United States
Environmental Protection
Agency AUGUST 1980
Research and Development
&EPA Problem-Oriented
Report
UTILIZATION OF SYNTHETIC FUELS:
AN ENVIRONMENTAL PERSPECTIVE
Prepared for:
OFFICE OF PLANNING AND MANAGEMENT
OFFICE OF ENFORCEMENT
OFFICE OF AIR, NOISE, AND RADIATION
OFFICE OF WATER AND WASTE MANAGEMENT
OFFICE OF PESTICIDES AND TOXIC SUBSTANCES
EPA REGIONS I, II, III, IV, V, VI, VII, VIII, IX AND X
Prepared by:
INDUSTRIAL ENVIRONMENTAL RESEARCH LABORATORY-RTF
OFFICE OF RESEARCH AND DEVELOPMENT
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PROBLEM-ORIENTED REPORT:
UTILIZATION OF SYNTHETIC FUELS:
AN ENVIRONMENTAL PERSPECTIVE
August 1980
by
E.M. Bohn, J.O. Cowles, R.I. Iyer, J. Dadiani, J.M. Oyster
TRW
Energy Systems Planning Division
8301 Greensboro Drive
McLean, VA. 22102
EPA Contract No.: 68-02-3174, WA #18
EPA Program Element No. 1NE825
EPA Project Officer: Joseph A. McSorley
Industrial Environmental Research Laboratory
Office of Environmental Engineering and Technology
Research Triangle Park, N.C. 27711
Prepared for:
U.S. ENVIRONMENTAL PROTECTION AGENCY
Office of Research and Development
Washington, D. C. 20460
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SUMMARY
PLANNING FOR SYNFUELS UTILIZATION MUST BEGIN NOW
This document is a preliminary overview intended to broadly sketch out the essential facts of
interest to EPA about the utilization of synfuels and their potential environmental impacts. It is
also intended to present an overall environmental perspective. A Final Environmental Market
Analysis Report will be developed with the pu rpose of analyzing specific areas of relevance to
EPA in greater depth and noting possible EPA activities for mitigating potential environmental
Impacts of synfuels.
EPA is currently sponsoring projects focussed on the environmental aspects of coal and shale
conversion processes. This document deals more with the fate of synthetic fuel products after
they leave the plant gate. Future work will be concerned in more detail with the estimated
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national flow rates and paths of such products and by-products, their hazards to human health,
and the risks of public exposure to these synthetic fuels.
In carrying out its mission of preserving the quality of our natural environment, EPA has the
responsibility to keep fully abreast of synthetic fuel developments because a reasoned
approach to dealing with the environmental impacts of a synfuels industry requires accurate
knowledge about current synfuels processes and commercial applications.
Current trends in the international energy situation are rapidly increasing the probability that a
domestic synthetic fuels industry will emerge in the 1980s. Because government incentives
and private ventures in the synfuel arena are burgeoning in response to soaring world oil prices
and decreasing reliability of oil imports, forecasters are now projecting earlier start dates, faster
growth rates, and larger ultimate sizes for such an industry.
SRC Pilot Plant, Ft. Lewis, Washington
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Several synfuel technologies are under consideration for commercial production. A wide
range of synfuel products are expected to be produced and they will be utilized in a broad
category of end uses as shown in Table 1. Synfuels products will most likely be used largely as
transportation fuel, including gasoline and diesel fuel from refined shale pil and coal conversion
processes and jet fuel from refined shale oil. Utility and industrial boilers will utilize the fuel oils
produced from coal liquids. High-, medium-, and low-Btu gases from coal will find use in
commercial, residential, and industrial heating applications. The products from most synfuel
processes will be used as chemical feedstocks in a large variety of industries.
Table 1. Synfuels Market Overview
WHAT MAX* PtOOUCTS/
IT-PIOOUCTS Will THEY WHEIE WIU THE PtOOUCTS/
WHAT TECHNOLOGIES PtOOUCE SYNRIBS? MAKE? lY-ftOOUOS Sf USED?
WHAT ACE THE RELATED POTENTIAL
EXPOSUtE LEVELS TO THE PtOOUCTS?
Oil SHAIE:
DIRECT COM
LIQUEFACTION:
INDIRECT COAl
LIQUEFACTION:
NUMEROUS RETORTING Syncrude upgraded and
PROCESSES. INCLUDING refined la yield:
TOSCO. PARAHO. UNION. LPG
OCCIDENTAL Gasoline
Jei Fuel
-" . .<.».„- - • W"*1 fuel
'• 'i-' •", =}> Residuals
w* 'iii*»
' •* lubfkarm0
Wo»«l°
SRC-II IPG
Naphtha
Fuel Oil
SNG>>
Tor Oils"
EXXON DONOR SOLVENT Propone
Butane
Naphtha
Fuel Oil
Solvent"
H-COAL Naphtha
Fuel Oil
HSCHER-TROPSCH Gasoline
LPG
Diesel Fuel
Heavy Fuel Oil
Medium Btu Gas
SNG
Tor Oil."
Ph.noh"
Chemkal Feedstocks0
PeflidaW
Fertilixen0
M-GASCHJNE Gataline
IPG
METHANOl »»eHiyl Fuel
Merhanol
• Commercial and military
transportation, including
highway vehicles, aircraft.
.hips
• Utility and indu.triol
boilvn
• Commercial and residential
K«ating
• Industrial lubriconti
* Utility and induftrial
boilflrt
• Commercial and residential
Heating
• Chemical feedstocks
• Utility and industrial
boil*rt
• Commercial and residitniial
heating
• Paint thinners
• Utility and industrial
boiler*
• Commercial and residential
heating
• Commercial and military
transportation
• Utility and industrial
boilers
• Commercial and residential
heating
• Chemical feedstocks
• Agricultural utei
• Commercial and military
transportation
• Commercial and military
transportation
Low for transport of crude .hale
to refinery; moderate during re-
fining and end UM at boiler fuel;
increased exposure ••<•«. when used
in transportation sources and
space heating
Low for IPO, SNG, Naphtha, Butane;
Moderate exposure for fuel oils at
industrial sites *ith eipoiure in-
creasing when used in space
heating
Low for LPG, SNG. and Medium Btu
Gas. Moderate exposure when fuels
used in transportation tources and
boilers. Low to moderate eiposure
is also estimated when products
used as chemical feedstock!
HIGH 5TU COAl NUMEROUS PROCESSES.
GASIFICATION: INCLUDING LURGl.
COED-COGAS, TEXACO.
SHEU-KOPPERS
MEDIUM/LOW 8TU NUMEROUS PKX3SSES
COAL GASIFICATION
SNG°
Medium Stu Gas
low Btu Gas
• Chemkal feedstocks
• Commercial and residual
heating
Captive fuel use for
industrial healing and
chemical feedstocks
Very low — limilar to current
distribution of natural gas
Very low since it is primarily
captive use
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The national environmental impacts of a large-scale synfuels industry could be significant. The
environmental concerns of end use, including handling and transport, will have to be
investigated in detail. Since there is limited information concerning the end-use exposure
effects of synthetic fuel products and by-products, the nature of these future impacts is largely
speculative. In fact, since synthetic fuel technology is highly evolutionary, even the composi-
tion and amounts of future industrial synthetic fuel products and by-products are not well
known.
In this report the term synfuel product refers to primary products of the synfuel industry such as
gasoline, high-, medium-, and low-Btu gas, whereas the term by-product has been used to
identify secondary useful products that are likely to be produced from synfuels such as plastics.
solvents, varnishes, and fertilizers.
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A SYNFUEL INDUSTRY IS EMERGING
INCENTIVES FOR SYNFUEL DEVELOPMENT ARE HERE
The primary incentive for synfueis development is the imbalance between domestic supply
and demand for petroleum liquids and natural gas. The long-term decline in domestic oil
production coupled with increased demand has resulted in a level of oil imports of 9 million
barrels per day (MMBPD) of oil or about 50 percent of U.S. consumption. The proven domestic
reserves of natural gas are also declining and demand is now being met with increasingly
higher priced supplies.
A substantial market for liquid synthetic fuel products and chemical feedstocks is expected by
1990. A recent analysis summarized in Table 2 concludes that about 2.9 Quads of energy or
about 1.5 MMBPD will have to be supplied from synthetic liquid fuels. As indicated in this
-------
analysis, use of synfuels is expected to be heavily directed toward transportation. Industry
concern over potential interruptions in gas supplies has provided the incentive to develop coal
gasification processes to supplement current gas supplies and for use as chemical feedstocks.
Tobl* 2. Anticipated Liquid Fo«l Products D«mand in 1990a/
Gatolin*
J«t Fuel
K«ras«nc
Heating Oils
R«iduol
Asphalt
Mi»c. Product
LPG
SUPWIED TO
CONSUMERS
QUADS
14.2
2.1
0.3
6.4
3.2
10
2.4
0.7
30.3
PETROLEUM
SUPPLIES
QUADS
12.7
1.8
0.3
5.7
3.2
1.0
2.0
0.7
274
SYNFUELS
QUADS
1.5
0.3
—
0.7
-
—
04
-
29
0 OM! Tidnnl.»y M«*« *Mtr«i. tSCOf. Janiwy IMO. Aiwm« U.S
b I
minima wiHi Hw loan HUB ot 1971.
It is these considerations, along with the uncertainty inherent in the import supplies and the
increasing problem of balance of payments, that now provide the impetus for Federal support
for synfuels development. Recent Federal action creating the Synthetic Fuels Corporation
(SFC) is aimed at alleviating some of the factors that to-date have discouraged development.
The goal of the SFC. with authorized funds for loan guarantees, cooperative agreements, and
price supports, is to reduce and share the investment risk of establishing a commercial synfuels
industry.
Now, as the U.S. synfuels Industry is a developing reality, the EPA will need to initiate close
coordination with the SFC. As EPA takes the lead in regulatory approvals, other regulatory
agencies will be encouraged to participate. A well organized, coordinated approach on the
part of all Federal agencies will be viewed as an added incentive by the developing synfuels
industry.
SYNFUELS UNDER CONSIDERATION
The term "synfuels" has become synonymous with any combustible nonpetroleum fuel source
which may include coal- and shale-derived fuels and feedstocks as well as those derived from
agricultural products such as grain, wood, and cellulose. However, industry has become
increasingly more interested in synfuel technologies with products that are easily substituted.
in a marketing and utilization sense, for petroleum and natural gas. These synfuel technologies
are those relating to coal- and shale-derived products. The following discussion is limited only
to these products.
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OIL SHALE RETORTING TECHNOLOGY
IN HIGH GEAR
SHALE OIL MAY BE FIRST SYNFUEL TO ENTER THE MARKET AS A PETROLEUM REPLACEMENT
As a direct substitute for large volumes of liquid fuels, oil shale technology is perhaps closest to
commercialization in the U.S. Several consortia and companies with established shale oil
projects have been engaged in the development of shale oil technology for some time. As
indicated in Table 3, these projects are all located in prime shale areas of Colorado and Utah.
