&EFA
                              United States
                              Environmental Protection
                              Agency
                              Office of Environmental Engineering
                              and Technology
                              Washington DC 20460
                              Research and Development
                              EPA-600/S7-81-153  Oct. 1981
Project  Summary
                              Environmental  and  Economic
                              Aspects  of  Indirect Coal
                              Liquefaction  Processes:
                              A  Report Emphasizing  the
                              Relationship  Between
                              Product  Mix  and  Efficiency
                              L. Hoffman
                               Considerable activity is under way
                              in the U.S. to address intermediate
                              and longer range energy supply re-
                              quirements, in this regard, even
                              though petroleum reserves and, to a
                              lesser extent natural gas reserves, are
                              quite limited, the U.S. has plentiful
                              coal resources. Even so, our society
                              and supporting infrastructure depend
                              greatly on liquid and gaseous fuels.
                              We are forced at present to import
                              approximately 40 percent of our oil.
                              Thus, considerable efforts have and
                              are being directed to  developing
                              technically sound and environmentally
                              acceptable technologies to convert
                              coal to gaseous and liquid fuels.
                               The full report addresses selected
                              indirect coal conversion technologies,
                              associated efficiencies, environmental
                              aspects and relative economics. The
                              intent is to provide insight into the
                              impact of liquid/gas product mixes on
                              process efficiency for a variety of
                              energy production scenarios incor-
                              porating indirect coal liquefaction
                              technologies.
                               This Project Summary was devel-
                              oped by EPA's Office of Environmental
                              Engineering and Technology, Wash-
                              ington. DC, to announce key findings
                              of a study that is fully documented in a
                              separate report of the same title (see
                              Project Report ordering information at
                              back).


                              Introduction
                               In  September of 1980 the U.S.
                              Environmental Protection'Agency (EPA)
                              published: "Environmental, Operational
                              and Economic Aspects of Thirteen
                              Selected Energy Technologies" (EPA-
                              600/7-80-173, NTIS No. PB81 -153926),
                              a study that described selected fuel
                              utilization and conversion technologies.
                               Because the amounts of gaseous and
                              liquid  products depend on process
                              conditions and because these conditions
                              can be altered to produce more or less of
                              a specific product, an analysis was
                              made to relate product mix to the
                              efficiency of a synthetic fuel process.
                              This analysis was based on the capability
                              of a process to (1 (produce the maximum
                              amount of  liquid fuel,  (2)  recover a
                              useful product based on recovering the
                              maximum input energy, and (3) maximize
                              its efficiency to produce a preselected
                              output (i.e., a definite liquid-to-gas
                              ratio). Normally, a resultant reduction in
                              pollutant emissions and effluences will
                              occur per unit output if the efficiency of
                              a given process is maximized.

