d. e. the by-product char. The advantages of the pyrolysis process lie in economy of relatively lower pressure operations. The FY 1976 request is actually $4, 600, 000 less than the FY 1975 level on a budget authority basis, and $100, 000 less on a cost basis. Operations of the Char-OilEnergy-Development (COED) process have been completed with a resulting decrease in FY 1976. (1) Clean Metallurgical Coke/Liquids. The objective of this project is to enable the use of high sulfur coals for metallurgical coke production, and to avoid pollution in the coking process, simultaneously producing liquids (tar) and hydrogen for separate hydroliquefaction of additional coal for upgrading the tar. The clean coke process combines lowtemperature carbonization and hydrogenation of coal. The process emphasizes the production of coke and chemical products, but production of liquid fuels is included. The process requires no external hydrogen supply and is essentially nonpolluting. Bench-scale work is complete and encouraging. A 1, 000 pounds-per-day PDU was completed with startup operation in FY 1975. Based on operational data from the PDU, a 500 tons-per-day pilot plant will continue to be designed through FY 1976. (2) Hydrocarbonization. The concept of this process is to do carbonization (pyrolysis) of coal in the presence of hydrogen at pressures in excess of 100 atmospheres, which increases the oil (tar) yield above the amount normally obtained from carbonization at atmospheric pressure. Utilizing technology that has been developed from the Char-Oil-Energy-Development (COED) and Clean Coke processes, the Holifield National Laboratory will construct in FY 1975 and operate in FY 1976 a 20 pounds-per-hour PDU to solve feeding and withdrawal problems and to optimize conditions and reactor design. Concurrently, an engineering feasibility study will be done for a conceptual full-scale plant to evaluate the benefits and problem areas of this process for producing clean liquid fuels with clean gaseous side-products. Indirect Liquefaction. Indirect liquefaction involves gasification of coal into carbon monoxide and hydrogen (synthesis gas) followed by converting the bases into liquid fuels by appropriate catalysts. The high- Btu gasification processes produce some of the required methane in the reactor, and the surplus syn-gas from the reactor is methanated catalytically. The "Liquids and High- Btu Gas" indirect liquefaction process is an alternate, hybrid process where the surplus syn-gas is liquefied, instead, for easy separation from the purified methane, which is then used directly as substitute pipeline gas. This hybrid process may be more economical and operable than methanation. The FY 1976 request provides for a moderate decrease of $800, 000 in budget authority from the FY 1975 level. On a cost. basis the FY 1976 level is $1, 300, 000 over FY 1975 which includes expenditures against not only obligations in FY 1976, but also obligated balances of prior periods. Support Studies and Engineering Evaluations. Support projects are necessary to facilitate development of the various liquefaction processes toward commercialization. Components of this supporting program include engineering evaluations, cost estimates, design services, materials and equipment development, support studies for hydrogen generation, the characterization of liquid fuels from coal and refining synthetic fuels, as well as support in the area of program planning and reporting. Laboratory studies on lignite liquefaction, liquefaction of Western sub-bituminous coals, desulfurization, and process development of new liquefaction processes are also included. The FY 1976 request provides for a modest decrease of $2,288,000 measured on a budget authority basis. However, costs will increase by $9,882,000 over FY 1975 which include the effects of previous years' obligations. (1) Engineering Support. Experienced engineering firms are retained to conduct preliminary reviews of projects and to help appraise the technical status, commercial feasibility, and economic impact of the various processes. Cost estimates of alternative pilot plants are also evaluated for information in the economic viability of alternative processes. The contractor will have access to computer services and will provide cost engineering and process economic studies and services to private industry and the Government in a concerted effort to expedite selection of the most promising process at minimal cost. Research and engineering efforts necessary for the development of specialized processes, materials, and equipment will be continued. Specific problems include: development of improved reactor designs for contacting coal and hydrogen over catalysts; the development of cheaper, longer-lived and poison-resistant catalysts; upgrading of crude synthetic fuels to lighter fuels and chemicals; detailed studies on liquefaction kinetics and reaction mechanisms; and environmental control in liquefaction processes. Special materials and novel mechanical component