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Table 3. U.S. Oil Shai* Projects
PROJECT
Chevron
Colony (TOSCO,
EXXON C)
Equity Oil
Geokinetics, Inc.
Getty Oil
Mobil
Occidental Oil
Occidental Oil — Tenneeo
Poroho (Development
Engineering, Inc.)
Rio Blanco (Gull. Amoco)
Superior Oil
TOSCO-Sond Wash
Union OH
White River (Sohio,
Sunoco, Phillips)
' Slow location 'icoanco latin —
LOCATION 1
Piceance Basin
Parachute Creek
Piceance Creek
Uinta County
Piceance Basin
Piceance Basin
Logan Wash
Tract C-b,
Piceance Basin
Anvil Points
Tract C-o.
Piceance Basin
Piceance Creek
Uinta Basin
Parachute Creek
Tracts U-o and U-b.
Uinta Basin
Colorado. Parochuto Crook —
TECHNOLOGY
Undecided
Surface retorting
Solution injection, modified
in situ
Horizontal modified in situ
Surface thermal extraction
Undecided
Vertical modified in situ
Vertical modified in situ
Surface retorting
Vertical modified in situ.
surface retorting
Multiminerol recovery.
surface retorting
Modified in situ, surface
retorting
Surface retorting
Modified in situ, surface
retorting
Colorado, unto County — Utah lagan Wo«h
PRODUCTION
CAPACITY GOAL
( ML , DAY)
50,000
47,000
—
7-13
2,000-5.000
—
50,000
70,000
57,000
150-200
50,000
13,000
50,000
50,000
100,000
STATUS
Technical assessment phase
Construction of commercial modules
scheduled for 1980
Steam-injection feasibility
Several small retorts successfully
burned; work on larger retorts in
progress
Getty R&D proposal being con-
sidered by DOE
May start module in 1967
Six retorts burned; 48.000 bbl
produced. Retorts 7 and 8
scheduled for duster burn
Shaft sinking in progress; con-
struction of initial retorts
scheduled for 1982
Shut down due to lack of funding;
88,225 bbl produced over about one
year period
Modular program consisting of 5
retorts scheduled for completion
by 1982
Company seeking land exchange
with Federal Government which
was denied in February 1980
Feasibility studies in progress
Construction of experimental
mine and plant scheduled for 1982
Operations suspended due to
legal proceedings on ownership
of lands
— Colorado. Anv.l Poinn — Colorado
Many technologies are being developed and tested which are aimed at extracting kerogen. a
waxy organic material, from shale. Most involve heating shale to about 480°C and pyrolyzing
the kerogen into a viscous liquid called shale oil. They differ in the manner in which this heating
process is accomplished; surface retorting, In situ retorting, or modified in situ retorting.
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OIL SHALE RUBBLIZATIONX RECOVERYJ>ROCESS
Retorted Mock
Block
Block
-------
In surface retorting, oil shale is mined, crushed to the proper size and then fed to a large kiln for
heating. Several surface retorting processes are under development and they differ primarily in
the heating method employed. Internal-combustion retorting heats shale by the circulation of
hot gases that are produced inside the retort by the combustion of residual carbons in the
shale. Gas-cycle retorts used by Union Oil heat the shale by circulating externally heated fluids.
No combustion occurs inside the retort. In solid-heat-carrier retorting, shale is mixed with hot
solids that are heated outside the retort and cycled through the shale. TOSCO II is an example
of this method, using ceramic balls as the heat carrier.
TOMO II ShaU Rvtort
BAU HEATER
(FUELED BY RECYCLED GAS)
ROTATING PYROIYSIS MUM
(STEAM SEALS AT EACH END
SOU OS
SEPARATOR
(TROMMEL)
In situ retorting pyrolyzes oil shale while it is still in the ground. The shale bed is ignited and
sustained by injection wells, the shale is pyrolyzed, and the oil produced is pumped out of the
retort volume through a production well. The spent shale remains in place. For successful in situ
retorting, the shale bed must be made permeable to the flow of heat and product oil; various
10
-------
techniques of bed leaching or fracturing are employed. The difficulty of creating a permeable
shale bed has led to the development of modified in situ processes. Vertical modified in situ
(VM1S) retorting removes a portion of the shale from the bottom of the deposit and fractures
Occidental Oil Shale Process Retort Operation
L
RAW SHALE
Oil
OIL RECOVERY
VENT GAS
n
RECYCLE GAS'
COMPRESSOR
FUTURE RETORT
CENTER SHAFT
BARRIE
AIR MAKEUP
COMPRESSOR
°£°
>s*
P**^ *£3 (W. OIL SHALE RUBBLE !$C?''^'"
*%^$^:P^^^^^*^9-^
-OIL SUMP AND PUMP
-------
the remaining shale to create a chimney of shale rubble. The shale is retorted in this chimney
from top to bottom. Occidental Oil Company has been testing VMIS retorting on shales at
Logan Wash and Plceance Creek Basin in Colorado. Horizontal modified in situ retorting lifts
the overburden in some cases, and fractures the shale seam to retort the shale from side to
side. Ceokinetics, Inc is developing this technique in Utah.
The technology for surface retorting is more advanced than in situ retorting. Process variables
are easier to monitor and control in above ground retorts than in underground retorts.
However, large-scale commercial surface retorting requires large-scale oil shale mining,
large-scale oil shale mining, hauling, and crushing; and large-scale disposal of spent shale. It is
also limited to that portion of the shale resources that is mineable. In situ retorting without
mining is applicable to a greater variety of shale beds, and eliminates the requirements for
handling, crushing, and spent shale disposal. Attempts to demonstrate this technology have
identified many development problems. Modified in situ processes present a compromise,
requiring some mining and handling, but offering more process control and easier develop-
ment.
The crude shale oil produced by retorting will be upgraded by further processing. This
upgraded shale oil, or syncaide, will be used as a refinery feedstock or boiler fuel, it is well
suited for refining into middle distillate fuels. If hydrocracking is chosen for the refining
process, the yield and range of products is particularly desirable: motor gasoline — 17 percent;
jet fuel — 20 percent; diesel fuel — 54 percent; and residuals — 9 percent.
Several oil shale projects, with identified participants, plan to begin operation during the 1980s.
The technologies, which are proprietary in many cases, appear to be sufficiently mature to
move ahead to commercialization. Several retorts have been successfully operated by
Geokinetics, Inc.. Occidental Oil. Paraho, Union, and TOSCO. Colony, Union Oil. and
Occidental Oil have announced plans to begin commercial development in 1980. All
technologies have been demonstrated at pilot scale or larger.
Oil Shal* Gas Combustion Rotort at Anvil Points, Colorado »•
12
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-
OIL SHALE GAS COMBUSTION RETORT
AT ANVIL POINTS, COLORADO
-------
BOTH DIRECT AND INDIRECT ROUTES
TO COAL LIQUIDS ARE AVAILABLE
DEMONSTRATION AND FULL-SCALE UNITS ARE BEING ENGINEERED
Coal, hydrogen, and a coal-derived oil are mixed at high temperature and pressure to
accomplish direct liquefaction. Under these conditions, the coal decomposes, and the
fragments react with hydrogen to form additional derived oil. which Is separated from the
unreacted solids and further refined to produce usable liquid fuels. Indirect liquefaction
processes react the coal with oxygen and steam in a gasifier to produce a synthesis gas
composed mainly of carbon monoxide, carbon dioxide, and hydrogen. After the carbon
14
-------
dioxide and other impurities are removed from the gas, the carbon monoxide and hydrogen
are chemically combined in a catalytic reactor to produce liquid products for use as chemical
feedstocks or liquid fuels.
There are three major direct coal liquefaction processes currently undergoing development:
SRC II, Exxon Donor Solvent (EDS), and H-Coal (Table 4). These processes differ mainly in the
The SRC-II Process
COAL
PREPARATION
Purified
Hydrogen
DISSOLVING
GAS PURIFICATION
CRYOGENIC
SEPARATION
VAPOR -UQUIO
SEPARATORS
SHIFT CONVERSION
& PURIFICATION
IS
-------
manner in which the hydrogen is made to react with coal fragments to produce the unrefined
coal liquids. In the SRC II process, the coal feed and hydrogen are mixed with a process recycle
stream that contains unreacted coal ash as well as coal-derived oil. The iron pyrite in the
Exxon Donor Solvent Process
Fuel
Gas
(For
Preheoters)
GAS
CLEANING
COM
PREPARATION
AND
(HYING
MIXING
VESSEL
Slurry
Slurry
PREHEATER
-AJ
VACUUM
FLASH
SEPARATOR
R
E
A
C
T
Steam
Air/Oj
Vacuum
Slurry
Bottoms
To Sulfur
» Recovery
» Ammonia
VACUUM
PRACTION-
ATING
TOWER
••Naphtha
^ Middle
"Distillate
FLEXICOKER
_ liquid
Fuel Pro
-------
unreacted ash catalyzes the reaction between the coal fragments and hydrogen. In the EDS
process, the coal feed and hydrogen are mixed with a specially hydrogenated coal oil called
the donor solvent. The hydrogen added to the coal fragments is provided by the solvent and
the hydrogen gas mixed in the reactor. The donor solvent is made by catalytically
hydrogenating coal-derived oil using conventional petroleum refinery hydrotreating tech-
nology. In the H-Coal process, the unreacted coal and hydrogen are mixed with coal-derived
oil and an added solid catalyst in a special reactor referred to as an ebullated bed.
H-Coal Process
tight
Distillate
GAS
TREATMENT
AND
SEPARATION
EBUUATED-
BED
CATALYTIC
REACTOR
850°f
3.000 ptig
Solids
UQUID/SOUD
SEPARATOR
Residue
i
_
Underflow
C.TIII
Hydroclones
Heavy
• Distillate
»Residual
Fuel Oil
Ash
17
-------
Once the gases and distillable liquid products have been separated from the reactor effluent,
the remaining "bottoms" material is processed. This material contains significant quantities of
heavy hydrocarbons which must be efficiently utilized to enhance process economics. The
Table 4. Major Coal Liquefaction Processes
PROCESS ntociss TYK
PRODUCTS
STATUS
Solvent Refined Coal.
SRC II (Gulf Oil)
H-Cool
(Hydrocarbon Research,
Inc.)
Exxon Donor Solvent, EDS
(Exxon Research and
Engineering Company)
Fischer-Tropsch
(M.W. KeHogg/lurgi)
Mobil M
Direct liquefaction by sol-
vent extraction: coal dis-
solved in solvent, slurry
recycled, catalytic hydro-
genation
Direct liquefaction by
cotofytic hyo roQvnof ton,
ebullated catalyst bed
Direct liquefaction by
extraction and catalytic
hydrogenation of recycled
donor solvent
Indirect liquefaction,
liquefaction of synthesis
gas in an fluid bed
catalytic converter
Indirect liquefaction,
liquefaction of synthesis
gas in fixed bed using
molecular site-specific
zeolite catalyst
LPG
Naphtha
Fuel Oil
SNG
Naphtha
Fuel Oil
Propane Butane
Butane
Naphtha
Fuel Oil
Gasoline
LPG
Diesel Fuel
Heavy Fuel Oil
Medium Btu Gas
SNG
Gasoline
LPG
Pilot Plant under operation.
