United States
Environmental Protection
Agency
Industrial Environmental Research
Laboratory
Research Triangle Park NC 2771 1
Research and Development
EPA-600/S9-80-054 July 1981
Project Summary
Proceedings:
EPA/Industry Forum on
Coal Liquefaction
(October 1979)
Dorothy G. Weatherman
This report is a summary of the
proceedings of the EPA/Industry
Forum on Coal Liquefaction, held on
October 23 and 24,1979, in Chicago.
The forum brought together represent-
atives of government and industry
with the goal of sharing information
and increasing cooperation between
the two groups.
The meeting was opened by John
McGuire, Administrator for EPA Re-
gion V, who welcomed the participants
and outlined the purpose of the meet-
ing. Frank Princiotta, Director of
EPA's Energy Processes Division,
presented an overview of EPA's activ-
ities in the area of synthetic fuels.
Standard-setting procedures, activ-
ities, and plans relating to coal
liquefaction were discussed by dis-
charge medium as follows: air emis-
sions. Jack Farmer, EPA Emission
Standards and Engineering Division;
solid wastes, Yvonne Garbe, EPA
Hazardous Waste Management Divi-
sion; and liquid effluents, William
Telliard, EPA Effluent Guidelines Divi-
sion. Terry Thoem, Director of EPA
Region Vlll's Energy Policy Coordina-
tion Office, summarized EPA permit
procedures for coal liquefaction facil-
ities.
EPA's research and development
activities in coal liquefaction were
described by Norbert Jaworski, Deputy
Director of EPA's Industrial Environ-
mental Research Laboratory in Re-
search Triangle Park, North Carolina.
Robert Hangebrauck, Director of
EPA/IERL's; Energy Assessment and
Control Division at Research Triangle
Park, discussed the plans and activities
of this division in coal liquefaction.
State government participation in
coal liquefaction development was
discussed by two speakers: Harry
Enoch, Assistant Director of Tech-
nology Assessment, Kentucky Depart-
ment of Energy; and Daniel Pierce,
Chairman of the Illinois Energy Re-
sources Commission.
Industry plans in the area of coal
liquefaction were presented by repre-
sentatives of several firms actively
involved in development and use of
the technology: Robert C. Green,
Exxon Research and Engineering Co.;
James B. O'Hara, Ralph M. Parsons
Co.; Richard Eccles, Hydrocarbon Re-
search, Inc.; Vernon W. Weekman,
Mobil Research and Development
Corp.; Barnet Groten, Texas Eastern
Corp.; and Sid Thomson, Fluor Corp.
The forum was highlighted by the
kind of frank interchange that will lead
to closer cooperation in meeting the
President's goals for the development
of synthetic fuels.
This Project Summary was devel-
oped by EPA's Industrial Environmen-
tal Research Laboratory, Research
Triangle Park, NC. to announce key
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findings of the research project that is
fully documented in a separate report
of the same title (see Project Report
ordering information at back).
Summaries of the speakers'
remarks
John McGuire, Regional
Administrator, EPA Region V
McGuire welcomed the participants
and discussed EPA's role in meeting the
President's goal of lessening our na-
tional dependence on foreign oil. He
stressed the importance of cooperation
between EPA and industry in meeting
national energy and environmental
goals.
Frank Princiotta, Director,
Energy Processes Division,
EPA - Washington
Princiotta summarized the President's
program to halve oil imports by 1990
and discussed the status of legislation
to implement the program. The roles of
the Energy Security Corporation and the
Energy Mobilization Board were re-
viewed, as were EPA projections of U.S.
fossil energy resource requirements
and energy flows in 1990.
He explained how EPA's research and
regulatory programs fit in with the
synthetic fuel program, noting that the
types and quantities of synfuel pollu-
tants differ substantially from the kind
of pollutants with which EPA is familiar.
Intelligently planned and sited commer-
cial facilities, he stressed, can be built at
acceptable cost and still meet all current
environmental regulations.
Princiotta discussed the development
of EPA's regulatory strategy for the
synthetic fuel industry. Its major goal
will be to promote the incorporation of
best available controls for all major
facilities. It is expected that legally
binding regulations will not be promul-
gated before 1983.
