Scientists find way to make cheap gas from coal

cnews ^ | February 22, 2010 | not given

[caveat emptor]

Researchers in Texas say they have found a way of cutting the cost of producing gasoline by two thirds, taking advantage of the lowest grade of coal available - one that is abundant beneath the Canadian prairies.

A new refining process being perfected at the University of Texas at Arlington can turn the low-cost lignite coal, also known as brown coal, into oil at a fraction of the cost of importing crude oil from abroad.

[caveat emptor]

We're improving the cost every day,” Rick Billo, the school's dean of engineering, told a local television station.
>
We started off some time ago at an uneconomical $17,000 a barrel. Today, we're at a cost of $28.84 a barrel.

As the price of crude oil continues to skyrocket – now overing near $80/barrel - being able to produce a barrel of oil at less than half of that price is an attractive proposition, especially for Canadian producers.

According to the Coal Association of Canada, there are major deposits of lignite coal in Southern Saskatchewan, Alberta and Manitoba, though only the Saskatchewan deposits are currently being mined.

Lignite was the source of up to 70% of Saskatchewan's electricity last year.

The University of Texas hopes to license their technology in the next few months and start building the first micro-refineries to produce the cheaper oil in the next year.

Germany, Russia and the U.S. are currently the world's leading producers of lignite coal.

[o_zarkman44]

Ping to North Missouri coal.

[Drill Thrawl]

There sure seems to be a flood of “miracle engery” stories lately.

[karnage]

Didn’t the jerries do this during WW2?

[Free Vulcan]

and southern iowa coal...

[iowamark]

http://energyandenvironmentblog.dallasnews.com/archives/2010/02/ut-arlington-to-license-coal-t.html

I certainly hope these guys are correct.

[Frantzie]

Germany and also S. Africa duing the boycotts to install the marxist ANC in SA. Sasol, a big SA oil company, is very good in this technology but I think their cost is $35 a barrel.

I hope this happens because $28-29 a barrel in Texas would be awesome. The next TX gov and Perry should tell the Feds to get screwed and start producing this oil.

[Nailbiter]

ping,,,,,,,,,,,,,,interesting

[Army Air Corps]

Ping.

[CommieCutter]

Didn’t the jerries do this during WW2?

---

This was my first thought.

[Windflier]

I hope this happens because $28-29 a barrel in Texas would be awesome.

I agree, but the article says that the lignite coal is in Canada - not Texas. Seems that our boys and girls in Arlington are only responsible for developing the process.

Still good news.

[Jeff Chandler]

This is no “miracle” story like the pie-in-the-sky solar panel and wind technologies. Converting coal and bitumen to oil is already close to being competitive with pumped oil. It doesn’t take much of an advancement in technology to make it economically feasible.

[AndyTheBear]

There sure seems to be a flood of “miracle engery” stories lately.

Whatever the current big problem, there are always "miracle" technological that promise much only fizzle away for some technical reason unmentioned in the press release. But a few really do deliver.

I can't tell from articles like this which category this solution is in...if I could I would become a venture capitalist.

[George Varnum]

Heck; the Germans were doing this routinely during WW-II; they made most of the diesel fuel that the Panzer tanks ran on. The refineries where they made the stuff were prime targets for allied air raids.

I’m quite confident that the Obama Syndicate, at the behest of their Saudi Wahabbi masters, will pass a bill to make production sale, use or even possession of this synthetic fuel illegal just about the time they are ready to start production.
If the Congress won’t pass it, the Obameister will just outlaw it by executive order / Imperial edict.
You may be assured that they will come up with some lame “environmental” excuse to forbid it, too.

Besides; all of America’s natural resources have probably been put up as collateral against our loans from China, and since we’ll never pay them back they OWN our oil, gas, coal, and who knows what else.
That’s why they won’t allow any drilling anywhere - using the same old lame “environmental” excuse, of course.
Our politicians are committed to protecting CHINA’s oil and other resources that we’re holding for them. I just wonder when they’re coming over with the PLA to collect.

If anyone makes or sells any of this coal gasoline here in America, it will be a “bootleg” underground operation and the Federal Gestapo will be constantly on the prowl to bust them for it.

[AndyTheBear]

I agree, but the article says that the lignite coal is in Canada - not Texas.

I think it emphasized the coal in Canada to make it relevant to a Canadian audience. I seem to recall another article also mentioned such deposits are in Russia and in the U.S.

[babygene]

I hope Obama doesn’t hear about this... He will shut it down in a New York minute.

[RC one]

I’v been watching this for a while. I really hope it pans out. I’ll bet there’s quite a few billionaires hoping it doesn’t.

[Windflier]

I seem to recall another article also mentioned such deposits are in Russia and in the U.S.

From post 1:

"Germany, Russia and the U.S. are currently the world's leading producers of lignite coal."

Sounds like this new development could potentially impact U.S. gas prices, too. Even better.

[caveat emptor]

I agree, but the article says that the lignite coal is in Canada - not Texas

The article was written from a Canadian perspective. But check out the last line in the article, and in my first comment.

Germany, Russia and the U.S. are currently the world's leading producers of lignite coal.

[Edward Watson]

Thanks for the heads up. At <$30/BOE; that’s cheaper than tar sand production.