Turn natural gas into gasoline for $1 per gallon

peakoil.com ^ | August 21, 2014

[thackney]

The rest goes to more expensive stuff

Some is more expensive, some is less:

Refiner Petroleum Product Prices by Sales Type
http://www.eia.gov/dnav/pet/pet_pri_refoth_dcu_nus_m.htm

[ckilmer]

I’d like to see them do a commercially-viable coal to gasoline process.
..............
there’s already a number of goal gasification projects projects around the world.
https://www.google.com/?gws_rd=ssl#q=coal+gasification&spell=1

The trick would be to turn coal to gas and then use this process to turn gas to gasoline.

[thackney]

Coal to Liquids
http://www.worldcoal.org/coal/uses-of-coal/coal-to-liquids/

Converting coal to a liquid fuel (CTL) – a process referred to as coal liquefaction – allows coal to be utilised as an alternative to oil. There are two different methods for converting coal into liquid fuels:

Direct liquefaction works by dissolving the coal in a solvent at high temperature and pressure. This process is highly efficient, but the liquid products require further refining to achieve high grade fuel characteristics.

Indirect liquefaction gasifies the coal to form a ‘syngas’ (a mixture of hydrogen and carbon monoxide). The syngas is then condensed over a catalyst – the ‘Fischer-Tropsch’ process – to produce high quality, ultra-clean products.

An array of products can be made via these processes – ultra-clean petroleum and diesel, as well as synthetic waxes, lubricants, chemical feedstocks and alternative liquid fuels such as methanol and dimethyl ether (DME).

Where is it Used?

South Africa has been producing coal-derived fuels since 1955 and has the only commercial coal to liquids industry in operation today. Not only are CTL fuels used in cars and other vehicles, South African energy company Sasol’s CTL fuels also have approval to be utilised in commercial jets. Currently around 30% of the country’s gasoline and diesel needs are produced from indigenous coal. The total capacity of the South African CTL operations now stands in excess of 160,000bbl/d.

CTL is particularly suited to countries that rely heavily on oil imports and that have large domestic reserves of coal. There are a number of CTL projects around the world at various stages of development. Liquid fuels from coal can be delivered from an existing pump at a filling station via existing distribution infrastructure and used, without modification, in the current vehicle fleet.

[DainBramage]

So what would you estimate the real cost of producing 1 gallon of gas is these days?

[DainBramage]

Another question only a guy like you would know, how many cubic ft of gas does it take to create a gallon of gas using these methods and what is the cost of that gas.
I’m not being cute, really am wondering about the comparisons.

[Zhang Fei]

What I don’t get is why Sasol isn’t in talks with American coal producers about setting up such a facility stateside. Instead of acquiring mines willy nilly, shouldn’t US coal producers have been thinking about CTL, especially in view of all the flak they’re getting from the EPA?

[Mike Darancette]

The prices are very seasonal aren’t they?

[thackney]

For the same reason they are not expanding it in their own country. It isn’t the economic choice.

[Mike Darancette]

Seems you'd have a few hydrogens left over

Combine with O2 (burn it) to create energy. H2 does not remain left over long.

[Zhang Fei]

For the same reason they are not expanding it in their own country. It isn’t the economic choice.

What I've read is that the break-even price of oil for CTL is around $40 per barrel. Given that oil is now selling for around $100, what am I missing here?

[thackney]

Do you really believe South Africa can do CTL for $40, have an abundance of coal, a lack of oil, have decades of experience with CTL, and they spend their money building GTL?

$40 is not true.

[Zhang Fei]

Do you really believe South Africa can do CTL for $40, have an abundance of coal, a lack of oil, have decades of experience with CTL, and they spend their money building GTL? $40 is not true.

So it's SSL stock analyst fairy dust. Figures. Still, I remain curious as to what the actual breakeven oil price is for CTL. You'd think that since coal can be burned to provide energy for the process, such a number exists.

[Svartalfiar]

Why go this extra step to convert the gas to liquid fuel?

Density. In order to carry around the same amount of natgas as gasoline, you need to either compress it (requiring heavy-duty tanks/valves etc), or liquify it (requiring dropping temperature to -260F), which then needs pressurized/insulated tanks. Also, when refueling, spills are hazardous as they can cause frostbite (LNG), and vapors can be explosive/flammable. Gasoline/diesel can be stored in normal tanks, is easily transportable (buy a 5gal plastic jug at the gas station for $20), and still has a higher (volume) energy density.

So while LNG/CNG are great options, they don't make nearly as much sense at a consumer level. Industrial grade, yes. But for the average person, esp Joe Shmoe who works on his car on his driveway, you'll have to be careful with your fuel system/working on it. Refueling is more difficult.

[CPT Clay]

Amen brother. Fischer Tropsh should be producing most of our diesel fuel.