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Coal is likely to be a big winner in the new Obama administration. Over the next two years or so, look for Congress to provide several billion dollars for investments in research and development to commercialize processes that transform coal into motor fuels for autos, trucks and jets.
The federal funding initiative will be part of a concerted plan that earmarks incentives to boost alternative energy, including solar, wind and geothermal power. The effort will help the U.S. reduce carbon dioxide emissions and oil dependence. But the Obama plan also recognizes that it will take decades for alternative energy sources to replace fossil fuels.
In the meantime, coal will be touted as one homegrown solution to ease U.S. reliance on oil imports, which now account for nearly two-thirds of daily usage. Within 20 years or so, look for coal plants to make up to 3 million barrels a day of gasoline and diesel fuel. Rocket science won't be required. The technology to convert coal to motor fuel was developed by Germany during the 1930s and has been used for years by South Africa's Sasol.
Part of the push behind coal-to-fuel projects is fear of oil supply disruptions or cutoffs in the U.S., China and elsewhere. Oilbound economies aren't convinced that the recent collapse in oil prices to $40 a barrel and less should distract them from funding coal-derived fuels. Policymakers in those countries know that the break-even benchmark of $50 a barrel for oil will be reached and exceeded in coming years, once the economic morass ebbs.
The fight against global warming continues, especially a coming era of heightened initiatives to reduce carbon dioxide emissions. But that won't knock coal out of the box. To reduce harmful emissions, some carbon content of coal-derived fuels will be removed at the processing plant and stored permanently underground. Plus, the fuel will be blended with alcohols made from biomass to yield a mixture that emits lower levels of greenhouse gases than today's motor fuels, says James Bartis, a senior policy researcher at Rand, a public policy think tank.
Ersatz fuel will help temper world oil prices by slowing the growth in demand. Meanwhile, the new coal fuel plants likely will be built in other coal-rich countries, including Australia, China, Germany, Russia and Slovakia. Coal-to-fuel processing plants will spur the creation of a new industrial sector, too. Within approximately 20 years, look for the coal fuel industry to generate more than $50 billion in sales.
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POSTED BY: jt (January 07, 2009 07:57 PM)
I agree with Jeff, coal is NOT an answer of any kind to global warming or pollution of any kind. Just mining the stuff is the most environmentally destructive process we have available to create energy. And carbon capture technology is not ready yet, and probably won't be for a long time. About the only thing this would be good for is reducing US imports of foreign oil. At that point, why not just fill our cars with natural gas, which we also have plenty of in the US.
I don't believe that Obama is seriously pushing this policy, at least I hope he isn't!
POSTED BY: JP (January 08, 2009 07:20 AM)
Obama is not nuts rather understands that we need a bridge between semi clean to clean fuel sources with cutting edge technology to be less overseas oil dependent and also to serve as another sector in which we can lead the world and consequently improve employment and move to less carbon based fuels.
POSTED BY: Jim Ostroff (January 14, 2009 03:53 PM)
It is likely that Congress and the incoming administration will endorse a host of activities to increase the U.S.'s energy production, including more utilization of coal and wind, solar, water, plus other renewables. There is an emerging recognition by both environmental groups and energy companies that the U.S. coal, oil and natural gas resources will provide the bulk of energy until renewables can be ramped up sufficiently--several decades from now.
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