6700 ton/day of coal (20,000
barrels/day of oil equivalent)
demonstration module under
design and schedule for opera-
tion in 1984-1985
600 ton/day (1400 barrels/
day of oil equivalent)
pilot plant under construction,
testing will begin in 1980.
Plant is located at Carletnburg.
Kentucky
250 ton/day (500 barrels/
day of oil equivalent)
pilot plant under construc-
tion, testing will begin in
1980. Plant is located at
laytown, Texas
SASOl I, 800 tons/day, pro-
ducing over 10,000 bbl day of
liquids in commercial produc-
tion since 1956. SASOl II,
40.000 tons/ day, producing
over 50,000 bbl day of liquids
has been completed and will
begin start-up in 1980. SASOl
• with approximately the
same capacity as SASOl II is
currently being planned
Commercial scale plant to
produce 12,500 barrels of
gasoline using reformed
natural gas is planned for
New Zealand in 1984-1985
principal bottoms processing step under consideration for the EDS process is FLEX1COKING.
which consists of thermal cracking of the bottoms to produce additional liquids and coke. The
coke is subsequently gasified to produce plant fuel gas or hydrogen for the liquefaction step.
Bottoms processing for the SRC II and H-Coal processes probably will be partial oxidation (i.e..
gasification) to produce hydrogen for the liquefaction step.
There are two major indirect coal liquefaction processes: FischerTropsch which is commercial
now in South Africa, and Mobil-M which Is expected to be commercial in 1983-84. In the
Fischer-Tropsch process, the purified synthesis gas from the gasifier is reacted over an iron
catalyst to produce a broad range of products extending from lightweight gases to heavy fuel
18
-------
oil. The broad product distribution from this process is generally considered as a disadvantage
where large yields of gasoline are desired. Improved catalysts are currently being developed at
the bench scale to maximize the yield of gasoline-range hydrocarbons. In the Mobil-M
process, the synthesis gas is first converted to methanol using commercially available
technology. The methanol is then catalytically converted to high-octane gasoline over a
molecuiar-size-specific zeolite catalyst.
Fischer-Tropsch Process Flow Sheet
Products
Stock
Gas
Air.
COAL
MINES
H2S & CO2
Coal
SULFUR
PLANT
Sulfu
SHIFT
CONVERSION
.Steam
Steam
METHANATION
UNIT
SNG
FiSCHER-
T8OPSCH
SYNTHESIS
Slag
Sulfur Plant
19
-------
Indirect coal liquefaction is successfully operating on a commercial scale at the SASOL1 plant in
South Africa using the Fischer-Tropsch technology. The SASOL I plant produces gasoline, jet
fuel, diesel oil, middle distillates, and heavy oil. SASOL II, producing 50,000 barrels per day of
coal-derived liquids, has been completed and will begin operation later in 1980. Active interest
in this technology has developed and plans to license and construct similar plants in the U.S.
are progressing. There is strong interest in the Mobi!-M gasoline indirect process because of its
attractive high-octane gasoline yield. A commercial-scale plant producing 12,500 barrels per
day of gasoline is planned for operation in New Zealand by 1985.
Direct coal liquefaction technologies are in various stages of development. SRC I and II
processes have been tested at the pilot plant level and are entering into the demonstration
plant stage.
Large pilot plants are currently under construction for testing of the H-Coal and EDS processes.
These plants are located at Catlettsburg, Kentucky, and Baytown, Texas, respectively.
SRC I process produces primarily a solid product with a small amount of useful liquid product.
However, SRC II process produces primarily liquid products.
In addition to these major coal liquefaction technologies, several other processes have
received attention, including the Dow process, Riser Cracking, Synthoil, and the Zinc Halide
process. All have been tested in small-scale units.
SASOL II, South Africa
20
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GASEOUS FUELS AND CHEMICAL
FEEDSTOCKS FROM COAL
A WIDE VARIETY OF COAL MAY BE USED IN THE SYNFUELS INDUSTRY
Most coal gasifiers react coal, steam, and oxygen to produce a gas containing carbon
monoxide, carbon dioxide, and hydrogen. When air is used as the oxygen source, the product
gas contains up to 50 percent nitrogen and is referred to as low Btu gas since its heat of
combustion is only 80 to 150 Btu/standard cubic feet (scf). Synthesis gas or medium-Btu gas
ranges from 300 to 500 Btu/scf.
21
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Low-Btu gas is used as a fuel gas near its point of generation since its low heating value makes it
uneconomical to distribute over long distances. Medium- Btu gas can be used as a fuel gas and
transported economically over distances of up to ZOO miles. It can also be used as a chemical
feedstock for the production of methanol or gasoline. Finally, it can be converted catalytically
to substitute natural gas (SNG). having a heating value of about 1,000 Btu/scf. Additionally.
medium-Btu gasification is an integral part of all indirect liquefaction technologies.
There are many coal gasification technologies that differ in design and operation, depending
upon the type of coal used and the product desired. High- and medium-Btu gasification
technologies using noncaking coals characteristic of U.S. western coals are relatively well
developed. Severe operational problems are encountered with commercially available
gasiflers in processing caking coal such as those found in the eastern U.S. Several gasification
technologies for high- and medium-Btu gases are under active development (Table 5). Many
additional processes are being tested, but at less advanced stages of development (Table 6).
Tool* 5. Coal Gasifivrs for High, Medium and Low Btu Gas
MOCKS
POTMTIAl
KOOUCTS
MOST SUIT AMI
KOOUCTS
STATUS
lurgi Dry Ash
British Gat
Company (BGC)
lurgi
Texaco
U-Go« Institute
of Gat Tech-
nology (ICT)
Westinghouse
Shod tappers
Presturixed fixed
D4Q( O^y DOftOffl
Prossurixed Fixed
boa slagging bottom
Pretsurixed tingle
stage entrained,
durry feed
Prossurixed fluid
bed. ath
Preuurixed tingle
doge fluid bed.
ash agglomerating
Preuurixed entrained,
dry feed
Koppen-Totxek Atmospheric entrained,
dry feed
Substitute Natural Oat
(SNG, otto known at High
Btu Gat), Medium Btu
Fuel0 Gat, Low Btu Fuel
Gas
SNG, Medium Btu Fuel
Got, low Btu Fuel Gat
SNG, Medium Btu
Synthesis Gas. low
Btu Fuel Gas
SNG, Medium Btu Fuel
Gas, low Btu Fuel
Gas
SNG, Medium Btu Fuel
Got, low Btu Fuel
Gat
Medium Btu
Synthesis Gas,
low Btu Fuel Gas
Medium Btu
Synthesit Gat,
low Btu Fuel Got
SNG, Medium Btu Fuel
Gas, low Btu Fuel Gas
SNG, Medium Btu Fuel
Gas, low Btu Fuel Gat
Medium Btu Synthetisb
Gas
Medium Btu Fuel Gat
SNG, Medium Btu Fuel
Gat
Medium Btu
Synthetit Gat
Medium Btu
Synrhetit Gat
40 yean of commercial development and 14
commercial plants located in Australia,
Germany, UK, India, Pokitton, South Africa,
Korea. Average module sixe 800 tons/day
(2000 BOE)'
790 ton./ day (of coal) (2000 BOE) pilot
plant tested in Westfield, Scotland
160 ton/day (400 BOE) plant operating in
West Germany
14000 tons/day of coal plant (35000 BOE)
producing Medium Btu Fuel Gat, under
design for construction in Tennessee
15 ton/day (40 BOE) process development
unit, under testing at Woltx Mill, Pa.
ISO ton/day (400 BOE) pilot plant in oper-
ation in W. Germany. 1,000 ton/day
scheduled in 1983/1984.
1.000 ton/day (2500 BOE) plant in opera-
tion in South Africa for the production
of ammonia
° Medium Btu Got with significant concentration of methane it more suitable for use as fuel, and therefore identified as Medium Btu
Fuel Gas.
0 Medium Btu Gas with low concentration of methane is mere suitable for chemical synthesis, and therefore identified as Medium Btu
Synthesis Gas
c BOE — Barrels per day of oil equivalent
A fixed-bed gasifier. such as the Lurgi. feeds coal to the top of the gasifier. The descending coal
is successively dried, devolatllized. and gasified in contact with gases rising from the bottom.
Steam and oxygen are introduced at the bottom of the gasifier, and solid ash is removed
through an ash lock. In some gasiflers, such as British Gas Company (BCC) Lurgi. the
temperature at the bottom of the bed is sufficient to melt the ash, allowing its removal as
22
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Table 6. Status of Other Coal Gasification Processes
DEMONSTRATION PLANTS
SCALE
(TONS/ DAY
COAL FEED)
STATUS
HYGAS
COED-COGAS
U-GAS
PILOT PtANTS/PDUs
BELL HIGH MASS FLUX
BIGAS
COMBUSTION ENGINEERING
DOW
EXXON CATALYTIC
GEGAS
HYDRANE
MOLTEN SALT
MOUNTAIN FUEL
SYNTHANE
TRI-GAS
7340
2210
3160
6
120
5
24
100
24
4
24
12
72
1
Conceptual Design0
Detailed Design"
Detailed Design
Operational
Operational
Operational
Under Construction
Proposed
Operational
Proposed
Operational
Proposed
Mothballed
Operational
Conceptual design incorporates all important details of major unit areas in the plant. Material balances are provided
around all major unit areas. (Unit area is a section of the plant consisting of several components integrated to perform
a single transformation on the product stream. Examples are gasification, raw gas cooling, gas cleanup, or methanation.)
° All equipment and detailed pipeline diagrams are prepared as part of detailed design. In addition, detailed material
balances are prepared for each piece of equipment.
cThe plant is either operating or has operated successfully in the past.
molten slag. The slagging feature provides a distinct advantage in contending with the caking
characteristics of eastern U.S. coals.
Lurgi high-pressure operation, in conjunction with relatively low gasification temperatures,
favors the formation of significant quantities of methane in the gasifier, enhancing the heating
value of the product. These conditions also favor production of by-products such as tars and
impurities like phenols, organic nitrogen compounds, and sulfur compounds.
In fluid-bed gasifiers currently under development, high-velocity gases pass up through the
bed to fluidize the coal, providing excellent mixing and temperature uniformity throughout the
reactor. Operabilify with caking coals (eastern U.S.), as well as low tar production and tolerance
to upsets in fuel rates, has been demonstrated at the pilot scale for both the Westinghouse and
U-Cas gasifiers.
The Texaco and Koppers-Totzek gasifiers are representative of entrained-bed technology in
which the solid particles are concurrently entrained in the gaseous flow. Flame temperatures at
the burner discharges are in the range of 1370 to 1925°C, resulting in melting of the coal ash
with minimum production of impurities. Entrained-flow gasifiers may be favored for the
production of synthesis gas for indirect liquefaction. They can operate with caking coals.
