EPA-AA-SDSB-82-05

                         Technical Report
               Indirect Coal Liquefaction Processes
                                by


                          David Fletcher

                                and

                           John McGuckin
                           February 1982
                              NOTICE

Technical Reports do  not  necessarily  represent final EPA decisions
or positions.   They  are intended to  present  technical  analysis of
issues using  data which  are  currently available.   The  purpose in
the release of  such reports is  to facilitate the exchange of tech-
nical information and to inform  the  public  of  technical develop-
ments which may  form  the basis for a final EPA decision, position
or regulatory action.

             Standards Development and Support Branch
               Emission Control Technology Division
           Office of Mobile  Source Air Pollution Control
                Office of Air, Noise and Radiation
               U.S. Environmental Protection Agency

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                        Table of  Contents

                                                               Page
I.   Introduction/Summary 	    1

H.  History of Methanol Production 	    7

III. The Methanol Production Process	    9

IV.  Gasification Technology	11
     A.    Fixed or Slow Moving Bed	12
     B.    Fluidized Bed	18
     C.    Entrained Bed	19

V.   Synthesis Technology 	   22
     A.    ICI Low-Pressure Methanol Synthesis	26
     B.    Lurgi Low-Pressure Methanol Synthesis	27
     C.    Haldor Topsoe Methanol Synthesis 	   27
     D.    Mitsubishi Gas Chemical Methanol Synthesis ....   28
     E.    Vulcan-Cincinnati High-Pressure	29
             Methanol Synthesis
     F.    Wentworth Brothers' Methyl Fuel Process	29
     G.    Chem Systems' Liquid Phase Methanol Synthesis.  .  .   30
     H.    Mobil Methanol-to-Gasoline Process 	   31
     I.    Fischer-Tropsch Process	32

VI.  Comparison of Indirect Liquefaction Design Studies ...   33

     A.    Methanol from Bituminous Coal.	34
     B.    Methanol from Subbituminous Coal .........   44
     C»    Methanol from Lignite	48
     D.    Production of Gasoline from Coal via	61
             Fischer-Tropsch and Mobil MTG Technology

References	73

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I.   Introduction/Summary

     The purpose of  this  paper  is to assess the  coal  to methanol,
methanol  to gasoline,  and  Fiseher-Tropsch. technologies,  and  to
estimate the capital investment and  product  cost  of  these indirect
liquefaction  processes.    Over  the  past  five  years  many  study
designs  have  been  performed on  the  production  of  methanol  and
other  indirect  liquids  from coal.   Some  of   these  are  original
designs, while  others  are  secondary studies,   taking  one or  more
original designs and adjusting economic  parameters, etc.   Figure 1
shows  the  chronology of  the  available indirect  coal  liquefaction
studies and their interrelationships.  Since the  secondary studies
only   modified   the  economic  basis   of   the   original  studies
referenced  and  not  the  basic  design  and,  since each  secondary
study  used a  different  basis,   preventing  intercomparison,  this
study  will  restrict itself to the original studies and  attempt to
place  them all on one single  comparable  basis.   The  following  is a
list of these original studies:

     "Screening Evaluations:  Synthetic  Liquid  Fuels  Manufacture,"
Ralph M. Parsons Company for EPRI, August,  1977, EPRI AF-523.[1]
(This  report  estimates  the  cost  of methanol  from four  different
gasification  technologies,   Foster-Wheeler,   BGC-Lurgi,   Koppers-
Totzek,  and Texaco, with Chem  Systems methanol synthesis.   The
study   also   looks   at   the  Fiseher-Tropsch  process   following
BGC-Lurgi gasification.)

     "Coal  to  Methanol Via  New  Processes  Under  Development:   An
Engineering and  Economic  Evaluation," C.F.  Braun and Company  for
EPRI,  October,  1979, EPRI AF-1227.[2]   (This report  covers  two
coal to methanol processess  Illinois  No.  ,6 coal to. methanol  via
Texaco  gasification  and  Chem  Systems methanol  synthesis,   and
Wyodak coal to distillate  fuel  and vacuum  residual oil via  a  non-
catalytic hydroliquefaction  process  in which  the residual  oil  is
processed into methanol by the same process as  the coal.)

     "Economic Feasibility Study,  Fuel  Grade  Methanol   From  Coal
For  Office  of  Commercialization   of   the  Energy   Research   and
Development Administration," McGeorge, Arthur,  DuPont  Company,  for
ERDA,  1976,  TID-27606.[3]   (Eastern coal  to  methanol via  Texaco
gasification with ICI synthesis.)

     "Conceptual  Design  of  a Coal-To-Methanol Commercial  Plant"
(Vols.  I-IV),  Badger  Plants,   Inc.,  for  DOE,   February,   1978,
FE-2416-24.[4]   (Eastern  coal-to-methanol  via  Lurgi  "slag-bath"
gasification and Lurgi low pressure methanol synthesis technology.)

     "Production  Economics  for   Hydrogen,  Ammonia,  and  Methanol
During  the  1980-2000 Period,"  Cornell, H.G.,  Heinzelmann,  F.J.,
and Nicholson, E.W.S., Exxon Research and  Engineering Co.,  April,
1977.[5]    (Eastern  coal  to  methanol  via   Koppers-Totzek   and
Shell-Koppers gasification with ICI synthesis.)

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Year
76
77
78
79
80
81
                                                  Figure 1

                                           Methanol Report  "Tree'
     1JEPRI (Parsons)
          Screening
Exxon (Chem
 Systems)
AlBadger Methanol
                                                                                     Mobil
                      Badger
                     Gasoline
             Methanol
            Use Options
                                                                        )Wentworth
                                                                        C.F.  Braun
                                                                                                                  ro
                                                                                                                  I
  C_) Original studies*
  /~\Secondary studies-

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                                -3-
     "Methanol  From  Coal,   An Adaptation  from  the  Past,"  E.E.
Bailey, (Davy McKee),  presented at The Sixth  Annual International
Conference;  Coal  Gasification,  Liquefaction  and  Conversion  to
Electricity,  University  of   Pittsburgh,  1979.[6]   (Subbituminous
coal to methanol via Winkler gasification and ICI synthesis.)

     "Research  Guidance Studies  to  Assess Gasoline From  Coal  By
Methanol-To-Gasoline and  Sasol-Type  Fischer-Tropsch Technologies -
Final  Report,"  Schreiner,  Max,  Mobile  R&D  Company,  for  DOE,
August,  1978,  FE-2447-13.[7]   (Comparison  of  eastern  coal  to
methanol and SNG, and  gasoline and SNG by Lurgi  gasification/Lurgi
synthesis/Mobil  MTG  with gasoline  from  Lurgi  gasification  and
Fischer-Tropsch synthesis.)

     "Lignite-to-Methanol:   An Engineering  Evaluation of  Winkler
Gasification and  ICI  Methanol Synthesis Route,"  DM International,
Inc.  for   EPRI,  October  1980,  EPRI  AP-1592,  Project  832-3.[8]
(Lignite to methanol via modified Winkler and ICI synthesis.)

     "Production of Methanol  from  Lignite," Wentworth Bros., Inc.,
and  C.F.  Braun and Co.,  for  EPRI,  September  1979,  EPRI  AF-1161,
TPS-77-729.[9]   (Lignite  to  methanol  via  Texaco gasification and
WBI synthesis.)

     "Conceptual    Design   of    a    Coal-to-Methanol-to-Gasoline
Commercial  Plant,"  for DOE,  March  1979,  FE-2416-43.[10]   (Adds
Mobil process to methanol design of study no.  4 above.)

     Methanol;  To estimate  the cost of producing methanol,  all  of
the  design studies  were:   1)  normalized  to a production  yield  of
50,000 fuel  oil  equivalent  barrels per calendar  day (FOEB/CD) and
a common financial basis and  2)  inflated  to $1981,  as discussed  in
a previous report.[11]  Of the  thirteen  designs  contained  in the
above   ten  studies,   nine    used  bituminous   coal,   two   used
subbituminous  coal  and two  used lignite as  a feedstock.   The
studies included eight  different coal  gasification  technologies
(Foster-Wheeler  (1),   BGC/Lurgi  (1),  Koppers-Totzek  (2),  Texaco
(4),  Lurgi   (1),   "Slag-Bath"  (1),  modified   Winkler   (2)   and
Koppers-Shell(l)) and  four different  types of methanol  synthesis
processes  (Lurgi (2),  ICI  (5),  Chem  Systems  (5), and  Wentworth
Bros. (1)).

     The  Winkler,  Lurgi  and  Koppers-Totzek gasifiers  have  been
proven on  a  commercial scale and the Texaco process  is very close
to  commercialization.   The   rest   of  the gasifiers  are  still
advanced technologies.  The  Winkler, a fluidized bed  reactor, and
Lurgi,  a   fixed  bed  reactor,  are  best suited  for  the  non-caking
western  lignite  and   subbituminous   coals.   Koppers-Totzek  and
Texaco are examples of the entrained bed  gasifier which can handle
all  types  of coal,  but may be  the only  type  of  gasifier  that can
economically utilize the caking eastern coals.

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                                -4-
     Of  the  synthesis units,  ICI. and Lurgi  are used  extensively
today.  Wentworth Bros, claim  that  their  process  is commercial and
Chem Systems is a new process which is still  being tested.   Lurgi
and ICI  have  been  competing for the last ten years and  both have
highly developed  processes,  good  efficiencies  and, according  to
Parsons,[1] room for further  improvement is  small.  In  addition,
Parsons states that  the Chem  Systems process  only shows a slightly
higher thermal efficiency  and  lower  capital  cost than the  ICI
system.   Since the  costs  of  the  proven  ICI  and  Lurgi  synthesis
processes  are  indistinguishable and it appears  that the  cost for
the  Chem  Systems  process  is  only  slightly  lower, it  has  been
decided to place most  of  the emphasis here on comparing  the costs
of the various gasification technologies, which appear to be more
significant.

     The  original  ranges  of  product  costs  and  capital   costs
reported  by  the thirteen studies are  very large  due  at  least  in
part  to  the  large range  in plant size  ($3.74-12.55 per  mBtu for
product  cost  and  $0.401-$5.05  billion  for  capital,  $1981,  for
plants ranging from 2,000-58,000 ton  per day of methanol).   With
such  a wide  spread of data it is very  difficult to estimate the
actual cost of methanol,  let  alone  compare it with  any other coal
technologies.   After  normalizing  the   costs  for the   thirteen
studies the ranges of costs were much smaller.

     For  bituminous  coals  the product  cost ranged  from $4.65-9.05
per mBtu  for the low capital  charge rate  (CCR) and  $8.14-12.54 per
mBtu  for  the high CCR.   The  gasifiers used  in  these  studies are
Foster-Wheeler,  BGC-Lurgi,  Koppers-Totzek, Lurgi  Slag Bath,  and
Texaco(2).

     Of  these gasifiers  the  Koppers-Totzek   is  proven,  and  the
remainder  represent advanced  technology.  The   cost  of  methanol
from  these gasifiers  are  presented in  Table 1.   When using the
Koppers-Totzek  gasifier  the  cost  ranges  from  $7.23-12.42/mBtu
depending  on  the capital  charge rate;  for the Texaco gasifier the
cost  ranges  from $5.90-6.48  and $9.44-10.41/mBtu;  for the  other
advanced   technology   the    cost   ranges   from   $5.30-6.08   to
$8.74-9.78/mBtu.

     The  range of  instantaneous  plant  investment for  the  nine
cases was  $1.93-$2.92  billion  (50,000  FOEB/CD  plant).   As  shown in
Table 1,  the  instantaneous  plant investment for  the methanol plant
using bituminous coal  ranged  from $1.99  to $2.21 billion  when the
Texaco gasifier was used,  $2.92  when  the Koppers-Totzek  gasifier
was  used,  and  ranged from   $1.93-2.22  billion  when  the   other
advanced  technology gasifiers were used.

     The  range of  product and capital  costs for  methanol  from
subbituminous  coals   and  lignite  are   smaller  than   that  of
bituminous.   Of  the  two  studies  using  subbituminous  coals,  one
uses  proven  gasification  and synthesis  technology,   Lurgi/Lurgi
[7],  while the  other uses a  gasification  technology which  the
manufacturer claims is "here now," and a  proven  synthesis  process,
modified Winkler/ICI.[6]   The average  product cost  range  is  fairly

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                                -5-
                                    Table 1

                     Product and Capital Costs of Selected
                   Coal Liquefaction Processes(1981 Dollars)
Texaco
(Bituminous)[2,3]

Koppers (Bitum.)[l]

Advanced Technology
(Bi tuminous)[1,4]

Lurgi (Subbit.)[7]
Modified Winkler
(Lignite)[8]

Texaco (Lignite)

Lurgi Mobil MTG
(Subbit.)[7]
Mobil MTG
Incremental Cost

Fischer Tropsch[7]
Product Cost
($/mBtu)
Product Mix
100% MeOH*
100% MeOH*
100% MeOH*
47.9% MeOH*
49.7% SNG
2.4% Gasoline
Average
100% MeOH*
100% MeOH*
41.2% Reg. Gasoline
53.3% SNG
5.5% LPG
Average
85-90% Reg. Gasoline
10-15% LPG
1.8% LPG
64.5% SNG
2.6% Alcohols
25.3% Gasoline
4.6% Diesel Fuel
1.3% Heavy Fuel Oil
Average
11.5%
CCR
5.90-6.48
7.23 -
5.30-6.08
7.04
5.63
7.04
6.34
5.70
6.92
8.01
6.41
6.25
7.06
1.45
6.56
6.82
8.52
8.52
7.67
6.56
7.60
30%
CCR
9.44-10.41
12.42
8.74-9.78
12.48
9.98
12.48
11.24
9.56
12.24
14.35
11.48
11.20
12.65
2.87
11.36
. 11.80
14.75
14.75
13.28
11.36
13.38
Capital
Cost**
(Billions
of Dollars)
1.99-2.21
2.92
1.93-2.22
2.59
2.17
3.00
2.95
0.68
3.00
*    MeOH = 95-98% methanol, 1-3% water, and the remainder higher alcohols.

**   Instantaneous capital costs.

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                                -6-
small, $6.16-$6.34 per  mBtu for the low CCR  and $10.26-$11.24 per
mBtu  for  the  high CCR.   The  instantaneous plant  investment  range
is  $2.10-$2.59  billion.   Although  the  costs  seem  to  compare
favorably, only the Lurgi/Mobil  prices  are shown in Table 1.   This
is because the modified Winkler/ICI plant  size  had to be scaled up
significantly where as  the Lurgi/Mobil plant size was  much closer
to the  selected 50,000 FOEB/CD  and was therefore  considered  more
accurate.

     Four lignite cases were  studied.   However,  two of  these  cases
used  Texaco  gasifiers  with coal  slurry  concentrations  which are
still  in a  developmental  stage.   The  other  cases involved  the
Texaco gasifier (at an  appropriate coal slurry  concentration) and
the  Winkler  gasifier.   At this  slurry concentration  the  Texaco
gasifier  appeared  to  have  a  large economic  disadvantage relative
to the  Winkler gasifier,  so  the  Winkler  was  chosen as  the  best
design.  The resulting product costs for the  low and high CCRs are
$5.70 and  $9.56/mBtu,  respectively.   The  instantaneous investment
plant cost is $2.17 billion.  These costs are shown in Table 1.

     In summary, the  prices which have been  chosen  for this  study
represent  two   commercially  proven   gasification  technologies,
Koppers-Totzek   and   Lurgi,   a   modified   Winkler,   which   the
manufacturer will back  financially, and the near commercial Texaco
gasifier.   For bituminous  coals,  the Koppers-Totzek  prices  are
higher  than  Texaco's  because the former  operates  at  atmospheric
pressure.

     MTG;  To  evaluate  the cost of producing  gasoline  from  coal
utilizing   Mobil's   methanol-to-gasoline   (MTG)   process,    two
different studies  by  Mobil and  Badger were  analyzed in  the  same
manner as  the  methanol studies.[7,10]   Gasoline costs  from  these
two  studies  varied  widely.   Therefore,   it  was  presumed   that
incremental  product  and  capital  costs  for  Mobil's MTG  gasoline
relative  to methanol  could be determined from both  studies and be
more  accurate   since  methanol  costs   (capital   and  product)   were
available  for  the  same  technology  by the   same  designers.[7,4]
When  the  cost  of gasoline  was  compared to  that of  methanol,  the
incremental  cost  of  gasoline for both  studies  was very  close.
Since the MTG  process is  a patent of  Mobil's, it  is believed  that
their study  is more reliable; therefore  their  costs were  used in
preference to Badger's,  which were slightly higher.

     The  Mobil  study  analyzed a  few  different  cases with respect
to the Mobil MTG  process.  The  most economical  was  the case  which
produced  gasoline  and SNG as the  major products.   For  this  case,
the average product cost  ranged  from $7.06-12.65 depending on the
CCR.   The total  instantaneous plant  investment  was  $2.95 billion.
These costs  are shown  in Table  1.   By comparing  this  case  with
Mobil's   other  case   (methanol   from   Lurgi   gasification   of
subbituminous  coal)  an  incremental  cost  of  gasoline  relative  to
methanol was determined.   Based  on a  50,000  FOEB/CD  MTG  unit,  the

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                                -7-
incremental cost of gasoline over methanol was  found to range from
$1.45-2.87  per  mBtu  depending  on   the  CCR.    The  incremental
instantaneous  investment  was  found   to  be   approximately  $680
million  for a  plant   producing  all  methanol  and  then  gasoline.
These costs are also shown in Table 1.

     Fischer-Tropsch;   There  were  two studies which investigated
Fischer-Tropsch  synthesis  technology,  Parsons  and  Mobil.[1,7]
Since the Mobil study was based on  a  more  thorough design than the
Parsons study, its  costs were  used in  preference.   The instantan-
eous plant  investment  cost for the Mobil  case was  $3.00 billion.
Its average product cost ranged from $7.60-13.38  per mBtu depend-
ing on the CCR.  The costs of the products from this case are pre-
sented in Table 1.  The  Mobil study was also  used to determine the
average product  cost  difference between Fischer-Tropsch  synthesis
and methanol synthesis plants.  The instantaneous plant investment
difference  is  $355 million and  the  operating  cost  difference  is
$67  million with  the  Fischer-Tropsch case  costing  more.   The
figures  translate  into   an  average   product  cost  difference  of
$1.00/mBtu.

