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INTERNATIONAL JOURNAL OF ENERGY RESEARCH

Int. J. Energy Res. (2009)


Published online in Wiley InterScience
(www.interscience.wiley.com). DOI: 10.1002/er.1596

A review on coal-to-liquid fuels and its coal consumption

Mikael Hook,y and Kjell Aleklett


Department of Physics and Astronomy, Uppsala University, Global Energy Systems, Box 535, SE-751 21,
Lagerhyddsvagen 1, Sweden

SUMMARY

Continued reliance on oil is unsustainable and this has resulted in interest in alternative fuels. Coal-to-liquids (CTL) can
supply liquid fuels and have been successfully used in several cases, particularly in South Africa. This article reviews CTL
theory and technology. Understanding the fundamental aspects of coal liquefaction technologies is vital for planning and
policy-making, as future CTL systems will be integrated in a much larger global energy and fuel utilization system.
Conversion ratios for CTL are generally estimated to be between 1 and 2 barrels/ton coal. This puts a strict limitation
on future CTL capacity imposed by future coal production volumes, regardless of other factors such as economics,
emissions or environmental concerns. Assuming that 10% of world coal production can be diverted to CTL, the
contribution to liquid fuel supply will be limited to only a few mega barrels per day. This prevents CTL from becoming
a viable mitigation plan for liquid fuel shortage on a global scale. However, it is still possible for individual nations to
derive signicant shares of their fuel supply from CTL, but those nations must also have access to equally signicant
coal production capacities. It is unrealistic to claim that CTL provides a feasible solution to liquid fuels shortages
created by peak oil. For the most part, it can only be a minor contributor and must be combined with other strategies.
Copyright r 2009 John Wiley & Sons, Ltd.

KEY WORDS: coal-to-liquids; synthetic fuels; conversion ratio; peak oil mitigation

1. INTRODUCTION socially unsustainable [1]. Peak oil concerns,


resulting in imminent oil production limitations,
The oil price has risen dramatically over the last
have been voiced by various studies [25]. This has
few years. The price of oil reached $100 per barrel
resulted in renewed interest in alternative fuels for
in January 2008, before rocketing to $147 barrel in the future.
July 2008. After the dramatic price collapse in Alternative liquid hydrocarbon fuels can be
late 2008, oil prices have now recovered to over obtained from various feedstocks, ranging from
$60/barrel, still an historic high. In summary, there solids to gases. Coal-to-liquids (CTL) is a technology
are few signs of a return to the $20 per barrel that based on the liquefaction of coal using three basic
was a typical price in the 1990s and continued oil approaches: pyrolysis, direct coal liquefaction
dependence is environmentally, economically and (DCL) and indirect coal liquefaction (ICL) [6].

*Correspondence to: Mikael Hook, Department of Physics and Astronomy, Uppsala University, Global Energy Systems, Box 535,
SE-751 21, Lagerhyddsvagen 1, Sweden.
y
E-mail: mikael.hook@fysast.uu.se

Received 12 January 2009


Revised 22 June 2009
Copyright r 2009 John Wiley & Sons, Ltd. Accepted 23 June 2009
M. HOOK AND K. ALEKLETT

Gas-to-liquids (GTL) and biomass-to-liquids way to protect the countrys balance of payment
(BTL) are related options, based on feedstock against the increasing dependence on foreign oil
other than coal. Generally, synthetic fuel properties [10,13]. A new DCL plant has recently become
can be made almost identical to conventional operational in China, possibly marking the
petroleum fuels. beginning of a new era.
CTL is one of the more reasonable approaches
for alternative liquid fuels, having already been 1.2. Aim of this study
technically and commercially established. The
The theory and technology behind CTL are
U.S. Department of Energy report Peaking of
reviewed. Understanding the fundamental aspects
World Oil Production: Impacts, Mitigation, and
of coal liquefaction technologies is vital for
Risk Management [7], the National Petroleum planning and policy-making, as future CTL systems
Councils report Facing Hard Truths about Energy
will be integrated in a much larger global energy
[8] and other studies, expect signicant future
and fuel utilization system. As a result, future CTL
use of CTL as a way to lessen the impact from
development will be affected by existing infrastruc-
declining conventional oil supply.
ture and systems. In our overview, we attempt to
point out some likely paths for CTL development
1.1. Historical overview
and indicate possibilities and limitations. Based on
CTL is an old technique, developed at the begin- the various assumptions about the future, we will
ning of the 20th century and has recently attracted project a number of outlooks regarding dominating
attention once more. Historically, it helped to fuel CTL technology in the future.
the German military during two world wars. CTL This study also compiles various assessments of
provided 92% of Germanys air fuel and over 50% CTL conversion ratios. Furthermore, an empirical
of their petroleum supply in the 1940s [9]. South coal consumption estimate is made using Sasol, the
Africa developed CTL technology in the 1950s world leading commercial CTL enterprise, as a
during an oil blockade and CTL now plays a vital reference case. This is compared with other
part in South Africas national economy, providing estimates as a simplistic sense check, aimed to
over 30% of their fuel demand [10]. investigate how well future outlooks agree with
The best known CTL process is Fischer practical experience. The derived conversion ratios
Tropsch (FT) synthesis, named after the inventors are also used to estimate future coal consumption
Franz Fischer and Hans Tropsch from the Kaiser as a function of CTL capacity.
Wilhelm Institute in the 1920s [11]. The FT The annual decline in existing crude oil
synthesis is the basis for ICL technology. Friedrich production has been determined as 47 mega
Bergius, also a German chemist, invented DCL barrels per day (Mb/d) [14]. Similar production
as a way to convert lignite into synthetic oil in volumes would be challenging to offset, either
1913 [11]. Karrick [12] invented a low-temperature partially or in full, by new CTL projects. However,
we overview some CTL forecasts and discuss their
carbonization process in the U.S. around the
potential for counteracting a decline in oil pro-
1930s, as a way to produce smokeless fuel and
duction from a global perspective. Most especially,
liquids from oil shale.
the required coal tonnage will be discussed to
CTL technologies have steadily improved since
determine the feasibility of a large-scale CTL
the Second World War. Technical development
industry as a peak oil mitigation strategy.
has resulted in a variety of systems capable of
handling a wide array of coal types. However, only
a very small number of commercial enterprises
2. BASIC CHEMISTRY OF CTL
based on generating liquid fuels from coal have
been undertaken, most of them based on ICL The basis for all types of CTL syntheses is a
technology. The most successful is the South carbon source combined with a hydrogen source,
African company Sasol, originally created as a such as steam. Chemical reactions between carbon