designs will be developed in laboratories, and the scaleup models of successful laboratory tested materials and devices will be used in the equipment development project which will provide pilot plant size test loops. The Government's Cresap, West Virginia, facility is being used initially for the development project as an engineering test center to evaluate various critical components, such as reactor systems and liquid-solid separators. The facility will also be used to determine the reliability of conventional equipment such as valves, pumps, etc., all of which are equipment common to most liquefaction processes. Novel items developed in the materials development project will also be tested. Upon completion of equipment development and testing, an integrated coal liquefaction process designed to produce low-sulfur fuel oil will be demonstrated at the Cresap facility. The integrated process will consist of the optimum combination of the proven reliable components as demonstrated at the initial testing. Design feasibility and cost studies will be continued during the fiscal year to determine the best procedure for producing the hydrogen needed to liquefy coal (hydrogen generation). Support studies on the charaterization of liquid fuels from coal will also be continued to determine the physical and chemical characteristics of products from various processes and different conditions of temperature, pressure and flow rates. The ultimate objective of this project is to be able to select the type of conversion process and operating conditions to provide liquid from coal having the most favorable refining characteristics. Laboratory and bench-scale studies are being conducted to evaluate and develop processes for refining crude synthetic fuels from coal to diesel fuel, gasoline, jet fuels, and other refined products. Studies will also be made for refining other liquid coal products to upgrade, fractionate, and process the raw oil streams produced in the several liquefaction units operating at the PDU or pilot scale. Evaluations will be made on the behavior of synthetic oil from coal products and their response to upgrading treatment, and to provide test quantities of specific product fractions and qualities for use testing (e.g., combustion test, motor tests, etc.). Support in the area of program planning for liquefaction has been initiated to achieve full control of a balanced and timely program to meet established objectives. This support will aid in program definition, assure adequate resources allocation and expedite management and budget decisions needed to insure optimum output from available funds. (2) Other Support. Novel liquefaction processes will be undertaken to explore and develop new liquefaction processes as candidates for second and third generation improvements in the technology. Liquefaction agents other than hydrogen and methods of enhancing the reactivity of hydrogen will be emphasized. Other elements of the project include: direct synthesis of aromatic fuels from carbon monoxide and hydrogen, liquefaction of bituminous coal with synthesis gas, and production of petro-chemical feedstocks from coal. Laboratory studies on lignite liquefaction, liquefaction of Western subbituminous coals, and desulfurization are being conducted concurrently with certain ongoing projects which are advanced or have advanced out of the laboratory stage into the process development unit (PDU) stage or directly into support pilot plant operations. Studies on lignite are aimed at defining the optimum procedure for converting lignite into liquid fuel, with bench-scale laboratory research in (a) solvent extraction under pressure of hydrogen, carbon monoxide, steam and mixtures thereof, (b) carbonization, (c) direct hydrogenation, and (d) upgrading of any of the initial liquid products by second hydrogenation and/or distillation. A simplified process for liquefaction of Western sub-bituminous coals is being developed which can be applied only to this class of coal because of its non-agglomerating character. Problem areas being investigated are catalyst recovery, improved catalysts and mode of application, increasing liquid yield to decrease byproduct char by improved reactor designs, and upgrading of products by hydrotreatment. A 50 pounds-per-hour PDU to reveal any long-term operability problems will be constructed and put into test operations. Other studies will be carried on in support of the liquefaction program in areas such as the development of efficient techniques for separating ash, unreacted coal and pyrite from the liquid product; new equipment designs for high pressure, high temperature liquefaction reactors; and metallurgical research and development for producing materials and equipment capable of withstanding the corrosive and abrasive conditions involved in coal liquefaction. 