The coal gasification program will include research and development efforts directed toward high- Btu and low- Btu gasification processes, both above ground and in-situ. The low- Btu gasification program will produce a gas suitable for power generation and combined gas-steam turbine power cycles, thus further employing coal as a utility fuel in an economic and environmentally acceptable manner. The high- Btu coal gasification activities, a cooperative and jointly funded effort of industry-Government, will continue technology development of processes aimed at improving the nation's natural gas resources by producing substitute pipeline quality gas at a reasonable price. Efforts will continue on the direct combustion program to develop boiler systems capable of burning high sulfur coals of varying quality in an environmentally acceptable manner, achieve higher combustion efficiency, minimize harmful emissions, and foster adoption of improved processes by powerplants. Research and development will also continue on advanced power conversion systems to establish the technology base for more efficient generation of electricity from coal. Advanced research and supporting technology will provide support primarily to the liquefaction, gasification, direct combustion and advanced power systems programs in FY 1976. The principal areas of concern involve advanced process research, supporting and new technology, basic coal science, and systems studies. Pilot plant efforts on a number of processes have proceeded to a point where it is planned to build a Clean Boiler Fuel demonstration plant to convert typically high-sulfur Eastern bituminous coals to an environmentally acceptable lowersulfur boiler fuel. The FY 1976 program includes funds for the conceptual design phase for the Clean Boiler Fuel demonstration plant, initial effort in the design of the High-Btu Pipeline Gas and Low- Btu Fuel Gas demonstration plants, and technical support for all three projects. In addition to the direct Federal funds the Administration anticipates significant cost sharing in many of the program areas. The present standard for cooperative joint funding anticipates one-third private, two-thirds Federal, for pilot plants and 50-50 sharing for demonstration plants. The following table, presesnted on a budget authority basis, displays the estimated cost sharing anticipated in FY 1976 for the Coal Program. (Dollars in thousands, except whole dollars in narrative material) The primary objective of the Liquefaction subprogram is to provide technology which is economically feasible and environmentally satis factory to convert coal to a clean liquid for electric power generation, and industrial and residential heating. Simultaneously, technology will also be developed for converting this synthetic oil into transportation fuels as well as chemicals. The short term objective of this subprogram is to develop to industrial scale the conversion of coal into low-sulfur, low-ash fuel oil suitable for electric power generators. The longer term objective is to develop to industrial scale synthetic fuels into higher grade products such as gasoline, methanol, diesel fuel and heating oil. Accomplishments: In FY 1975 research and development efforts in direct hydrogenation processes have been considerably accelerated with the program moving toward construction of pilot plants. The design of the ebullated bed (H-Coal) process pilot plant that was started in FY 1975 will be completed early in FY 1976. Construction of the plant which will be located in Cattlets burg, Kentucky, will begin late in the budget year. Procurement of long-lead-time items of equipment initiated in FY 1975 will be continued through FY 1976. The design of a fixed bed hydrogenation process pilot plant was initiated in FY 1975, based on the Synthoil process being developed with bench scale units and which has already proven long-term reliable operability. Concurrent with the design phase of the 600 tons-per-day pilot plant, a 10 tons-per-day PDU will be constructed in Bruceton, Pennnsylvania, for the Synthoil process to gather additional data to support the pilot plant effort. The operation of the 50 tons-per-day solvent refined coal (SRC) pilot plant in Tacoma, Washington, which was completed late in FY 1974, will be continued with attendant evaluation of operational data. Additionally, engineering effort is being directed toward design modification of the pilot plant to recycle unconverted coal, thereby improving the quality (more fluid, lower sulfur) of the solvent refined coal product. The improved mode will be used for operation in FY 1976. Need for Increase: The increase of $42,265,000, on a cost basis, for the liquefaction subprogram is primarily directed at the direct hydrogenation and solvent extraction pilot plant projects that are underway, as well