CALIFORNIA EYEING COAL-GTL OPPORTUNITY TO CUT PETROLEUM DEMAND, BOOST CLEAN-DIESEL FUEL

Gas - to - Liquids News, September, 2003

Coal-based gas-to-liquids (GTL) may experience a renaissance thanks to a combination of factors including high North American prices for natural gas and strong demand growth for ultra-clean, zero-sulfur distillate fuels.

California Energy Commission (CEC) expressed new interest in the concept at last month's CEC/California Air Resources Board (CARB) "alternative diesel fuels" workshop, with Commissioner James Boyd especially citing the idea as worthy of further investigation.

Spurring CEC's new interest was a presentation by Rentech CEO Dennis Yakobson, who outlined a GTL plant scheme tapping fairly inexpensive Wyoming Powder River Basin coal.

Powder River coal has been trading for the equivalent of around 50 cents/million Btu's for over a decade, while...

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