II.  History of Methanol Production

     The  primary  source  of all  methanol prior  to  the 1920's  was
the destructive  distillation  of wood.   In this  pyrolysis process
air was  excluded while  the  wood was  heated to  a  temperature  of
160-400 degrees  Centigrade.  As  the components of the  wood heated
they  volatilized  and  thermally  decomposed.:   The:  products  were
separated  into gases  and a condensed liquid  called pyroligneous
acid.  Upon further distillation  this  liquid  could  be  separated
into acetic acid,  acetone and rather  impure  methanol.   Since  the
yield was three  to six  gallons  per ton of wood, the  product  was
very expensive.[12]

     During the  pre-World War  I period, the development  of a syn-
thetic methanol process  began in Germany and  France.  Between 1910
and 1916  there were several  patents  issued  in  Europe  describing
the chemical  reaction  of  carbon  monoxide (CO)  and  hydrogen  (H2)
to  form  alcohols,  ketones,  aldehydes,  etc.   The  reaction  was
carried out at temperatures of 300 to 400 degrees  Centigrade  and
at pressures at  or above 1500 psi.   Catalysts  containing  chromium,
zinc, manganese and cobalt, or  their oxides  were  used  to help the
conversion of the carbon monoxide and hydrogen to methanol.[12]

     In 1923,  BASF  in  Germany  became the first  company  to produce
commercial-scale  synthetic  methanol.   The U.S.  started  importing
synthetic  methanol produced  from  coal  or  coke in 1924.   Soon
Commercial  Solvents  Corporation and  DuPont  became  interested  and
by  1928   each  had a  commercial plant producing  methanol  in  the
U.S.[12]

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                                -8-
     When-  coal, and coke  derived synthetic methanol  hit  the  U.S.
market  there was  an  enormous  difference between the  price  of
natural  and  synthetic  methanol.   Natural methanol cost  68  cents
per gallon while synthetic methanol could  be made  for  36 cents per
gallon.  The price  competition was so great that  the  natural  wood
distillers united and managed  to  persuade  the  tariff commission to
increase the import tariff to  18  cents  per gallon.   They also  were
able to  get  legislation passed  which mandated the use  of natural
methanol to  denature  ethanol, thus securing  a third of  the  total
methanol market.[12]

     The wood  distillers  managed to keep  the price  of  natural
methanol competitive  for  a number  of years  through  consolidation
and  larger,   more  efficient  plants.   However,   with  the  large
discoveries of  petroleum  and natural gas  and the  mass  production
of  high-purity methanol,  the  synthetic  manufacturers  were  soon
able to  lower  the  price of methanol  beyond reach,  leaving natural
methanol producers to their captive denaturant market.[13]

     The first plants were built in conjunction with  other plants
to make  use  of carbon  dioxide or hydrogen by-products.   However,
as the  demand  for  methanol  grew, plants  were built  specifically
for methanol  production.   The  first  feedstock to  be  gasified  to
carbon monoxide  and hydrogen  was coal.   Later  the feedstock  was
shifted  to oil and  then natural gas as  large  discoveries of  these
sources  were made and  their  prices  dropped.   Natural gas was  an
ideal feedstock  because it contained very little,  if any,  sulfur
and  its .price  was  very low.i   Thus   by  the  1960's,.  synthetic
methanol in the U.S. was  almost  entirely produced  from natural gas
utilizing the high-pressure methanol synthesis process.[13]

     By  1967  the  combination  of a  common feedstock,  comparative
technology and  a competitive  market  had  stabilized  the  price  of
methanol  at  27  cents  per  gallon.   However,  in  1967,  Imperial
Chemical   Industries   (ICI)   introduced   a  newly   developed
low-pressure  synthesis  process   based   on  a  copper-zinc-chromium
catalyst in place  of  the  zinc-chromium  catalysts  previously used.
Since these  copper catalysts were more  reactive  than the  others,
lower  operating pressures  and  temperatures   could be  used.    In
fact, by the latter part  of  1971, the  selling price of methanol
had dropped to 11 cents per gallon.[13]

     In  the 70's the  increasing  cost  of  production, the  demand for
low-sulfur natural  gas  and  the  OPEC oil  embargo  of  1973  brought
into  focus  the  energy crisis  and  the  finite supply  of  fossil
fuels.   The  tripling  of  oil  prices  and doubling   of  the cost  of
natural  gas  caused the price  of methanol to  triple  between  1973
and 1975 (14 cents/gal  to 42 cents/gal).  Since 1975  the price  of
methanol has continued  to increase with that  of natural  gas.   The
current  price  for  methanol  is  between  72  and  80  cents   per
gallon.[13]

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                                -9-
     Between the time it was  first introduced  into the U.S.  and
today, methanol has exhibited a  dramatic  growth.   For  the first 45
years there was a 13.7 percent average  annual growth rate.[12]   In
the 1930's plant  sizes  ranged  from 20  to 40 tons of  methanol  per
day.  By  the  early 50's  the  size has  risen to  150-200  tons/day.
In the 70's the  capacity  has gone from 1,500 to  2,000 tons/day to
single trains of 5,000 tons/day.[13]

     Methanol  production in  the United States  is  now  near  4
million  tons  per  year  or  about 70,000  barrels per day  (BPD).
Virtually  all  of  this  is   produced from natural  gas. [12]   The
natural gas  (essentially  pure  methane) is reformed  with steam to
produce a  synthesis  gas consisting mainly of carbon  monoxide  and
hydrogen.   After purification,  the synthesis  gas  is  compressed  and
combined  in  a  catalytic  converter  to  produce methanol.   The
reaction  is  highly exothermic  while the conversion  per pass  is
relatively small (2-10 percent).  Large volumes  of unconverted  gas
are  recycled  through  the  converter   in order  to  achieve  high
overall conversion and  to assist in  removing the exothermic  heat
of reaction.   Overall CO conversions of  96  to  99 percent  can be
obtained.[14]

III. The Methanol Production Process

     The  basis  of   all  processes   for   manufacturing  synthetic
methanol is  the  catalytic reaction of  carbon monoxide and  carbon
dioxide with  hydrogen  to produce methanol.[12]   These  reactions
are shown-below.

     Carbon Monoxide -f Hydrogen = Methanol

     CO + 2H2 =  CH3OH                                          (1)

     Carbon Dioxide + Hydrogen =  Methanol + Water

     C02 + 3H2 =  CH3OH + H20                                   (2)

     The  source  of carbon monoxide  or carbon  dioxide is  usually
derived from the  partial  combustion  of a  hydrocarbon  fuel  such as
coal, coke, natural gas, naptha,  or a heavy petroleum fraction.

     The  primary source  of  hydrogen  is  water  and the  hydrogen
contained in the feedstock, which is  the  case of coal  is very  low
(3-6  percent).   The  reactions  shown  in Equations (1) and  (2)  are
carried out at pressures  between  750  and  4500 psi at a temperature
of  250  to 350  degrees  Centigrade in  the presence  of  a metal  or
metal oxide  catalyst.  The metals  used  depend  upon  the process,
and   are   usually  proprietary.   Catalysts   may   contain   zinc,
chromium, or copper-based compounds or oxides.

     A  description   of   a  typical   coal  to   methanol  process
follows.[15]

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                               -10-
     Goal Receiving  and Preparation;  Vibrating  feeders  transport
the coal to the sizing  equipment,  ring mill  crushers  and  rod melts
where the coal is sized for the  specific  gasifier in  which it will
be processed.

     Coal  Gasification;    The   coal  is   heated  to  very   high
temperatures   and   partially-oxidized  to   carbon  monoxide   and
hydrogen  in  the  presence  of  oxygen  (or   air)  and  steam.   The
majority of the sulfur  is converted to hydrogen  sulfide  with some
production  of carbonyl sulfide.   The  nitrogen  in  the  coal  is
converted to  free nitrogen combined with some  traces of  ammonia
and hydrogen cyanide.  The ash is  removed from the  bottom in a dry
or  molten  slag  depending  on   the  temperature  and  gasification
technique used.

     Gas  Cooling;   The hot  raw gas is  cooled  and  scrubbed  with
recycle gas liquor  or  sour water  from the  shift  converter.   Then
the  gas is  cooled  further  in  a  heat  exchanger  where  steam  is
produced by the waste heat.

     Gas Shift;  Here  the ratio of  hydrogen to  carbon  monoxide is
increased  by   adding steam  and pushing  the  following  water-gas
shift reaction to the right;  CO + H20 = C02 + H2.

     Acid Gas  Removal;  In  this  process  the  sulfur is removed from
the  synthesis  gas  to prevent poisoning  of   the  methanol  synthesis
catalyst.   In the   Selexol  process  hydrogen  sulfide  is  removed
first,  and  then  carbon dioxide  and carbonyl sulfide are removed.
In  the following  Rectisol  process,  naptha,  HCN and  water  are
removed by washing the gas with a small quantity of methanol.

     Methanol  Synthesis;    In  this   stage  the  clean  shifted
synthesis  gas is  catalytically  converted  into  crude  methanol  by
the following  two reactions;

     CO + 2H2  = CH3OH and C02 + 3H2  = CH3OH + H20.

     Auxiliary Facilities;   The  functional relationships  of  the
auxiliary facilities to the major process areas are as follows;

     Water   Supply   -   provides   for   treatment,   storage   and
distributionofprocess   water  requirements,   including  makeup
cooling water.

     Water   Cooling   -   provides    for   treatment,  storage   and
distribution of process cooling water.

     Oxygen Production  - cryogenically  separates air  into  oxygen
and  nitrogen.   Oxygen  is used  in  coal gasification.   Some  of the
nitrogen  is  used in carbon dioxide  removal,  the  remainder  being
vented  to the  atmosphere.

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                               -11-
     Slag Removal/Char  Recovery -  separates  dissolved gases  from
the  raw  gasifier  slag.   Also  separates  char  from  the  slurry
produced  in gas  cooling.   Overhead  gases and  char  are used  to
generate steam.  Wet slag is sent to slag/ash disposal.

     Slag/Ash Disposal  - combines  wet slag, bottom ash from steam
generation  and dusty  liquor  from flue  gas  cleanup.   Dewatered
slag/ash mixture is suitable for landfill disposal.   Wastewater  is
used for preparation of coal slurry for coal gasification.

     Sulfur  Recovery  -  processes  the acid  gas  stream  produced
during  hydrogen  sulfide  removal,  converting  H2S  to  elemental
sulfur.  Process technology employed  is usually  Glaus (bypass  type
configuration).

     Steam Production - uses char,  purge and  overhead gases, along
with supplemental coal to provide plant steam/power requirements.

     Flue  Gas  Clean-up -  renders  steam  generation  product gases
environmentally acceptable for stack discharge to atmosphere.

IV.  Gasification Technology

     The  gasification  of  coal  began  in the  early 1850's when  it
was discovered  that the gas could  be  burned  more  efficiently  than
solid  coal  and  it was cleaner  and easier  to use.   The technology
developed fast  and  by  the 1850's  gas light for streets  in  London
was commonplace:*  Between- 1935 and 1960 there were  close to 1,200
municipal  "gasworks"  serving  larger  towns  and  cities in  the  U.S.
However,  the introduction  of natural  gas  pipelines  in the  1930's
initiated   the   decline   and   almost   disappearance   of   coal
gasification in the U.S.   With the increased cost  of natural  gas,
interest in coal gasification has been renewed.

     Numerous  processes are now being developed  to  gasify coal,
the  most abundant  hydrocarbon  resource  in  the U.  S.,   to low-,
medium- and  high-BTU  gas.   In  the gasification  process coal  is
reacted with a mixture  of  steam  and air or  steam and oxygen.  With
the former,  a  low-BTU gas  is produced with  a  heating value between
100 to 200  BTU/scf.[16]   This  low-BTU gas is made  up of  nitrogen,
carbon monoxide,  hydrogen, carbon  dioxide and water.[17]   This gas
has  a  low-BTU content  because  it  contains  a  large, portion  of
nitrogen  (since air  contains  80  percent  nitrogen)  which dilutes
the energy  content  of  the  carbon monoxide and  hydrogen  produced.
If  the coal is  mixed with steam  and oxygen  a  medium-BTU  gas  is
produced  consisting of carbon  monoxide,  hydrogen,  carbon dioxide
and  methane,  which  has  a heating   value   between   250  and  400
BTU/scf.[16]  High-BTU  gas  (or  synthetic natural gas (SNG))  with a
heating  value  of  970 BTU/scf  can be  produced from medium-BTU gas
by methanation or hydrogen removal.[18,19]

     There   are   several   factors  such  as   thermal  efficiency,
reliability,  capital  investment,  coal  flexibility  and   product

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                               -12-
spectrum  which  are  important  and   should   be   considered  when
comparing gasifiers.  Table  2  shows some of these  comparisons  for
different gasification  systems.   For  instance thermal  efficiency
is  important   from  a  processing   view.    To   achieve   maximum
efficiency a  gasifier should  have low  oxygen and steam  demands,
low unburned  carbon and heat  losses, and  should operate  at  high
temperatures.[20]   However,  since  some  of these  factors  are  not
compatible  with  others,   it  is   almost  impossible  to  obtain  a
gasifier  which optimizes  each factor.   For  example  high  oxygen
requirements  (lower  efficiency)   are  necessary  to   obtain  high
carbon  conversions   (higher  efficiency)  and   to  avoid   large
by-product   formations   (lower   capital   investment).[20]    In
addition,   elevated   pressures  (high  efficiency)  produce  more
by-products[20] and  interfere  with reliability[20] but reduce  raw
gas compression requirements.   Other  desirable  factors  are  high
temperatures   which   reduce   by-products   and   increase   coal
flexibility and capacity.[20]    In general  then,  it  is  apparent
that  there  is a  trade  off  between  efficiency and  some  of  these
other factors.  The  best  gasifier  will be that process unit which
optimizes  the  majority  of  these  factors  while achieving  the
highest efficiency.

     Before discussing the individual  gasifier types it is  helpful
to examine  the properties  of  coals used  in  the  U.S.   There  are
four  properties  of  coal  which  are  important  in   the  process
selection  of   gasifiers:    1)   ash  fusion  temperature,   2)  free
swelling index (FSI), 3) moisture, and 4)  sulfur  content.   The ash
fusion temperature  is that  temperature  at which  the  ash  becomes
fluid.  FSI is a measure  of a coal's  tendency  to agglomerate  or
cake  when   heated;  the   higher  the   FSI,   the  greater   the
agglomeration.[15]

     Eastern  coals  (predominantly  bituminous)  typically  have  low
fusion  temperatures  (1990-2200°F),  moderate  to  high  FSI,   low
moisture  (4-10 percent by  weight as  received)   and  high  sulfur
(averaging   2.0   weight    percent).    Western    coals    (mainly
subbituminous) exhibit high  fusion temperatures  (2300-2400°F),  low
FSI,  high moisture  (28 weight  percent)  and low  sulfur  (averaging
0.7 weight  percent).   Lignite, which is  found  predominantly  in
North  Dakota,   has  an  even higher moisture  content  (35  weight
percent) and also a  low percentage of  sulfur  (averaging 0.8 weight
percent).[15,21]

     Coal gasifiers  are classified according  to  the  way  coal  is
fed to them.   The  three main gasifier categories are the fixed  or
slow moving bed,  the fluidized bed and  the entrained  bed.   Tables
3  and 4  show  a  list  of  coal  gasifiers by type  and  Table  5
summarizes the advantages  and  disadvantages of the  three  different
types of gasifiers.

     A.    Fixed or Slow Moving Bed

     Fixed or slow moving  bed  gasifiers  consist of  beds that carry
or move the coal  vertically  downward  through the zone where it  is
heated and  decomposed.   These gasifiers  can be  further  divided

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                               -13-
Name

Bed Type

Commercial

Coal
Flexibility
                   Table 2

      Comparison  of Gasification Systems

                             Koppers-
Lurgi   BGC-Lurgi   Winkler   Totzek    Texaco
                               Shell-
                               Koppers
Fixed    Fixed

Yes      Near

Western  Western
By-Product    Yes

Efficiency(%)  64

Capacity      500
(STPD Coal)
Fluid

Yes      Yes

Western  All
Entrained  Entrained  Entrained

           Near       Near

           All        All
Yes
72
1,250
No
57
1,000
No
58
850
No
68-72
2,000
No
75
1,000
Source:   [20]"Coal  Can   Be   Gasoline",    (Kellogg   Co.).   Hydrocarbon
Processing, LeBlanc, J.R., Moore, D.O., and  Cover,  A.E.,  pp.133-137,  June
1981.

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                               -14-
                              Table  3
                          Coal Gasifiers
                 Pressure
             Oxygen or Air
                                Agglomeration
                                 Prevention
FIXED OR SLOW
  MOVING BED

Gegas
Lurgi
Merc
Riley-Morgan

Wellman-Galusha
Wilputte
ATC/Wellman
FW/Stoic
Ruhr-100
Woodall-Duckham
BGC/Lurgi
Gf ere

FLUIDIZED BED
Winkler
Rheinbraun
C02 acceptor
Hygas
Synthane
Westinghouse
U-gas
Cogas
EDS (Exxon)

ENTRAINED FLOW

Bell HMF
Koppers-Totzek
Mountain fuel
Shell-Koppers
Texaco
Bi-gas

C-E
Foster Wheeler
Peatgas
Rockwell Int'l
     Dry Ash,  Single  Stage
To 500 psig   Air
To 450 psig   Oxygen or air
To 105 psig   Air
40 in water   Air

10 in. water  Air
atm           Air
        Dry Ash, 2-Stage
              Air
atm
atm
1,500 psig
40 in. water
              Oxygen
              Air or oxygen
            Slagging
To 400 psig   Oxygen
To 400 psig   Oxygen
                                 Stirrer paddles
                                 Rotating blades
                                 Spiraling stirrer
                                 Agitator in
                                    rotating bed
                                 Spiraling arms
                                 Rotating arm
None
None
Stirrer blades
None
                                 Stirrer
                                 Stirrer
atm
150 psig
150 psig
1,200 psig
1,000 psig
225 psig
350 psig
10 psig
500 psig
              Oxygen or air
              Oxygen
              Air
              Oxygen or air
              Oxygen
              Air
              Oxygen or air
              Air
              None
          Single-Stage
to 225 psig   Air
10-12 psig    Oxygen and steam
to 150 psi    Oxygen and steam
to 450 psi    Oxygen or air
to 1,200 psig Oxygen or air
To 1,500 psig Syngas and steam

atm           Syn gas and air
atm           Syn gas and steam
To 500 psig   Syngas
To 1,500 psig Hydrogen
                                 Oxygen and steam
                                 air
                                 Air and steam
                                 Air and steam
                                 Oxygen and steam
                                 Not known
Source:   [18]  Institute  of Gas  Technology,  Oil and  Gas  Journal,
7/16/81, pg. 57

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                               -15-
                                 Table 4

               Coal Gasification Process Technology Status
     Gasifier
Fixed Bed

Lurgi, Dry Ash

British Gas/Lurgi
   Slagging

Wellman Galusha
KilnGas


Fluidized Bed

Winkler

U-GAS

Westinghouse


Entrained Flow

Koppers-Totzek

Texaco
Combustion
   Engineering

Shell-Koppers
 Technology
Process Status
Location
1st Generation   Commercial
                 Worldwide
2nd Generation   Semicommercial  Westfield, Scotland
1st Generation   Commercial
                 14 operating in U.S.
                 others outside U.S.
2nd Generation   Pilot (1971-)   Oak Creek, Wis.




1st Generation   Commercial      Worldwide

2nd Generation   Pilot (1974-)   Chicago, IL

2nd Generation   PDU (1975-)     Waltz Mill, PA
1st Generation   Commercial

2nd Generation   Pilot



2nd Generation   PDU (1974-)

2nd Generation   Pilot
                 Worldwide

                 Montebello,  CA
                 Mussel Shoals, Ala.
                 & outside the U.S.

                 Windsor,  Conn.

