Coal to Liquids PlantSite Selection in WV

Douglas G. Patchen

October 25, 2007

WV Energy Goal

• To displace 1.3 billion gallons of imported oil by the year 2030 through use of indigenous fuels

• Fuels developed in WV using WV resources

1.3 B gal Goal

• Amounts to 60% of WV’s current use

• Equals the % of US oil use that is imported

Proposed Solution: CTL

• Support the Governor’s CTL initiative by developing site selection screening criteria

• Assess the potential impact of CTL technology to meet the State’s goal

CTL Plants: Large Contributors

• 20,000 b/d output CTL plant could produce 300MM gallons of clean diesel and other transportation fuel each year

• 5 such plants would meet WV’s 1.3B gallons/yr goal

Why CTL? WV has…

• Substantial coal reserves

• Abundant water resources

• Established energy infrastructure

• Trained workforce

Increased Coal Production

• 20,000 b/d CTL plant requires 4 million tons of coal each year

• Coal for 5 plants would increase WV coal production by 15% each year

Reality…

• CO2 emissions from CTL plant are

significantly higher than from a petroleum refinery producing an equivalent amount of liquid fuel

Therefore, Carbon Capture & Storage (CCS) system may be a necessary component of all CTL plants

CCS Potential

• CTL Plant capturing 85% of CO2 emissions would emit 3.7% more than a petroleum refinery with equal output

What do we need for CCS?

• To develop an adequate surface infrastructure

• To identify subsurface reservoirs capable of storing the anticipated amount of CO2

Value-Added CCS Options

• Benefits include reducing greenhouse gas emissions and enhancing oil and gas production from…

• EOR projects in old oil fields

• ECBM projects in unmineable coal beds

Infrastructure Needs Significant

• RR or barge access to minimize coal transportation costs

• Access to enough water to meet plant processing and cooling requirements

• Proximity to electric transportation lines, natural gas pipelines, suitable reservoir

Bottom Line

• Compilation & availability of the proposed

data will provide a stimulus for

entrepreneurs and investors to explore

CTL opportunities in WV

Research Proposed

• Develop site-selection screening criteria

• Create a database of site-specific information

T-1: Develop Site Criteria

• Physical

• Environmental

• Geologic

• Workforce issues

Physical Characteristics

• Size and topography of available land

• Proximity to necessary infrastructure (water, coal, electric transmission lines, natural gas pipelines)

Environmental Criteria

• Potential impact on water quality or threatened and endangered species

• Sensitive sites such as wetlands and floodplains

• Establish environmental compliance thresholds CTL plants must meet

Geologic Criteria

• Geologic stability at the surface

• Critical subsurface reservoir quality parameters

• Ability to store the necessary volume of CO2 expected to be produced

Screening Weights

• Weights will be assigned to each criterion reflecting relative importance to CTL site

• Sites will be screened using this process; potential sites ranked

T-2: Create Database

• Database will be developed for all potential sites that pass the screening process

• DB will be restricted to sites capable of accommodating a 10,000 b/d CTL plant

• However, 20,000 b/d CTL plant necessary to meet economics

Nominating Sites

• Industrial, commercial, energy, business, government & economic leaders to be contacted by letter

• They can nominate a site; must submit all available data for the site to be screened

• Sites will be screened and ranked

Database Maintenance

• It is envisioned that WVDOE will continue to maintain this database after the proposed project ends

• Other sites will be evaluated and added/dropped as nominated

CTL – Wide Range of Products

• Liquid fuels

• Electricity

• Pipeline-quality gas

• Feedstocks for chemical industry

• Nitrates for fertilizer production

Site Visits

• Will be made – as time and budget permit – to more promising sites for further examination

Deliverables

• Final report that lists the site criteria, nomination and evaluation process, and lists the sites selected for inclusion in the CTL ranked-site database