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

and other compounds will eventually fabricate over the resulting products. Many catalysts are
hydrocarbon molecules of the desired length. The notoriously sensitive to sulphur compounds or
original FT process was described by Formula 1. other substances, which require special treatment
and separation techniques to avoid catalyst
2n 1H2 nCO ! nH2 O Cn H2n2 1
poisoning.
Carbon monoxide can be produced by gasi- Much research has been made on different
cation of coal or another carbon-rich compound. catalysts for CTL processes and in many ways
The necessary reaction energy is applied by adding some of the greatest chemical challenges can be
oxygen or steam (Formula 2). found in the right choice of catalysts and the op-
C 12 O2 ! CO 2 timization of their performance. Closer discussions
on catalysts used in CTL have been done by others
The resulting mixture of carbon monoxide and [1518].
hydrogen is usually called synthesis gas (syngas). It
is used to construct hydrocarbon chains of differ- 2.2. Other process problems
ent lengths using condensation and a suitable
catalyst. Generally, the FT process yields two Liquefaction can also be affected by the different
types of products, described by two different re- properties of the coal feedstock. Different types of
actions (Formula 3). coal have different properties, requiring compat-
ibility between CTL-reactor design and coal feed-
nCO 2nH2 ! nH2 O Cn H2n olefins
stock.
nCO 2n 1H2 ! nH2 O Cn H2n2 paraffins Hydrodynamic problems can be caused by
thermal fragmentation of coal, when the coal
3 particles are shattered into smaller grains capable
of clogging gas outlets and causing other un-
The type of resulting products depends on the
wanted disturbances. Drying coal and reducing
catalysts used and the reactor-operating condi-
moisture will lower the probability of thermal
tions. Olen-rich products with n in the range 510
fragmentation.
(naphtha) can be used for making synthetic gaso-
Caking occurs due to the plasticity of coal and
line and chemicals in high-temperature FT pro-
causes coal particles to meld into larger cakes,
cesses. Parafn-rich products with n in the range of
leading to pressure drops and channel burning,
1219 are suitable for making synthetic diesel and
severely reducing the performance of the CTL re-
waxes in low-temperature FT processes.
actor. Mixing high-caking coals with low-caking
The Bergius process is the basis of DCL.
coals creates a more manageable overall caking
Splitting coal into shorter hydrocarbons, resem-
probability.
bling ordinary crude oil is done by adding hy-
High ash coals will call for a gasication design
drogen under high pressure and temperature, thus
capable of removing large ash concentrations
eliminating the need for a gaseous middle stage
without loss of performance. Practical CTL design
(Formula 4).
can be found for all forms of coal [19]. Conse-
nC n 1H2 ! Cn H2n2 4 quently, suitable designs are essential for obtaining
good performance.
2.1. Catalysts
Both Bergius and FT processes use different
3. CTL TECHNOLOGY OPTIONS
catalysts to aid the chemical reactions. Common
catalysts are transition metals such as iron, Experience from many different types of CTL fuel
ruthenium or cobalt. Transition metal sulphides, conversion techniques exists, while only some have
amorphous zeolite and similar compounds have been commercialized and proven feasible by
also been utilized. In general, catalysts have a large industry. CTL technology is an old concept that
impact on process efciency as well as inuence has to be fused with modern processes and