EPA's research program goals and
funding levels were outlined, and major
findings of the program were summa-
rized. Preliminary indications are that
control technology for methanation is
probably effective, and will increase the
capital cost of a Lurgi gasification plant
by 5 percent and operating costs by 10
percent. He stressed that EPA's job is to
avoid discouraging commercialization
of synthetic fuel technology, but at the
same time to protect the environment.
Jack Farmer. Chief, CPB,
Emission Standards and
Engineering Division, OAQPS,
EPA-RTP
Farmer discussed standards-setting
procedures, activities, and plans relating
to air emissions from coal liquefaction.
He reviewed the function of the New
Source Performace Standard, which
requires the application of the best
system of emission reductions, taking
into account cost, health, environmen-
tal, and energy requirements. To date,
EPA has published New Source Per-
formance Standards for 27 source
categories and has proposed standards
for four additional categories. During
1980, plans call for proposing standards
for an additional 15 source categories
and issuing final standards for 6 cate-
gories.
Farmer outlined the three phases of
standards development: first, a short-
term study characterizing the source
category to determine whether a stan-
dard is appropriate; second, data gather-
ing through literature searches and
personal contact; and third, analysis
and evaluation of the data for develop-
ment of a draft or recommended stan-
dard. Procedures for review of recom-
mended standards, both within and
outside EPA, were summarized.
No air standards development projects
have yet been initiated for synthetic fuel
processes, although Farmer said that a
iow-Btu gasification project is under
serious consideration.
Yvonne Garbe, Environmental
Engineer, Hazardous and
Industrial Waste Division,
EPA-Washington
Garbe summarized EPA's standards-
setting procedures, activities, and plans
relating to solid wastes from coal lique-
faction. At present, the Hazardous and
Industrial Waste Division is responding
to comments generated by publication
of proposed regulations to control haz-
ardous wastes.
She explained the structure of the
hazardous waste program, which re-
sponds to Subtitle C of the Resource
Conservation and Recovery Act. Subtitle
C provides a cradle-to-grave manage-
ment system for hazardous waste. Non-
hazardous wastes are addressed in
Subtitle D.
EPA has established a special waste
category for high-volume wastes whose
composition, characteristics, and degree
of hazard are not readily known
which are believed to have a low risk.
Examples cited by Garbe of wastes in
this category are metal mining wastes,
gas and oil drilling muds, oil production
brines, and cement kiln dust. She noted
that the open comment period on the
proposed regulations had produced
several suggestions to include coal
liquefaction waste (slag, char ash, and
sludge) in this special category. These
suggestions, she said, are receiving
serious consideration.
Norbert Jaworski, Deputy
Director, Industrial
Environmental Research
Laboratory, EPA-RTP
Jaworski presented an overview of
R&D activities in coal liquefaction. He
discussed the laboratory's two major
activities: environmental assessment
and control technology development.
The energy R&D program covers flue
gas desulfurization technology, both
regenerable and nonregenerable sys-
tems, and the use of baghouses and
precipitators for particulate control of
conventional combustion systems. Other
programs are investigating NO, control
and fluidized bed technology.
He discussed the importance of devel-
oping procedures and protocols to ensure
the consistency of data analysis and
chemical analysis performed by outside
contractors.
The Laboratory's role in support o
EPA is in problem definition—predicting
for instance, the potential harmfu
impact of a synfuels program. Whili
early efforts focused on the environ
mental assessment methodology, th<
current emphasis is dictated by thi
pollution control guidance documents
The Laboratory is heavily involved in th
costs and engineering aspects of envi
ronmental control systems.
Robert Hangebrauck, Director
Energy Assessment and
Control Division, Industrial
Environmental Research
Laboratory, EPA-RTP
Hangebrauck discussed EPA's R&
environmental assessment and contr
technology plans in coal liquefactioi
He outlined the work of the agency
major contractors in coal liquefaction
TRW, Hittman Associates, and Radian
and discussed the status of releva
field studies.
In addition, EPA also supports tl
activities of the Synfuels Environmem
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Center, a group of universities and the
Research Triangle Institute, located
near the Laboratory in North Carolina.
