready to Move on Coal Liquefaction The following information comes from NEDOL Japan who did much of this work in the Latrobe Valley, Victoria. Announcement on June 12 in Tokyo advised: “Japan plans to provide Asian nations – particularly China – with the technology to liquefy coal as part of a broader effort to reduce global dependence on crude oil.” Through NEDOL they will join with Chinese companies (including Shenhua) “and plan to have a plant operating by around 2010.” “Construction costs are estimated at 100b Yen (USD877m).” “Japan has also entered into talks with the Indonesian government”… “Japan was also considering operating in India and Mongolia.”