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
M. HOOK AND K. ALEKLETT

machinery to be able to full the economic and resulting liquids require further treatment before
environmental constraints of today. they can be used in existing vehicles. A demon-
Existing technological infrastructure from con- stration plant for coal upgrading was built in
ventional crude oil processing and gas liquefaction the U.S. and was operational between 1992 and
can provide synergistic effects reducing costs and 1997 [21]. However, there is little possibility
necessary research. Research on synthetic fuels that this process will yield economically viable
from non-coal feedstock exists in several places, volumes of liquid fuel. Consequently, further
where coal is too expensive or impractical to investigation and analysis of coal pyrolysis are not
acquire for example. In theory, FT synthesis can be undertaken.
used to create liquid fuels from very unconven-
tional feedstock as long as hydrogen and carbon 3.2. DCL
are available. For instance, carbon dioxide, carbon
This process is built around the Bergius process
monoxide and other combustion exhaust have
(Formula 4), where the basic process dissolves coal
been used as feedstock in patent applications [20].
at high temperature and pressure. Addition of
hydrogen and a catalyst causes hydro-cracking,
3.1. Pyrolysis rupturing long carbon chains into shorter, liquid
parts. The added hydrogen also improves the H/C
The oldest method for obtaining liquids from coal
ratio of the product.
is high-temperature pyrolysis. Typically, coal is
Liquid yields can be in excess of 70% of the dry
heated to around 9501C in a closed container. The
weight coal, with overall thermal efciencies of
heat causes decomposition and the volatile matter
6070% [22,23]. The resulting liquids are of much
is driven away, increasing carbon content. This is
higher quality, compared with pyrolysis, and
similar to the coke-making process and accom-
can be used unblended in power generation or
panying tar-like liquid is mostly a side product.
other chemical processes as a synthetic crude oil
The process results in very low liquid yields and
(syncrude). However, further treatment is needed
upgrading costs are relatively high. Coal tar is not
before they are usable as a transport fuel and re-
traditionally used as a fuel in the transportation
ning stages are needed in the full process chain.
sector. However, it is used worldwide for manu-
Rening can be done directly at the CTL facility or
facturing roong, waterproong and insulation
by sending the synthetic crude oil to a conven-
products and as a raw material for various dyes,
tional renery. A mix of many gasoline-like and
drugs and paints.
diesel-like products, as well as propane, butane
Mild temperature pyrolysis uses temperatures
and other products can be recovered from the re-
of 4506501C. Much of the volatile matter is dri-
ned syncrude.
ven off and other compounds are formed through
Some smaller pilot-plants and testing facilities
thermal decomposition. Liquid yields are higher
have provided positive results. In 2002, the
than for high-temperature pyrolysis, but reach a
Shenhua Group Corporation, the largest state-
maximum at 20% [21]. The main product is char,
owned mining company in China, was tasked
semi-coke and coke (all smokeless solid fuels). This
with designing and constructing the worlds rst
technique has mostly been used to upgrade
DCL commercial plant in Inner Mongolia
low-rank coals, by increasing caloric value and
Autonomous Region [24], which recently became
reducing sulphur content.
operational.
The Karrick process is a low-temperature car-
bonization process that also yields liquids [12].
3.3. ICL
The main product is, however, semi-coke. The tar
liquids produced require further rening before This approach involves a complete breakdown of
they can be used as a transportation fuel. coal into other compounds by gasication. Result-
In summary, pyrolysis provides low liquid yields ing syngas is modied to obtain the required
and has inherently low efciency. Furthermore, the balance of hydrogen and carbon monoxide. Later,

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

the syngas is cleaned, removing sulphur and other synthesis and the Sasol Slurry Phase Distillate
impurities capable of disturbing further reactions. Low-Temperature FT-synthesis [13].
Finally, the syngas is reacted over a catalyst to
provide the desired product using FT reactions
3.4. Comparison of DCL and ICL
(Formula 1).
Alteration of catalysts and reaction conditions The main candidates for future CTL technology
can create a wide array of different products are DCL and ICL. In essence, DCL strives to
(Figure 1). For instance, methanol is one possible make coal liquefaction and rening as similar to
product that can be produced directly or further ordinary crude oil processing as possible by
converted into high-quality gasoline via the Mobil creating a synthetic crude oil. By sidestepping the
process in additional stages [25]. In general, there complete breakdown of coal, some efciency can
are two types of FT synthesis, a high-temperature be gained and the required amount of liquefaction
version primarily yielding a gasoline-like fuel equipment is reduced.
and a low-temperature version, mainly providing Coal includes a large number of different sub-
a diesel-like fuel [26]. More details on FT synthesis stances in various amounts, several unwanted or
via ICL technology have been discussed by even toxic. Some substances can poison catalysts
others [6,26]. or be passed on to the resulting synthetic crude oil.
Sasol in South Africa owns the only commer- Ever-changing environmental regulations may
cial-scale ICL plants currently in operation with force adjustment in the DCL process, requiring it
well established and proven technology and to meet new regulatory mandates, just as crude
together with a lot of operational experience [10]. oil processing has to be overhauled when new
In total, Sasol has over 50 years of experience environmental protocols are introduced.
of ICL and has produced over 1.5 billion barrels of In comparison, ICL uses a designer fuel
synthetic oil during its existence [21]. A number of strategy. A set of criteria for the desired fuel are set
different ICL technologies have been developed by up and pursued, using products that can be made
Sasol; the oldest ones date from the 1950s and in FT synthesis. Many of the various processes will
was used to late 1980s. Today, advanced technol- yield hydrocarbon fuels superior to conventional
ogies from the 1990s are utilized, including the oil-derived products. Eliminating inherent noxious
Sasol Advanced Synthol High-Temperature FT materials in coals is not just an option; it is a must

Figure 1. Possible uses of synthesis gas from ICL. Based on [8].