Their efforts are dedicated to the crea-
tion of a center of expertise to work
toward some environmental under-
standing in this area. The Center is
engaged in pollutant screening studies,
in investigating options for gas and
wastewater clean-up and solid waste
disposal, and in combustion modifica-
tions testing.
Hangebrauck discussed the reports
generated by the Laboratory, including
the standard support plan, source test
and evaluation report, environmental
assessment report, and pollution control
guidance document.
The basic components of the environ-
mental assessment methodology were
outlined, as was EPA's phased approach
to sampling and analysis. Hangebrauck
illustrated these EPA methods using a
gasification case study.
Robert Green, Senior
Engineering Associate. Exxon
Research and Engineering
Company
Green described the development
status of the Exxon Donor Solvent (EDS)
coal liquefaction process. Currently, the
results of bench-scale research, opera-
tion of small pilot units, and engineering
design and technology studies are being
integrated with the operation of a 250
ton-per-day pilot plant, which has a
planned completion date of spring
1980. Key objectives of pilot plant
operation are demonstration of opera-
bility, design data acquisition, product
yield and quality confirmation, and
testing and production of feeds for
demonstration of environmental coals.
Green summarized process yields
and expected environmental effects of
the process. Obstacles to commercial-
ization were discussed, including the
current price of hydrocarbon liquids and
environmental and permitting difficul-
ties.
James B. O'Hara, Manager.
Energy Department. Ralph M.
Parsons Company
O'Hara outlined the activities of the
Ralph M. Parsons Company in the
design, engineering, procurement, and
construction of coal liquefaction facili-
ties. The firm does not plan to offer a
proprietary liquefaction process, but
rather offers familiarity with the major
technologies.
He summarized Parsons' experience
in construction management and dis-
cussed the Company's position in sulfur
systems engineering. Parsons has de-
signed 80 percent of the free world's
sulfur recovery plant capacity. The
Claus unit has been used extensively
with streams containing 20 to 30 per-
cent hydrogen sulfide or even less.
Parsons has recently built modified
sulfur-burning Claus units that can
handle streams containing 7 to 8 percent
hydrogen sulfide. While at present they
would recommend use of the Stretford
process for streams containing less
than 5 percent hydrogen sulfide, Parsons
is developing a new process to handle
feeds as low as 1 percent.
Parsons has developed conceptual
designs for each of the generic types of
coal liquefaction plants, including direct
liquefaction, indirect liquefaction, and
pyrolysis. He discussed treatment pro-
cedures for these plants, and noted that,
where costs of conceptual coal lique-
faction environmental facilities have
been estimated, they have been in the
same percentage range as is encountered
for grass-roots oil refineries—10 to 15
percent.
D.M. Jackson, Manager,
Program Development, Gulf
Mineral Resources Company
Jackson outlined the development
status of SRC-II, which is being tested at
the SRC pilot plant in Fort Lewis, Wash-
ington. The SRC fuel oil is envisioned for
use in utility/industrial boilers, com-
bustion turbines, and medium-speed
diesels.
He also discussed the results of a
boiler test performed with 5,000 barrels
of the broadrange fuel at a Consolidated
Edison generating station in Manhattan.
The test indicated acceptable levels of
NOX, particulates, and other emissions.
The results of a Phase Zero assess-
ment of SRC-I and -II were also dis-
cussed. The assessment, which covered
design, environmental assessment, site
acquisition, and market assessment of
products, suggested a substantial and
continuing economic attractiveness, at
least in the utility sector, for a liquid fuel
derived from coal. The study also re-
vealed that maintaining and rehabilitat-
ing existing oil-fired capacity is far more
attractive than abandoning it and re-
placing it with new equipment, generally
base-load direct coal-fired. He noted
that the indirect price of oil, at which
utilities will abandon their oil-fired
equipment and build coal-fired, can
reach as high as $50 a barrel, indicating
the attractiveness of coal-oil liquids in
the utility sector.
Jackson discussed Gulf's involvement
as a prime contractor and financial
positioner in a program to design, build,
and operate an SRC-II demonstration
module.