However, compared to fluid-bed gasifiers, they have very low carbon holdup capability in the
reactor and, therefore, have limited safeguard against possible formation of explosive mixture
in the reactor in case of coal feed interruption.
There has been extensive commercial experience in the U.S. with low-Btu coal gasification
technologies operating near atmospheric pressure. However, these applications have been
limited to small-scale captive applications for providing industrial process heat and space
heating. For example, the Wellman-Galusha gasifier designed for atmospheric pressure
23
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Lurgi Gasification System
Coal
LiQuOr
TAR AND LIQUOR SIPABATION
operation was used extensively by industry years before pipeline-supplied natural gas was
readily available at comparatively lower cost. Pressurized gasification processes capable of
yielding high-Btu gas for pipeline use and medium-Btu gas for chemical feedstocks are less
developed, with the exception of the Lurgl fixed-bed process. The Lurgi process is based on 40
years of commercial development at 14 commercial plants that are located in Australia,
Germany, U.K., Korea. India, Pakistan, and South Africa. A great deal of interest in the Lurgi
technology is emerging in the U.S. with several announced plans for SNG production by
pipeline and gas utility companies. Several projects utilizing the Texaco process for captive
applications (chemical feedstocks and on-site power generation) are in the planning and
design stage with at least one project (Tennessee-Eastman) scheduled for construction in
1980. Hygas Plant, Chicago, Illinois >
24
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HYGAS PLANT, CHICAGO, ILLINOIS
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DEVELOPMENT OF THE SYNFUELS
INDUSTRY OVER THE NEXT 20 YEARS
Three scenarios or projections of synfuel industry buildup rates to the year 2000 have been
developed to illustrate the potential range of synfuel product utilization:
• A "National Goal" scenario driven by Federal incentives
• A "nominal production" or most likely scenario
• An "accelerated production" scenario representing an upper bound for industry
buildup.
26
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ACHIEVING THE NATIONAL COAL • SCENARIO 1
In July 1979, President Carter announced new energy initiatives for the U.S. aimed at reducing
our dependence on imported oil. One of the key elements of this policy is the provision of
Federal funds to stimulate production of synthetic fuels at the rate of 2.2 million barrels per day
(MMBPD) by 1992. Specifically, the national synfuel goals are:
Coal Liquids. To stimulate and accelerate the construction and operation of the first few plants
to provide sufficient data on the competing commercial coal liquefaction processes so that
industry, with its own investment, stimulated by Government incentives if required, will build
plants with sufficient capacity to provide upwards to 1 MMBPD liquid fuels by the year 1992.
Shale oil. To stimulate shale oil production at the rate of 0.4 MMBPD by 1990.
Hlgh-Btu Gas. To develop and implement a program that enables the U.S., by 1992, to produce
significant quantities of pipeline quality gas (0.5 MMBPD -oil equivalent*) from commercial
HBG plants in an environmentally acceptable manner. This is facilitated by the short-range goal
of having two or three commercial HBG plants in operation by the mid-1980s.
* For easy comparison with petroleum supply/demand figures, synfuel production rates are expressed in barrels of oil
equivalent in this document. This does not imply that high-, medium- and low-Btu gases from coal that are substituted
for domestic natural gas will have any direct effect on the reduction of imported oil.
27
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Low-/Medluin-Btu Gas. To stimulate an initial near-term commercial capability for several
medium-Btu commercial plants in key industries as well as utilities, for energy and feedstock
applications for both single and multiplant use. and for multiple applications of low-Btu gas in
each of the prime industry markets. Commercial-scale development will depend on the
long-term economics of this technology, vis-a-vis the price of domestic oil and natural gas.
Once a capability has been established, capacity will be accelerated to achieve at least 0.29
MMBPD oil equivalent by 1992. Of this total, up to 0.04 MMBPD oil equivalent will be provided
from 40 to 50 low-Btu facilities and up to 0.25 MMBPD oil equivalent from 25 to 30
medium-Btu plants. Again, it must be mentioned, that if this low- and medium-Btu coal-gas is
substituted for natural gas, there will not be a direct effect on the reduction of imported oil.
The key assumptions allowing achievement of these goals are: (1) Federal funds provided are
sufficient to reduce investment risk by the synfuel industry through 1992, and (2) other
requirements for industry development are satisfied, i.e., environmental permits, material,
equipment, and labor. A likely buildup rate profile for the synfuel industries under this scenario
is shown in Figure 1.
Rgur* 1. Synfuols Industry Buildup for th« National Goal Scenario (Cumulative)
For shale oil, several of the most advanced projects were selected as a basis. The planned
operation startup schedules and capacity buildup rates for these projects were used to
generate the Industry production buildup profile to about 0.4 MMBPD by 1992. The period
beyond 1992 is viewed as one of technology consolidation: gaining a firm footing with regard
to environmental and economic performance and technology improvements. This type of
industry production profile is not without precedent; for example, the Federal support of the
synthetic rubber industry during World War II.
The goal of 1 MMBPD of coal liquids will be met predominantly by indirect coal liquefaction. At
present, the only commercially demonstrated coal liquefaction process is the Fischer-Tropsch
embodied in the SASOL plants in South Africa. The Mobil-M process should be commercially
demonstrated within the next five years. Considering construction and permitting lead times.
plants of this type could begin operation around 1985. To meet the production goal. 10 to 15
plants of a nominal 0.05 MMBPD capacity must be in operation by 1992. A potential drawback
to the commercialization of SASOL technology in the U.S. is the broad product distribution,
ranging from light hydrocarbon gases to heavy fuel oil. The Mobil-M technology, on the other
hand, produces an all-gasoline product which would be particularly well suited to the U.S.
market demands. Civen this apparent advantage of Mobil-M technology over SASOL, it is
believed that industry should favor commercialization of both Mobil-M and SASOL technology
during the next few years, with the breakdown being roughly 50/50. Approximately 75
percent of the coal liquids production will be due to these indirect liquefaction processes.
28
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For the direct liquefaction processes, there will not be sufficient experience and information to
attract any more than developmental interest over the next few years, under this scenario, by
1985 there should be sufficient information available from the operation of the EDS, H-Coal and
SRC II plants to support a commercialization decision concerning these processes. Federal
incentives will likely be distributed such that by 1992, three or four pioneer commercial-scale
plants employing direct liquefaction will begin to appear. Of the total production goal of I
MMBPD of coal liquids it is estimated that 25 percent will be produced by these first
commercial direct liquefaction plants embodying the basic SRC II, EDS and H-Coal tech-
nologies, or improvements and modifications to these. It is projected that for the next few
years after 1992, production will remain at 1 MMBPD while technological evaluations are
performed. These direct liquefaction plants will be located near the major eastern U.S. coal
areas.
The Lurgi fixed-bed process is the lead high-Btu coal gasification technology and has been
commercially demonstrated outside the U.S. It is expected to be utilized in all commercial
plants constructed over the next 10 years. As the process requires noncaking coals, these
plants will most likely be located in the western U.S. Interest will continue in other high-Btu
gasification technologies such as the Slagging Lurgi which is capable of using eastern caking
coals. At least one of these alternate or advanced processes probably will be supported under
Federal incentives but it is unlikely that a commercial plant will appear until the early 1990s, and
this would probably be located near a midwestern coal resource.
The Lurgi fixed-bed medium-Btu process is the lead technology for medium-Btu gas. Texaco
partial oxidation gasification or similar pressurized entrained-bed gasifiers such as pressurized
Koppers-Totzek, will be under development and demonstration during the early 1980s and
will likely serve as the prime medium-Btu gasification process for eastern coals. To 1992,
however, the major buildup in medium-Btu gasification will come from Lurgi plants located in
the western U.S.
For low-Btu gasification, the several technologies that are currently available and providing
commercial service are assumed to be easily applied, under the incentives existing to 1992, to
generate the 0.04 MMBPD production rate goal. Low-Btu gas will generally be captively
employed as fuel gas or used on-site for combined-cycle power generation.
The production buildup profile for major synfuel products resulting from the synfuels industry
buildup in Scenario 1 is shown in Figure 2. These product quantities are projected to enter
commercial use and are to be considered in assessments of potential environmental impacts
from synfuels. Naturally, these major products are presented for the sake of clarity, but there
are many other products and by-products that will be produced and distributed into the
market place. These products and by-products will also vary in greater or lesser quantities in
Scenarios II and 111 which follow.
Figure 2. Major Synfuel Product Buildup for the National Goal Scenario (Cumulative)
29
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Catalytic Gasification, Baytown, Texas
PRODUCTION AT A NOMINAL RATE - SCENARIO II
Recent studies of the technical capability of the U.S. to meet the synfuel national goal point out
that there are significant concerns regarding achieving this goal. They include:
• Availability of skilled manpower: it is expected that the supply of engineers and construction
labor will be severely taxed to meet the synfuel production goal set forth in Scenario 1.
• Availability of critical equipment: certain critical equipment for the synfuel industry such as
compressors, heat exchangers, and pressure vessels are expected to be in short supply unless
corrective measures are taken now, thus slowing the synfuel industry buildup rate indicated in
Scenario I.
• Diversion of investment to competing technologies: demand on the limited capital available
in the economy by competing energy supply technologies, such as coal liquefaction, coal
gasification, coal oil shale, geothermal, and solar technologies, could result in the slowing of
buildup rates for some technologies.
• Environmental data: lack of environmental data needed for regulatory approvals could slow
down the buildup rate.
• Licensing: time and construction schedule constraints imposed by State and Federal
licensing and permitting requirements could hinder synfuel industry buildup rate.
30
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Figure 3. Synfuels Industry Buildup for the Nominal Production Scenario (Cumulative)
2JJ
1990
199J
1994
1996
1991. 3000
Taking these concerns into consideration, a nominal synfuels production buildup - Scenario
ll-has been developed, as indicated in Figure 3. A production rate of about 2.1 MMBPD is
estimated by the year 2000, instead of 1990 as indicated in Scenario I. The technologies
expected to contribute to both Scenarios I and II are the same; the major difference is in the
rate of buildup: it is slower and delayed in time.
31
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For shale oil, a nominal production rate of 0.4 MMBPD should be achieved by the year 2000.
The buildup rate is estimated to lag about 4 years behind that of Scenario I and is based on the
following observations:
• Some technologies are still considered developmental, such as the modified in situ process.
• Land problems, including availability of off-tract disposal sites, may take longer to resolve.
Under this scenario, no large-scale commercial coal liquefaction plants are projected to be on
line until 1992 with a growth rate beyond yielding 1 MMBPD by the year 2000. It is believed that
Federal incentives will be applied to support construction of one each of the indirect
liquefaction plants and a direct liquefaction plant only after sufficient assessment has been
made of the operations of the EDS and H-Coal pilot plants and the SRC II demonstration plant.
Rather than commit sizable resources to the commercialization of indirect liquefaction, a
decision probably will be delayed resulting in no operating commercial liquefaction plants
before 1992 under this scenario. During the 1980s it is believed that improvements will be
made in both the operating indirect liquefaction plants and the designs of the direct
liquefaction processes. These "advanced" technologies with product slates yielding primarily
transportation fuels, will be sufficiently attractive to encourage development of 1 MMBPD of
coal-derived liquid production by the year 2000.