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
M. HOOK AND K. ALEKLETT

to protect the synthesis reactor catalysts. Far from DCL-counterparts [30]. It is also sometimes un-
all ICL-derived products are better than their clear, whether the extra energy needed for process
petroleum-derived counterparts when it comes to heat, hydrogen production, and process power is
energy content or other characteristics. However, included in the analyses, making efciency com-
all ICL fuels are inherently clean and virtually free parisons even more delicate.
from nitrogen, sulphur and aromatics, generally
giving lower emissions when combusted [27,28]. 3.6. Process requirements
Comprehensive comparison between DCL and
CTL requires more than coal to produce usable
ICL has been performed by other studies [22,29,30].
fuel. Heat, energy, catalysts and other chemicals
In general, it is not easy to compare them directly,
are necessary to maintain functioning production.
as DCL yields unrened syncrude while ICL
Water is a vital part of the process, either as a hot
usually results in nal products. ICL has a long
steam or as a feedstock for hydrogen production.
history of commercial performance, while DCL has
not. Consequently, the economic behaviour of a Water for cooling and the boiler must also be
DCL facility has only been estimated while ICL provided, and for a larger plant the amount of
analyses can rely on actual experience. water consumed can be very large indeed. Water
consumption is approximately equivalent for DCL
and ICL. The water consumption for a 50 000 b/d
3.5. System efciency facility with American coal would be in the region
It is widely believed that DCL is more energy- of 40 00050 000 m3 day1 [36]. Therefore, water
efcient for making liquid fuels than ICL, justied by availability is an essential factor to be considered
the simplicity of DCLs partial breakdown compared during placement of CTL facilities. Grinding of
with the complete coal reconstruction used in ICL. coal and mixing it with water are another process
Several other features, such as environmental impact, steps that will consume energy and water.
exibility and reliability of process, should also be The DCL system requires hydrogen to crack the
taken into account for a more complete systematic coal into syncrude. This hydrogen is the most
view of the technology options. costly part of the DCL system. High-efciency
The estimated overall efciency of the DCL designs often acquire hydrogen from steam re-
process is 73% [31]. Other groups have estimated forming of natural gas, but DCL systems can also
the thermal efciency between 60 and 70% [21,30]. be modied to produce hydrogen from coal by so-
SHELL estimated the theoretical maximum called watergas shift reactions. Necessary heat
thermal efciency of ICL to 60% [32,33]. The process for obtaining syncrude is usually provided
overall efciencies of ICL (making methanol or by coal.
di-methyl-ether) is 58.3 and 55.1% [30]. Tijmensen ICL utilizes huge amounts of steam to break
et al. [34] give an overall energy efciency of ICL down coal into syngas, requiring substantial
of about 3350% using various biomass-blends. energy input. Treatment and purication of the
Typical overall efciencies for ICL are around syngas is necessary for protecting the catalysts.
50%. Detailed well-to-wheel analysis of energy This usually involves gas cooling and different
ows for ICL diesel has been done by van Vliet separation stages, all necessitating additional
et al. [35]. energy. However, some of this energy can be
Caution must be exercised in making efciency produced from sulphur and other compounds
comparisons, because DCL efciencies are usually separated out from the syngas in the recycling
for making unrened syncrude, which requires processes. Some ICL congurations actually
more rening before utilization, and ICL ef- generate more electricity than they consume by
ciencies are often for making nal products. If converting excess heat into electricity [30].
the rening of DCL products is taken into Finally, DCL or ICL rening and product
account, some ICL-derived fuels can be produced upgrading requires additional heat, energy and
with higher nal end-use efciency than their hydrogen. This extra energy requirement is up to