                 W. Germany
Source:  [16] Oil & Gas Journal; June 29, 1981, pg. 106.

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                                 -16-
                                Table 5

                       Gasifier Characteristics
Fixed Bed Gasifier   Fluidized Bed Gasifier
Advantages

Extensive practical
experience
High carbon conver-
sion efficiency
Low temperature
tars
operation

Large fuel inven-
tory provides
safety, relia-
bility and
stability

Limitations

Sized Coal re-
quired

Coal fines must
disposed of or
handled separ-
ately
Product gas con-
inventory;
tains tars and
heavier hydro-
carbons
Lowest capacity
due to limited
gas-flow rates
Internal moving
parts with high-
er degree of
mechanical com-
plexity

Caking coal tech-
nology not commer-
cially proven
Uniform temperature and
compositions throughout
fluidized zone

Excellent solid-gas con-
tact
No internal moving parts
Can handle wide variety
of coals
Large fuel inventory
provides safety, relia-
bility, and stability
Distributor plate design
is critical

Requires dry coal for
feeding
                          Entrained Bed Gasifier
Highest capacity per
unit volume
Produces inert slagged
ash with low carbon
content

Product  gas  free  of

and phenols

Handles all types of
coal
No moving parts and
has simple geometry
Less developed than
fixed bed

Critical design areas
include combustor
nozzles and heat re-
covery in presence of
molten slag
Removal of fines re-
quired to prevent
elutriation or flow
instability

Fluidization requirements
sensitive to coal charac-
teristics
                           Smallest
                  fuel
                           requires advanced con-
                           trol techniques to en-
                           sure safe reliable
                           operation
Source:  [16] Oil and Gas Journal, June 29, 1981, pg. 101.

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                               -17-
into two  types which describe  the flow of  air in  them:   updraft
and downdraft.

     The  simplest  air  gasifier is  the  updraft or  countercurrent
gasifier which introduces air  at  the  bottom of the  furnace  where
it first  comes into contact  with  the  hottest  temperatures of  the
reactor.  Since  the combustion gases  immediately  enter a  zone  of
excess  char,  any  carbon dioxide  or water  present  is  reduced  to
carbon monoxide and hydrogen  by the  excess  carbon.   In addition to
producing  the  desired   products,  carbon  monoxide  and  hydrogen,
these hot  gases contain  large  amounts of  tars, phenols,  cresols
and other  oxygen containing  organic compounds.  As  the gas  rises
its temperature  decreases as  heat  is  transferred from  the  hot  gas
to the  cooler  incoming coal.   This  low  temperature  hinders  the
oxidation of  the coal  and  is the major  cause of the  by-products
produced.[17]

     One of  the problems  caused  by  these  by-products  (chemicals,
oils  and tars),  is  that  they condense  in  the  cooler  regions,
causing  maintenance  problems.    In   addition,  these   components
contribute  to the  majority  of  environmental  problems  associated
with fixed bed gasification systems.[22]

     The downdraft  gasifer is  specifically designed to  eliminate
the tars  and oils associated with the updraft gasifer.  Tars  and
oils are formed near the  middle of the bed  (where  air is injected)
and carried by  the  airflow through a  relatively large  hot  zone  in
which they have"time to further decompose or be cracked to  simpler
gases or char.   One of  the important  results of this  cracking  is
that an effect called "flame  stabilization"  occurs which maintains
the  temperature   range  between  800°C   to  1000°C.   When   the
temperature  rises,  endothermic  reactions  predominate,  causing  the
gas to  cool;  when the temperature drops,  the  exothermic reactions
predominate, thus heating the gas.[17]

     The tars and oils  are  reduced to  less than 10 percent of  the
amount  produced  in updraft gasifiers  thereby making gas  clean-up
easier  and  less expensive.   Since the gas  velocities  are low  in
both updraft  and  downdraft gasifiers,  the ash  settles  through  the
grate so that very little is carried with  the gas.[17]

     One example  of a  moving bed gasifier  is the Lurgi gasifier
which   is   commercially   available   through  Lurgi   Kohle    and
Mineraloeltechnik.  In  the Lurgi  process,   coal  is  fed into  the
gasifier  via automatically operated  coal  locks.   As  the  bed  of
coal moves from  the top to the  bottom  of  the gasifier  it comes  in
contact with  a counter-current hot  gaseous  mixture  of  oxygen  and
steam   introduced   at   the  bottom   which  successively  dries,
devolatilizes and gasifies  the  coal.   The partial oxidation of  the
coal  with  oxygen  supplies  the  necessary   heat  for  the  coal
gasification while  the  addition of steam prevents the  temperature
from rising above the ash fusion (or melting)  point.  The ash left
after gasification is removed by a rotating  grate at  the bottom  of
the gasifier.

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                               -18-
     As shown  in Table 3,  the  Lurgi "dry-ash" fixed  bed  gasifier
is a first  generation unit which has been  commercially  proven and
is used worldwide.[16,20]  The  Sasol  I  plant  in South Africa which
has been  operating  for over  25 years utilizes the  Lurgi  gasifier
(and also the  Fischer-Tropsch  synthesis unit)  to  produce  10,000
barrels per day of  fuel.   (It and  Sasol  II are the  only  existing
commercial-size coal-liquefaction plants  in the world.)   The Dunn
Nakota project,  which is scheduled  to  produce 85,000 barrels  per
day  of methanol  by  1987  via  Lurgi  gasification,   could  be  the
largest commercial-scale  coal  gasification process  built  in  the
U.S.[23]   The main disadvantages of  the Lurgi  gasifier are  that it
1)  has  problems with  the caking of  eastern coals,  2)   produces
byproducts, 3)   has  high  steam  requirements  and 4)   has  a  low
capacity per volume of gasifier (i.e., high capital cost).

     The  BGC/Lurgi   slagging   gasifier   is   a  second  generation
reactor which is now  being  tested in Scotland  by Lurgi and British
Gas Corp with support from 13 U.S.  companies  and  DOE.[19]  In this
gasifier,  coal  is fed into the top  of  the  unit by  a distribution
system.  As the  coal  descends in a moving  bed, it is successively
dried,  devolatized  and gasified.   At the  bottom  of  the  gasifier
oxygen and  steam are fed  and  slag  is  withdrawn.   The  operating
pressure is 300-350 psig  with a gas  temperature of  800-1100°F and
an ash temperature  over  2000°F so  the  slag   can  be removed in  a
molten form.[l]   Because  it does operate in   the  slagging mode it
can  tolerate   a  higher  throughput   of   coal  and  oxygen  without
entraining coal dust in the product gas.[24]

     The   latest  papers  describe   this    technology   as   near
commercial.[16,20]  Its  improvements  over the older  Lurgi  dry-ash
gasifier  are  a  higher  efficiency  and  a reduction  in  steam  use.
However,  it still has problems  with  caking  eastern coals and still
produces by-products.

     B.    Fluidized Beds
     Over the  last  60 years fluidized beds have  been  developed  to
provide uniform  temperatures and  efficient  contact between  gases
and solids.  This  is  accomplished by blowing gas upward  through a
bed of  solid  coal so  rapidly  that  the  bed  becomes suspended and
churns as if it were  a  fluid.   Fluidized reactors are  more compact
because  they  have  a   higher throughput  (due  to higher  reaction
rates), but  the higher  velocity of  the gas carries  out ash and
char with  it  that  must be  removed  by  cleaning  the  product  gas.
The fluid  bed  often  contains  limestone  to  react with and  remove
the  sulfur  from   the  coal.    Fluidized  bed   reactors  have   a
considerably faster  heating rate than  moving  bed   gasifiers  and,
therefore,  the  reactor   temperature  must   be  held  below  the
softening or initial  deformation  temperature  of the  coal  ash  which
is typically well below 1040°C.   However, at  this temperature  many
undesirable by-products are stable  and  the  churning  of the bed
enables  materials  at all  stages  of  decomposition  to  be  found

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                               -19-
throughout the bed.  Because of  this  contact,  tars  and  oils  have a
tendency to escape  from  the heating zone before they can  be fully
decomposed.   This  removal  and  disposal of  these  by-products  can
pose  a  number  of  environmental  problems  for   the  fluidized
reactor.  Claims that they  can produce very  low  tars and char with
recirculation  still  remain  to   be  proven.[17]    Since   typical
operating  temperatures  are  low  with respect  to  the  ash  melting
temperature  of  coals,  the  fluid-bed  gasifier  also has  problems
with eastern coals.

     The Winkler  fluid-bed  gasifier is  a  first   generation  unit
which  is  commercially   proven   and  used  around  the  world.[16]
According to  DM International  over 70 Winkler gasifiers have been
built.[8]  The two  main  disadvantages with the Winkler  are that it
operates at atmospheric  pressure  (large volume per  throughput)  and
that  it has  a  tendency  to clog  when using  eastern coals.   A
pressurized modification of the  Winkler  is  now under  development
which should improve its efficiency. [14,20]'

     In  the  two  designs  of  lignite gasification that  will  be
reviewed  in  this   study,   modified  Winkler  gasifiers  have  been
used.   In  both cases  the  modified  Winkler  operates  at  a  higher
pressure (65  psig)  than  the established Winkler which  operates at
atmospheric pressure  (14.7 psig).   The  lignite  is dried from 35
percent moisture to 8 percent and is then  continuously fed by a
pressure lock and  screw  conveyor system into  the Winkler  gasifier
where  it is  maintained   as a  fluid bed  at  65 psig.  Steam  is
injected near the  bottom of the  reactor  to  fluidize the  coal  and
to  cool the  larger ash  particles discharging  from the  gasifier
bottom  while steam and  oxygen  are injected  at  several  points
within the bed to gasify the coal.   Since  the  gasifier  operates at
high  temperatures  (1800-1900°F), tars,  oils,  gaseous  hydrocarbons
and  carbon  present are  converted to carbon oxides and  hydrogen.
Only  a  small  percentage  of  methane  is   left  in  the  raw  gas
product.  In  the fluidized  bed,  heavier particles  such  as  ash fall
down  through  the   bed   into the char  discharge,  while  lighter
particles are carried out of the bed by  the product gas.   In  the
Winkler  gasifier  approximately  70 percent  of  the  total  char  is
entrained in  the hot product gases leaving the top of the reactor.

     This modified  Winkler  is  still being tested and therefore it
cannot  be  considered to be commercially  proven.    However,  since
Davy McKee believes that this design contains  equipment similar to
other high pressure units,  they  feel that  the  gasifier  is  feasible
and are therefore prepared to offer commercial guarantees.

     C.    Entrained Bed

     The entrained  bed  gasifier, which dates  back to  the 1950's,
is  the  most  recently developed  gasifier.    In this gasifier  fine
particles of  coal  are suspended  in a stream of  oxygen  which moves
rapidly  into  and  through the decomposition zone.   The  entrained

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                               -20-
bed  gasifier is  typically  operated  at  a  temperature  above  the
melting  point of  the coal  ash.   At  this  temperature,  which  is
typically  1260-1316°C,  the  gasification reaction  rates  are  much
faster and many of  the undesirable  by-products  associated with the
fixed  bed  and  the  fluid   bed systems   are   unstable   and  are
destroyed.   When   the  entrained   bed   gasifier   is   operated  at
pressures  substantially   above  atmospheric,  high  throughput  and
high single pass conversion  can  be  obtained.  One drawback  is that
the  feedstock must be  reduced  to  a relatively  small size  which
would  add to  the  total  preparation cost.   However,  there  is  a
tradeoff since the smaller particles are more efficiently  gasified.

     These  gasifiers  are  also  called  "slagging"  because   they
remove the ash in a molten,  slag form.   One of  the big  advantages
of entrained  bed  gasifiers  is  that they can utilize any  type  of
coal.    As   shown   in   Table   4,   Koppers-Totzek,   Texaco   and
Shell-Koppers are all entrained-bed gasifiers.

     In    the   Koppers—Totzek   gasifier    pulverized   coal   is
horizontally injected with steam and oxygen  into  the  reactor  which
is   essentially    operating   at   atmospheric   pressure.    The
gasification   temperature  is   around   2700°F.    At  this   high
temperature,  the ash  is  in a molten slag  form  which  drops into  a
quench tank and is removed.[1]

     The Koppers-Totzek gasifier is a first generation  technology
which, like  the Winkler  and Lurgi, has had extensive  commercial
experience, and  therefore   is   considered   proven  and   available
technology.[16,20]  Five  of  the 24  proposed projects  submitted  to
the  Synthetic  Fuels  Corporation  plan  to   use  Koppers-Totzek
gasifiers  which  would seem  to confirm  its  reliability.    It  will
handle   all   types   of   coal  but  does  require  large   raw  gas
compressors since it operates at atmospheric pressure.

     The   Texaco  gasifier  is  a  coal-slurry  fed,  high-capacity
gasifier which handles all types of coals  and produces very little
by-product.   The  slurry  which is composed  of  pulverized coal  and
water  is  pumped  with oxygen into the  top of  the  high—pressure
(600-700  psig)  gasifier  and  fired  downwards.   The product gas  is
withdrawn  through  a  side  nozzle at a  temperature around  2500°F.
The  molten  slag  is  removed  through  a  slag   hopper beneath  the
quench chamber.[1]

     Since  the  coal  is fed  in  a  water slurry  the coal  does  not
have  to  be  dried.   This  can be a big  advantage over  gasifiers
(predominantly for  western coals)  which use part  of  their  coal  to
dry  the  rest of  the  feedstock.  Drying is expensive, it  reduces
efficiency and it raises operating costs.

     The  high operating   pressure is  also an  advantage since  the
synthesis  gas must  be fed at even higher pressures to the methanol
unit.   Although  the  operating cost  for  high   pressure  may  be

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                               -21-
higher, it  more than  makes  up  for  the high  cost of  compressors
needed with low pressure gasifiers.

     However, in order to have  good  efficiency the  solid  content
of the slurry feed  must be high,  50-60 percent.  When  lignite  is
slurried with water,  the  highest untreated solid  concentration  is
about  43  percent  because  lignite  naturally   contains  up  to  35
percent moisture.   If  the  lignite   is pretreated,  the  moisture
content can  be  lowered to more efficient levels.[9]  The  drawback
is that pretreatment  is an added cost  to production  (although not
too large).

     Another  disadvantage  of   the   Texaco  process  is   that  it
requires more oxygen than most of the other processes.

     Although  the  Texaco  gasifier  has . not  yet  been  used  on  a
commercial scale it  has been  extensively  tested at  a pilot  plant
in Montebello,  California[l]   and  at  three  demonstration  plants:
the  Ruhrchemie/Ruhrkohle  plant  in  Oberhausen, West Germany;  2)
Tennessee Valley Authority's  ammonia-from-coal  plant  in  Muscle
Shoals, Alabama;  and  3)  an   air  blown  gasification plant  at  a
chemical  facility  in   the  USA.[25]    Texaco    appears  to  be  the
leading second  generation  technology  and is  being planned  for two
projects  already   underway:   Tennessee  Eastman's   project   in
Kingsport,  Tennessee   to   produce  acetic  anhydride  and  other
chemicals from  methanol made  from coal, and Southern California's
Cool-Water power generation station in Daggett, California.[16]

     The  Shell-Koppers gasifier  is  very  similar to  the  Texaco
gasifier in that it can also use any  coal and  produces very little
byproduct.   However,  it  is  likely that the   process will not  be
commercialized  for  a couple of  years  since only  limited  data  is
available on a 150 ton per day demonstration plant.[20]

     One of  the gasifiers  that was used in  the design studies  to
be  reviewed  later  was a  Foster-Wheeler entrained   bed  gasifier.
This gasifier unit  consists of  two  stages.   In the  second,  which
is an  entrained gasifier  operating  at 300-400 psig and  1700°F,
transport  gas   from   stage   one  and  pulverized  raw  coal   are
introduced yielding  slag  and  the  product  gas.  The  char which  is
removed from the product gas is  then  sent with steam  and  oxygen to
the  first stage producing the transport gas  which is recycled  to
the  second  stage.[1]   As of 1977  the Foster-Wheeler gasifier  was
in the early stages of pilot plant development.[1]

     The gasifier used  by Badger was  a  version of  an  entrained bed
gasifier.[4]  According to  Badger  this  gasifier is operated  in  an
oxygen-blown  mode  with  a molten  slag-bath at the  bottom.   The
gasifier has  a  total of  14  feed nozzles;  6 for coal and  lime,  6
for oxygen and  steam, and  2 for  recycled char.  The nozzles,  which
are  distributed  around   the   periphery  of   the   vessel,   fire
tangentially and at  a  45  degree angle  toward the surface of  the

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                               -22-
slag to make  it  rotate.   Dense-phase pulverized coal and  lime  are
pneumatically  fed  into  the  lower  section  of  the gasifier  which
operates at 500 psig.  The lime  is a fluxing agent which  is  added
to  obtain  a  slag   viscosity  of  10  poise.    The   oxygen  and
superheated steam are  added  as gasifying agents.  The  coal,  which
is partially pyrolized in the reaction, is gasified at 3000°F.

     The advantages  that are  claimed  in the  literature  for  this
gasifier are that it can handle  any type of coal and that the  raw
gas is  free  of  tar and high boiling  hydrocarbons.    When  Badger
compared dry and wet  (slurry) feeding they found  that  dry feeding
was economically  superior to  the slurry feed  because  the  slurry
feed required  29 percent higher  coal feed and a 73 percent  higher
oxygen  feed  for a  given  synthesis gas, and therefore  methanol,
rate.    Badger  also  found that a steam-oxygen gasification  medium
produces the highest thermal efficiencies ([4] pg.  64,65).

     According  to   Badger   "this   single   shaft   high   pressure
slag-bath  gasifier   is   based   on   published   information   for
entrainment and other  types  of  gasifiers and for the  Rummel/Otto
Gasifier which is proven at  atmospheric  pressure.   It  is a  new
concept and  further development  work may  be necessary.   Similar
gasification  principles  have  been studied  and  pilot  plant  tests
have been  conducted  at  lower  pressures.  Mechanical problems  are
recognized and are believed to be solvable".[4]

     Until  recently,  industry  has  been  very  sluggish  in  its
progress to  reimplement  coal gasifiers  in  the  U.S.  However,  the
increasing cost of natural gas has sparked  a new  interest in coal
gasification and the majority  of  the coal or  shale-based synthetic
fuel projects  currently  being planned use  coal  gasification.[23]
Table 6 lists  some  of the current projects which are  now planned
or proposed.

     One   example   is   the   previously-mentioned   Cool   Water
combined-cycle power-generation demonstration plant,  to be located
in Daggett, California.   It  will gasify 1000 tons per  day of coal
to  produce  100 MW of  electricity.  The facility,  which  will  use
the "proven"  Texaco  Coal Gasification  Process[25],  is  currently
under   construction  and  initial  production  is  estimated  for
1984.[27]

V.   Synthesis Technology

     The purpose of  this section  is  to review available  indirect
liquefaction   processes   with   the  emphasis   being  placed   on
commercial     feasibility,     process     description     (reactor
configuration, operating  conditions, etc.),  product quality,  and a
comparison  of  technological  advantages   and   limitations.    The
processes that have been reviewed  include seven methanol synthesis
technologies (ICI, Lurgi, Haldor Topsoe, Mitsubishi  Gas  Chemical,
Vulcan-Cincinnati,  Wentworth Brothers'   and Chem  Systems)  and  two
gasoline/petroleum       synthesis       technologies       (Mobil's
Methanol-to-Gasoline and Fischer-Tropsch).