Currently there is a great deal of interest in SNG technology. Several gas utility and pipeline
companies have expressed plans to construct high-Btu plants. With incentives, several of these
plants will be constructed and in operation by 1985. However, as a result of the projected
improved outlook for gas supplies, including potential from unconventional sources, the
availability of "imported" conventional natural gas (Alaskan, Canadian and Mexican) and the
current unfavorable rate-structure pricing policy, the complete commercialization of HBG will
be hampered. Its production rate is not likely to expand beyond the 0.25 MMBPD-level
attained around 1992 under this scenario.
The buildup of medium- Btu gas plants will also be impeded by the availability of natural gas:
however, for certain industrial applications requiring large volumes of uninterrupted supplies
(e.g.. chemical feed stocks, cogeneration) low-/medium-Btu plants will remain attractive. It is
estimated that production of low-/medium-Btu gas will reach a level of 0.45 MMBPD by 1992.
ACCELERATED PRODUCTION - SCENARIO III
The accelerated production scenario is based on the assumption that Federal incentives are
sufficient to synfuels production to meet the national goals in 1992. that operation of synfuels
plants up to 1992 is successful to the extent confidence in processes is gained, and all resource
requirements are satisfied. Licensing and permitting procedures must also be streamlined. It is
assumed that demand for coal-derived synfuels remains at a level such that new plant capacity
continues to be added to the year 2000 at about the same rate as the buildup to 1992. For shale
oil. the production of 0.9 MMBPD by the year 2000 is based on a survey and analysis of the
32
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desired goals of each industrial developer. As indicated in Figure 4, a total synfuels production
rate of 5 MMBPD may be reached by the year 2000. This includes 2.6 MMBPD of coal liquids,
1.5 MMBPD of gas and 0.9 MMBPD of shale oil.
Figure 4. Synfuels Industry Buildup for the Accelerated Production Scenario (Cumulative)
However, in view of the limitations facing the synfuel industry, some of which were discussed
earlier, the accelerated production scenario is highly unlikely. The synfuels industry buildup
rate (Figure 4) for this scenario can be considered an upper bound to synfuels utilization over
the next 20 years.
The three scenarios describing possible synfuel industry buildup profiles provide a basis for
projecting the market penetration of synfuel products in the near future. As these products
enter the market, potential environmental impacts related to synfuels utilization must be
considered.
SRC Demonstration Plant
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THERE IS A LARGE POTENTIAL
MARKET FOR SYNFUEL PRODUCTS
AND BY-PRODUCTS
The major synfuel products could be broadly classified into five groups
• Gaseous Products
- High-Btugas
— Low-Btu gas
— Medium-Btu gas
- Liquified Petroleum Gas (LPG) •
• Light Distillates
— Gasoline
• Middle Distillates
- jet fuel
— Kerosenes
- Diesel oil
Residue
— Heavy fuel oil
— Lubricants
— Naphtha
• Petrochemicals
34
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GASEOUS PRODUCTS
The high- and medium-Btu gases are suitable for essentially all industrial fuel applications that
can be serviced by coal, oil or natural gas. In some cases equipment modifications or special
controls will have to be implemented to retrofit existing plants for medium-Btu gas, whereas
this problem may not exist for high-Btu gas installation. However, there should be no difficulty
in employing either high- or medium-Btu gas in new industrial installations. These products will
be utilized by major energy consuming industries such as food, textile, pulp and paper,
chemicals, and steel. It appears that only chemical, petroleum, and steel industries will require
sufficient fuel gas at a single location to economically justify the dedication of a single
gasification plant. Other industrial plants will have to share the output distributed by pipeline
from a central gasifier, or tap into the existing natural gas pipeline system for their need.
Preliminary economic studies indicate that it is not economical to transport medium Btu gas
through pipelines for more than 200 miles. Medium-Btu gas can also be utilized by the
petrochemical industries as chemical feedstock for the production of ammonia, methanol, and
formaldehyde. Currently most of this requirement is met by reforming natural gas. The use of
medium-Btu gasification appears especially attractive when integrated with new combined
plants for utility applications.
The major characteristics of low-Btu gas are its high nitrogen content, low carbonmonoxide
and hydrogen content, and resulting heating value typically below ISO Btu/SCF. Its flame
temperature is also about 13 percent lower than that of natural gas. Because of these
characteristics low-Btu gas is limited to on-site use, industrial processes requiring temperature
below 2800°-3000°F, and is generally unsuitable for use as a chemical feedstock. Further,
because of its low energy density it requires significant equipment modifications for retrofit
applications. Today there are operating and planned low-Btu gasifiers in the U.S. for:
« Kiln firing of bricks
• Iron ore pelletizing
• Chemical furnace
• Small boilers
Liquified petroleum gas (LPG) has applications for industrial, domestic, and transportation
uses. In domestic applications LPG is used mainly as a fuel for cooking and for water and space
heating. In industry, LPG finds a large number of diverse outlets. Apart from use as a fuel in
processes which require careful temperature control (glass and ceramics, electronics) or clean
combustion gases (drying of milk, coffee, etc.), LPG is also used in the metallurgical industry to
produce protective atmospheres for metal cutting and other uses. The chemical industry.
particularly on the U.S. Gulf Coast, uses petroleum gases for cracking to ethylene and
propylene as well as for the manufacture of synthesis gas. Small portions of LPG are also used
to fuel automotive vehicles. Another use of LPG is to enrich lean gas made from other raw
materials to establish proper heating value levels. On a volume basis, production of LPG in the
U.S. exceeds that of kerosene and approaches that of diesel fuel. About 40 percent of LPG
production is used by the chemical industry, another 40 percent is for domestic use, 10 percent
for automotive use, and the remaining distributed among other industrial and agricultural fuel
uses. Currently LPG is supplied primarily from refineries handling petroleum crudes. With the
anticipated shortfall in the supply of these crudes, the resulting shortage of LPG will be met to
some extent by LPG from synfuel plants.
35
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UCHT DISTILLATES
Gasoline, which is a major light distillate, is generally defined as a fuel designed for use in
reciprocating, spark ignition internal-combustion engines. Other uses for gasoline are of small
volume. Primarily it is used as fuel for automotive ground vehicles of all types, reciprocating
aircraft engines, marine engines, tractors and lawn mowers. Other small-scale uses include fuel
in appliances such as field stoves, heating and lighting units, and blow torches. By far the
primary use of gasoline produced from coal will be for transportation applications. Currently
we consume nearly 6.8 MMBPD of petroleum-derived gasoline and this corresponds to about
40 percent of the total petroleum consumption.
Naphthas have a wide variety of properties and serve many industrial and domestic uses. Their
primary market is the petrochemical industry where they can be used for the manufacture of
solvents, varnish, turpentines, rust-proofing compounds. Pharmaceuticals, pesticides, herbi-
cides, and fungicides. However, preliminary analysis indicates that there will be a relatively
small amount of coal-derived naphthas entering the market.
MIDDLE DISTILLATES
The market for middle distillates, which essentially are jet fuel, kerosene, diesel oil and light fuel
oil, are jet aircraft, gas turbines, and diesel engines used for transportation and stationary
applications, and residential and commercial heating.
RESIDUES
The market for residues, consisting mainly of fuel oil, is primarily for industrial, utility and marine
fuel use. Other applications for residues include preparation of industrial and automotive
lubricants, metallurgical oils, roof coatings, and wood preservative oils. Coke is another likely
useful product from residue.
36
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PETROCHEMICALS
Many synfuel products, in addition to their primary use as fuel, are likely to be used by the
petrochemical industry for the production of several other by-products. Currently over 3000
petrochemical by-products are derived from petroleum and natural gas sources. These include
items like synthetic rubbers, plastics, synthetic fibers, detergents, solvents, sulfur, ammonia
and ammonia fertilizers and carbon black.
Petrochemicals from synfuels will generally fall under three broad groups based on their
chemical composition and structure: aliphatic, aromatic, and inorganic. An aliphatic petro-
chemical is an organic compound which has an open chain of carbon atoms. Important
petrochemicals in this group include acetic acid, acetic anhydride, acetone, ethyl alcohol, and
methyl alcohol. Most aliphatic petrochemicals are currently made from methane, ethane,
propane or butane. Aliphatics currently represent over 60 percent of all petrochemicals and
are the most important group economically.
An aromatic petrochemical is also an organic compound but one that contains or is derived
from a basic benzene ring. Important in this group are benzene, toluene, and xylene,
commonly known as the B-T-X group. Benzene is widely used in reactions with other
petrochemicals. With ethylene it gives ethyl benzene which is convened to styrene. an
important synthetic-rubber component. As a raw material it can be used to make phenol.
Another use is in the manufacture of adipic acid for nylon. Toluene is largely used as a solvent in
the manufacture of trinitrotoluene for explosives. Xylene is used as a source of material for
polyester fibers, isophthalic acid, among other petrochemicals.
An inorganic petrochemical is one which does not contain carbon atoms. Typical here are
sulfur, ammonia and its derivatives such as nitric acid, ammonium nitrate, ammonium sulfate.
The different end-use applications of major synfuels products are summarized in Table 7. We
see from this discussion that coal-derived synfuel products are likely to be used not only as a
fuel, but also in the manufacture of a number of other by-products which will be used in
multitudes of other applications.
Table 7. Major End-Use Applications of Synfuel Products
MAJOR SYNRIEl PRODUCTS
UKEIY MAJOR
END USE APPLICATIONS
High and medium 8lu gas
low Btu gas
LPG
Gasoline
Naphtha
Middle distillates (kerosene, diesel.
light fuel oil)
Residues
Food, textile, pulp and paper, chemicals, iron and steel
industries; residential/commercial heating
Small boilers, kilns, pelletizing
Glass, electronics, chemical industries; domestic cooking
and heating; automotive
Transportation
Petrochemical industry; solvents;
varnish; turpentines
Transportation, gas turbines, residential and commercial
heating
Industrial, utility and marine fuel; metallurgical oils;
roof coatings; wood preservatives, lubricants
37
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ANTICIPATED SYNFUELS MARKET
PENETRATION IN THE VARIOUS
SECTORS OF THE U.S. ECONOMY
WILL EXPAND OVER TIME
As an indication of the time frame over which the EPA must consider issues regarding the use of
various synfuel products, market development and penetration of these products must be
anticipated. For example, the synfuels market may develop as illustrated in Figures 5.6 and 7,
over 1985-1987.1988-1990 and 1991-2000 time frames.
38
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SYNFUEL PRODUCT UTILIZATION EMPHASIS, 1985-1987
Oil shale-derived synfuels will be introduced into the petroleum product markets about 1985,
and based on Scenario I as much as 0.2 MMBPD of shale oil can enter the market by 1987. The
first stage of synfuels market infrastructure development will be oriented towards transporta-
tion fuels because oil shale that is hydrotreated can be refined in existing refineries to such
products as gasoline, jet fuel, diesel and marine fuels. The bulk of this supply will be in the form
of middle distillates comprised of jet fuel and diesel oil. The demand for transportation during
the late 1980s is expected to be around 10 MMBPD. Of this, about 5 percent is likely to be
consumed by the military sector. It is conceivable, therefore, that the bulk of the shale oil
products could be utilized by the military, possibly with a Government synfuel purchase
guarantee program.