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

10% of the energy content of the syncrude and can 3.8. Emission properties
also be provided by coal. Additional energy must
The low sulphur content of CTL products
be also provided to reduce GHG and other emis-
compared with petroleum-derived fuels is a com-
sions, if environmental concerns are to be taken in
to account. mon trait for both DCL and ICL, which comes
from the necessity to protect catalysts from
3.7. System costs poisoning. Aside from this similarity, emissions
and combustion characteristics of DCL and ICL
The capital cost of a facility is usually the largest fuels differ. Comprehensive analysis of emission
cost, with operation/management costs coming characteristics of synthetic and conventional fuels
second. The coal costs are usually around 1020%, has been compared by others [43,44].
varying due to local supply, quality, etc. DCL products are typically rich in polycyclic
ICL plants in the U.S. provide break-even crude aromatics and heteroatoms [4548], while ICL has
oil-prices in the range of 2540 U.S.$ per barrel, lower aromatics content. High-temperature FT
dependent on environmental measures (such as synthesis yields branched products and contains
CO2 capture) undertaken [30]. Older and more aromatics, whereas these are virtually absent in
modest studies claim break-even crude oil prices low-temperature FT synthesis [49]. Recently, en-
around U.S.$35 per barrel [37]. Liquid fuel costs vironmental regulation trends have moved to-
for a Chinese DCL facility have been estimated at wards limiting the aromatic content in
around U.S.$24/barrel [38]. The development of transportation fuels [30], giving the advantage to
coal prices and the economic situation in recent ICL fuels.
years has inuenced break-even prices. The most Toxic trace metals and inorganic compounds,
recent study of CTL costs available, suggests such as cadmium, selenium, arsenic, lead and
a break-even price of 4875 U.S.$/barrel [39]. mercury, can be passed on to the nal fuel product
Expected costs for ICL and DCL do not seem to in both DCL and ICL processes. In ICL systems,
differ much and can be assumed as virtually removal of mercury and other metals is generally
identical. Table I lists some estimated costs trivial and inexpensive [30]. For DCL, however, it
for construction in the U.S. of three different ca- will be more complicated and more costly, but not
pacities. impossible.
The DCL facility in Inner Mongolia in China Cetane and octane numbers also differ, result-
has an overall cost in the order of U.S.$4 ing from the chemical properties of the various
billion [41]. Sasol and China were planning two
products. ICL gives diesel of a high quality, which
additional 80 000 b/d ICL plants in Shaanxi
is mostly due to the dominance of straight-chain
(650 km west from Beijing) and Ningxia (1000 km
products. However, low densities are a problem
west from Beijing), with U.S.$5 billion as estimated
for ICL products, but this can be mitigated by
capital cost per plant [42]. Currently, only two
blending [48]. General differences of nal products
projects are approved and the Chinese National
are summarized in Table II. Typical properties for
Development and Reform Commission suspended
specic ICL distillates can be found in Leckel [48].
all other CTL projects in September 2008 [41].
Both DCL and ICL fuels emit large amounts of
carbon dioxide compared with ordinary petro-
leum-derived fuels. However, there are methods
Table I. Estimated costs of CTL-industries in the U.S.
for reducing or even neutralizing emissions with-
One 20 000 One 80 000 One Mb/d out raising production costs drastically. Sub-
b/d plant b/d plant Industry stantial differences exist between DCL and ICL
Capital $1.5$4 $6$24 $60$160 technologies with regard to the potential and cost
investment billions billions billions of greenhouse gas emission mitigation [30].
The costs for emission reductions are not included, nor are Vallentin [39] concludes that DCL generates
government grants and funding. Source: [40]. about 90% more CO2 than conventional fuel on a

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
M. HOOK AND K. ALEKLETT

Table II. Typical properties of DCL and ICL nal task, but not impossible if proper investments and
products. developments are pursued.
DCL ICL In comparison, commercialization of ICL tech-
nology began in 1934 [48], and have been con-
Distillable product mix 65% diesel, 80% diesel,
35% naphtha 20% naphtha
tinuously redesigned and developed ever since. ICL
Diesel cetane number 4247 7075 systems only require a relatively small amount of new
Diesel sulphur content o5 ppm o1 ppm technology as most components are already estab-
Diesel aromatics 4.8% o4% lished. Similarities exist with GTL technologies and
Diesel specic gravity 0.865 0.780 the chemical industries based on syngas derived from
Naphtha octane 4100 4575
number (RON)
gasication [48], making future ICL developments
Naphtha sulphur o0.5 ppm Nil easier. This common technical ground and experience
content provides a solid base for expansion into new ICL
Naphtha aromatics 5% 2% projects. Realizing those and scaling up existing
Naphtha specic 0.764 0.673 capacity could still prove to be a signicant challenge.
gravity
In conclusion, the existing support infra-
Modied from: [49].
structure for ICL seems stronger than for DCL.
Worldwide gasication capacity indicates that
supporting gasication solutions are common for
well-to-wheel basis. This is in agreement with
producing chemicals, but FT fuel is increasing its
other studies, but if reduction measures are
share [50]. However, DCL can provide important
implemented, the emissions could be reduced to no
new feedstock for reneries, as conventional crude
more than 30% extra compared with conventional
oil begins to become scarce in the wake of peak oil.
petroleum fuels [30].
ICL technology generates approximately 3.10. Transition properties
80110% more CO2 emissions compared with
conventional fuels, if the CO2 is vented [30,39]. CTL systems must also be able to cope with an
However, there are ICL system congurations uncertain future. Stricter environmental regula-
where H2S1CO2 co-capture/co-storage can reduce tions, increased demand for liquid fuels, energy
emissions [30]. Well-to-wheel analysis has shown and electricity together with energy security
that even with CCS, CTL production chain emis- questions are important factors that can greatly
sions are higher than for petroleum-derived fuels, impact any technology. Williams and Larson [30]
mostly due to emissions from mining [35]. have attributed to DCL poor prospects for making
In summary, CTL fuels can improve emission high-quality diesel, which makes it an unsuitable
characteristics and reduce transportation emis- candidate for energy-efcient end-use technolo-
sions of sulphur, aromatics, NOx and particles gies. Furthermore, fuel exibility, such as being
compared with conventional fuels [43]. However, able to blend the coal feedstock with biomass, tar
there does not seem to be much potential for CO2 sand or waste material, is also an advantage worth
emission reductions if the full supply chain is considering. FT synthesis also generates naphtha
analysed for either DCL or ICL. as a by-product, which can be a valuable feedstock
for the chemical industries and allowing for
3.9. Infrastructure
further business opportunities [35].
Industrialized countries have generally discarded One possible future outcome is the so-called
DCL technologies for making synthetic fuels hydrogen society, where hydrocarbon fuels are
and focused more on ICL or GTL [30]. Conse- phased out and replaced with hydrogen fuel
quently, DCL systems generally require new cells. If the hydrogen scenario is taken into
technology, with the important exception of the account, major differences can be seen. DCL
H2-production [30]. Scaling up current DCL plants consumes hydrogen during cracking stage and it is
to a globally signicant fuel industry is a daunting impossible to obtain pure hydrogen in the DCL

