Flying High With Coal-Based Fuel
May 1st, 2007
The announcement of a projected $4 billion coal conversion facility in Wellsville, Ohio, has not interfered with West Virginia Gov. Joe Manchin’s efforts to spur development of a similar production plan in the Mountain State.
In 2005, Manchin announced the “Coal Conversion Initiative” and laid out a comprehensive plan to implement coal conversion technology on a state level. The initiative encompasses public and private development of liquefaction and other coal conversion facilities and infrastructure in West Virginia.
“The coal conversion initiative is something that Gov. Manchin has been promoting and working on very heavily,” said Manchin’s spokeswoman, Laura Ramsburg.
Unlike coal conversion projects that have been proposed elsewhere, the West Virginia Coal Conversion Initiative focuses on the development of state-of-the-art, multi-product facilities that would adapt to the changing needs of the marketplace and produce whatever product is most needed at a specific time.
“Not only as governor of West Virginia, but as chairman of the Southern States Energy Board, it is a high priority of the governor to have facilities that do some of these coal conversions,” said Ramsburg. “All of our energy, all of our focus has been on trying to develop these new technologies in the state because we think we are the perfect fit.”
And it seems there are companies with goals similar to Manchin’s.
Baard Energy LLC of Vancouver, Wash., wants to build such a facility in Wellsville, about 50 miles south of Youngstown, near the Ohio River that would mix Appalachian coal with wood and other waste to make ultra-clean synthetic jet and diesel fuel for the military. The process was first used extensively by the German military 60 years ago.
Besides producing fuel, the new facility would have its own power plant that could sell excess electricity — something Manchin also hopes to achieve.
‘‘In fact, we are working with (American Electric Power) and their new power plant and trying to see if there is a way to piggy back with that to do some of the coal to liquid technologies. And, we are very hopeful that that is going to occur,’’ said Ramsburg.
Ohio River Clean Fuels would be built on 650 acres in the Wellsville area. It would use about 5 billion tons of Ohio coal a year and more than 2 billion tons of wood waste, switch grass and other bio-wastes — even chicken manure — that would be converted into 50,000 barrels per day of diesel and jet fuel and naphtha, a chemical for the plastics industry. The military uses 375,000 barrels of fuel per day.
Consol Energy Inc. spokesman Joseph Cerenzia said Consol supports projects that would increase the utilization of coal.
“We are involved in coal to liquids research and products,” said Cerenzia. “We are supportive of projects that would help ensure that the U.S. has energy to help ensure America’s energy security, especially in terms of the global market for coal.
“Direct or synthetic utilization of coal is healthy to our industry,” he continued.
The four-year construction project for the Wellsville facility would begin next year and generate 4,000 construction jobs, mostly in Columbiana, Mahoning and Trumbull counties in northeast Ohio, with a payroll of nearly $1 billion, according to an analysis by TeamNEO economic development consultants.
The total number of permanent jobs in the first year of the plant’s operation probably would exceed 700, including 250 engineers and mining jobs.
Baard has been working with the state and Columbiana County Port Authority, which began building a $20 million port in Wellsville in 2000. The port was set up so that shippers can transfer among barge, rail and trucking. It already moves 15 million tons of goods per year.
The port has agreed to buy the nearby land for Baard’s plant, said Tracy Drake the port authority’s executive director.
The pentagon, looking to create a secure source of fuel insulated from global tensions, still is testing synthetic fuels and must certify they won’t damage jet engines before signing any purchase contracts. All branches of the military are testing the fuels, and Air Force tests are being done at bases including Wright-Patterson in Dayton.
The synthetic fuel being tested by the Air Force is a 50-50 blend with conventional jet fuel, said Paul Bollinger Jr., an Air Force official. The fuel may be certified for many Air Force aircraft by 2010.
Until then, West Virginia will continue efforts to look for sites and opportunities and work with involved industries to develop coal liquefaction.
“It is a very high priority and something that we have been working on for over a year,” said Ramsburg. “We think we are going to be able to have some fruits of those labors soon.
“And we think more than anything that (these technologies) are something that we can add to the country’s efforts to become energy independent.”
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