An Economic Process for Coal Liquefaction to Liquid Fuels

Currently, direct-coal liquefaction processes produce limited yields of moderate-quality liquid products, which are not cost-effective compared to petroleum-based liquid fuels. This project will develop a novel catalytic process for the liquefaction of coal into liquid fuels. Phase I provided a proof-of-concept regarding the ability of the catalyst and the processing technology to produce high quality liquid fuels with high yields. Phase II will: (1) improve and optimize the catalyst system; (2) improve and optimize the reactor system developed in Phase I; and (3) study the coal liquefaction process in a mini-pilot-plant-scale processing unit, in order to demonstrate technical feasibility, collect data for a commercial design and economic feasibility study, and optimize the process to obtain high yield of high quality liquid product. Commercial Applications and other Benefits as described by the awardee: The coal liquefaction process should enable a coal-based refinery to produce transportation fuels for less than $25 per barrel. The low cost of the reactor system and high yield of liquid fuels would make the process cost effective. If successfully implemented, the technology should have a profound impact on the energy industry, creating energy-production jobs in the United States and dramatically decreasing reliance on imported petroleum.