-------
                                -23-
Project Name
         Table 6

Coal to Methanol Projects

  Plant  Size  (Barrels  Construction
     Methanol/day)         Date
1.  Great Plains Coal           125
    Gasification Project
    Mercer County, ND

2.  Coal-to-Methanol-to        4,200
    Acetic Anhydride
    Tennessee Eastman
    Kingsport, TN

3.  *Beluga Methanol          54,000
    Project, Granite
    Point, AK

4.  Grants Project
    **(ETCO), Grants, NM

5.  Mapco Synfuels
    Carmi, IL

6.  Peat-to-Methanol
    **(ETCO), Creswell, NC

7.  Keystone Project
    Cambria and Somer-
    set Counties, PA

8.  Dunn Nokota               85,000
    Lignite-to-Methanol
    Dunn County, ND

9.  Chokecherry                3,608
    **(ETCO), Moffat
    County, CO

10. North Alabama Coal        25,000
    Gasification Project
    Murphy Hill, AL

11. New England Energy        18,000
    Park Project
    Fall River, MA
                         July 1980
                            1980
On Stream
   Date

   1984
   1983
3,608
18,000
3,714
13,300
1982
1982
1982
1984
                            1985
                            1982
                            1982
                            1983
                                        1989
                                     1984-1985
                                        1987
                                        1984
                                        1987
   1989
1984-1985
   1986
   1988
*    Feedstock is 60 percent natural gas, 40 percent coal
**   Energy Transition Corporation (ETCO)
Sources:  [23,27]

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                               -24-
     The results  of  this section  are  briefly summarized  in  Table
7.  Of  the  seven  methanol synthesis processes that  were  examined,
the  ICI,  Lurgi,  Haldor  Topsoe,  Mitsubishi   Gas   Chemical  and
Vulcan-Cincinnati  technologies   have   several   commercial   scale
processes in operation today.  The  Wentworth  Brothers'  methyl fuel
process  is  adapted from  proven  technologies and  may be  close  to
commercialization.[14]    The   Chem   Systems   process   is    not
commercially feasible at  this  time since  it  is  only at  the  pilot
plant stage.  The latest  report  on the Mobil  MTG process[28,  3/80]
was that the  4 barrel per  day (BPD)  pilot  plant was  the biggest
operating unit to date, but  that plans for 100  BPD  and 13,000 BPD
plants  were  proceeding.   Mobil  states   that   MTG  is  ready  for
commercialization's], but  at this time  the MTG  process is  not
commercially proven.  The Fischer-Tropsch process, which  has been
operating for 25 years in South Africa, is unquestionably  proven.

     From  a process  point  of  view  the high  pressure  methanol
synthesis technologies (Vulcan-Cincinnati  and Wentworth Bros.) are
better  suited  for large  scale production plants  whereas the  low
pressure  methanol  synthesis  technologies   (ICI,   Lurgi, Haldor
Topsoe, Mitsubishi and Chem  Systems,  which operate between 30 and
130 atm) can be used with any  size  plant.[14]  This  is  because the
high  pressure  plants   have  high  throughputs  which   tend  to
compensate  for  the  higher  cost  for  compression,  especially  for
very large plants.  Although individual efficiencies  have  not been
reported for the  methanol synthesis processes it is  probable that
many of  the technologies have comparable efficiencies since they
are highly  developed- and very competitive.   Two big factors that
affect efficiency are the extent of heat  recovery and  the percent
conversion of carbon monoxide  and  hydrogen to methanol  per pass  in
the converter.   Of the methanol technologies listed  most have  a
conversion per pass of about 5 percent (e.g., ICI)  while  the Chem
Systems  process   claims  up  to  20 percent.[14]   Concerning   heat
recovery Lurgi  claims to be  more  efficient than  ICI because  it
uses a heat exchanger type  reactor versus the quench type used  by
ICI.[1]  Since Chem  Systems  uses a liquid phase process  it should
get an even higher recovery  of heat than  Lurgi.   Over the past ten
years  ICI  and (more  recently) Lurgi  have dominated the  methanol
synthesis   market.[1,29]    Since   these   two  processes   are   so
competitive it  would seem logical that  their  economics   would  be
the  same,  and   compared   to  other   commercial   processes,   be
comparable if not less, expensive.

     Parsons  has  stated  that the  Chem  Systems process  shows  a
slightly higher thermal efficiency  and slightly  lower  capital cost
than  Lurgi and   ICI  synthesis;   however, they   believe   room  for
improvement over  these synthesis units is small.[1]  A comparison
of  the  Wentworth Brothers'   process  (using  available  published
information)  with  other  processes  did  not  show  any   inherent
economic advantage for the WBI process.[14]

-------
                               -25-
 Vendor     Catalyst

ICI*        Cu/Zn/Al
Lurgi*
Topsoe'
Supported
   Cu

Cu/Zn/Cr
Vulcan-       Zn/Cr
Cincinnati
Mitsu-
bishi
Gas Chem-
ical*

Wentworth
Bros.*-

Chem
Systems
Cu/Zn/Cr
 Multi-
Catalyst

 Cu/Zn
                        Table  7

             Methanol Synthesis Processes

            Pressure   Temperature
              (atm)       (°C)        Reactor Type
 30-50
 34-68
215-250
Mobil MTG
Fischer-
Tropsch*
Zeolite
Cobalt or
Iron
2.7
0-25

330-400
200-325

              50-100     220-290     Single fixed-
                                         bed
235-280     Tube in shell
 50-100     220-350     Radial flow
             300-350     300-400     Multiple bed
 50-130     240-310
up to 400   200-400
Liquid en-
trained and
liquid fluid-
ized

Fixed or fluid
                                            Cooling
                 Multiple gas
                    quench

                 Steam genera-
                     tion

                 Boiler-feed-
                 water heating

                   Cold-shot
                 quench, plus
                 external gas
                   cooling

                 Multiple gas
                    quench
Recirculated
inert hydro-
carbon liquid
                                                 Fixed and fluid  Steam genera-
                                                  with cooling       ation
                                                     tubes
*    Proven on a commercial scale.
     Source:  [13]

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                               -26-
     A.    ICI Low-Pressure Methanol Synthesis

     Status;  The ICI low pressure  (50-100  atm)  methanol synthesis
process is commercially proven worldwide.[6,13,14,17,30,31]

     Process;   Feed gas  consisting  of  an  approximately  2  to  1
ratio  of  hydrogen  to  carbon monoxide  is  fed  into  the  synthesis
loop.   The  methanol conversion  is  highest when  the hydrogen  to
carbon monoxide ratio is 2  to 1  and the carbon  monoxide  to carbon
dioxide ratio is as high as possible.

     The first part of  the  synthesis consists  of desulfurizing  the
feed gas  when necessary  to prevent  the  highly  sensitive  copper-
based  catalyst  from  being  poisoned.   This  is  accomplished  by
passing  the gas  through  sulfur  guard  beds,  which  are  typically
made  of  zinc  oxide  (or,  less  commonly,  activated  carbon)  to
achieve sulfur levels below 1 ppmv.

     The feed gas is then compressed to  the recycle loop pressure,
mixed with  the recycle  gas  and then compressed  to reactor pressure
as it  enters  the  methanol converter.  The  converter  is  a pressure
vessel containing a bed of catalyst.

     The temperature of the bed is  controlled by the  extent of  the
exothermic  reaction and the quenching of  the reaction by cold feed
gas.   The  pressure  range is  50  to  100  atm while  the  temperature
must be kept below  300°C (210 to  300°C)  since  the catalyst becomes
deactivated  at  higher  temperatures.   The  exit  gas  is  passed
through heat  recovery  units  for  initial  cooling and then  sent  to
the  methanol  separation unit where  a  crude methanol product  is
produced  (95  percent methanol  by  weight).   Conversion  of CO  to
methanol per pass is about 5 percent.[14]

     Catalyst life  at pressures  of 50 to 60 atm is  4 years  while
maximum  catalyst  life  at  100 atm  is 2.5  years  (average is  1-2
years).

     Advantages/Disadvantages;     Compared    with    high-pressure
processes,  the  ICI process is more adaptable  to  both  large  and
small  plants  (55  to 2750 TPD) whereas high  pressure  processes  are
limited to  large  plants (1,000 to  2,500 TPD).   Compression  costs
are lower because of reduced pressure.

     The disadvantages  are  that  the high-pressure  processes  allow
a higher throughput of  gas  for  the same  size reactor  and that  the
catalyst  cost  for  low  pressure  technology  is  five  times  as
expensive (50 cents/ton vs.  10 cents/ton).[14]

     B.    Lurgi Low-Pressure Methanol Synthesis

     Status;  The Lurgi low-pressure synthesis process  (30-50 atm)
is commercially proven.[13,14,17,29,31]

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                               -27-
     Process;   The   Lurgi   methanol  synthesis  process   uses   a
shell-and-tube  reactor.   The  copper-zinc  catalyst is  packed  in
vertical  tubes  contained within  a reactor  shell  which is filled
with boiling water.   The exothermic  heat  of  reaction is removed  by
the  generation  of  steam,  thereby controlling  the  temperature  of
the reactor.

     The  hydrogen to  carbon monoxide  ratio of  the  feed gas  is
normally  between  2  and  3,   whereas  the  ratio  of  (hydrogen  minus
carbon dioxide) to (carbon monoxide  plus carbon  dioxide)  is  held
around  2.2.   After  desulfurization   the  feed  gas  is  compressed,
combined with recycle gas  and preheated  before being  fed  into the
reactor  at  one  specific   location.   The  Lurgi  reactor  has  an
operating range of 30 to 100 atm  and  200  to  300°C  but  is typically
operated at 70  atm and 260  to 270°C.  The exit gas  contains  about
4-6  percent  methanol  and   is  sent  to  condensors  to  recover  the
crude   methanol   product   which  is  generally   sent   on   for
purification. [14]

     Advantages/Disadvantages;  Like  other  low-pressure  processes
the  Lurgi process  has an  economic   advantage  over  high-pressure
processes  due  to   decreased compression  costs  at lower  pressure.
The reactor design  also  permits direct recovery of  the  exothermic
heat of  reaction  by  steam  generation rather than a  partial quench
of the reaction to control heat build up.[14]

     According  to Lurgi, a natural   gas  to methanol  plant  using
their synthesis technology  is: more efficient[17]  and  consumes. 3-5
percent  less natural gas per  ton of pure methanol  than competing
technology.  They estimate  the  annual savings  for a  2,500  stpd
plant is $4.2 - 5.0 million (U.S.  dollars).[29]

     When  Badger  compared  the  low pressure (1500  and  1400  psig)
methanol synthesis processes  employing  quench type  converters and
licensed  by  Imperial  Chemical   Industries  and   Mitsubishi   Gas
Chemicals  Corporation with  that of  Lurgi's   tubular  type  low
pressure (750 and 1200 psig)  process  they selected  Lurgi's process
for two reasons:

     - Lower investment and operating costs for  syn-gas compression

     - Maximizes medium pressure  steam production;  thus  minimizing
     overall utility costs  and pay out time.

     C.    Haldor  Topsoe Methanol Synthesis

     Status;   The Haldor   Topsoe  Methanol  Synthesis  process  is
commercially proven.[14,17,31]

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                               -28-
     Process;   The  Haldor  Topsoe  process  is  similar  to  other
low- and  intermediate-pressure  methanol synthesis  processes.   The
synthesis utilizes a copper-zinc-chromium catalyst  in  two  or three
radial   flow   converters   operated   in  series.    After   being
desulfurized  (20  ppbv sulfur  level)  with zinc  oxide guard beds,
the  feed gas  is  mixed  with recycle  gas  and  passed  through  the
reactors  flowing  radially  outward  through  each  catalyst  bed.
Operating pressure and temperature ranges are,  respectively,  48 to
144 atm  and  220 to 350°C.   The exothermic  heat from  each reactor
is recovered  by heating  boiler feedwater with the  hot exit gases.
The gases are then condensed and sent  to  a separator where crude
methanol  is  separated from uncondensed gases  and  later   sent  to
product upgrading.[14]

     Advantages/Disadvantages;   The  Haldor  Topsoe   process  can
operate  at intermediate  pressures  for higher throughputs.   It  can
also operate  at higher  temperatures  which  increases  the  activity
of  the  catalyst   provided it  can  retain   its  active  sites  and
structural integrity.

     D.    Mitsubishi Gas Chemical Methanol Synthesis

     Status;   The  Mitsubishi Gas Chemical (MGC)  methanol synthesis
process is commercially proven.[14,31]

     Process;   The MGC process  appears  to be very  similar  to Id's
intermediate-pressure  process  since  both  designs  use  a  quench
converter with a  ternary-- copper-based  catalyst  operated at.  low
temperature and intermediate pressure (240-310°C and  50-130 atm).
The feed  gas  is split into a feed  stream which is heated  and  fed
into  the converter,  and  a  quench  stream  which   is  injected  at
several  bed  levels to control  the  buildup  of the  exothermic heat
of reaction.   After  being  used  to  preheat   the  feed gas  the  exit
gas is condensed and  sent  on to distillation for  a product purity
in excess of  99 percent  methanol by  weight.  Part of the recycle
gas is used  for fuel.   The catalyst  has an  expected life  of just
over 1 year since  it is very sensitive to sulfur.

     Advantages/Disadvantages;   The   MGC   intermediate   pressure
process  has   the  advantage  of  accomodating   moderately  higher
throughputs   than  lower   pressure   processes   while   keeping
compression costs  down as compared to high pressure processes.

     The  ICI  catalyst appears  to  have a longer catalyst  life  (2
years for ICI vs.  greater  than 1 year  for  MGC).   The MGC process
typically uses a  higher hydrogen  to carbon oxides  ratio  in  the
feed gas than  other  processes  (3.1  compared with 2.2  for  other
processes) but  this  is because  it  has only  been used  when natural
gas is the feedstock.[14]

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                               -29-
     E.    Vulcan-Cincinnati High Pressure Methanol Synthesis

     Status;   The   Vulcan-Cincinnati  high-pressure   process   is
commercially proven. [14,17 ,31]   However,  the  company  had to  stop
operation in 1973 when the  Middle East  war  forced the  cancellation
of a very large methanol plant in Saudi Arabia in which Vulcan had
heavily invested (see Wentworth Brothers'  process below).

     Process:  The  feed gas  ratio for  H2/(CO + 1.5   C02)  should
be  adjusted  to  a  value  of   2   for  optimum  conversion   after
desulfurization.   The feed  gas is  then compressed and  fed  to  the
converter which is usually  operated in the  range of 340  to 400°C
and  200  -  300 atm.   The  converter  operates adiabatically  with
considerable  temperature  rise  due  to  the  exothermic  heat  of
reaction, which is controlled  by quenching the reaction  with  cold
feed gas at several  levels.  After conversion the  crude  methanol
product is  condensed for  removal yielding a product containing  up
to  97  wt.  percent methanol (depending  on  feed  gas  composition).
There  is  also an  option  of  producing  up  to 20  wt.   percent  of
higher alcohols  by  changing  operating  conditions  which would  be
helpful if used for blending with gasoline.
     The catalyst,  which is  poisoned  by t^S  levels greater  than
3  to  5  ppm,  has  a  typical  life  of  about  4  years and  can  be
regenerated.    Conversion  of   CO  to   methanol   per   pass   is
approximately 5 percent.

     Advantages/Disadvantages ;  The  high pressure process is  well
suited  for  large  methanol  synthesis  trains  due  to   the  high
throughputs  occuring.   Catalyst   costs  are  also  less  than  the
low-pressure  copper-based  catalysts,   are  not  as  sensitive  to
sulfur and  can be  regenerated.   The process  can produce a  wider
range of fuel products (3 - 20 percent  higher alcohols).

     Some  disadvantages  are:    1)  that  the high-pressure  process
has  greater  compression costs,   2)  that  the  catalyst  requires
higher temperatures  and  pressures because  it  is not as  active  as
the copper-based catalysts, and  3) that it may not  be  suited for
small methanol plants. [14]

     F.    Wentworth Brothers Methyl Fuel Process

     Status;     The    term   methyl    fuel,    copyrighted    by
Vulcan-Cincinnati,  represents the  product  of a  methanol synthesis
process  which is  focused on producing  methanol  for fuel  rather
than chemical uses.   After  Vulcan-Cincinnati stopped operation  in
1973,   the   Wentworth Brothers  and  other  engineers  from  Vulcan
formed a new  corporation in May 1975.    Based on Vulcan  experience
and technology  and  relying  on catalyst improvements  and  a  reactor
design   adapted  from   proven   petroleum   technology,   Wentworth
Brothers, Inc.  (WBI), is now marketing  what  they believe to  be  a
much improved process for  the  production  of  large  quantities  of

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                               -30-
fuel-grade methanol.   No  commercial plants  are in  operation,  but
short-term  tests  of   the  catalyst  at  300  TPD  in  a  commercial
methanol  train  have  reportedly  verified   the   basic  operating
parameters for the  WBI methyl fuel process.[14]

     Process;    Details   of   the   process   operation,   catalyst
formulation, and  reactor  configuration are  considered  proprietary
and are not available.