It is anticipated that the oil shale industry will continue to grow producing as much as 0.45
MMBPD by year 2000 as per Scenario I and II and as much as 0.9 MMBPD as per Scenario III.
The Bulk of this production is anticipated for the transportation sector.
Figure 5. Synfuel Utilization During 1985-1987
MAJO* SYNfUU ftOOUCTV
ITMOOUCn
Oil Shato Praducti
• Oo«o)ln.
• MMdl* Oiftfllal*!
(••a- J»« fuel,
M««l. K«ro«*iM,
Light Fuel Oil)
<
UbrkanO)
39
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Figure 6. Synfu«l Utilization During 1985-1990
CM.
KAJOt STMWA MOMJCTV
tYNOOUCn
Oil
(•«_ Mt fuel.
BftAuJ ••••••ai
Ufht **i exo
(•
SYNFUEL PRODUCT UTILIZATION ADDITIONS, 1988-1990
Subsequent buildup of the synfuels industry during the 1988-1990 time period is expected to
come from commercial-size, high- Btu gasifiers. As per Scenario 1, the output from these
high-Btu gasifiers may be as high as 0.4 MMBPD of oil equivalent by 1990: however, the
conservative estimate based on Scenario II is that only around 0.17 MMBPD of oil equivalent is
likely to be produced by that time. The high-Btu gasification will serve some of the energy
needs of both the industrial and residential/commercial sectors as direct gas sales or through
electric power generation by utilities. Some of the major idustrial users of high-Btu gas are
likely to be textile, food, steel, and chemical industries. Initially, following the current use
pattern, it will be used not only as an industrial fuel but also as a chemical feedstock. It is
expected that the existing natural gas pipeline network, with the exception of a few connecting
pipelines, will be utilized for the distribution of high-Btu gas and, therefore, introduction of
high-Btu gas is not likely to cause major problems concerning distribution for end-use
applications. During this time period it is also likely that low- and medium-Btu gasification
plants will be used by industries in a captive mode to supply some of their fuel and chemical
feedstock needs. This may amount to as much as 0.3 to 0.4 MMBPD of oil equivalent based on
the first two scenarios. The medium-Btu gas could be used as a synthesis gas for the
production of different chemical products such as ammonia which in turn could be used for the
40
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manufacture of such products as fertilizers, fiber and plastic intermediates, and explosives.
Currently the petrochemical industry derives its synthesis gas by reforming natural gas or
naphtha. During this time period, it is likely that one to three small plants possibly producing
methanol from medium-Btu gas may come on line. These are likely to be owned by industries
primarily to supply internal needs. This could be for the production of formaldehyde, a product
with a number of end-use applications. It is unlikely that products from these plants will be
entering the open market directly, on a large scale, for public consumption. During this time
period the use of low-Btu gas will be limited to an industrial fuel in such applications as kilns,
chemical furnaces and small boilers. However, the use of low-Btu gasification by utilities in one
or two demonstration units for combined-cycle applications cannot be ruled out.
During this time frame the shale oil output will continue to grow reaching as much as 0.4
MMBPD in accordance with the National Goal Scenario. As a result it is anticipated that
increasing amounts of shale oil products will be entering the transportation sector, with limited
entry into the industrial sector for use as fuel.
SYNFUEL PRODUCT UTILIZATION ADDITIONS, 1991-2000
During the 1991-2000 time frame, central coal liquefaction plants will introduce into the market
a spectrum of products and by-products that will be consumed by the transportation,
industrial, and residential/commercial sectors. Based on the nominal and accelerated
scenarios, by the year 2000 1.5 to 2.5 MMBPD of coal liquid products will be entering the
market. Under these conditions, a significant segment of the transportation fleet could be
running on synthetic fuel. Coal-derived liquids will be utilized not only by industry as a fuel
source and chemical feedstock, but also by the residential and commercial sectors for space
heating, hot water supply and other domestic uses. Furthermore, many of the oil-fired utility
plants given exemption from converting to coal in the interim will be burning coal-derived fuel
oil. SRC II plants will be the likely candidate which will be supplying the bulk of this fuel. It is also
expected that methanol from indirect coal liquefaction could be entering the market for use as
turbine fuel for the production of electricity, during this time period. In addition, SNG produced
from the liquefaction processes will be also entering the market, supplementing the output
from high-Btu gasification plants. The SNG output from liquefaction plants could be as high as
-------
20 percent of the total useful output from these plants in terms of heating value. LPG and
naphtha produced from direct and indirect coal liquefaction processes and shale oil are likely
to be used primarily by the petrochemical industries. For example, LPG may be used by the
petrochemical industry as a raw material for the production of alcohols, organic acids,
detergents, plastics, and synthetic rubber components. Naphthas may be utilized for the
manufacture of such items as solvents, adhesives, pesticides, and chemical intermediates.
Currently the petrochemical industry uses about 11 percent of our crude oil supply for the
production of various petrochemicals. During the 1990-2000 time frame, it is possible that the
same percentage of available synfuels will be utilized by the petrochemical industry for the
production of hundreds of petrochemical products. A major use of residuals from coal
liquefaction processes and oil shale is likely to be the manufacture of different types of
lubricants. These could be for such applications as lubrication of engines and general
machinery, steam turbine bearings and reduction gears, compressors, insulating oils, metal
working and cutting oils.
Figure 7. Synfu*! Utilization During 1985-2000
OM Mwto CM! OmMwMwi CM! U««»«««H.ii
So we see in the above discussion that the synfuels products and by-products are likely to
enter all the end-use sectors, in course of time. The potential for exposure and for
environmental impacts must be carefully considered. Early planning by the EPA will require that
synfuel products/by-products be assessed with regard to their environmental acceptability.
42
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POTENTIAL ENVIRONMENTAL
EXPOSURES DUE TO SYNFUELS
UTILIZATION
A major concern of the emerging synfuels industry is the potential environmental, health and
safety impacts associated with the use of synfuels. The potential exposure of the public to
synfuels will depend on the rate of development of the synfuels industry's specific end-use
markets. Since the market may cover a wide range of products and end uses, a significant
portion of the population may be exposed. The products will enter the markets in varying
quantities over the coming years. To illustrate the important environmental concerns, synfuels
product production rates based on the National Goals Scenario (Scenario I) are considered
and three time periods are examined for potential environmental exposure, 1985-1987.
1988-1990, and 1991-2000.
43
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POTENTIAL EXPOSURES: 1985-1987
During this period, synfuels entering the market will be mostly limited to shale oil products.
Approximately 0.2 MMBPD of products by 1987 is projected by Scenario I. Crude shale oil will
most likely be transported to refineries in either the Gulf Coast or Midwest and is expected to
be distributed by existing pipelines. Product quantities will be limited. The hazards of
transporting and storing crude shale oil and shale oil products are expected to be minimal.
Shale oil products will be used primarily as transportation fuels such as gasoline, diesel oil. and
jet fuel and will be distributed by railroads, tankers, trucks and barges. During this period the
quantities handled are estimated to amount to 0.04 MMBPD of gasoline and a combined total
of 0.16 MMBPD for the middle distillates. The major exposure to these products occur at
storage terminal unloading operations and service station storage tank loading operations,
both of which have high spill potential. The end user (a passenger car, truck, or other vehicle)
also poses a potential spill problem due to the rapid expansion of self service stations.
Combustion of the fuels may expose a large segment of the population since most automobile
traffic is generated in central business districts and their suburbs. By-products from shale oil
refining such as lubricating oils and greases will be shipped from refinery bulk packing plants in
secure containers, minimizing the likelihood of exposure.
Products from shale oil production could reach approximately 0.3 to 0.4 MMBPD during this
period, as suggested by the accelerated rate scenario, with the potential exposure reaching
twice the level suggested by the National Goal Scenario.
POTENTIAL EXPOSURE: 1988-1990
During this period, in addition to increased shale oil production, SNG low and medium Btu gas,
and some indirect liquefaction products will also be entering the market, which increases the
complexity of the synfuels distribution network and increases the potential for public exposure
to the products. It is a time period by which the EPA must have identified potential problems
and have developed a plan for meeting the synfuels challenge.
Shale oil production during this period is projected to be 0.3 to 0.4 MMBPD under the National
Goal Scenario, but could range from 0.2 MMBPD (nominal production rate scenario) to 0.8
MMBPD (accelerated production rate scenario) in 1990. The exposure potential to the
products will increase proportionally during this time period compared to the previous period.
The SNG entering the market is projected to amount to an oil equivalent of 0.4 MMBPD by
1990, and will be transported by existing pipeline to the various markets. Although pipelines
transporting SNG or crude shale oil present a low accident potential, pipelines either transect
or terminate in densely populated areas, providing some degree of exposure potential to
these products. First generation coal gasification technology (Lurgi) buildup will occur near
western U.S. coal deposits, the Northern Great Plains/Rocky Mountains area. The SNG from
this area will enter the northern tier pipeline network and will be distributed across the upper
Midwest. Medium- and low-Btu gases will also be in the market during this period, although
they will probably be used for internal plant needs. This will minimize the exposure potential
since these gaseous products will not require any transportation.
Some synthetic gases have different compositions than natural gas, and may cause internal
corrosion and stress-corrosion cracking in pipelines. Effects of impurities on the long-term
degradation of some pipeline materials are unknown. Synthetic gaseous fuels also have
different flammability and explosion limits that may require new techniques in the manage-
ment of pipeline leaks. Gases with a high CO concentration are toxic and could present
significant exposure problems.
44
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In addition to their use in transportation and boiler applications, synfuels products will be used
as feedstocks for industrial processes. These applications, although limited during this time
period, present another avenue of exposure for which EPA must be prepared. The population
exposed could include industrial plant personnel as well as the end users of the industrial
products. During this period, medium-Btu gas could be used as a synthesis gas for the
production of methanol and ammonia, each of which can be utilized as a finished product.
Although this period will be characterized by the emergence of many synfuels products, the
main population exposure potential will occur from crude shale oil transport by pipelines,
product storage and the combustion of these products.
A basic environmental concern with the transportation of liquid synfuels is the possibility of an
accidental spill. A recent (1979) Department of Transportation analysis shows that of all the
accidents resulting from pipelines carrying liquid petroleum products, the largest spillage
occurs from LPG (58.6 percent) followed by crude oil (Z5.3 percent), with fuel oil (6.1 percent)
and gasoline (4.5 percent) being the other major contributors.
As an example to illustrate the relative exposure of transporting petroleum products by
pipeline in order to provide an awareness of the potential exposure in transporting shale oil,
Table 8 presents a listing of oil pipeline accidents. Since existing pipelines will be used during
this time period for transporting crude shale oil, these potential exposures and risks in each
component of the carrier system must be considered by EPA.