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

process. In comparison, ICL can produce hydro- ICL fuels, especially ICL diesel, are generally
gen and the modications needed to switch pro- cleaner and can outperform many DCL fuels and
duction from hydrocarbons to hydrogen are conventional fuels in terms of emissions. It is also
relatively minor [35]. easier to implement CCS and GHG emission re-
Methanol, ethanol or other similar fuels are duction in ICL plants compared with DCL. In
other alternative fuel possibilities with acceptable essence, ICL technology will generally put the coal
efciencies [51], resulting in other transitions. energy system on a track more dedicated to en-
Methanol, DME and many other fuels can more vironmental concern, while DCL does not offer
easily be produced by ICL than DCL. However, this possibility to the same extent.
DCLs similarity to conventional petroleum pro- ICL offers more variable systems, capable of
cessing should not be overlooked as it can provide producing many more products than DCL sys-
a means to mitigate shortages in conventional tems, especially in polygeneration designs [30]. The
crude oil without having to construct entirely new existing infrastructure supports further ICL de-
systems for new transportation fuels. Syncrude velopments to a much larger extent than DCL.
from DCL does offer the possibility of prolonging Furthermore, ICL is capable of dealing with more
the life and usability of current infrastructure as future outcomes and has generally better transi-
conventional petroleum supply decreases. tion properties. In comparison, DCL is a less
Another possible future is based on electrica- exible transition technology with stronger ties to
tion and the corresponding transition will be from the present conventional fuel system layout.
hydrocarbon fuels to electricity. Anthropogenic However, this can also be an advantage as
climate change mitigation strategies request re- DCL can be used to maintain existing infra-
ductions or eliminations of CO2 emissions, which structure as conventional crude oil becomes
favour CCS technology. The CCS-capable power increasingly scarce.
plant design known as Integrated Gasication There is some interest in CTL technology
Combine Cycle (IGCC) has many similarities to around the world, especially in China. However, all
ICL technology and is one of the agships of but two CTL projects were recently suspended [41].
future clean coal technology [52]. In comparison, The objective was initially to produce 10 Mton
DCL lacks any strong connections to future annually of crude oil equivalents by 2010 from
coal-red power generation. The IGCC concept domestic coal and CTL technology and total out-
combined with ICL can generate various fuels, put was expected to rise to 30 million tons of crude
chemical products, heat and electricity at the same oil equivalents by 2020, approximately 16% of
Chinas present crude oil production [53]. Cur-
time and this would make it possible for coal to
rently, China is reconsidering this plan and the
play a major role in a climate and otherwise
future path remains uncertain.
environmentally constrained world [30].
The Alliance for Synthetic Fuels in Europe
(ASFE) is a collaboration of DaimlerChrysler,
Renault, Royal Dutch Shell, Sasol-Chevron,
4. SUMMARY AND FUTURE OUTLOOK
Volkswagen and Toyota, trying to promote GTL,
The two candidates for CTL are DCL and ICL BTL and CTL technology development in Europe.
technologies; the fraction of liquids obtained from ASFE [54] sees synthetic fuels as a vital part of
pyrolysis is simply too small and of too low developing a less polluting vehicle park together
quality. Energy-efciency differences exist, but if with creating energy security that enables trans-
end-use is taken into account these differences will portation in to the future. However, the actual
decrease and become relatively minor. Fundamen- number of CTL projects in Europe is low. Mostly
tal characteristics do not favour any of the small-scale or laboratory-scale projects in lique-
approaches, and feasibility is largely dependent faction chemistry.
on the future society and energy system that CTL Recent interest in CTL technology has grown as
should be integrated into. a reaction to increased American dependence on

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
M. HOOK AND K. ALEKLETT

imported oil. Several major American coal com- combined capacity of 150 000 b/d and more than
panies have expressed interest in CTL technology 40 million tons of coal per year is consumed [10]. In
or created blueprints and studies for CTL plants 2003, the South African synthetic fuel industry
[55,56]. The U.S. military has expressed concern consumed 24% of all coal produced in South
over the dependence on foreign oil and studied Africa [62], since Sasols CTL facilities are the only
alternatives derived from CTL or possibly producer of synthetic fuels in South Africa, this
BTL [57,58]. Feasibility studies and evaluation must also reect their coal consumption
programs are being pursued, but no full-scale (Figure 2). South African coal production was
program has yet been implemented. Uncertainty 238 Mton that year [63], and consequently, the coal
about the cost and performance of CTL plants, consumption of the CTL sector was 57 Mton. All
uncertainty about the future course of the oil price South African coal is classied as bituminous [63].
and CO2 emission properties are three major Using 40 Mton as a lower limit and 57 Mton as
obstacles for future development [48]. an upper limit for Sasol coal consumption, one can
compute that one barrel of synthetic fuel consumes
0.731.04 tons of bituminous coal, i.e. a conver-
5. COAL CONSUMPTION OF CTL sion ratio of 11.4 barrels/ton coal. This agrees
with the estimates of other studies, but tends to be
The consumed amount of coal in CTL is often
in the lower range. Differences between technical
overlooked or just briey discussed in many
and Sasol-derived estimates reect disparities
studies. Conceptually, coal is a nite resource
between theory and practice. Suboptimal condi-
and this puts limitations to the amount of fuels
tions, losses, leaks and similar are unavoidable
that can be produced by liquefying coal. Practical
parts of reality, especially when performed on
details regarding coal supply, such as accessibility,
a large industrial scale. Including coal quality
transportation and production will impact CTL
issues, rening and further treatment, also makes
feasibility.
it reasonable to expect lower yields. Hence, the
Many estimates of coal consumption by CTL
have been performed in the literature. Couch [22]
and Malhotra [59] state yields of approximately
three barrels of unrened syncrude per ton of
bituminous coal for DCL, with less efciency for
low-rank coal. The Monash Energy CTL project
aims to produce liquid fuels, using 1.2 ton lignite
per barrel [60]. Milici [61] gives conversion ratios
of 1.31.8 barrels per ton bituminous coal, also
mentioning lower yields for lower coal ranks.
National Petroleum Council [8] has compiled
other American studies and gives conversion rates
ranging from 1 to 2 barrels/ton of coal. However,
liquid yield comparisons are tricky, as yield is
dependent on the chosen technical system, the coal
type used, system borders and many other factors.
Despite differences in methodologies, all estimates
of CTL coal consumption end up at approximately
the same gures.
Sasol can be used to establish an empirical
estimate of the coal consumption of CTL, since
they are the worlds leading CTL producer. The Figure 2. South African coal consumption in 2003
Secunda site consists of two CTL plants with a divided into parts.

