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Originally pioneered by British and German engineers more than 80 years ago, coal-to-liquid technology, or liquefaction, is used in modern forms in South Africa, where it provides 40% of the country's fuel for transport, and China, which is investing some $US6 billion in new liquefaction facilities.
The US National Mining Association (NMA) recently said the biggest obstacle for the US in further developing the technology was a lack of initial projects on a large enough scale to supplement current petroleum product availability.
It also noted the emergence of the Gasoline for America's Security Act of 2005, which has been brought before the US House of Representatives, that could subsidise the costs involved with developing liquefaction facilities and expand the definition of 'refinery' to include those that utilise alternate feedstock, including coal – making coal-to-liquid eligible for financial incentives and boosting its potential as a viable alternative resource for fuel.
"Our country is obviously vulnerable to energy disruptions, but much can be done to minimise this risk by using coal as a feedstock for refineries," said NMA president Kraig Naasz.
"By encouraging the conversion of our most abundant energy source, coal, to liquid fuel, Congress can supplement our nation's limited supplies of refined energy products and minimise our dependence on foreign energy," he said, adding that the country's use of the technology could "broaden our options."