     Advantages/Disadvantages;   What  is  known is  that  the  new
catalyst is  reportedly more active  and durable than  conventional
low pressure catalysts although  at the expense of  the  selectivity
for methanol.   The more active  catalyst allows  operation of  the
process  at  increased space  velocities  (throughput  per  reactor
volume), and at  higher temperatures  and pressures  which  maximize
fuel  production  per  reactor   train.   The  range   of  operating
conditions for  the methyl  fuel  process includes  pressures up  to
4,000  psi  (270  atm)  and   temperatures  from  200   to  400°C.   The
catalyst  is  claimed  to   be  effective  at   C02   concentrations
ranging  from 20  percent  to  essentially  zero  versus  conventional
copper-based  catalysts  which  require  some   C02«   Oak   Ridge
National   Laboratory  states    that   from   available   published
information it is not  possible to  ascertain whether the WBI Methyl
Fuel Process has any  inherent economic advantage over  conventional
copper-based methanol synthesis processes.[14]

     G.    Chem Systems Synthesis

     Status;  .As of  August  1980,  the  Chem Systems  process  was
ready to move to the pilot plant stage;[32]

     Process;   The  major  difference  between  the  Chem  Systems
synthesis  and  the  other  synthesis  processes  is   that  an  inert
hydrocarbon liquid  is  used  as the medium for the  catalyst instead
of a gaseous phase.  This  liquid phase allows  high conversions of
carbon monoxide  and hydrogen  to methanol   in  addition to  maximum
recovery of reaction heat.[32]

     In  the process   synthesis  gas   containing  carbon  monoxide,
carbon  dioxide  and  hydrogen is passed upward into  the  reactor
concurrent with  the inert hydrocarbon liquid,  which is  recovered
in  the  separation  plant  and  recycled  back to reactor  with  the
unconverted synthesis  gas.[1,32]   The fuel grade methanol product
is 95-96 percent methanol by wt.[14]

     Advantages/Disadvantages;   Chem  Systems  claims  that  their
conversion to methanol per pass  is about 4  times as great  as other
processes  (20 percent vs.   5  percent).  However,  Parsons  believes
that  this  process  only  has  slight  cost  advantages  over  the
existing processes.[1][14]

-------
                               -31-
     Parsons states  that  a new catalyst formulation  with superior
mechanical strength  still  needs to  be  developed to make the liquid
phase  methanol   synthesis  viable.[1]   Breakdown   of  catalyst,
inhibition of catalyst by  fluid and insufficient solubility of the
synthesis gas  in the fluid  are  other possible  problem areas  with
this design.[17]

     H.    Mobil Methanol-To-Gasoline (MTG) Process

     Status;   Mobil  has  conducted  developmental  studies  of  this
process  in  fixed-  and   fluid-bed   bench-scale   units   with   two
reactors being used  in  the fixed  bed unit.  The fixed  bed reactor
achieved  over  200  days  of  successful  operation.    The  single
reactor fluid-bed unit has undergone  two months of testing.  Since
the fluid bed  reactor had  a number of  advantages over  the  fixed
bed reactor, a 4-BPD fluid-bed pilot  plant  was designed, built and
operated under  a follow-on DOE contract  in 1976-78.    Startup and
operation  of  this   fluid—bed  unit   were   reported   to  be  very
successful.   Plans are currently under way  for a 100  BPD fluid bed
pilot  plant  sponsored  by  DOE, the Federal  Republic  of  Germany,
German  industrial participants,  and  Mobil.[14,22]   Of  interest
also   is  the   reported   news  that,  since   November   1979,   the
government   of   New  Zealand  has   been   pursuing   the   Mobil
methanol-to-gasoline  process,  with negotiations proceeding for  a
13,000    BPD    fixed-bed    unit    for    installation    almost
immediately.[22,28]

     Process;   The  conversion of  methanol   to  hydrocarbons  and
water  is a  very  exothermic  reaction giving  off 740 Btu/lb  of
methanol.   Heat  removal  is  therefore  the principal  problem  in
designing a  reactor  system.[7]   For  the  fixed  bed  reactor  the
problem  is minimized by dividing the  reaction into two  steps and
using  two reactors in series.  In the  first reactor crude methanol
is  partially dehydrated  to  an  equilibrium mixture  of  methanol,
dimethyl  ether  and  water   over   a   dehydration  catalyst[20,28]
releasing about 20 percent of  the reaction  heat.[7]   In the second
reactor  the  new  shape-selective  zeolite  catalyst   is  used  to
convert  both methanol and dimethyl ether  to  a  liquid  hydrocarbon
product.   This  hydrocarbon  liquid  product   is   then  sent  to  a
fractionation  unit  where   a deethanizer   sends  the   ethane  rich
overhead product  to  the SNG  train  and the bottoms are sent  to  a
stabilizer.   The overhead  product of  the stabilizer is  composed of
isobutane and  butene/propene which are sent  to  an  alkylator  to
produce  more gasoline  and  commercial  grade  propane  and  butane.
The bottoms  product  of  the  stabilizer  is  a   stabilized  gasoline
which  is mixed  with  the gasoline product from the alkylation  unit
and sent to  the  gasoline  blending unit to yield a high octane (93
research octane) gasoline.[7]

     The inlet  temperature of the  second  reactor is  about 625°F.
The  adiabatic  fixed  bed  process   operates  at  essentially   100
percent conversion of methanol to hydrocarbons and water until the

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                               -32-
catalyst  deactivates  by  carbon  formation  to  an  activity  level
where  only  partial  conversion  of methanol  is achieved.[28]   The
zeolite catalyst must be regenerated once every 14 days.[7]

     In the  fluid bed  process  one reactor  is  used,  operating  at
750°F  and 40 psig.  The hydrocarbon  product is  generally treated
in the same manner as  the  fixed bed product with the  exception  of
a few  changes.   A deethanizer  absorber  is  used in  place of  the
high pressure deethanizer tower to provide a recycle  stream to the
reaction for  increased propane-plus  yield.   A rich  oil  tower  is
also required.[7]

     Advantages/Disadvantages;   For  the  fluid-bed   reactor  the
methanol conversion  is  greater  than 95  percent,  producing about  44
percent  hydrocarbons  and  56  percent  water.    The  pentane-plus
gasoline fraction  of the hydrocarbons  is about  60 percent.   The
propene,  butene,  and   isobutane  produced  are  approximately  the
right  proportions  for  alkylation, bringing  the  total  yield of  9
Ib.   Reid  Vapor Pressure  gasoline  (96  unleaded  RON)  up  to  88
percent of  the  total  hydrocarbon yield.   The thermal  efficiency
for the methanol conversion is quoted at 95 percent.[14,33]

     One potential problem with the gasoline produced  from both  of
these  processes is  the  presence of  durene  which boils in  the
gasoline  range   but  has a  freezing  point  of  175°F.   This  could
cause  engine problems  since  the durene  could crystallize  out  in  an
engine's carburetor.  Durene is  present in  conventional  gasoline
in. very  small  amounts but  could  be present  in relatively  large
amounts (3-6  percent)  in Mobil MTG-gasoline.   Durene  levels of  5
percent   in   gasoline   did   cause   some   unsatisfactory  engine
operations  during tests  but  at  4   percent levels  effects  were
minimal.   Since durene levels  can  be maintained  to  acceptable
levels  by  proper  process  controls and it  could always  be  mixed
with conventional gasoline[34]  the presence  of  durene  may not pose
too much of a problem.

     I.    Fischer-Tropsch

     Status;   The Fischer-Tropsch  process  is  proven  technology
which  has   been  producing  liquid   hydrocarbons   at   SASOL   in
Sasolberg,   South  Africa   since  1955.[7]    This   is   the   only
commercial  scale coal  liquefaction  plant operating  in  the  world
today.   The  current  SASOL   plant  uses  two  reactor  schemes,   a
fixed-bed and a fluid  bed.   The current SASOL  expansion  to 50,000
BPD is based on a fluid-bed design.

     Process;   With  the fluid bed reactor,  purified synthesis gas
is compressed and  charged into  the reactor.   After  mixing with the
circulating  hot iron  catalyst,  the  reaction takes place as  the
mixture flows up the reactor through tube bundles  in  which oil  is
pumped for heat removal.   At the top  of the reactor,  the mixture
enters  a  large vessel  in  which cyclones  separate  the   iron and

-------
                               -33-
vapor.  The hot  oil  is circulated  to  a steam generator  where  200
psig  steam  is  produced.  The  overhead  vapor is condensed  and  the
vapor split into a recycle and purge  stream,  the latter being sent
to  hydrocarbon  recovery.  The condensed  liquid is  split  into  a
cold  recycle  liquid  and  a  light  oil  product.   Based  on  a  2.13
molar feed  ratio of  H2SCO  to  the  F-T  synthesis  units  the  final
product  yield   consists of  24  percent  SNG,   54  percent  10  RVP
gasoline,  9.8   percent diesel fuel,   5.5  percent  alcohols,  3.8
percent LPG and  2.8  percent  heavy  fuel oil (percentages on  a  HHV
BTU basis).[7]

     The  commercial  catalysts  include  cobalt,  for  the  fixed-bed
reactor,  and  iron  for  both  the   fixed- and  fluid-bed  reactors.
Operating  conditions   range  from  200-325°C and from  atmospheric
pressure to 25 atm depending on the desired products.   Because  all
of  the  reactions  in  the  F-T  process are  exothermic,  heat  removal
is  important.   For  the fixed  bed  reactor,  designs include a heat
exchanger being cooled  by boiling water or  circulating oil.   Fluid
bed   reactors   use   internal   tube  bundles  for  reaction   heat
removal.[7]

     Advantages/Disadvantages;   According  to   a  study  done   by
Mobil[7] which  compares the  F-T process to the  Mobil  MTG process,
the MTG process has a  number of advantages  over F-T.   For example,
the  Mobil  technology  gives  a . higher liquid  product/SNG  ratio
(energy basis),  47/53  vs.  35/65.   The  F-T  route has  18 processing
steps compared  with nine  for  MTG.  The MTG gasoline  had a higher
RON (93 vs.  91) and  a lower  olefin content  (11 vs.  20  percent).
The  economics   show  that . the MTG gasoline  cost  is  moderately
cheaper than F-T gasoline ($.60 '"-  $1.00 per gal. vs.  $.70  -  $1.35
per  gal.).  The overall efficiency for MTG was 62 percent vs.  58
percent for F-T.[7]

     A  recent   article in Hydrocarbon  Processing  advocating  F-T
stated  that  the   40-45   percent   efficiency   reported  for  the
operating F-T process  is really depressed  because  the  SNG produced
is  reformed  to make  additional H2 and CO  instead  of being  sold
as  a product  (SNG  is  not  marketable  in   South Africa).  If  the
process was brought to  the U.S. the author believes  that  SNG  would
be  a  viable  product   as  a  pipeline  quality  methane  gas,   thus
increasing  the  F-T  efficiency  to  60  percent (close to  58  percent
which was previously  stated  by Mobil).   In  addition  the  article
points  out  that  coal  consumption  for  the F-T  process  is  high only
because they use a low  quality coal with 30 percent ash.[35]

VII. Comparison of Indirect Liquefaction Design  Studies

     As  discussed  earlier,  there  have  been a  number of  studies
evaluating  the  indirect  liquefaction  of  coal.   This chapter  is
divided into four main sections,  the production of methanol  from:
1)  bituminous  coals,  2), subbituminous coals,  and 3)  lignite  and
4)  the  production of  gasoline from methanol  using  the  Mobil  MTG

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                               -34-
technology;  however,   this   fourth  section  also   includes   the
production  of   gasoline and  other  products  via  Fischer-Tropsch
technology.

     Each  section   begins  with  a   brief  introduction   and   a
comparison of   three  aspects of  the  various studies:   level  of
engineering design,  feedstock analysis,  and material  balances  and
efficiencies.   Then  capital,  operating  and product costs  for  each
study will  be   presented on  a consistent  economic basis  and  then
compared to reconcile as many of the differences as possible.

     A.     Methanol from Bituminous Coal

     There were five original studies available  which investigated
the  technical  feasibility of producing  methanol from  bituminous
coals:

     1.     R.M.  Parsons,   Co.,  for EPRI,   "Screening  Evaluations:
Synthetic Liquid Fuel Manufacture,"[1]

     2.     C.F.  Braun  for   EPRI,   "Coal  to  Methanol   Via   New
Processes  Under  Development:    An  Engineering  and   Economic
Evaluation,"[2]

     3.     Dupont Co.  for  U.S.  ERDA,  "Economic  Feasibility  Study,
Fuel Grade Methanol  from  Coal for  Office of Commercialization  of
ERDA,"[3]

     4.     Badger Plants,  Inc.,  "Conceptual Design  of a  Coal-to-
Methanol Commercial Plant,"[4] and,

     5.     Exxon   Research   and   Engineering   Co.,   "Production
Economics for Hydrogen, Ammonia, and Methanol During  the  1980-2000
Period."[5]

     The  studies differ   in  depth  of   design  and  use  different
assumptions with respect  to  key economic  parameters; also plant
sizes vary  widely.   Since methanol-from-coal  technology  is  well
developed  and  much  of  it  is common to  all of  the  studies,  the
large cost differences  between  the studies should be  reconcilable
by placing them on a consistent economic basis.

     Depth of Design:   The level of engineering  detail of  the  five
studies varies.  The most  detailed studies  where  found to  be those
performed by Badger  and EPRI/C. F.  Braun.   These studies  include
complete material balance  information for a detailed  flowsheet  and
extensive  design details,  including  drawings.    The   studies  with
the next highest level  of  engineering design are  the  EPRI/Ralph M.
Parsons  and   Du   Pont  studies.    These   studies  are   screening
evaluations and  their  level  of detail  is not sufficient  to allow
comparison with more  detailed studies.   The EPRI/Ralph M.  Parsons
study  includes  evaluations   of  four   gasification   processes  in
combination  with  Chem  Systems  Methanol  synthesis;   these  four
processes  are  denoted  as  Cases  1,  2,   3  and  4 of  the  Parsons

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                               -35-
study.  The  study found  to  be based  on the  least  detail is  the
Exxon/Chem  Systems  study  which  consists   of   summary  economic
information  for  two  gasification  processes,   but   provides   no
details for material and  energy balances.  These  two  processes  are
denoted as Cases 1 and 2 of the Exxon study.

     Ultimate Analysis for Bituminous  Coals;   Ultimate analyses of
the bituminous coals used in the various studies are presented in
Table 8.  Also listed in  this  table  are the  heating  values of  the
coals.  The  Exxon/Chem Systems study  did not report  an  analysis
for their  coal;  however,  they used  an  Illinois  high  sulfur  coal
which is  probably similar to  the  Illinois  No. 6 bituminous  coals
reported  in the  two  EPRI  studies.   The  Du Pont   coal  is  also
similar to  the coals  presented in the EPRI  studies.   However,  the
coal  considered  in  the Badger report  is a  low  sulfur  coal  which
would   meet  the   sulfur  dioxide   standard  for    large   power
plants. [12]  It  is  unlikely  that  a coal of   this quality  would be
used to produce methanol.

     Material  Balance  and Efficiencies;   Feedstock  and  product
rates for each study are  presented in Table  9.   Methanol  and  coal
are presented on both a short  ton  per  calendar day  (tpd) basis  and
on an energy basis.  Other  products  include  fuel  gas in Cases  1
and 2 of  the  Parsons  study;  the Badger  study  includes  chemical
grade methanol along with the  fuel grade.  All rates  are  based on
50,000 FOEB/CD of total products.

     Table  9  shows  that  the process  efficiencies for  the studies
vary  from 49.3 percent  for the Koppers-Totzek/ICI case prepared by
Exxon/Chem Systems to 58.2 percent for the Texaco/Chem System case
prepared by  EPRI/Parsons.  An investigation  of  these efficiencies
shows that the two Koppers-Totzek  cases  are  amongst  those  with  the
lowest  efficiencies.   This  is not surprising since  the  Koppers-
Totzek  gasifier  is the  only first generation gasifier listed  in
this  table,  and since  the gasifier  operates at near atmospheric
pressure  so that  the  product synthesis gas  must  be compressed,
thus  resulting in an efficiency penalty.  When comparing the  three
Texaco gasifier studies it can be  seen that  there is  a substantial
difference   (7.5   percent)   between   the    highest   and   lowest
efficiency.  The C.F.  Braun  study reports  an efficiency of  55.7
percent whereas  the  DuPont  study reports  an efficiency  of  50.6
percent.  A key  variable  in  the  Texaco process which affects  the
efficiency  is  the  coal/water  slurry  concentration.    The  greater
the coal concentration  in the  slurry,  the higher  the  efficiency of
the Texaco  process.[9]   The  C.F.  Braun case  utilized a 59 percent
coal  concentration in the slurry whereas the DuPont  study  utilized
a 54  percent coal concentration.   This difference will account  for
part  of the  efficiency  discrepancy.    The  Parsons/EPRI study  did
not report  any  processing information for the Texaco gasifier  and
therefore the high  efficiency reported for this  process could  not
be investigated.  The remainder of the processes  reported  in  Table
9 utilize  other  advanced  technology  gasifiers,  and  therefore  are
expected  to   have   higher  efficiencies  than   first  generation
gasifiers, e.g., Koppers-Totzek.

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                               -36-






                                   Table 8




               Ultimate Analysis of Bituminous Coal Feedstocks
Parsons
Exxon[5]

Study: Cases 1,2,3,4[1]
and 2
Coal Type
High

HHV
(Btu/lb.)
LHV
(Btu/lb.)
Ultimate Analysis
Wt % Dry Coal
C
H
0
N
S
Ash
Total
Wt% Moisture

Bituminous

111. No. 6
12,235
(wet)
11,709

»

69.5
5.3
10.0
1.3
3.9
10.0
100.0
4.2

C. F. Braun[2]

Bituminous

111. No. 6
12,150
(dry)
—



68.25
5.00
11.23
0.81
3.88
10.83
100.0
10

DuPont[3]


Badger [4]

Bituminous S. Appal.


12,113
(dry)
10,874



66.89
4.47
8.41
1.28
4.47
14.48
100.0
6.38


12,840
(dry)
-



73.8
4.8
6.4
1.6
1.1
12.3
100.0
2.4

Case 1

111.

Sulfur
11,390
(wet)
-











(As Recieved)

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                                                          Table 9
                                               Methanol from Bituminous Coal:
                                                Feedstock and Product Rates
                                           (Normalized to 50,000 FOEB/CD Product)
Study:
Mass Basis
Feedstocks
Coal, tpd
Products
Methanol, tpd
HHV Btu/lb
Parsons [1]
Case 1 Case 2 Case 3
21,722 21,150 23,006
14,500 15,132 15,349
9,610 9,610 9,610

Case 4 C.F. Braun[2]
20,714 21,795
15,349 15,172
9,610 9,722
DuPont[3]
25,685
16,223
9,092
Badger [4 J
20,048
14,570
9,407
Exxon[5]

Case 1 Case 2
24,447 26
15,227 15
9,687 9
,188
,227
,687
  Fuel Gas,
    mscf/CD
  Chemical Grade         -
    Methanol, tpd

Energy Basis (HHV), inBtu/CD

  Feedstocks

  Coal             531,531    517,544    562,977    506,873
  Electricity            -
    (energy equiv-
     alent)

  Products
                                                                                            iQ75
                                                                529,623
                                           582,543    514,834    556,902    596,565
                                                                    1810       1812
  Methanol         278,682    290,845    295,000    295,000
    (Fuel Grade)
  Fuel Gas          16,317      4,155
  Methanol               -
    (Chemical Grade)
                             295,000
  Thermal Eff'cy, %     55.5
57
                                              52.4*
58.2
55.7
295,000    274,121    295,000    295,000


            20,879


     50.64      57.3       52.8       49.3
                                                                                                                             i
                                                                                                                            w
*    95% conversion assumed for gasifier as opposed to 100 percent for the other cases.

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                               -38-
     Economics;   In  this  sub-section  the  capital  and  operating
costs  for  each  study will  be  presented  in order  to obtain  the
desired  product  costs.   These  costs   have   been   placed   on  a
consistent economic basis as reported in a previous report.[11]

     Table 10  presents  all of the investment costs  (normalized to
50,000  FOEB/CD)  broken  down into individual  process unit  costs.
This  table  shows  that  the  total  instantaneous  investments  range
from  $1.62  billion  for the  Shell-Koppers/ICI  case  of  the  Exxon
study  to $2.56 billion  for the Koppers-Totzek  case  of the Parsons
study,  which  represents  a  $940  million  instantaneous  investment
difference.

     Operating  costs are  presented  in  Table  11.    Some  of  the
studies  did  not  itemize  the  operating  costs   which  makes   it
difficult  to  compare these  costs between each  study.   The  net
annual operating costs  range from about  $315 - 480  million.  Most
of the operating cost estimates  lie  in the $340  - 440 million  per
year range.

     Tables 12 and 13 present economic  summaries  of  methanol  costs
for capital charge  rates of  11.5  and 30 percent.   For the  lower
capital  charge  rates  product  costs  vary  from  $5.30  for  the
Parsons/BGC     Lurgi    study     to     $7.23/mBtu     for     the
Parsons/Kopper-Totzek study.   For the  higher  capital charge  rate
product costs vary from $8.74 to $12.42/mBtu.

     Now some  of  the capital and  operating cost differences will
be reconciled.   First,  one  would  expect the Koppers-Totzek  cases
to have a high capital  cost  because  it is a low  pressure  process;
this results in higher  compression and gasification  costs  than  for
high   pressure  gasification   technologies.   Also,   since   the
Koppers-Totzek  gasifier  is  a  first   generation   gasifier,   its
capital  cost   is  expected  to be  higher  than  the  more  advanced
technology  cases.    The instantaneous  plant  investment  for  the
Parsons/Koppers-Totzek  study is $2.56  billion while  that of  the
Exxon study is $1.9  billion, which represents about  a $650 billion
investment difference.  The  investment estimate of the Exxon  study
is similar to  those  of  the advanced technology gasification  cases
which  seems  unreasonable.   The  only  difference  between  the  two
Koppers-Totzek cases is  the methanol  synthesis  technology  used.
Since  there  is  very little difference  expected in  the  capital
costs  of  the  Chem Systems  and   ICI   synthesis   units,   it   is
surprising to  see such a large  capital  cost  difference  between
these two cases, and the difference may  be attributed to lack of
design  detail  for the  Exxon study  which  was  discussed  earlier.
Therefore,   it  is   believed  that   the  Parsons  study   is  more
representative for the Kopper-Totzek case.