Harry Enoch, Assistant
Director, Technology
Assessment. Kentucky Center
for Energy Research
Enoch presented an overview of the
State of Kentucky's activities in the area
of coal conversion. Demonstration
projects currently underway include the
H-coal pilot plant in Catlettsburg, Ken-
tucky; and SRC-I demonstration module
in Newman, Kentucky; and a commer-
cial-size ammonia plant using coal as its
feedstock for hydrogen production. The
scope of the latter project has been
changed to production of methanol from
coal syngas and methanol to gasoline,
using the Mobil-M process. This project
is located in Baskett, Kentucky.
The State of Kentucky is conducting
background studies tofind suitable sites
for large coal conversion facilities.
Potential sites are identified and cata-
logued based on several general criteria,
including availability of land, water,
coal, and transportation. The state will
begin soon to investigate sites that are
out of the coalfields and off rivers.
Enoch challenged the conclusions of
a DOE report, Environmental Analyses
of Synthetic Liquid Fuels, which identi-
fied no adequate sites for synfuels
plants in the State of Kentucky.
William Telliard, Branch Chief,
Effluent Guidelines Division,
EPA - Washington
Telliard discussed standards-setting
procedures, activities, and plans relating
to liquid effluents from coal liquefaction.
The Effluent Guidelines Division is
developing a program that will lead to
the creation of New Source Perform-
ance Standards for the synthetic fuel
industry. Their priorities will be set by
those industries with the shortest
schedule before coming on-line; that is,
those with an immediate need for a
permit to operate. They are discussing
efforts in gasohol and gasification, and
plan to address the 65 priority pollutant
groups. Present estimates call for pro-
posed regulations for liquefaction to be
issued in 1983.
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He stressed the need for treatability
information, which, in the absence of a
regulation, gives the permit writer
source information with which to work.
Telliard also briefly outlined the major
steps involved in the development of
effluent guidelines: waste characteriza-
tion, alternative treatment technologies.
economics, and engineering costing.
Terry Thoem, Director, Energy
Policy Coordination Office,
EPA-Reg/on VIII
Thoem discussed permitting proce-
dures as they relate to coal liquefaction
facilities. He noted that the intent of
most federal environmental legislation
is to delegate regulatory programs to the
states. Once a program is delegated to a
state, EPA assumes an oversight role,
with the state issuing the permit and
EPA providing technical assistance if
needed.
Thoem summarized the various tools
used in regulation of air quality, including
New Source Performance Standards,
State Implementation Plans, Prevention
of Significant Deterioration permits, the
concept of Best Available Control Tech-
nology, ambient increments, and visibility
regulations. He also described mecha-
nisms for water quality and solid waste
control, including the provisions of the
Clean Water Act, the Safe Drinking
Water Act, the Toxic Substances Con-
trol Act, the Solid Waste Act, and the Re-
source Conservation and Recovery Act.
He noted that EPA is investigating
ways to simplify the permit process,
including consolidating permit require-
ments and streamlining the application
process. He said that EPA is committed
to processing all energy facility permit
applications in 6 months.
Richard Eccles, Vice President,
Hydrocarbon Research, Inc.
Eccles described the activities of
Hydrocarbon Research, which does not
commercialize technology, but rather
develops it and makes it available,
performing front-end activities such as
laboratory work, planning, and early
design. HRI coal liquefaction involve-
ment described by Eccles includes a 3.5
ton-a-day process development unit
used to simulate the operation of the
Catlettsburg H-Coal pilot plant, a process
development unit at the WilsonvilleSRC
facility, participation in the second-
generation gasification project of the
Illinois Coal Gasification Group, and
development of a new process called
coal/oil integrated liquefaction (COIL),
an ebullated bed with coal and oil fed as
a mixture.
Vernon W. Weekman, Jr.,
Manager, Process R&D. Mobil
Oil Corporation
Weekman discussed the conversion
of methanol to gasoline. Mobil is nego-
tiating with the Government of New
Zealand for the development of a fixed-
bed unit for the conversion of natural
gas. The unit will use a unique new
zeolite catalyst developed by Mobil.