as to continue other projects including a number of process development units and supporting research and development. This significant increase includes costs associated with not only the requested FY 1976 budget authority of $97,562, 000, up $2,817,000 over FY 1975, but also costs resulting from obligations recorded in previous years. Of the various approaches for converting coal into an improved nonpolluting energy source, liquefaction appears to be one of the most favored in terms of economics, confidence in reliable commercial operability, and the least time to achieve commercial implementation. Economic advantages, derive from the fact that less chemical changes are required to convert solid coal into a liquid than to gases, and the energy-conversion efficiency is higher. Commercial liquefaction processes would utilize well developed materials and equipment components already being used in existing commercial petroleum refineries -hence the assumption of operational reliability. In addition, it follows that liquefaction plants could be put into operation more expeditiously than plants employing alternative processes requiring relatively severe conditions and unusual materials, since the essential equipment to be employed in liquefaction processes is already developed as off-the-shelf items. Specific projects in the coal liquefaction program include research and development in each of the four methods of converting coal to liquids, namely: (a) direct hydrogenation, (b) solvent extraction, (c) pyrolysis, and (d) indirect liquefaction. The products produced by each process differ and because data is insufficient to make sound economic comparisons at this time, a parallel approach is desirable. Selected process options are being investigated through bench and pilot stage in order to build a broad technological base. From this base, an efficient process or combination of processes can be developed. A number of coal liquefaction pilot plants are already underway or are proposed. These pilot plants include two using direct catalytic hydrogenation, one based on solvent extraction, and two based on pyrolysis methods. As described under the Demonstration Plant program, one coal-to-liquid plant is proposed in the FY 1976 budget. Only after demonstration plant operation of each process can a valid technical and economical choice be made for best processes for commercialization. Additionally, a number of process development units are proposed, representing the first scaleup of promising laboratory tests, prior to pilot plants. The program also includes support research and development, which provides the backup research for current process development and for the development of novel liquefaction processes as second and third generation improvements in the technology. Support engineering work reveals areas needing research and development and guides the development to the most economic and reliable processes. a. Direct Hydrogenation. The following direct hydrogenation processes differ of a 2.5 tons-per-day (TPD) process development unit (PDU) and a b. (2) Fixed-Bed Hydrogenation. In the fixed-bed hydrogenation, or Synthoil, process for converting coal into nonpolluting fuel oil that has very low sulfur and ash content, pulverized coal is slurried with some of its own product oil and then pumped into the reactor with hydrogen at high velocity to create turbulence. The reactor is filled with immobilized catalyst pellets. The combined effect of the hydrogen, turbulence, and catalyst is to liquefy and desulfurize the coal at high yields and high throughput. Sulfur is removed as hydrogen sulfide which is easily converted into elemental sulfur for immediate use, storage, or disposal. The unused hydrogen is recycled for reuse in the process. The raw oil is centrifuged to remove ash, providing an immediately useable low-sulfur, low-ash fuel oil. The process works successfully on all kinds of coal and five different grades have been processed. Construction of a larger process development unit (PDU) which will treat approximately 10 tons of coal per day will begin in FY 1976. Shakedown operations will begin either in late FY 1977 or early FY 1978. Operation of the PDU will involve industrial participation. Operation of the laboratory Synthoil reactor will be continued to provide additional data for scaleup. Based on the technology of the Synthoil process being developed with (3) Zinc Chloride Catalyst PDU. This project is redesigned to produce fuel oil rather than gasoline from coal. Basic tests show that through the use of zinc chloride as a hydrocracking catalyst the objectives can be achieved. This process has been satisfactorily demonstrated at a smaller scale. Major problems to be resolved are the recovery of the catalyst and evaluation of desulfurization. A 100 pounds-per-hour PDU is