     Three  studies   investigated  the  use  of  Texaco  gasification
technology:   Parsons,  C.F.  Braun,  and  DuPont.    The  respective
plant  investment  costs  for   these  studies  are  $2.05,  $1.75  and

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                                                      Table  10

                              Methanol From Bituminous Coals:  Capital Costs Summary*
                                     (Millions of First Quarter 1981 Dollars)
Study;
Parsons [1]
Case 1
Technology:
Gasification/ Foster
Synthesis Chem.
Coal Preparation
Tar and Phenol
Recovery
Gasification
Shift Conversion
Acid Gas Removal
Sulfur Removal
Synthesis Gas
Compression
Methanol Synthesis
Cryogenic Recovery
Sulfur Recovery/
Methanol Drying
Oxygen Production
Steam and Power
Generation
Subtotal
General Facilities
and Offsites
Contingency
Contractor's Fee
Total Instantaneous
Plant Investment

Case 2
BGC Lurgi/
Wheeler/
Systems
83
-

186
42
281
14
71

170
29
28

348
68

1320
198

228
44
1790

Chem.
Systems
40
99

145
56
241
14
76 '

175
30
29

263
80

1248
187

215
42
1692

Case 3
Koppers
Totzek/
Chem. Systems
87
-

566
51
266
15
125

177
-
29

374
197

1887
283

325
63
2558

Case 4
Texaco/
Chem.
Systems
73
-

385
51
283
15
-'

177
-
29

430
106

1549
232

217
52
2050

C.F. Braun[2] DuPont[3] Badger [4]
Texaco/
Chem.
Systems
110
-

167
97
187
-
-

164
-
26

300
123

1174
306

222
43
1745


Texaxo/
ICI
112
-

205
75
175
-
-

190
-
-

373
302

1432
209

246
48
1935


Slag Bath/
Lurgi
37
33

187
66
193
16
33

197
16
24

313
90

1205
453

249
42
1949

Exxon [5 J
Case 1
Shell-
Koppers/
ICI
_
-

-
-
-
-
-

-
-
-

-
-

775
597

206
40
1618

Case 2
Kopper
Totzek/
ICI
_
-

-
-
-
-
-

- i
(_^
— VC
-

-
-

951
666

243
47
1907

Investment costs are based on 50,000 FOEB/CD of product.

-------
                                                        Table  11
                                Methanol From Bituminous Coals:  Operating Cost Summary
                                   (Millions of First Quarter 1981 Dollars Per Year)
Study:
Parsons [1]
Case 1
Technology:
Gasification/ Foster
Synthesis Chem.
Raw Materials:
111. No. 6 Coal
Catalysts and
Chemicals
Utilities:
Power
Process Water
Stack Gas Clean-up
Labor and Related:
Labor
Supervision
Plant Overhead
Capital Related:
Maintenance
General Plant
Overhead
Insurance and
Property Tax
Interest on Working
Capital
Other Operating
Costs
Gross Annual
Operating Cost
By-Product Credit
Net Annual
Wheeler/
Systems
218
10.6
7.5
124
360
(14.7)
345
Case 2
BGC Lurgi/
Chem.
Systems
212
10.6
7.1
120
350
(13.9)
336
Case 3
Koppers
Totzek/
Chem. Systems
231
12.1
10.7
181
435
(12)
423
Case 4
Texaco/
Chem.
Systems
208
10.6
8.8
149
387
(13.1)
374
C.F. Braun[2]
Texaco/
Chem.
Systems
219
20.7
36.3
10.9
40.1
23
47.4
7.3
1.2
406
(13.2)
393
DuPont[3]
Texaxo/
ICI
258
15
12
97
41
8.1
17
458
(19.5)
429
Badger [4]
Slag Bath/
Lurgi
199
3.4
23
29.9
1.5
2.9
7.2
52
319
(3.8)
315
Exxon[5]
Case 1
Shell-
Koppers/
ICI
245
4.1
6.8
19.4
8.7
1.3
4.1
1.7
63.4
41.2
42.1
6.8
445
(15.0)
430
Case 2
Kopper
Totzek/
ICI
263
4.1
6.8
20.6 i
12. Ig
1.3
4.1
1.7
74.5
48.4
47.5
8.0
492
(16.0)
476
Operating Cost

-------
                                                    Table  12
Stud}
Total Instantaneous
  Investment

Total Adjusted
  Capital Investment
                         Economic  Summary  of  Methanol  from  Bituminous Coal, CCR =  11.5%
                          	(Millions of First Quarter 1981 Dollars)	

                         	Parsons[1]	
                                                                            Exxon[5j
Case 1   Case 2   Case 3   Case 4  C.F. Braun[2]   DuPont[3]   Badger[4]   Case 1   Case 2

1790     1692     2558     2050       1745        1935       1949       1618
2030
1919
2901
2325
1979
2194
2210
1835
                                                                        1907
2163
Start-up Costs
Pre-paid Royalties
Total Capital
Investment
Working Capital
Total Capital
Requirement
Annual Capital Charge
Annual Operating Cost
Total Annual Charge
Product Cost
$/FOEB of Product
$/mBtu of Product
126
8
2164
125
2289
249
345
594
32.55
5.52
119
9
2047
118
2165
235
336
571
31.29
5.30
179
13
3093
179
3106
356
423
779
42.68
7.23
147
10
2482
147
2629
302
374
676
37.00
6.28
122
10
2111
122
2233
243
393
636
34.85
5.90
136
10
2340
135
2475
269
429
698
38.25
6.48
137
10
2357
137
2494
287
315
602
32.99
5.59
114
10
1959
113
2072
225
430
655
35.89
6.08
134
10
2207
133
2440
265
476
741
40.60
6.88

-------
                                                      Table  13
                           Economic  Summary  of  Methanol  from  Bituminous Coal,  CCR =  30%
                            	(Millions of First Quarter 1981 Dollars)	
                               Parsons[l]
Stud}
Total Instantaneous
  Investment

Total Adjusted
  Capital Investment
                                                                            Exxon[5J
Case 1   Case 2   Case 3   Case 4  C.F. Braun[2]  DuPont[3]
1790
1998
1692
1888
2558
2855
2050
2287
1745
1947
1935
2159
Badger[4]  Case 1   Case 2

1949       1618     1907
2176
1806
2128
Start-up Costs
Pre-paid Royalties
Total Capital
Investment
Working Capital
Total Capital
Requirement
Annual Capital Charge
Annual Operating Cost
Total Annual Charge
Product Cost
$/FOEB of Product*
j/mBtu of Product
126
8
2132
125
2257

640
345
985
53.97
9.15
119
9
2016
118
2134

605
336
941
51.56
8.74
179
13
3047
179
3226

914
423
1337
73.26
12.42
147
10
2444
147
2591

777
374
1151
63.07
10.69
122
10
2079
122
2201

624
393
1017
55.73
9.44
136
10
2305
135
2440

692
429
1121
61.42
10.41
137
10
2323
135
2460

738
315
1053
57.70
9.78
114
10
1930
113
2043

579
430
1009
55.29
9.37
134
10
2272
133
2405

682
476
1158
63.29
10.73


i
-e-
ro
1







     One FOEB =5.9 mBtu

-------
                               -43-
$1.94 billion.   The total  gasification  costs for  the C.F.  Braun
and  DuPont studies  are  almost  identical  (about  $565  million)
whereas  the  total  gasification  cost  from  the  Parsons  study  is
about $240 million  higher.   The main difference in the C.F.  Braun
and  DuPont  studies  lie   in   differences  in   the   cost  of  the
non-gasification  equipment   (oxygen  production,  offsites,  etc.).
It  is  difficult  to  determine  which  of   the   studies   is  most
representative;  based  on level of  design,  the C.F.  Braun  study
should be considered most representative.  However, to  be somewhat
conservative in  comparing  methanol  costs  to direct  liquefaction
cost both the C.F. Braun and the  DuPont  studies  will  be chosen and
a range of costs used.  The product  costs for these  Texaco studies
lie  in  about  the  same range  as  those for the  other  advanced
technology cases, which seems reasonable.

     In  an effort   to  determine  the  representativeness  of  the
Badger costs,  DOE  commissioned  Oak Ridge  National Laboratory  in
June,  1978  to  make  an  independent  assessment   of  the  Badger
report.[36]   ORNL  reported  that  Badger's  design  is  based  on
equipment sizes well beyond the present state-of-the-art  in order
to take advantage of the projected economies  of  .scale.  Therefore,
ORNL believes  that  the  Badger  design is more representative  of  an
Nth plant  design rather than a first plant  design.   For  a  first
plant design the Badger capital and  operating costs appeared to be
unreasonable to  ORNL.   The  operating  costs  for the Badger  study
listed in Table 11 are  lower than any of the others listed in the
table and perhaps are suspect.  However, the  Badger  study is based
on an  advanced technology  "slag  bath"  gasifier,  and  the  capital
cost based on  this design is a  bit higher than  those of  the other
studies  based  on  advanced   technology  gasifiers listed  in  Table
10.  It  is  expected that this  design would  have  a lower  capital
cost than those based on technology  commercially available  or near
commercially available.  The degree  to which this Badger estimate
may represent Nth plant designs is uncertain.

     Even though  the Texaco gasifiation  process is advanced,  its
costs  will  be  presented   separately   from   the   other   advanced
gasification costs.  Based  on the above  discussion, the DuPont and
C.F. Braun studies will be  used to  represent the range of  product
costs for  methanol  from  Texaco  gasification technology,  and  the
Parsons study  for Kopper-Totzek technology.   The remainder  of  the
studies   represent   methanol   costs   for    the  other   advanced
gasification technologies.   These costs are  as follows:

                                            $/mBtu
                                      Capital Charge Rate
                                      11.5%          30%

         Koppers-Totzek                7.23          12.42
         Texaco                     5.90-6.48      9.44-10.41
         Advanced Technology        5.30-6.08      8.74-9.78

-------
                               -44-
     B.    Methanol from Subbituminous Coal

     There are  two original  studies available which  investigated
the technical and  economic feasibility of  producing methanol  from
subbituminous coals.  These studies are:

     1.    "Methanol  from  Coal:   An  Adaptation   from  the  Past,"
Bailey, Davy McKee Corp., 1979.[6]

     2.    "Research Guidance Studies to Assess Gasoline  from  Coal
by    Methanol-to-Gasoline    and     Sasol-Type     Fischer-Tropsch
Technologies,  Schreiner,  Mobil  Research  and  Development  Corp.,
August, 1978.[7]

     The  Davy  McKee  study investigated the  use   of  a Davy McKee
fluidized bed gasifier,  which is  a modified Winkler gasifier which
has not  been demonstrated  on a  commercial scale.   ICI  technology
was used  for methanol  synthesis.   The Mobil  study utilized  BGC
Lurgi technology for gasification and Lurgi methanol synthesis.

     Depth of Design;  Neither study seems  to  have been  based  on a
high level of  engineering  design.   However,  since the Davy McKee
study  utilized   modified  Winkler/ICI   technology  and  since  Davy
McKee  has designed and  built commercial  processes using  Winkler
and ICI  technology, their  study  is probably  based on  processing
and   cost   correlations   associated   with   plants   they   have
constructed.   For  the  Mobil study,  process information was based
on either published or  licensor  data,  while  investment  estimates
were principally derived  from  in-house data.   For offsite units
vendor quotes were used where obtainable.

     Ultimate Analyses of  Subbituminous  Coal  Feedstocks;   Ultimate
analyses  for  the subbituminous coals  are  presented  in Table  14.
The higher and   lower heating  values are  also shown.   Both coals
are from Wyoming and have very similar compositions.

     Material  Balance and Efficiencies;   Feedstock  and  product
rates  for both   studies  are presented  in  Table  15.  Methanol  and
coal are  presented  on both a  short  ton per calendar day  (tpd)  and
an  energy basis.   The   Davy  McKee  study  produces  100  percent
methanol while the  Mobil  study produces  about  48  percent  methanol,
50 percent SNG,  and  2  percent naptha.   Sulfur,  ammonia and  coal
fines  are produced  as   by-products  from  the Mobil  study.   Coal
fines are also   produced  since  the  Lurgi  gasifier cannot  process
them.   By-products were  not reported for the  Davy McKee  study,  but
are  produced;  therefore,   for  economic purposes   the  sulfur   and
ammonia yields from the other study were assumed for it.

     Product  qualities for the  Davy McKee study are not  reported,
but product  qualities for  the  Mobil case  are presented in Table
16.   The  methanol  is   99.66  percent  pure,  but it   is still
considered to  be  of  fuel grade quality.   The  SNG is  about  96
percent methane.   The naptha  product  has  an  octane ((R+M)/2)  of
88.8,  and is  a suitable gasoline blending stock.

-------
                               -45-
                             Table 14

        Ultimate Analysis of Subbituminous Coal Feedstocks
Study;

Coal Type;

       HHV, Dry, Btu/lb
       LHV, Dry, Btu/lb

Ultimate Analysis of Dry Coal, Wt %

       C
       H
       0
       N
       S
       Ash

       Total

Wt % Moisture (as recieved)
Davy McKee[6]

   Wyoming

 11,818
 10,963
Mobil[7]

Wyoming

11,818
10,963
69.2
4.7
17.9
0.7
0.4
7.1
100
28
70.8
4.9
18.3
0.7
0.4
5.1
100
28

-------
                               -46-
                             Table 15

                 Methanol from Subbituminous Coal:
                    Feedstock and Product Rates
                    (50,000 FOEB/CD of Product)

                                 Davy McKee[6]             Mobil[7]
Mass Basis

   Feedstock
     Dry Coal, tpd                  26,820                  19,063

   Product
     Methanol, tpd                  15,227                   7,270

   Synthetic Natural
     Gas, mscf/CD                     -                        150
     Naptha, bbl/CD                   -                      1,351

   By-products, tpd
     Sulfur                      .     -                         ;63
     Ammonia                          -                        103
     Coal Fines                       -                      1,501

Energy Basis, mBtu/CD, (HHV)

   Feedstocks
     Coal                          639,918                 450,563
     Electricity                     3,448                   1,198

   Products
     Fuel Grade Methanol           295,000                 141,388
     Synthetic Natural Gas            -                    146,588
     Naptha                           -                      7,024
     Coal Fines

   Thermal Efficiency, %            45.9                    65.3

-------
                               -47-
                             Table 16

        Methanol from Subbituminous  Coal;  Product  Qualities

Davy McKee[6]

     The quality of the  fuel  grade methanol  was not  reported  in
the Davy McKee study.
Mobil[7]

     1.
     HHV:
     LHV:

     2.
SNG

Composition

Hydrogen
Methane
Carbon Dioxide
Inerts (N£ and Ar)
975 Btu/scf
878 Btu/scf

Methanol
           Light Boiling Compounds
           Heavy Boiling Compounds
           Water
     3.    Naptha
           Gravity, "API
           (R+M)/2 (unleaded)
           Reid Vapor Pressure, Ib.
                                             Weight

                                               1.7
                                              95.9
                                               0.5
                                               1.9

                                             100.00
                                  Weight %

                                   99.66
                                    0.12
                                   0.07
                                   0.15
                                  Weight %

                                   43.5
                                   88.8
                                    3.5

-------
                               -48-
     The thermal efficiencies  (based on higher  heating  values)  for
the  Davy  McKee  and  Mobil  cases  are  45.9  and  65.3  percent,
respectively.   This  is  a  very  significant  difference.  The  Davy
McKee  efficiency  is  a  bit  lower  than  the  lowest  efficiency
reported  for methanol  from  bituminous  coals  (49.3  percent)  in
Table  9.    However,   the  efficiency  for   the   Mobil  case   is
significantly greater  than  any  of  the  efficiencies reported  for
methanol  from   bituminous   coals.    One   reason  for   this   high
efficiency is that the  raw  syngas from the Lurgi  gasifier  is  high
in methane content and  the  simple isolation of this as product is
more efficient  than  converting it to carbon monoxide  and  hydrogen
and  then  to methanol.   Less  processing  of  the raw syngas  is
required, and, therefore, a greater efficiency is  the result.

     Economics;   Both  studies  have been  placed   on  a  consistent
economic basis  as  discussed  in  a  previous  report.[11]  Table  17
presents the investment costs  broken down  as  much  as  possible  into
individual process  unit costs.   An inspection of Table 17  shows
that the total  instantaneous  investments are  $1.84 billion  for  the
Davy McKee case and $2.26 billion for the  Mobil case.

     Operating costs are presented  in Table 18.  The  difference in
operating  cost  between  both cases  is  mainly  due to  annual  coal
feedstock  cost  differences  which  primarily  is   a  function  of
process efficiency.  As  noted earlier,  by-product  credit for  Case
1 is based on the ammonia and sulfur yields of Case 2.

     Table 19 and  20  present economic summaries and product  costs
when  using  capital  charge  rates  of  11.5 and 30  percent.   The
methanol  product  cost  for   the   Davy  McKee  case   ranges   from
$6.16-10.26/mBtu while  the  average product  costs for the Mobil
case  range  from $6.34-$11.24,  depending on  the capital  charge
rate.   In  addition  to  average  product costs,  Tables  19  and  20
present product  costs for the  methanol, SNG,  and gasoline  produced
in  Mobil  study  which are  based  on the  product  value  technique
discussed in another report.[11]

     It is possible that  the capital cost from the Mobil study is
more accurate than that  from the Davy McKee  study; the reason  for
this is  that the  original  Davy McKee  Plant  has  to  be scaled  up
significantly whereas  the other  was  much closer  to the  selected
50,000 FOEB/CD.  Therefore,  the Mobil  study's  costs  will  be  used
in preference.