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

empirical Sasol conversion ratios are deemed rea- twice as much as the National Coal Council as-
sonable. Similar conversion efciencies are also sumes. In conclusion, the National Coal Councils
realistic for future large-scale CTL industries, estimate is optimistic when compared with actual
especially since ICL is the more likely future CTL experience, and will probably require a dramatic
technology development path. increase in process efciency and improved tech-
nology or use of high-quality coals with excellent
liquefaction properties.
5.1. Coal consumption in various CTL forecasts
The National Petroleum Council [8] also pre-
Any CTL production forecast must be related to sent a CTL forecast of 5.5 Mb/d by 2030 with
coal consumption. Some CTL forecasts do not corresponding coal consumption of 1439 Mton,
mention corresponding coal consumption, while originally performed by the Southern States
others present estimated consumption volumes. Energy Board [65]. The conversion ratio is 1.4
We will use the Sasol-analogy and compare barrels/ton, in agreement with Sasol experience,
with other studies as a simple sense check, to but it should be noted that the consumption gure
investigate how well estimates agree with practical from Southern States Energy Board [65] is leaning
experience. towards the optimistic side. Using the Sasol
Outlooks that present CTL as a mitigation or model, estimated coal consumption becomes
even a solution to the problem of declining con- 14662100 Mton, which is more than the entire
ventional oil supply will be closely inspected. For current coal production of the U.S. [63]. In sum-
instance, the National Petroleum Council [8] pre- mary, we can conclude that this CTL forecast is
sents a number of production forecasts, where the entirely unrealistic, since it is not feasible to divert
main message is that peak oil can be partially all coal to new CTL facilities, or to double the U.S.
solved by substantial CTL development in the coal output in 20 years [66,67].
U.S. We intend to quantify what required coal The Annual Energy Outlook 2007 (AEO2007)
volumes are needed to offset decline in existing Reference Scenario features a CTL production of
crude oil production. This sheds some new light on 2.4 Mb/d globally and 0.8 Mb/d in the U.S. [68].
the discussion of future CTL potentials and No coal consumption gures are provided for
requirements. Furthermore, it is also useful global CTL production, but the U.S. CTL in-
information for policy makers when planning for dustry is estimated to consume 112 Mton, which
the future, as the achievability of replacing oil with equals conversion ratio of 2.6 barrels/ton coal. It
derivatives of another nite resource on a large should also be noted that coal consumption for
scale can be disputed if sustainable development is CTL has decreased 50% in AEO2007 compared
the ambition. with AEO2006. Applying the Sasol model, esti-
Hirsch et al. [7] assumed annual future con- mated annual coal consumption would be
struction of ve CTL plants, each with a capacity 213304 Mton, which is twice as much as the EIA
of 100 000 b/d. No coal consumption gures or assumes. It should be remembered that a sig-
conversion ratios are given. Using Sasol experi- nicant share of American coal is sub-bituminous
ence, corresponding increase of annual coal con- coal, i.e. more low ranking than the South African
sumption is 133190 Mton. This is equivalent coals that Sasol utilize. In essence, the EIA must
to 2.5% the world production of coal for be assuming that future American CTL industry
2007 [63]. This is a signicant increase, but prob- will be twice as efcient as Sasol. Given the fact
ably doable if proper investments are forthcoming. that Sasol is a world leading CTL enterprise, the
The National Coal Council [64], also mentioned EIA assumption seems very optimistic and only
in [8], foresees a production of 2.7 Mb/d by 2025 vaguely justiable.
and presents 430 Mton as the corresponding coal The Annual Energy Outlook 2009 (AEO2009)
consumption, which equals a conversion ratio of has reduced U.S. CTL production in the Reference
2.3 barrels/ton coal. Using Sasol experience, coal Scenario to only 0.26 Mb/d by 2030 [69]. The coal
requirement would be 7001000 Mton, almost consumption presented is only 24.6 Mton, which