2. High-Btu Gasification $ 15,003 No Positions Objectives: The objective of the High-Btu Gasification subprogram is to provide improved technology for the manufacture of pipeline gas from coal; improvements which will conserve coal as they permit greater efficiency, and will decrease the cost of manufacturing gas by about 20 percent when compared to present technology. This subprogram, the furthest along technically, will be pursued vigorously, and pilot plants will be operating in the FY 1975-76 period. The most promising process or combination thereof will be used to design a demonstration plant, construction of which is now targeted to begin in FY 1977. The overall program goal is to provide the technology for construction of full commercial scale plants in the early 1980's. Accomplishments: Five high- Btu gasification pilot plants will be in operation by the end of FY 1976. In addition to the pilot plants, a major support effort in this subprogram is the steam-iron project which was initiated in FY 1973. A steam-iron process unit to produce hydrogen for the hydrogasification of coal in the HYGAS process is being constructed in Chicago, adjacent to the HYGAS pilot plant to enable future integrated tests. The design of the unit has been completed, the majority of the equipment has been ordered, and construction has been started. In 1971 industry, represented by the American Gas Association (A. G. A. ) and the Government joined together in a cooperative effort to establish a viable coal gasification industry by means of a joint accelerated research and development program. An agreement was initiated to jointly provide funds (two-thirds by Government and one-third by industry), beginning in FY 1972. This subprogram provides for the continued development of each of five different, but technically feasible, processes for the conversion of coal to highBtu gas. It was determined that only concurrent development of each concept through the pilot plant stage could generate, within the shortest period of time, the data necessary to determine which of the five concepts is more suitable for implementation on a commercial scale. At the same time the program recognizes the need to develop a suitable and compatible methanation process, to investigate state-of-the-art gasification systems and to initiate support studies for the development of advanced structural materials, sophisticated processing equipment and supporting unit operations. As specified in the agreement establishing the cooperative program, A. G. A. has planned to contribute one-third ($10, 000, 000) of the jointly funded yearly budget. The Government, in addition to its cooperative share of $20, 000, 000, is requesting additional funds necessary to offset cost escalation, construction delays resulting from difficulties in acquiring suitable materials, and to initiate studies and engineering evaluations considered essential to demonstrate a high- Btu coal gasification plant by 1980. Need for Increase: On a cost basis, the FY 1976 level for high- Btu gasification will decrease by $15, 003, 000 as compared to FY 1975. Costs in 1976 are large for the operational stages of pilot plants. Higher costs in the current fiscal year reflect heavily the payments required for the earlier construction phases of pilot plants. However, on a budget authority basis, this subprogram will increase by $3,559,000 in FY 1976 over the FY 1975 level. The primary areas of increase, on a budget authority basis, will be for the final construction and start-up phases of the Bi-Gas pilot plant and the steam-iron process unit. Natural gas currently provides one-third of the energy utilized in the United States. The demand for this environmentally acceptable source of fuel, transportable through an existing transmission system, is continually growing. This growing demand has resulted in a consumption rate greater than the discovery rate. The domestic reserves of natural gas are dwindling. Other sources of natural gas or substitutes must be found. The high- Btu gas program will promote the development of those processes that can at an early date provide alternate sources of this fuel through the conversion of coal. a. Development of New Second Generation Coal Gasification Techniques. (1) HYGAS Process. The development of this high-pressure process for the conversion of coal to high-Btu gas was initiated in 1946 by the Institute of Gas Technology under the sponsorship of the American Gas Association. The early origin and continued development of this concept, which attempts to maximize the yield of methane obtained within the hydrogasifier by operation at high pressures have contributed to its advanced state of development. Under the sponsorship of the Office of Coal Research, the technical feasibility of the concept was demonstrated during bench-scale studies. Construction of the pilot plant was begun in Chicago in 1969 and completed in 1971. The HYGAS pilot plant represents a capital investment of approximately $10, 000, 000, and is designed to convert 75 tons of coal to 1.5 million A number of successful runs have been completed at the design pres- (2) Carbon Dioxide Acceptor Gasification Process. This process, which |