     C.    Methanol from Lignite

     The following two original  studies investigated  the technical
feasibility of producing methanol from lignite:

-------
                          -49-
                        Table 17

Methanol from Subbituminous Coals;
        Millions  of  First  Quarter
 Capital Cost Summary
1981 Dollars
Davy McKee[6] Mobil [7
Technology
Gasif ication/Methanol Synthesis
Investment Costs
Coal Preparation and Handling
Gasification and Gas Cleaning
Shift Conversion
Acid Gas, Sulfur Recovery, Sulfur
Guard
Syngas Compression
Total: Coal Preparation, Gasification,
Processing
SNG Production
Methanol Synthesis and Distillation
Oxygen Production
Offsites and Product Storage
Infrastructure
Engineering and Design
Environmental Studies, etc.
Other Project Costs
Contingency
Total Instantaneous Plant Investment

Modified
Winkler/ICI
87
98
36
175
66
462
N/A
153
262
302
17
119
-
284
240
1840

Lurgi/
Lurgi
-
628
38
102
161
451
67
184
3
331
295
2260

-------
                               -50-
                             Table 18

     Methanol from Subbituminous Coal;   Operating  Cost  Summary
         (Millions of First Quarter 1981 Dollars Per Year)
Technology

Gasification/Methanol
Synthesis

Raw Materals

   Coal
   Catalysts and Chemicals

Utilities

   Power
   Water

Labor and Related

   Labor
   Supplies

Capital Related

   Administration and General Overhead

   Local Taxes and Insurance

   Interest on Working Capital

Gross Annual Operating Cost

   By-product Credit

Net Annual Operating Costs
                                                          Mobil[7]
                                         Davy McKee[6]     Case 2
Modified     Lurgi/Lurgi
Winkler
231
  8.4
  4.7
173
  6.9
  2.1
32.5
33.3
39.4
59.2
7.9
416.4
(9.3)
407
49.0
29.0
31.4
62.6
9.8
366
(18.3)
348

-------
                               -51-
                              Table 19

                  Economic Summary  of  Methanol  from
               Subbituminous Coal,  CCR = 11.5 Percent
              (Millions of First Quarter 1981 Dollars)
Total Instantaneous Plant Investment
Total Adjusted Capital Investment
Start-up Cost*
Pre-paid Royalties
Total Capital Investment
Initial Catalyst and Chemicals and
Working Capital***
Total Capital Requirement
Annual Capital Charge
Annual Operating Costs
Total Annual Charge
Product Cost
$/FOEB of Product****
$/mBtu of Product
Methanol, $/mBtu
SNG, $/mBtu
Gasoline, $/mBtu
Davy McKee
1,840
2,087
131
10**
2,228
131
2,359
256
407
663
36.33
6.16
6.16
-
.
Mobil
2,260
2,563
163
25
2,751
163
2,914
335
348
683
37.43
6.34
7.04
5.63
7.04
*    Start-up cost =6.3 percent of Total Adjusted Capital Investment.

**   Royalties  were assumed  equal to $10  million unless reported  by
study.

***  Working  Capital and Initial  Catalyst  and Chemical = 6.3  percent
of Total Adjusted Capital Investment.

**** One FOEB =5.9 mBtu.

-------
                               -52-
                              Table 20

                  Economic  Summary of  Methanol from
                Subbitumlnous Coal, CCR = 30 Percent
              (Millions of First Quarter 1981 Dollars)
Start-up Cost

Pre-paid Royalties

Total Capital I;

Working Capital
Product Cost
Davy McKee
meous Plant Investment 1,840
I Capital Investment 2,053
131
.ties 10
Investment 2,194
il 131
Requirement 2,325
. Charge 698
ng Costs 407
lharge 1,105
Toduct* 60.55
'roduct 10.26
., $/mBtu 10.26
iBtu
! . SmBtu
Mobil
2,260
2,522
163
25
2,710
163
2,873
862
348
1,210
66.30
11.24
12.48
9.98
12.48
     One FOEB =5.9 mBtu.

-------
                               -53-
     1«    Produ.ction  of   Methanol  from  Lignite,   prepared   by
Wentworth Brothers  Incorporated  (WBI),  and C.F.  Braun and Company
for EPRI.[9]

     2.    Lignite-to-Methanol,   an  Engineering  Evaluation   of
Winkler Gasification and ICI Methanol Synthesis  Route, prepared ~by
Davy McKee International, Inc.[8]

     Both these studies represent approximately  the same  amount of
engineering  design.    The  WBI/C.F.   Braun   study   uses   Texaco
gasification and  WBI methanol  synthesis  technology.    Three  cases
from this study are presented.   Case 1  was  prepared by WBI and  was
designed  based  on  a  55 percent lignite/45  percent   water  slurry
concentration.   Gasification  of  a lignite  concentration  this high
has not been commercially  demonstrated.  Case 2  represents a C.F.
Braun modification  of the  WBI  design  still  using the 55  percent
slurry  concentration.   Since   the  55  percent  lignite  slurry
concentration has  not been  commercially  demonstrated, C.F.  Braun
also analyzed a methanol  from lignite  case based on  a 43 percent
lignite slurry concentration which has been  suscessfully gasified
(Case 3).

     The  DMI   study  is  based   on  Winkler  gasification  and  ICI
methanol  synthesis.    Both  of   these  technologies  have  been
commercially proven.

     Ultimate Analysis  of  Lignite;  All  four  cases were  based on
the same  lignite,  and  the ultimate analysis  for this lignite is
presented in  Table  21.   Gasifier  yields  and oxygen  requirements
for all four cases are based on this analysis.

     Material  Balance  and  Efficiencies;   Feedstock  and  product
rates  for each  case  are   presented  in  Table  22.   Methanol  and
lignite are presented  on  both a  short  ton per  calender  day  (tpd)
and  an energy  basis.   The methanol  produced  is of fuel  grade
quality,  even  though in Cases  1,  2,  and  3  the  methanol  product
rates are reported on a dry  equivalent  basis.  All rates  are  based
on  50,000  FOEB/CD  of  liquid   products.    Sulfur   is  the  only
by-product reported in Table 22.

     Thermal efficiencies  vary  from  43.9  percent for Case  3   to
51.2 percent for Case 1.   The 43.9  percent  efficiency results from
the low lignite concentration in the slurry.  The  vaporization of
the  additional  water  in  lower  lignite  concentration   slurries
consumes  energy in  the  gasifier and produces  larger  quantities of
synthesis gas.   The result  is  a lower  thermal  efficiency and an
increase  of  the  capacities  of  all process  units except  methanol
synthesis.

     Economics;  Table  23  presents all  of  the  investment  costs
broken down into individual process units.  These costs  are  based
on a  plant  size  of  50,000 FOEB/CD of  product.   An  inspection of

-------
                      -54-


                    Table 21

     Ultimate Analysis of Lignite Feedstock


Heating Values

   HHV, dry, Btu/lb                        10,179
   HHV, wet, Btu/lb                         9,765
   LHV, approximated, dry, Btu/lb           6,460

Ultimate Analysis, Dry Coal, Wt%

             C                             58.98
             H                              4.55
             0                             19.05
             N                              0.77
             S                              1.40
             Ash                           15.25


Total                                     100.00

Wt.% Moisture (as received)                35

-------
                                -55-
                              Table 22

         Methanol from Lignite:  Feedstock and Product Rates
              (Normalized to 50,000 FOEB/CD of Product)

                            WBI[9]     C.F. Braun[9]
Study;                      Case 1    Case 2    Case 3   Davy McKee[8;

Mass Basis

    Feedstocks

    Lignite, tpd (wet)       44,250    44,596    52,071      48,171

    Products

    Methanol (tpd)           15,063*   15,063*   15,063*     15,226

    By-Products

    Electricity, energy       8,756    10,107    13,721
    equivalent per day

    Sulfur, tpd                 324       324       384         312

Energy Basis, mBtu/CD, (HHV)

    Feedstocks

    Lignite                 571,705   576,172   671,982     622,363

    Products

    Methanol                295,000   295,000   295,000     295,000

Thermal Efficiency, %         51.6    51.2      43.9        47.4
*    Methanol on a dry equivalent basis.

-------
                                -56-
Study:
                              Table 23

            Methanol from Lignite:  Capital Cost Summary
               (Millions of First Quarter 1981 Dollars)

                              WBI[9]     C.F.  Braun[9]
                              Case 1    Case 2   Case 3   DavyMcKee[8]
Technology

   Gasification/Methanol
     Synthesis
Slurry Concentration, %

Plant Investment Costs

   Lignite Storage and
     Preparation
   Syngas Generation, Gas
     Adjustment, and Puri-
     fication
   Gasification, Com-
     pression and Shift
     Conversion
   Acid Gas Removal,
     Chlorideand Sulfur
     Guard, Compression
   Methanol Synthesis,
     Distillation and
     Hydrogen Recovery
   Methanol Synthesis
   Gas Desulfurization,
     and Sulfur Recovery
   Air Separation
   Utility System
   Utilities and Offsites
   General Facilities
   Engineering Fees, Home
     Office Cost, and
     License Fees
   Contingency

Total Instantaneous Plant
Investment
                              Texaco/  Texaco/  Texaco/    Winkler/
                                WBI      WBI      WBI        ICI
                                55       55       43         N/A
                                41.1     43.5     49.3

                               637.8    779.4    932.8
                               155.7
                                23.0
                               154.6
                                91.4
                               263

                              2110
 164.7
  24.4
                               457.2   483.6
                               285.96   314.0
  96.0
  92
 286

2283
 164.7
  27.5

 677
 314

 122.9
  92.5
 331

2628
                     114.2
                                                            278
                                                            368.7
  35



 661.1

 225.8


 219

1901

-------
                               -57-
Table  23  shows  that  the  plant  investment  estimates  vary  from
$1.90-2.63  billion.   Cases  1,  2,  and  3  are  based on  the  same
technology.  Case  1  was prepared  by WBI;  whereas  Case 2 is  C.F.
Braun's  analysis of  the WBI  design.  Both are  based on the  same
lignite slurry concentration (55 percent).

     Braun  evaluated  the  capital  costs  for   adjustments  they
thought  necessary  to  appraise   the  WBI  work.    The  necessary
adjustments were the  addition of one spare gasifier/exchanger  set
per  train  and  operation with  the  start-up boiler  continuously  on
the  line  thus  increasing export power.  This equipment was  added
as   insurance  to  maintain  production  levels  and   to   provide
flexibility to  the complex.   Thus,  Case  2  is more  conservative;
its  capital cost  is $170 million  more  than  that  for Case  1.   It
must be  noted  that  to  obtain a  55  percent  slurry concentration,
feed  pretreatment  is  necessary  and  the  cost  of  pretreatment
equipment was not included in either of  the estimates.

     The  instantaneous  investment for  the C.F.  Braun case  which
utilizes  the  43  percent  lignite  slurry  concentration  is  $2.63
billion,  which  is $350-500 million more  than the Case 1  and  2
investments, respectively.   This  higher  investment  results  from
increased  capacities  of   all  process  units   (except  methanol
synthesis) needed  to  accommodate the larger amounts of water  (and
steam) present with the 43 percent lignite  slurry.

     The total instantaneous investment for the Davy  McKee case  is
$1.901 billion.   This case is based on Winkler/ICI technology.

     Operating  costs  are  presented  in  Table  24.    Net   annual
operating costs range from  $237 million for Case  1  to $380 million
for Case 3.  Reasons for the  low operating  cost  estimates for  Case
1  are  that:   1)   general  and administration cost  have  not  been
included, 2) 1 percent of the  total  instantaneous  plant investment
was  used  for  property  taxes  and  insurance as   opposed  to  2.5
percent for the other studies, and 3) labor costs  were  reported  to
be less than those for the other studies.

     Operating costs  for Case 3  are  expected to  be higher  than
those for  Case  1 and  2  because of  its  higher capital  investment
and higher feedrate of lignite.

     Cases 1 and  2 are  based  on  the same technology  and  lignite
slurry concentration.  Since  Case  2  is  a further analysis of  Case
1 and is more conservative, it is expected that  the  operating  and
capital cost for Case  2  are more  representative.   Therefore,  Case
2 will  be used  in preference to  Case  1  for developing methanol
product costs.

     Tables 25 and 26 present  economic summaries  of methanol costs
for  capital charge rates of  11.5  and 30  percent.   For the  lower
capital charge rate,  product  costs vary from $5.70 to  $6.92/mBtu.

-------
                               -58-
                             Table  24

          Methanol from Lignite:  Operating  Cost  Summary
         (Millions of First Quarter 1981 Dollars Per Year)


Technology
Gasification/Me thanol
Synthesis
Slurry Concentration, %
Annual Operating Costs
Raw Materials
Coal
Fuel
Catalysts and
Chemicals
Utilities
Water
Labor and Related
Operating
Maintenance
Administration and
Support
Capital Related
Ash Disposal
Maintenance
Materials
General and
Administration
Property Taxes and
Insurance
Interest on Working
Capital
Gross Annual Operating
Cost
By-product Credit
Sulfur
Electric Power
WBI[9]
Case 1

Texaco/
WBI
55


160.7
—
3.6


—
24.5
— .
—
—


2.1
52.8

—

21.1

8.9

273.7


(5.8)
(30.5)
C.F. Braun[9]
Case 2

Texaco/
WBI
55


160.7
12.2
3.6


— —

11.2
37.9
14.7


2.1
46.3

24.9

52.8

9.6

376


(5.8)
(35.2)
Case 3

Texaco/
WBI
43


. 190
—
3.6


— —

11.2
45.4
16.9


2.5
58.1

30

65.7

11.0

434.4


(6.9)
(47.8)
Davy McKee

Winkler/
ICI
N/A


175.7
—
17.9


0.2

19. -9-
18.4
11.5


2.4
27.9

25.1

47.5

8.0

354.5


(5.7)
—
       Export,
       (3.5^/kw-hr)

Net Annual Operating
Cost
237
335
380
349

-------
                          -59-
                        Table 25

            Economic Summary of  Methanol from
               Lignite,  CCR = 11.5 Percent
        (Millions of First Quarter 1981 Dollars)
Total Instantaneous Plant
Investment
Total Adjusted Capital
Investment
Start-up Cost
Pre-paid Royalties
Total Capital Investment
Working Capital
Total Capital Requirement
Annual Capital Charge
Total Annual Charge
Product Cost
$/FOEB of Methanol*
$/mBtu of Methanol
WBI
Case 1
2,110
2,393
148
10
2,551
148
2,699
293
530.5
29.07
4.93
C.
Case
2,283
2, .589
160
10
2,759
160
2,919
317
652
35
6
F . Braun
2 Case 3
2,628
2,980
184
10
3,174
184
3,358
365
745
.73 40.83
.06 6.92
Davy McKee
1,901
2,156
133
10
2,299
133
2,432
264
613
33.61
5.70
One FOEB =5.9 mBtu.

-------
                          -60-
                        Table 26
              Economic Summary of  Methanol
                from Lignite, CCR = 30%
        (Millions  of First Quarter 1981 Dollars)
Total Instantaneous Plant
Investment
Total Adjusted Capital
Investment
Start-up Cost
Pre-paid Royalties
Total Capital Investment
Working Capital
Total Capital Requirement
Annual Capital Charge
Annual Operating Costs
Total Annual Charge
Product Cost
$/FOEB of Methanol*
$/mBtu of Methanol
WBI
Case 1
2,110
2,355
148
10
2,513
148
2,661
754
237
992
54.36
9.21
C.F.
Case 2
2,283
2,548
160
10
2,718
160
2,878
815
335
1,150
63.
10.
Braun
Case 3
2,628
2,933
184
10
3,127
184
3,311
938
380
1,318
01 72.23
68 12.24
Davy McKee
1,901
2,122
133
10
2,265
133
2,398
680
349
1,029
56.38
9.56
One FOEB = 5.9 mBtu.

-------
                               -61-
For the higher  capital  charge  rate,  methanol costs vary from $9.56
to $12.24/mBtu.

     Since  the present  state-of-the-art  gasification of  lignite
using  the Texaco  gasifier  is  costly  due  to  the  effect  of  the
lignite water  slurry concentration,  the  Davy McKee costs  will  be
used  in  preference.   The  Davy  McKee  study  utilizes the  proven
Winkler gasification which  does  not require  a  coal  slurry  feed.
Thus, the  product  cost  of methanol varies  from  $5.70/mBtu  for the
low CCR to $9.56/mBtu for the high CCR.

     D.    Production of Gasoline  from  Coal via  Fischer-Tropsch
           and Mobil's MTG Technology

     There are  three original studies  available  which investigate
the technical  feasibility of producing gasoline  from coal-derived
methanol.   These studies are:

     1.    "Coal-to-Methanol-to-Gasoline  Commercial  Plant,"  Badger
Plants,  Incorporated,  Cambridge  Massachusetts,  FE-2416-43-Vl,2,
March 1979.[10]

     2.    "Research Guidance Studies  to  Assess  Gasoline  from Coal
by    Methanol-to-Gasoline    and     Sasol-Type     Fischer-Tropsch
Technologies,"  Max  Schreimer,  Mobil  Research  and  Development
Corporation, FE-2447-13, August 1978.[7]

     3.    "Screening    Evaluation:     Synthetic    Liquid    Fuels
Manufacture," Prepared by the Ralph Parsons Co. for EPRI.[1]

     The Badger study is  based  on a "slag  bath"  gasifier which  is
a new  concept and  may  still require  developmental work.  (See  a
more detailed  discussion above in  Section  IV.)   Lurgi  technology
is used for  methanol synthesis,  and Mobil  fixed  bed technology  is
used for methanol-to-gasoline conversion.

     The  Mobil study  actually  includes   three  cases,  designated
Cases 1,  2,  and  3.   Cases  1  and 2 utilize Lurgi  technology  for
coal  gasification and  methanol  synthesis,  and Mobil  fixed  bed
technology   for   methanol-to-gasoline   conversion.    These   cases
differ in that Case 1  produces  approximately 50  percent  gasoline
and  SNG,   whereas   Case  2   produces   approximately  100  percent
gasoline.   Case 3 uses  Lurgi  gasification  technology but  employs
Fischer-Tropsch technology for product synthesis.

     The  Parsons  study  is  based  on the  BGC/Lurgi  gasifier  which
still  needs  to  be  commercially  demonstrated.   Fischer-Tropsch
technology is used for product synthesis.

     Depth of  Design;   Both the Badger and the Mobil  studies  are
based on  a comparable level  of engineering design.   The  investment
estimates  are  of  budget or  scoping  quality.  The Badger study  is

-------
                               -62-
based  on   process  licensor's   economic   data   for   proprietary
processes  and  on  vendor quotes  derived  from in-house  equipment
specifications for non-proprietary processes.   Badger  states  their
cost estimate  represents an accuracy  of minus 5  percent,  plus  20
percent.   The Mobil study is of  the  same order of accuracy as  the
Badger study.   The Parsons  study is  a  screening evaluation,  and
could be expected to be less accurate than the other two studies.

     Ultimate  Analysis  of   Coal-to-Gasoline  Feedstock;   Ultimate
analysis for  the coal feedstocks are  presented in Table  27.   The
Badger study uses  a  Southern Appalachian bituminous coal;  whereas
Mobil  uses a  Wyoming  subbituminous  coal,   and   Parsons  uses  an
Illinois No. 6 bituminous coal.   The coal  considered in the Badger
study  is  a low  sulfur coal which  would meet  the sulfur  dioxide
emissions  standard for  large  power  plants.[12]   It  is  unlikely
that a coal of this quality would be used for synfuels  production.

     For  the  Badger  study, the  coal,  free  of   debris,  cleaned,
sized, and washed is delivered to the  plant  site.   Thus,  this  case
excludes  coal  preparation  costs  which has  been  included in  the
other studies.

     Material  Balance and   Efficiencies;   Feedstock  and  product
rates  for  each  case  are presented  in Table 28.  All rates  are
based on 50,000  FOEB/CD  of  products (excluding by-products).   For
the  Badger study  gasoline  represents  almost 100  percent of  the
product slate.   The  efficiency for this case is  49 percent.   For
Case 1 of  the Mobil  study  the  major products are  SNG  and  gasoline
and  the   overall   process  efficiency  is   63.2  percent..    The
production  of  SNG increases the overall  process efficiency  over
the all-gasoline cases since the isolation of SNG produced in  the
Lurgi  gasifier  requires  less  energy  than  gasoline-production.
Gasoline is the  main product from Case  2;  the efficiency  of  this
case  is  46.6  percent which is  comparable  to  the  Badger  plant
efficiency.   A  variety  of products  are  produced  from  Case  3
(Fischer-Tropsch) with the  main  products  being SNG and  gasoline.
The efficiency of  this case is  57 percent.   The  efficiency of  the
Parsons  case  is  56  percent.   While  both  the Parsons and  Mobil
(Case  3)  studies  are  based on  Fischer-Tropsch  technology,  their
product slates  vary  widely.  For the  Parsons case 15,000  FOEB/CD
of heavy fuel oil  is  produced  compared to  700 for the  Mobil  case;
whereas 190 mscf/CD of SNG  is produced for the  Mobil case  and  only
112 mscf/CD for the Parsons case.