Mobil is also working on a fluid-bed
version and has completed a 4 barrel-a-
day pilot plant with DOE. They are cur-
rently negotiating with DOE, the
Government of the German Federal
Republic, and two German companies
for a scale-up to 100 barrels a day. The
gasoline produced in this process is
environmentally cleaner than conven-
tional gasoline, according to Weekman,
who said that process waste streams
are comparable to those of a refinery.
Barnet Groten, Director,
Research and Technology,
Texas Eastern Corporation
Groten presented a summary of Texas
Eastern's energy activities, which in-
clude interstate gas and liquid products
transmission systems, and oil and gas
production. Research and development
activities include heavy oil production,
secondary and tertiary recovery of
petroleum from conventional reservoirs,
development of unconventional gas
sources, and investigations in synthetic
fuels technology.
He discussed environmental aspects
of the three processes that are ready for
commercialization: Lurgi gasification
followed by methanation to SNG, pro-
duction of methanol, and Fischer-Tropsch
to liquid fuels.
Evaluation of Lurgi gasification, in the
form of Environmental Impact State-
ments, is continuing. The environmental
aspects of the methanol module in a
coal-to-methanol plant are as well
understood as those of any methanol
plant based on natural gas reforming.
Texas Eastern has recently contracted
with SASOL, Limited, to evaluate the
cost of building a Fischer-Tropsch plant
at a U.S. site, employing U.S. coals, and
conforming with U.S. environmental
requirements. South Africa's 20 years
of operational experience with this
process has created a thorough under-
standing of its environmental effects.
Groten noted an important distinction fl
between the abovementioned indirect
processes and the direct technologies,
which involve a synthetic crude product
that is far less fully characterized and a
process that has reached neither the
scale nor the endurance level of any of
the indirects.
Sid Thomson, Manager,
Environmental Engineering,
Fluor Engineering and
Construct/on, Inc.
Thomson characterized Fluor's activi-
ties in the engineering and construction
of environmentally acceptable coal
liquefaction plants. Fluor is participating
in the SASOL projects with the govern-
ment of South Africa. Through their
experience with SASOL and other
projects, they have found that environ-
mental impacts resulting from the
indirect processing of coal to liquids by
the Fischer-Tropsch process can be
mitigated by proper design based on
present knowledge.
He described the process and its
products in detail, using as an example
the WESCO Project, for which an un-
contested Environmental Impact State-
ment was issued and which received a
permit to operate and construct from the
State of New Mexico.
Daniel M. Pierce, Chairman,
Illinois Energy Resources
Commission
Pierce detailed the activities of the
State of Illinois in synthetic fuels,
including a fluidized-bed project with
Combustion Engineering at Great Lakes
Naval Training Station. The state has
been unsuccessful in attracting and
retaining federal support for other
projects.
He discussed the impact of the Ad-
ministration's energy program on syn-
fuels development, noting that we may
see some shortcuts taken in environ-
mental-regulation.
Illinois' qualifications as a site for
gasification and liquefaction plants
were outlined. Pierce discussed a coal
gasification project being developed by
Allis-Chalmers. Illinois has authorized
$18 million in coal development funds
for this kiln gas project at the Wood
River Plant. The Illinois Power Company
and a national consortium of 15 to 20
electric utilities are helping to fund the
project. Its long-term objective is to
make a gasifier out of the kilns that are
now used in iron ore work and tc
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reduce a low-Btu natural gas to be fed
into Illinois Power's existing steam
boiler plant at Wood River.
Pierce also outlined plans for the
Cumberland Energy Plex, a total-concept
energy facility planned for southeastern
Illinois. Plans call for the construction of
four new coal mines, supplying 4,000
tons of coal per day to power plants. The
Energy Plex would also produce syn-
thetic natural gas and ammonia.
Dorothy G. Weatherman is with Hittman Associates, Inc., Columbia, MD21045.
D. Bruce Henschel is the EPA Project Officer (see below).
The complete report, entitled "Proceedings: EPA/Industry Forum on Coal Lique-
faction (October 1979)." (Order No. PB 81-113 O52; Cost: $15.50. 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:
Industrial Environmental Research Laboratory
U.S. Environmental Protection Agency
Research Triangle Park, NC 27711
* U* GOVERNMENT PHNTINO OFFICE- 1M1 '757-012/7269
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