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Discussion

  The demonstrated coal reserve base
of the U.S. on January 1,  1974 was
estimated at  475 billion tons. This
quantity is widely distributed geograph-
ically, with 45 percent in the states east
of the Mississippi River and the rest in
the western states, including  Alaska.
However, quantities of different ranks
as well as  the amounts amenable to
production by underground and surface
mining methods differ  markedly in
different areas.
  The  Nation's  substantial coal re-
sources can be used  in two ways: 1)
directly as coal, or 2) as a feedstock for
conversion  into an alternate fuel form
(e.g., oil). Because in any conversion
process some of the total energy is lost,
from an energy conservation  consid-
eration, it is generally best to  use coal
directly. However, there are numerous
applications that cannot use coal, such
as motor vehicle combustion engines.
  Coal liquefaction  processes can be
classified as either direct or indirect. In
indirect liquefaction, the coal is first
gasified to  make  a synthesis  gas and
then passed over a catalyst to produce
alcohols (methanol) or parafinic hydro-
carbons. A major advantage of indirect
liquefaction is that essentially all of the
sulfur  and nitrogen  in the coal can be
separated in the gaseous phase and
thus eliminated from the liquid products.
With direct processes,  however, these
materials are difficult and expensive to
remove.
  The  indirect liquefaction processes
receiving significant attention  are the
Coal-to-Methanol, Fischer-Tropsch and
the Mobil  M. A modified Fischer-
Tropsch process, capable of producing a
range  of hydrocarbon  products, is in
commercial  use in  South Africa. The
Mobil process, which produces gasoline
as  its  principal product  is in the
demonstration stage.
  The environmental problems common
to fossil energy facilities will also apply
to coal liquefaction facilities. However,
liquefaction facilities present some
unique environmental concerns due to
incomplete combustion of the process:
the presence of a wide variety of organic
compounds,  H2S and other  reduced
sulfur  compounds, and spent catalyst.
Since  no large-scale  domestic plants
are in operation, the only available data
on  emissions  and effluences  are esti-
mates based on bench-scale,  pilot and
demonstration  synfuel plants  and
related industries.
  There have been a number of esti-
mates and assessments of the obtainable
efficiencies from  indirect  liquefaction
processes. Some estimates have been
based on energy  balance  approaches
and/or  the performance  of process
elements comprising the overall con-
version  system. Table 1 indicates the
estimated thermal efficiency for the co-
production  of  gasoline  and synthetic
natural  gas (SNG)  using  the Mobil
methanol-to-gasoline technology.  The
reports show that as one moves away
from a gaseous product to gas and liquid
co-products towards nothing but liquids,
the efficiency decreases. Thus,  as the
yields of gasoline and hydrocarbon
liquids are increased the amount of
energy loss increases. It is noted that
the Mobil process is inherently more
efficient than the  Fischer-Tropsch
process.
  The analysis estimates hpw the
overall efficiency would vary as the
liquid-gaseous product ratios are
changed. Figure 1 is the estimate for
product  mix versus efficiency for the
Sasol type Fischer-Tropsch technology.
  The products of coal liquefaction span
a broad  range of chemical compounds,
depending on the specific  liquefaction
processes and feedstocks  used. Many
by-products of coal liquefaction and
associated discharges have been identi-
fied, but the full range of chemicals
created  and  their  potential  environ-
mental effects have not been completely
characterized. The report lists the
general  environmental residuals from
                             the indirect liquefaction process. The
                             potential  environmental  and health
                             hazards posed by liquefaction processes
                             are uncertain. The chemical structure of
                             many species appears to indicate a
                             potential carcinogenic risk that is higher
                             than that of conventional petroleum
                             products.
                               Although it is  difficult to provide
                             projections of the cost of synthetic fuels
                             from indirect liquefaction processes,
                             the analysis estimates the relative cost
                             of conversion in terms of cost per million
                             Btu of product output. Table 2 presents
                             this assessment of relative costs.

                             Conclusions
                               1.  There is a significant difference in
                                  the  thermal  efficiencies of the
                                  coal-to-methanol,  Mobil M,  and
                                  the  Fischer-Tropsch processes
                                  when compared on a similar basis.
                                  In general, the thermal  efficien-
                                  cies are highest for coal-to-
                                  methanol and lowest for Fischer-
                                  Tropsch (F-T). When the liquid-
                                  fuel component contains approx-
                                  imately 25  percent  of  the Btu
                                  output, the  Mobil  M  process is
                                  estimated to be approximately 15
                                  percent more  efficient than the
                                  Fischer-Tropsch process.
                               2.  The thermal  efficiency for each of
                                  the above processes decreases as
                                  the  percentage of the liquid pro-
                                  ducts increases.  Since thermal
                                  efficiencies are higher with greater
                                  percentages  of gaseous outputs
                                  and are reduced with additional
Tablet.
Estimated Thermal Efficiency for Co-production of Gasoline & SNG with
the Mobil M Process* (Subbituminous Coal, Lurgi Gasifier, Methanol
Process, Mobil M Process)
            Input
                            W6 Btu/Hr
Percent of Input
  (Btu Basis)
 Coal
 Coal Fines (Excess)
       Net Input