     Both   of   the    Fischer-Tropsch   synthesis   cases   produce
significant  quantities  of SNG and/or   residual  oil.   For   a
transportation  fuels  oriented  synthetic   fuels   industry,  their
product  slates   would  be  unacceptable.    Both  cases   produce
approximately 33 percent transportation fuels  (gasoline  and diesel
fuel).  However, currently  transportation  fuels  (jet  fuel, diesel
fuel,  and  gasoline)  account  for  51  percent   of   the   refined
petroleum  products and this percentage is  expected to  increase  to
nearly 55  percent by  the  year  2000  (see  Table  7 [37]).   At  the
expense of  an increased  product  cost,  both  of these  plants  could
be altered to meet a more desirable product slate.

-------
                               -63-
                             Table 27

     Coal  to  Methanol to  Gasoline;   Ultimate Analysis  of  Coals

Study;                 Badger[10]             Mobil[7]   Parsons[1]

Coal Type;         Southern Appalachian       Wyoming
                                          Sub-Bituminous

  HHV, Dry, Btu/lb     12,840                 11,818      12,771
  LHV, Dry, Btu/lb        -                   10,963      11,709

Ultimate Analysis of
Dry Coal,  Wt. Percent

                                                70.84      69.5
                                                 4.85       5.3
                                                18.32      10.0
                                                 0.71       1.3
                                                 0.43       3.9
                                                 4.85      10.0
c
H
0
N
S
Ash
Total
-73.8
4.8
6.4
1.6
1.1
12.3
100.0
                                               100.0      100.0

  % Moisture              2.4                   28.0        4.2
  (as received)

-------
                           -64-
                               Table 28

            Coal-to-Gasoline:  Feedstock and Product Rates
               (Normalized to 50,000 FOEB/CD of Product)
Mobil[7]

Feedstocks
Coal (tpd)
Electricity
(mBtu/day)
Methanol
Products
Propane bpd
Isobutane, bpd
Butane, bpd
SNG, mSCF/d
Alcohols, tpd
Gasoline, bpd
Diesel Fuel, bpd
Heavy Fuel Oil, bpd
By-Products
Power, mBtu/d
Coal Fines, mBtu/d
Sulfur, tpd
Ammonia , tpd
Energy Basis mBtu/d
Feedstocks
Coal
Electricity
Methanol
Products
LPG
Butane
SNG
Alcohols
Gasoline
Diesel Fuel
Heavy Fuel Oil
Total
Thermal Efficiency, %
Badger [12]

23,147
7,572

—

2,911
4,544
-
-
-
46,729
-
—

-
-
207
—


593,497
7,572
—

10,897
—
-
-
264,855
-
-
294,552
49
Case 1

29,467
-

-

1,678
-
2,380
160
-
23,795
-
—

470
22,043
66
111


501,471
-
—

6,405
9,975
157,139
-
121,474
-
-
295,000
63.2
Case 2

37,219
-

-

3,606
-
5,162
-
-
50,843
-
—

153
-
83
140


633,392
-
-

13,814
21,633
-
-
259,555
-
-
295,000
46.6
Case 3

30,406
-

4.4

1,211
-
160
190
255
14,853
2,523
680

296
-
67
113


517,454
-
85

4,619
690
190,129
7,603
74,607
13,487
3,865
295,360
57.1
Parsons [1]

21,528




-
-
2,005*
112
951*
10,160
6,014*
14,849

-
-
762
-


526,790
-
-

-
11,829
94,524
5,613
59,942
35,484
87,608
295,000
56.0
FOEB

-------
                               -65-
     Product  Qualities;   The  main products  from  the  Badger  and
Mobil  studies  are  SNG  and  gasoline.    Chemical  and   physical
analyses of these products are presented  in Table  29.   Analyses of
the products  from the Parsons study  were not available.   The  SNG
from Cases  1  and  3  of the Mobil  study is  of  satisfactory  quality
and  is  compatible  with  natural  gas.   The  unleaded  gasolines
presented in Table 29 meet all 1976 ASTM  specifications.   Compared
to typical  present-day gasolines  these are slightly lower  in  API0
gravity.   It  would  be preferable  if  the  durene  content  of  the
gasoline were less  than  4 wt. percent  since  durene contents of  5
wt. percent in conventional gasolines have  caused  carburetor  icing
and stalling.  The  olefinic  concentration  of  the  Case 3  gasoline
(20 vol.  %) is higher  than that  of  conventional  gasolines  which
could  possibly  cause  problems  with  gum  formation  in  storage,
although  experience  with  higher  olefinic   gasolines   is  still
limited.   Consequently,  marketing such a  gasoline would  require
further testing.

     All  of  the  propane  and  butane  products  are  satisfactory
fuels.  The isobutane from the Badger study is of  high purity  and
may be  used as  a petrochemical  or as  a  refinery  feedstock.   The
diesel fuel from  Case 3 of the Mobil  study could be marketed as  a
premium diesel fuel, No.  1-D.   The heavy  fuel oil from  this  case
contains  no sulfur  or metals  and thus  could  be marketed  as  a
premium  gas turbine  fuel.   The  alcohols  from  these  case are  a
mixture  of C2~C()  alcohols,  and  are  essentially  free  of  acids,
aldehydes, ketones and water.

     MTG Process  Economics;   Table 30  presents  capital  investment
costs  broken  down  into   individual  process  unit   costs.    An
inspection  of  this  table  shows  that  the  estimates  of the  total
instantaneous plant investment  for  the  MTG  process  range  from
about $2.6  billion  for the  Badger  study  and  Case  1  of  the  Mobil
study, to  about $3.6 billion for Case  2  of the Mobil  study.   The
Badger  study  and  Case 2 of  the  Mobil  study  are both designed to
produce gasoline  as  the  major product.  Since both of  these  cases
are based  on Mobil's methanol-to-gasoline  technology and  produce
similar product slates, it is expected  that their  investment  costs
would be  comparable, but  this  is not  the  case.   Mobil's  capital
estimate is nearly  $1 billion more than Badger's.   Even though the
capital  cost of  a  subbituminous coal plant  is  expected to  be
greater than  a bituminous  coal plant, this difference  is much  too
large.   Table  30  shows  that the  "gasification,  et al"  costs  for
these cases are   almost  identical,  even though  the Mobil  case is
slightly less efficient  and  operates  with  subbituminous coal as  a
feedstock as  opposed  to  bituminous coal for the Badger study.   On
this  basis one   would  expect Mobil's gasification  costs  to  be
greater  than  Badger's, which  would  tend   to  make the  investment
difference between the two studies even greater.

-------
                               -66-





                             Table 29




               Product Qualities;  Coal-to-Gasoline

Study:
1) SNG
Composition, %
Hydrogen
Me thane
Ethene
Ethane
Propene
Propane
Butane
Carbon Dioxide
Inerts (N2 + Ar)
Total
Heat of Combustion, Btu/scf
Water
Sulfur
Carbon Monoxide (0.1% Max)

Study:
2) Gasoline
Gravity, "API
Research Octane Number
Motor Octane Number
Volatility
Reid Vapor Pressure, lb.
Distillation, °F
IBP
10%
30%
50%
70%
90%
EP
Sulfur, Wt.%
Composition, Vol. %
Paraffins
Olef ins
Napthenes
Aromatics

Case 1


1.7
95.5
-
0.2
-
0.1
0.1
0.5
1.9
100
980
0.01%
None
0.02%

Badger

62.7
92.7
82.7

10.0

79
106
140
187
259
339
390
Nil

54
12
7
27
Mobil [7]

















Mobil[7]
Case 1,2

61.4
93
83

10.0

85
110
146
200
262
336
388
Nil

51
11
9
29

Case 3


3.8
89.7
1.0
2.3
1.0
0.1
-
0.5
1.6
100
1000
0.01%
None
0.07%

Case 3

67.2
91
83

10.0

86
108
137
186
249
335
420
Nil

60
20
3
17
Durene Content
4 Vol.5
4.6 Wt.%

-------
                                        -67-
                                        Table 30

                         Coal-to-Gasoline:   Capital  Cost  Summary
                          (Million of First Quarter 1981 Dollars
Study;
                                                      Mobil[7]
 Badger[10]  Case 1
           Case 2
Case 3    Parsons[1]
Technology (Gasification/
Synthesis)
Investment Costs
Slag Bath/
Lurgi/MTG
   Coal and Lime Preparation      78
   Coal Gasification             210
   Shift Conversion               63
   Acid Gas Removal              216
   Sulfur Recovery                18
   Hydrocarbon Recovery
   By-product Separation
     and Recovery
   Syngas Compression             36
   Methanol Synthesis            220
   Cyrogenic Hydrogen Recovery    18

Total Gasification, et al        859

   SNG Production
   Gasoline Production           216
   F-T Synthesis and F-T
     Product Processing           -
   Oxygen Production             351
   Steam and Power Generation    121
   Cooling Water and
     Make-up, WWT                 90
   Environmental                  63
   Waste Disposal                 -
   Storage and Shipping           11
   General Facilities            118
   Infrastructure
   Other Project Costs
   Engineering and Design        246
   Miscellaneous                 138

Sub-Total                       2197

   Contingency                   330
   Contractor's Fee               56

Total Instantaneous Plant
  Investment                    2583
 Lurgi/   Lurgi/Lurgi/  Lurgi/
Lurgi/MTG     MTG      Fischer-
                       Tropsch
                304
                 49
                109
                 89
                 78

                 82
                	4

                715

                 38
                106
                167
                231

                 69

                104
                 34

                 70
                376
                189
                107

               2206

                331
                 55
               2592
               840
               370
               261
               266

               128
               286
                83
               510
               288
              3022

               455
                76
              3563
                         307
                          49
                         110
                          90
                          30

                          19
  614

   37
  218
  168
  274

   77

  109
   13

   71
  270
  208
  169

 2228

  343
   57
 2628
          BGC Lurgi/
           Fischer-
           Tropsch
               41
              147
               57
              244
               44
              100
               70

               31
 733
 342
 266
  11
 212

1624

 244
  41


1909

-------
                               -68-
     Operating costs  are presented in  Table 31.   Operating  costs
for the  Mobil Case 2  study  are $150 million  more than  those  for
the  Badger  study.   Unfortunately,  not  enough  information  was
available   to   reconcile   these   capital  and   operating   cost
differences.

     Tables  32  and  33  present  economic  summaries  and  average
product costs when using capital charge  rates  (CCR)  of  11.5 and 30
percent.   The  average product  costs  for  the  MTG  processes  range
from $7.37-9.75/mBtu for the low CCR  and from  $12.94-17.43  for the
high CCR.  In addition to average product  costs,  product  costs for
the various studies based on the product value method  discussed in
a previous report are also presented in these tables.[11]

     While the cost estimates  of these  two studies are  difficult
to  reconcile,  the  incremental product  cost  to  produce  gasoline
from methanol using  the  MTG process  can be determined and may be
more consistent.   To  accomplish  this  the incremental  investment
and operating  costs will  be  determined between:   1)  the  Badger
methanol plant (from  the bituminous coals section) and the Badger
gasoline  from methanol  plant, and  2)  the Mobil  methanol  plant
(from  the  subbituminous  coals section)  and  the  Mobil  (Case  1)
gasoline from methanol plant.   Then the incremental product  costs
for each case will  be  compared.  Mobil's Case  1 MTG unit is  sized
to produce 20,600  FOEB/CD  of  gasoline while Badger's was sized to
produce  45,000  FOEB/CD.   Therefore,   in  the   economics   to   be
presented  below  the Mobil study  MTG unit  has been  scaled up  to
45,000 FOEB/CD.

     The incremental instantaneous  plant investments ares

     1.    $634 million - Badger Study

     2.    $596 million - Mobil Study

     The incremental operating  costs are:

     1.    $97 million - Badger Study

     2.    $53 million - Mobil  Study

     After determining the  total annual  charge per the  procedure
discussed  in a  previous  report,[11]  the  incremental  charge  to
produce  45,000  FOEB/CD  of   gasoline  (50,000  FOEB/CD  of  total
product) from methanol via the  Mobil MTG process is:

                                       $/mBtu
                                 Capital Charge Rate
                                 11.5%          30%

               Badger             1.76         3.12
               Mobil              1.45         2.87

-------
                    -69-
                    Table 31

    Coal-to-Gasoline:   Operating  Cost  Summary
(Millions of First Quarter 1981 Dollars  Per Year)
Raw Materials
Coal
Limestone
Catalysts and
Chemicals
Utilities
Power
Water
Labor and Related
Operations
Maintenance
Supervision
General Services
Capital Related
Operating
Maintenance
Administration and
General Overhead
Local Taxes and
Insurance
Interest on Working
Capital
Other Operating Cost
Gross Annual
Operating Cost
By-product Credit
Net Annual Operating Cost
Badger [10]
232
8.4
27.3
28.3
19.5
13.4
1.7
3.1
38
7.5
5.2
32
416
(3.8)
412
Mobil[7]
Case 1 Case 2
184 232
7.9
2.2
9.6
46.5
2.4
31.1
34.6
71.9
5.3 8.2
295
396 535
(17.4) (11.0)
378 524

Case 3 Parsons
186 216
9.4 11
2.2
14.2
53.1
3.5
35.5
41.7
80
5.5 7.0
135
431
(9.6) (13.9)
422 355

-------
                     -70-
                    Table 32

Coal-to-Gasoline:  Economic Summary,  CCR = 11.5%
     (Millions of First Quarter 1981  Dollars)


Total Instantaneous
Plant Investment
Total Adjusted Capital
Investment
Start-up Cost
Pre-paid Royalties
Total Capital Investment
Working Capital
Total Capital Requirement
Annual Capital Charge
Annual Operating Costs
Total Annual Charge
Average Product Cost
$/FOEB of Product
$/mBtu of Product
Product Costs, $/mBtu
LPG
Butane
SNG
Alcohols
Gasoline
Diesel Fuel
Heavy Fuel Oil

Badger
2583

2929

182
26
3136
182
3319
382
412
794

43.51
7.37

5.82
5.82
-
-
7.55
-
-

Case 1
2592

2939

181
26
3146
181
3327
383
378
761

41.68
7.06

6.17
6.17
6.41
•
8.01
-
-
Mobil
Case 2
3563

4040

249
34
4323
249
4572
526
524
1050

57.52
9.75

7.72
7.72
-
-
10.03
-
-

Case 3
2688

3048

188
20
3256
188
3444
396
422
818

44.83
7.60

6.56
6.56
6.82
8.52
8.52
7.67
6.56

Parsons
1904

2159

133
9
2301
133
2434
280
355
635

34.79
5.90

5.31
5.31
5.52
6.90
6.90
6.21
5.31

-------
                               -71-
                               Table 33

            Coal-to-Gasoline:  Economic Summary, CCR = 30%
                  (Millions of First Quarter 1981 Dollars)

                                                Mobil
Total Instantaneous Plant
    Investment
Total Adjusted Capital
   Investment
Startup Cost
Pre-paid Royalities
Total Capital Investment
Working Capital
Total Capital Requirement
Annual Capital Charge
Annual Operating Costs
Total Annual Charge

Average Product Cost

   $/FOEB of Product
   $/mBtu of Product

Product Costs, $/mBtu

   LPG
   Butane
   SNG
   Alcohols
   Gasoline
   Diesel Fuel
   Heavy Fuel Oil
                                Badger  Case 1  Case 2  Case 3  Parsons
2,583   2,592   3,563   2,688    1,904
2,883   2,893   3,976   3,000
  182     181     249     188
   26
26
34
20
3,091
182
3,273
982
412
1,394
76.37
12.94
10.19
10.19
-
-
13.25
-
_
3,100
181
3,281
984
378
1,362
74.65
12.65
11.06
11.06
11.49
-
14.36
-
-
4,259
249
4,508
1,352
524 .
1,876
102.82
17.43
13.80
13.80
-
-
17.93
-
-
3,208
188
3,396
1,019
422
1,441
78.95
13.38
11.36
11.36
11.80
14.75
14.75
13.28
11.36
2,125
  133
   20
2,278
  133
2,411
  723
  355
1,078
                                 59.09
                                 10.01
                                  9.04
                                  9.04
                                  9.39
                                 11.74
                                 11.74
                                 10.57
                                  9.04

-------
                               -72-
The  costs  from  the  Badger  study  are slightly  higher than  those
from  Mobil.   Since  Mobil has  researched  and  developed  the  MTG
process,  it  is  believed  that  their  study  is  more  reliable;
therefore,  their costs will be used in preference to Badger's.

     Fischer-Tropsch Process Economics;  This  section  examines  the
investment   cost   differences   between  the   two   Fischer-Tropsch
studies.  The instantaneous plant investment of  the Mobil/Fischer-
Tropsch case is  $719 million more  than  that  of the Parsons  case.
When  inspecting  onsite process equipment  costs, the  Parsons  case
cost  $343   million  more.   However,  the  cost  of  offsite   type
equipment  is  $908 million  more for the  Mobil case.   Therefore,
even  though  there is  a large  onsite  investment cost  difference,
the  major  differences  between  the  two  studies appears  to be  in
offsite  investment  costs.   The  Mobil  study  is  probably   more
accurate since  it is based  on  a more thorough  design.   Operating
costs from the Mobil/Fischer-Tropsch study  are  $75  million greater
than  those  from  the   Parsons  study.   Unfortunately  not enough
information was available to reconcile these differences.

     Tables  32  and  33  present  economic  summaries  and  average
product costs  for both CCR's.   The average product costs  for  the
two  Fischer-Tropsch  studies  ranged from  $5.90-7.60/mBtu for  the
low CCR to  $10.01 to 13.38/mBtu for the high CCR.  Product  costs
based  on  the  product   value  method are also  presented  in  these
tables.  Since  the  Parsons' study is  based  on  a less  thorough
design  than the Mobil  study,  the  Parsons'   study  will  not  be
further investigated.

     To determine the  average  product  cost  difference between  a
Fischer-Tropsch  synthesis plant and a  methanol synthesis plant,
the Mobil study  (Lurgi  gasification/Fischer-Tropsch synthesis)  can
be   compared   with  Mobil's   Lurgi  gasification/Lurgi   methanol
synthesis  case  from  Table  17.    Differences  in  investment  and
operating costs between these two cases  reflect  the differences  in
synthesis   technology.    The   instantaneous   plant    investment
difference  is  $355 million  and the operating  cost difference  is
$67  million  with  the  Fischer-Tropsch case being  greater.   These
figures  translate into  an  average  product  cost  difference  of
$1.00/mBtu.

-------
                               -73-
                            References

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     2.    "Coal to Methanol  Via New Processes  Under Development:
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     3.    "Economic  Feasibility Study,  Fuel  Grade  Methanol  From
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     5.    "Production   Economics   for   Hydrogen,    Ammonia,   and
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-------
                               -74-
     12.   "The  Potential  for  Methanol  from  Coal:   Kentucky's
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-------
                               -75-
     27.   "Projects  Applying   to  SFC   For   Aid  Under   Second
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-------