Table 8. Number of Oil Pipeline Carrier System Accident
YEAR 79 78 77 76 75 74 73 77 71
Line Pipe
Pumping Station
Delivery Point
Tank Farm
Other
Total Accidents
207
20
6
5
11
249
194
30
4
15
13
256
177
32
4
12
12
237
169
11
4
14
14
212
185
24
5
30
10
254
203
13
5
22
13
256
215
23
5
21
9
273
238
31
3
24
10
306
264
U
2
n
19
310
Source: Department of Transportation
45
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POTENTIAL EXPOSURE: 1991-2000
This period is characterized by the large-scale entry into the market of direct and indirect
liquefaction products and by-products for use primarily by the transportation, industrial and
utility sectors. Based on the National Goal Scenario, t.O MMBPD of coal liquids will be in the
market by 2000, but may range up to 2.5 MMBPD. Utility and industrial boiler fuels produced
by coal liquefaction processes will be most in demand in the gulf coast, northeast, and southern
California regions, as shown in figure 8. These regions contain a significant portion of the U.S.
population. The use of these fuels will also have some beneficial effect in areas that are sensitive
to particulate and sulfur dioxide since these fuels have lower ash and sulfur contents. As more
liquefaction capacity develops in the Appalachian and interior regions, liquid fuels will more
readily be used in the industrial areas of Indiana, Illinois, Ohio, and the upper Northwest. Shale
oil products during the period may reach a level of 0.4 MMBPD under the National Goal
Scenario and could reach as high as 0.9 MMBPD under the accelerated rate scenario. High-Btu
gas under these two scenarios is estimated at 0.5 MMBPD and 1.0 MMBPD respectively by
2000. As coal gasification technology develops, it is likely that a key area for gasification will
eventually be Appalachia, with SNG entering the existing pipelines and being distributed along
the east coast to both industrial and residential users.
This period is also characterized by increased use of coal liquid products for chemical
feedstocks and in the housing and commercial sectors for space heating and hot water supply.
Naphthas produced by liquefaction processes are likely to be used by the petrochemical
industries for manufacturing solvents, pesticides and chemical intermediates. Residues from
coal liquefaction processes may be used to manufacture several types of lubricants with a wide
variety of applications. This market penetration significantly increases exposure potential as
there is virtually no segment of the population that would be excluded from the use of synfuel
products and by-products.
In addition to synfuels utilization, EPA must also consider the transportation and handling
aspects of the synfuels products and by-products. As the synfuels develop during this period.
transportation modes other than pipelines will be utilized. Although there are associated risks.
pipelines are considered to present less risk than other modes such as railroads, trucks, and
tankers. As these modes are currently used for a wide variety of petrochemical products, it is
expected that they will also be used as synfuels penetrate the market, thereby presenting
another concern that EPA must address.
46
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Table 9 presents an estimate of the range of synfuel products to be shipped by the various
transportation modes beginning in the 1990s. Nearer to the year 2000, the relative amounts of
products transported between the modes may vary. The majority of the synfuel products as
well as crude shale oil will be transported by pipelines, which presents the least amount of
exposure potential. On the other hand, railroads which have a high accident potential will
transport the least amount of products. In order to supply the high demand regions, the
transport distribution networks may develop as illustrated in Figures 8 and 9. The distribution
system indicates that the crude shale oil, refined products, SNG, and coal liquids will each be
transported across areas of high population density and industrial concentration, mostly in the
eastern U.S. A market for 2.2 MMBPD of synfuels products and by-products by 1992 under the
National Goals Scenario indicates the magnitude of the problem for which EPA must prepare.
Table 9. Range of Synfuels Distributed by Mode of Transportation in the 1990's
SYNRIR PRODUCT PIPELINE RAH TRUCK
TANKS! OR BARGE
High Btu Gas (MMSCFD) (2)
Medium Btu Gas (MMSCFD)
Liquefaction Products
(MMBPD)
1900 - 4800
8300 - 5600
Heavy Fuel Oils and
Middle Distillates
Gasoline
Naphtha
LPG
Crude Shale Oil (MMBPD)
Refined Shale (MMBPD)
Gasoline
Jet Fuel
Diesel Oil
Residual Oil
Accident Risk
0.025 - 0.080
0
0
0
0.389 - 0.750
0.040 - 0.076
0.047 - 0.090
0.084 -0.162
0.025 - 0.047
Low
(t) MMSCFD * Million Standard Cubic Fx< per Day
(21 MMBPO " Million Barrel* o" Day
0
0
0.042 - 0.067
0
0
0
0
0
0
High
0.014 - 0.044
0.072 - 0.520
0.005 - 0.008
0.0 - .018
0
0
0
0.084 - 0.162
0.004 - 0.007
High
0.007 - 0.022
0.018 - 0.130
0.005 - 0.008
0.0 - 0.005
0
0.026 - 0.051
0.031 -0.061
0.042 - 0.162
0.007 - 0.014
Moderate
47
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, Figure 8. Potential Regions for Synfuel Demand for Industrial Fuel Applications
MOM DfMANO IIOIONS
Figure 9. Synfuel Resources and Distribution System in the l°°0's
r\
—Vi- i
Kl \
a*siriCATioN PLANTS
UOUtf ACTION MANTS
SMAU OIL PtANTS
UISTINO CIUPI OIL
TtUNKUNi TO MUNttT
NfW TKUNKUNI TO IfriMIIT
IXISTINO NATURAL OAJ TIUNKLINI
NIW SNO TtUNKLIM
48
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The transportation modes that will be utilized by the synfuels industry and which pose a greater
accident potential than pipeline transport are railroads, trucks and tankers. Railroads will be
used primarily for the transportation of naphthas which in 1992 are estimated to range from
0.04 to 0.07 MMBPD. This mode of transportation presents a high degree of accident risk due
to the poor condition of the Nation's rail system. Derailments, grade crossing accidents, and
collisions between trains pose potential risks to the transportation of any hazardous or toxic
substances. Tank car accidents with hazardous materials are shown in Table 10, providing
another example of potential risks associated with transporting synfuels products.
Table 10. Railroad Tank Car Accidents with Hazardous Materials
1979 1978
Total Accidents 937 1014
Accidents Involving 165 228
Atmospheric Release
Source: Federal Railway Administration
The use of tanker trucks will be extensive in transporting coal liquids and refined shale oil
products. In 1992 under the National Goal Scenario, approximately 0.4 MMBPD of gasoline
from coal liquefaction may be transported by truck, and up to 0.5 MMBPD under the
accelerated rate scenario. Other products using this mode are middle distillates and naphthas.
Potential exposure to the general population is high with tanker trucks since much of these
products will be delivered to urban areas where trucks will face the normal amount of traffic
accidents in congested areas. In addition, exposures to the products will occur in loading and
unloading of trucks at storage terminals and service stations. Due to vapor recovery
requirements mandated by state implementation plans, evaporative emissions of volatile
compounds are gradually being controlled, but pollution control systems must be improved to
further reduce emissions. Accidents or defective emission control systems provide the chief
potential for release of synfuels products by truck transport.
-------
Tankers and barges will also be used for the transportation of the refined shale oil and coal
liquids products and could be used extensively if the markets are accessible to the gulf coast.
Under the National Goal Scenario, 0.1 MMBPD each of gasoline and diesel oil may be
transported by these modes in 1992. Other products to a lesser extent are naphtha, LPG. jet
fuel, and residual oil. A significant amount of petrochemical products currently moves along
the Mississippi River to northern markets. The major emission source for this operation
involves loading and unloading; however, the accident rate is less than that of surface
transportation mode. As with truck loading, increased emission controls are being initiated for
ship and barge loading which will significantly decrease evaporative emissions by the time the
synfuels industry is developed. Improvements are also being made to reduce spills of
petrochemical products into waterways. Reduction of accidental spills and prevention of
intentional releases are currently under regulation by the Coast Guard and EPA.
In addition to transportation and handling, the storage of synfuel products and by-products
may pose potential environmental problems. These problems may occur primarily with refined
shale oil and coal liquids. As with other petroleum products they will be stored at bulk storage
terminals until used. By 1992, a total of 1.4 MMBPD of synthetic liquids will be produced under
the National Goal Scenario, and ranging up to 1.7 MMBPO under the accelerated rate scenario.
Exposures to these products at the terminals may occur during the loading and unloading
operations, as well as breathing losses from the tanks during product storage. The potential for
exposure depends upon the volatility of the products and the frequency of loading operations.
Since storage facilities are located at refineries, utility and industrial plants, airports and
numerous other facilities, exposure potential is significant. Concern over the uncertainties of
the constituents of synfuels may lead to storage procedures for these products that are more
rigid, and new storage vessels or containers for liquids may be required under stringent
specifications. Some emissions may also occur from low-level leakage.
As with other major control requirements for loading and unloading petroleum products,
vapor recovery techniques for bulk storage facilities are being Improved, primarily by the use of
floating roof tanks. Synfuels such as SRC II liquids have vapor pressures similar to No. 6 fuel oil
which has very low evaporative emissions and working losses compared to gasoline. Fugitive
emissions of synfuels will always be present as they are with other petroleum products.
However, there will be new control systems developed and emissions will be reduced over the
next several years through improvements in emissions control procedures in transportation.
handling and storage operations. Only after thorough toxicity testing of synfuel products and
by-products can an assessment be made of whether synfuels transportation, handling and
storage will pose environmental, health, and safety problems greater than those experienced
in the petroleum refining and chemical manufacturing industries.
50
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ENVIRONMENTAL CONTROL
TECHNOLOGY NEEDED FOR
SYNFUELS UTILIZATION
The utilization of synfuels products and by-products will require improvements in existing
environmental control technology and the development of new technologies. In order to
assess the control technology requirements, it is necessary to first understand the hazards
associated with synfuel utilization. This may be accomplished by determining the constituents
of synfuels products and by-products, their transformation upon use, and ultimate fate in the
environment. These data in turn must be tied closely to the product buildup rate described in
each of the scenarios since these impact the types of products produced and their rate of
penetration into the market. Once these factors are understood, then control technology
options may be evaluated. This cycle must be completed within the next 10 years in order for
EPA to meet the synfuels challenge.
51
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EXISTING DATA REGARDING HAZARDS OF SYNFUEL PRODUCTS IS SPARSE
At the current time there is a lack of sufficient data available to properly assess the potential
risks associated with the utilization of synfuel products and by-products. The development of
these data will require significant efforts on the part of the government, industry and the
academic community to generate sound, reliable information to assure minimum risks to the
health and welfare of the nation as synfuels are introduced into the market. This synfuels data
base must contain not only accurate and representative information about the physical
properties, chemical composition and biological activities of synfuels, but must also contain
equally comprehensive data on the end uses of the products and by-products.