 Output*
                              19,383
                                (872)
                              18,511
SNG
CaLPG
CtLPG
10 RVP Gasoline
Power (Process Excess)
Total
6.067
247
385
4,689
18C
1 1.406
32.8
1.3
2.1
25.3
0.1
61.6°
81 Based on subbituminous coal with as-received heating value of 8500 Btu/lb.
bl In addition, there are small amounts of sulfur & ammonia with economic value.
c) Direct Thermal Equivalent Value.
"' Reference in full report indicates an efficiency of 61% with gasoline containing 24%
  of the input Btu's.

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       40-
 o

I
 3
 10
 co
15

30-
 I
       20-
        10-
         37         40              45
                         Overall Efficiency (Percent)
                                              50
 a  Value based on a reference in the full report for the pro-
   duction of gasoline and diesel fuel. Also provided as F-T
   maximum liquid value.
 b  Values from full report. Also provided as F-T maximum
   Btu values.
 c  Values (shown in full report) based on Mobil M liquid/gas
   ratio  with methane reforming as required to provide de-
   sired liquid/gas ratio.

Figure 1.    Estimate  of obtainable  efficiency  with product mix for Sasol Type
            Fischer-Tropsch  Technology (using  subbituminous coal and lurgi
            gasifier).

 Table 2.     Synfuels-from-coal Projected Efficiencies & Relative Cost*
     Product(s) of Interest
 (With Btu percentages of input)         Efficiency
                                                 Relative Cost
                                               per Btu of Product
 Methanol
     Liquids-34%. Gas-32%
     Liquids-53%

 Methanol-Mobil M
     Liquids-31%. Gas-30%
     Liquids-49%

 Fischer-Tropsch
     Liquids-24%. Gas-29%
     Liquids-37%
                                66%
                                53%


                                61%
                                49%


                                53%
                                37%
1.0 Reference
1.3


1.1
1.5


1.3
2.0
                            reforming of methane, it is desir-
                            able from resource conservation
                            and environmental standpoints to
                            increase the use of gaseous fuels
                            and  minimize the demand for
                            liquid fuels.
                          3. The  cost  per  Btu of product at
                            reasonable equivalent liquid/gas
                            ratios is  greatest for Fischer-
                            Tropsch and lowest for the coal-to-
                            methanol process.
                          4. The  reduction in environmental
                            impacts resulting from increased
                            efficiencies due to modifying the
                            product mix  (i.e.,  by process
                            and/or output  mix selection),
                            although not completely quanti-
                            fiable, appears to present a sig-
                            nificant opportunity for reducing
                            pollution.
                          5. In the national interest of maxi-
                            mizing  conservation of  energy
                            resources and minimizing envi-
                            ronmental impacts, energy planners
                            should consider applications that
                            will maximize the use of synthetic
                            gaseous-fuels.
 "Based on reference in full report.

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       L Hoffman is with Hoffman-Holt. Inc.. 750 Georgia Avenue, Suite El34, Silver
         Spring, MD20910.
       Morris Altschuler is the EPA Project Officer (see below).
       The complete report, entitled "Environmental and Economic Aspects of Indirect
         Coal Liquefaction Processes: A Report Emphasizing the Relationship Between
         Product Mix and Efficiency." (Order No. PB 82- 103 581; Cost: $6.50, subject
         to change) will be available only from:
               National Technical Information Service
               5285 Port Royal Road
               Springfield, VA 22161
               Telephone:  703-487-4650
       The EPA Project Officer can be contacted at:
               Office of Environmental Engineering and Technology
               U.S. Environmental Protection Agency
               Washington, DC 20460
                                         US GOVERNMENT PRINTING OFFICE; 1981—559-017/7417
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