planned, in which the reactor uses a molten pool of zinc chloride to convert the coal. The design of the process development unit is scheduled for FY 1976. (4) Disposable Catalyst Hydrogenation. This process uses very cheap catalysts that avoid the expense of its recovery or reuse after a single pass with coal through a hydrogenation reactor that converts the coal to sulfur-free oil. The catalyst is discarded with residual ash. Concurrently with the operation of PDU's up to 10 TPD and determinations of the advantageous catalyst combinations for liquefaction and desulfurization, the Government is contracting for the design of pilot plants and economic feasibility studies. When sufficient data have been gathered to warrant continuation of the project a pilot plant will be proposed. Solvent Extraction. These processes involve a solvent to extract a solid or liquid product from coal; the solvent acts as the agent that transfers hydrogen to the coal to extend the degree of liquefaction. The FY 1976 request provides for an increase of $5, 403, 000 in budget authority, primarily to be utilized for the Costeam process PDU and the Chemicals from Coal laboratory study. The much larger cost increase of $12, 133, 000 over FY 1975 levels provides for the payment of vouchers against prior year obligations as well as costs resulting from new obligations in FY 1976. c. (1) Costeam Process PDU. Most processes for the conversion of coal to oil use hydrogen under conditions of high temperature and pressure in the presence of a catalyst. The Costeam process, however, is a new process in which coal is reacted with carbon monoxide or synthesis gas (carbon monoxide and hydrogen), and steam. The advantage of this process is that it does not require a catalyst to convert low-rank coals, such as lignite, into low-sulfur fuel oil. In addition to savings of catalyst cost, low-purity carbon monoxide or synthesis gas for this process costs less than the usual hydrogen. In FY 1976 the design of the process development unit will be completed and the decision on construction will be made. The PDU treats about 10 tons of coal per day. Operation of the laboratory reactor will continue to support the PDU work. (2) Solvent Refined Coal (SRC) Pilot Plant. In the solvent refining process, coal is dissolved in a self-generated solvent under moderate hydrogen pressure. The solution is filtered to remove ash and insoluble organic materials and fractionated to recover the solvent, yielding the refined product. Solvent refined coal, a low melting solid or liquid, contains about 0.1 percent ash and less than 1 percent sulfur. The solvent refining process removes all of the inorganic sulfur and up to 70 percent of the organic sulfur in the coal. Construction of a 50 TPD pilot plant was completed in FY 1974 with startup and operations proceeding in FY 1975. This pilot plant is being modified to recycle unconverted coal, thereby improving the quality (more fluid, lower sulfur) of the solvent refined coal product. The improved mode will be used for operation in FY 1976. (3) Delayed Coker Process PDU. The objective of this project is to investigate the technical feasibility and economic potential of conversion of coal to distillate fuels by extraction followed by thermal cracking in a delayed coker (200 pounds-per-hour PDU). The key feature of this process is the use of a delayed coker for removal of the residue and ash instead of filtration as in the SRC process. If successful, this process could be readily scaled up with a high degree of confidence because the equipment and the related technology are now readily available. The process could be incorporated into the solvent refined coal pilot plant after PDU operation through FY 1976. (4) Chemicals from Coal. A laboratory study of the feasibility of using coal liquefaction products as a source of chemical intermediates is underway which will provide a basis for design and cost estimates for a commercial chemicals plant. This work, which will continue in FY 1976, will define technology for use of coal liquefaction products for the production of useful aliphatic and aromatic compounds. Product samples from several liquefaction processes such as the Solvent Refined Coal process will be subjected to upgrading processes, analytical inspections, and otherwise subjected to laboratory evaluations for characterization. Utilizing data from these studies, preliminary process flow sheets and materials balances will be prepared. Capital and cost estimates will be generated for commercial chemicals plants to supply replacement for petro-chemicals that are in short supply. Pyrolysis. These projects involve some form of coal pyrolysis or carbonization which amounts to destructive distillation, yielding a liquid product and a char. The projects are aimed at maximizing liquid yield and utilizing |