The DOE and EPA are presently conducting significant research efforts on synfuels product
characterization. The results of some of the shale oil and coal liquid products are becoming
available. An example of the preliminary analysis of these two products compared with
petroleum crude is presented in Table 11. There are some similarities in the diaromatic content
between shale oil and petroleum crude, with coal liquids having the highest content. This factor
may be significant if a spill of these products occurred, as impacts on water pollution would be
less than from coal- liquids. A comparison between coal and petroleum- derived gasolines is
presented in Table 12, indicating significant variations in aromatics and unidentified com-
pounds. Due to the high aromatic content of the coal derived gasoline, potential adverse
health effects may occur from widespread use of this fuel in automotive applications. Some of
the synfuels products and by-products may be classified as toxic chemicals under the Toxic
Substances Control Act (TSCA).
Table 11. Diaromatic Content of Synthetic Crudes and Crude Oils
CONCENTRATION1, mg g
TYPICAL
SHAIE COAL PETROLEUM
CONSTITUENT OIL SYNCRUOE CRUDE
Naphthalene 1.39 1 68 0 37
2-Methylnaphthalene 0.91 3 .47 1 04
l-M«thylnophthol«ne 0.68 Ml 075
Biphenyl 0.06 044 T
2. 6-Oimethylnaphthalene 0.10 0 81 0 08
1, 3/1, 6-Oimethylnoph»halene 163 301 148
2. 3-Dimethylnaphtholene 0.28 1.23 051
1. S-Dimerhylnophthalene 0.03 0 67 0.08
1. 2-OimethylnapMholene 0.19 0.23 031
Acenaphthalene ~ 026 219 030
Acenaphthene T 0.30 ,N£.
Total 523 154 542
'T > lta». NO • net oo«»a*d Sourer Oak ««*«• Notional laboratory
52
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Preliminary health effects studies have indicated that coal liquids have industrial toxicity ratings
similar to those of benzoic acid, phosphoric acid, sodium tartrate, and polychlorinated
biphenyls (PCB). Coal liquids have also been found to be less toxic than pesticides such as
dieldrin and chlordane, and more toxic than crude petroleum and shale oil. Historical
epidemiological and animal studies have established that coal tars and pitches from coal
coking, gasification, and combustion possess a carcinogenic nature. Although these studies
are not all directly comparable, it would appear that some high boiling point products from
direct liquefaction processes or from coal pyrolytic processes may possess a high degree of
carcinogenic! ty.
. Table 12. Major Chemical Component Classes of Petroleum and Coal-Derived Gasoline
GASOUNE
CHEMICAL GROUP Petroleum-Derived1 Coal-derived2
Total
Total
Total
Total
Saturates
Alkenes
Aromatics
Unidentified
56.38 -
5.00
24.32 -
0
68
- 7
32
- 3
.68
.69
.91
.02
20.1
34.20
0 -
- 68.5
0
- 75.63
12.8
Data are from Sanders and Moynard (1968) and Runion (1975).
The range of numbers are for different grades of gasoline
of low, medium, or high octane.
Data are from EPRI (1978). The range of numbers correspond
to different amount of hydroprocessing. Increased hydro-
processing results in fuel with a lower aromatic content.
It is apparent that although work has started in the right direction to assess synfuels hazards,
much work still needs to be conducted. As the physical, chemical and biological results are
analyzed, and potential risks evaluated, decisions can start to be made as to the various
pollution control technologies that can be most effectively applied in the utilization of synfuels.
53
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PRODUCT BUILDUP RATES WILL
DETERMINE MAGNITUDE OF
ENVIRONMENTAL IMPACTS
Once the hazards of synfuels products and byproducts are known, their relative impacts on the
environment will depend upon the product buildup rate and market penetration as described
for each of the scenarios. All media, air, water and land, must be considered.
54
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Air pollution impacts will occur primarily from the combustion of synfuels in stationary and
mobile sources, with some impacts from fugitive emissions occurring during transportation,
storage, and handling operations. Under the National Goal Scenario, coal liquids and shale oil
products will contribute the greatest percentage of products. A level of 1.4 MMBPD of these
fuels will be produced in 1992 and continue through 2000. Coal liquids will most likely be used
in all sectors of the market including utilities, transportation, industrial, and commercial. As
most of the products will be used in stationary sources, the air pollution impacts are expected
to be less than from shale oil products, all of which will be used by transportation sources. The
individual mobile sources do not lend themselves to as effective emission controls as
centralized stationary sources. Due to the moderate amount of petroleum product use that is
expected to be replaced by synthetic liquids, the air pollution impacts are expected to be
moderate.
Under the nomional rate scenario (Scenario 2), only 0.5 MMBPD of liquid fuels will be
produced in 1992, and the 1.4 MMBPD level will not be reached until 1998. This will provide
relatively lower air pollution impacts from liquids combustion than the National Goal Scenario.
The use of low- and medium-Btu gas is projected to be higher under scenario 2 than scenario I.
although air pollution impacts are not considered to be significant since these products will
most likely be used for in-plant and feedstock applications.
The greatest relative impact would occur under the accelerated rate scenario, as the quantities
of each product are higher than for each of the other two scenarios. By 1992, shale oil and coal
liquids production reach a level of 1.8 MMBPD and as much as 3.5 MMBPD by 2000. Shale oil in
this period is in excess of 0.9 MMBPD, all of which is used in transportation sources. As shale oil
products can be used virtually anywhere in the U.S., there is very little of the population that
may not be exposed to the combustion products. If the majority of the products are used by
the military sector, the geographic area of use may be better defined. Significant market
penetration under this scenario will also be made by SNG which may be used in all sectors with
the exception of transportation. As this product has widespread application, its composition
must be accurately defined to determine if combustion will produce air pollution impacts
different from use of natural gas.
Water pollution will occur primarily from spills associated with the transportation of synthetic
liquids. As the production of these is greatest under the accelerated rate scenario, it provides
the greatest potential for these impacts. The crude and refined shale oils, as well as coal liquids
will be transported over long distances by pipelines, and then to markets by various modes of
transportation. The loading of tankers and barges, and transportation of the products by
waterways provides a moderate degree of spill potential.
Solid wastes will be generated primarily by the pollution control systems used during synfuels
utilization. These systems will be limited to stationary source applications where the coal
liquids and gases are used in utilities and for industrial processes. As the quantities of solid
wastes produced will be dependent on the amount of these fuels used, it will have the greatest
55
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impact under the accelerated rate scenario. Oil shale products will not contribute to these
Impacts since they will be used in transportation sources. By 1992 under this scenario.
coal-derived fuels will be produced at a level of 1.8 MMBPD and 4.1 MMBPD by 2000. The
majority of these products will be used in stationary sources with emission control systems
producing solid wastes. Under scenario 2, only 1.7 MMBPD of coal-derived fuels will be
produced by 2000, and 1.8 MMBPD under the National Goal Scenario. As another example of
the need to determine synfuel composition, the solid wastes generated by control systems
may contain toxic or hazardous components which upon disposal may leach into ground-
waters at waste disposal sites.
On the basis of the information presented, significant data need to be developed to assess
control technology options. The optimal method of control, if achievable, would be to upgrade
the products to remove as much of the pollutant source content as possible rather than rely on
downstream pollution controls. This would have significant benefits on pollution impacts that
may occur prior to product utilization. As an example, fugitive emissions into the atmosphere,
or spills into waterways would not be expected to be severe if the majority of pollutants were
removed during the manufacture of the product.
Once the products are ready for combustion, emission controls will be necessary if product
upgrading is unsuccessful. Recent small-scale tests of synfuels combustion have provided
encouraging results from an environmental perspective. Several combustion tests of SRC
liquids and solids, EDS and H-Coal liquids, shale oil, and coal derived gases have been
conducted. For test purposes, some of the combustion devices were not equipped with
high-efficiency pollution control devices. Once the products are used in commerce. Best
Available Control Technology (BACT) will be required.
EPA is currently proceeding to develop Pollution Control Guidance Documents for all of the
synfuel technologies that are being considered under the three scenarios. The purpose of
these documents is to foster the development of acceptable synfuels technologies with a
minimum of regulatory delays. A similar series of documents may be prepared for the utiliza-
tion of the products from these technologies.
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SIGNIFICANT ENVIRONMENTAL
ISSUES FOR SYNFUELS UTILIZATION
• Although a few synfuels products have been included in the toxic substances inventory,
most synfuels may be designated as new products under TSCA. EPA will have to identify
potential risks associated with the transport and use of synfuels products and by-products, as
well as their end uses. Risk and exposure concerns depend on the market infrastructure and
likely end use of the variety of products that will result. More diverse end uses and methods of
handling, storage, and distribution will increase the exposure potential.
• In addition to TSCA, stipulations of the Clean Air Act will also impact the synfuels market.
Atmospheric emissions from fugitive sources are potentially an environmental concern, as well
as end-use combustion emissions. These emissions must be characterized so that BACT
determinations can be made. Similarities and differences with related petroleum products
need to be evaluated.
• Potential atmospheric emissions are much more diverse than the limited set of criteria
pollutants which constitute the majority of air pollution concerns today. A critical issue is not so
much that hydrocarbons may be an emission, but rather an assessment is needed of the kinds
of other organic emissions and the associated risks.
• The potential of accidental spills in the transport and storage of synfuels products and
by-products is one of the most critical concerns for protection of groundwater quality and
dependent drinking water sources, as stipulated by the Clean Water Act. Additional
contamination of receiving waters could be caused by area washdown and stormwater runoff
at facilities where minor leakage occurs.
• RCRA requirements will include an integrated solid and hazardous waste management
program. Waste oils, storage tank sludges, disposable materials (seals, packing, etc.), and ash
residues can all be anticipated from synfuels usage, in addition to waste by-products.
• There is a high probability that synfuels will be blended with petroleum products, either as
refinery and petrochemical feeds or as products at end-use locations. EPA will have to judge
the applicability of existing regulations covering petroleum product transport and use when
the product characterizations are related to blend ratios. Furthermore, synfuels materials that
will be used as chemical feedstocks will require environmental assessments regarding their
physical, chemical, and biological acceptability.
• The eventual complexity and diversity of the synfuels market infrastructure will represent a
challenge to traditional environmental monitoring and inspection procedures, as well as
control technology assessment.
• Some of the control approaches will be equipment and operations oriented. This
characteristic will require a close EPA interface with other regulatory agencies (such as DOT.
ICC, and Coast Guard) regarding transportation operations which are both safe and
environmentally acceptable.
• The feasibility of segregating the handling and end-use of potentially hazardous synfuels will
certainly have to be evaluated. Proper assessment of environmental risks from synfuels
product end-use will be needed to establish exposure estimates.
PERMITTING AND PROGRESS
EPA's regulatory' role in an emerging synfuels market will involve permitting for the production,
storage, transportation, and end use of the products. Permitting procedures will have to be
streamlined to eliminate unnecessary delays in the long-range national goal of reducing
petroleum imports. TSCA requirements will be particularly critical in this emerging industry.
Plans have been announced by some industries to begin construction of plants to supply SNC
and chemical feedstocks. Synfuels projects scheduled for the mid-1980s include shale oil
development in Colorado and Utah, and the SRC II demonstration plant in West Virginia. With
typical engineering and design efforts requiring 2 years, and construction another 2 to 3 years,
it is essential that all permitting be complete within 1 year to keep these critical developments
on schedule.
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