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Comments on Coal Liquefaction

Dr. Hill has given an excellent, comprehensive review of the various coal liquefaction development programs that are now in progress. In view of the limited time, I would like to comment on just one subject-the economics of coal liquefaction and the impact of the economic basis on product cost. This would appear appro-priate to the interests of this audience, as well as an important consideration when evaluating costs quoted by various sources.My comments are based on a commercial plant study design for the Exxon Donor Solvent (EDS) process made in 1975-1976 and published in an EDS project report in January 1978. This study design is now being updated, and the new coal liquids costs are probably going to change. However, the old data will serve toillustrate the point I wish to make.

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Energy Specializations: Unconventional Fossil Resources – Coal gasification; Unconventional Fossil Resources –Synfuels

JEL Codes: Q35: Hydrocarbon Resources, D24: Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity, G31: Capital Budgeting; Fixed Investment and Inventory Studies; Capacity, C67: Input-Output Models, C60: Mathematical Methods; Programming Models; Mathematical and Simulation Modeling: General, Q54: Climate; Natural Disasters and Their Management; Global Warming

Keywords: fossil fuels, coal, liquifaction

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No1-10

Published in Volume 1, Number 1 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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