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
M. HOOK AND K. ALEKLETT

would equal a conversion ratio of 2.9 barrels/ton. production costs decline from U.S.$43/barrel
Corresponding coal usage would be 6895 Mton, to U.S.$16/barrel. Details on conversion ratios
using the Sasol model. Although the expected CTL are not given, nor related coal consumption
capacity has been reduced, the conversion ratio volumes.
has increased compared with earlier estimates and As an example, the B2 Message scenario gives
is even further away from the real numbers. We a global CTL production of 32 Mb/d (71.8 EJ)
can only conclude that the conversion ratios used in 2100, which is more than the 23.2 Mb/d
by EIA seem extremely high and lack any real (52 EJ) derived from oil production in the same
counterpart. The EIA seems to be using purely year. Equivalent coal consumption would be
theoretical values, rather than sound numbers 834211 680 Mton, using Sasol conversion ratios,
derived from practical experience. and still very extensive even if better efciencies
AEO2007 [68] foresees a global CTL produc- were reached in the future. The world coal pro-
tion of 2.4 Mb/d in the reference case, and this duction is given as 300 EJ in 2100, meaning that
would annually consume 640912 Mton of coal. 24% goes to CTL. Can so much coal be really
This is equivalent to around 12% of the current produced and diverted to CTL in a realistic case or
world production of coal. AEO2009 [69] has low- should some emission scenarios be revised? Either
ered the global CTL/GTL production to only way, more details should be shown regarding
1.6 Mb/d, without showing individual contribu- assumed conversion rations, technologies and
tions to this gure. The reduction is justied by other factors.
concern for CO2 emissions. The global CTL pro- In summary, we nd that many forecasts or
duction in AEO2009 would require something in scenarios do not discuss CTL coal consumption or
the range of 400500 Mton coal annually, using conversion ratios in any detail. In some cases, ac-
the Sasol model. tual numbers are given but they are often very
Annual decline in existing crude oil production optimistic compared with practical experience or
is around 48%, equivalent to an annual produc- peer-viewed literature. Our sense check seems to
tion decrease of 37 Mb/d [14]. Such massive vo- indicate that several CTL outlooks have poor
lumes are theoretically possible to produce, but agreement with practical experience and empirical
would require astronomical investments regardless data. Scenarios and guidelines for future planning
of the chosen technology. Related coal usage should not be use such vaguely justied numbers
would be 7822555 Mton, using the Sasol model. or assumed conversion ratios.
Such vast volumes of coal cannot be realistically
liqueed just to offset a single years decline in
5.2. Coal consumption summary
existing world oil production. Consequently, it
must be asked whether the investment and the coal Using the empirical Sasol estimate and estimates
itself can be used more efciently in ways other found in the literature, it is possible to establish
than CTL and if other mitigation strategies should four different conversion ratios. We have chosen
be preferred. to set the low conversion ratio at 1 barrel/ton, the
These ndings also have repercussions for fu- mean value at 1.5 barrels/ton and the high estimate
ture climate policies, as several of the Inter- at 2 barrels/ton. This is in agreement with
governmental Panel on Climate Change (IPCC) both Sasol empirical data and other studies. The
emission scenarios [70], used for projections of technical CTL conversion ratio is assumed at
temperature increases and anthropogenic emis- 3 barrels/ton coal, based on Couch [22] and
sions, depict signicant contribution from CTL in Malhotra [59]. The results are summarized in
the future. In the dynamic technology scenario Tables III and IV. The approximate coal con-
group (A1T), liquid fuels from coal are assumed to sumption for an arbitrary CTL capacity is shown
be readily available at less than U.S.$30/barrel in Figure 3.
with prices falling even further. The en- Conversion ratios are of signicant importance
vironmentally B2 scenario family sees CTL as current world coal production can give

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

Table III. Summary of forecasted CTL capacities and their estimated coal consumption.
Annual consumption (Mton)
Capacity
Scenario (Mb/d) Low Mean High Tech.
Sasol synfuel 0.15 54.8 36.5 27.4 18.3
Hirsch 0.50 182.5 121.7 91.3 60.8
NCC 2025 2.60 949.0 632.7 474.5 316.3
SSEB 2025 5.50 2007.5 1338.3 1003.8 669.2
EIA U.S. Ref 2007 0.80 292.0 194.7 146.0 97.3
EIA U.S. High 2007 1.70 620.5 413.7 310.3 206.8
EIA Global Ref 2007 2.40 876.0 584.0 438.0 292.0
EIA U.S. Ref 2009 0.26 94.9 63.3 47.5 31.6
4% Decline 3.00 1095.0 730.0 547.5 365.0
8% Decline 7.00 2555.0 1703.3 1277.5 851.7

Table IV. Summary of forecasted CTL capacities and their estimated coal consumption in four cases as shares of world
coal production in 2007.
Share of world coal production 2007
Capacity
Scenario (Mb/d) Low (%) Mean (%) High (%) Tech. (%)
Sasol Synfuel 0.15 0.86 0.57 0.43 0.29
Hirsch 0.50 2.85 1.90 1.43 0.95
NCC 2025 2.60 14.84 9.89 7.42 4.95
SSEB 2025 5.50 31.39 20.93 15.69 10.46
EIA U.S. Ref 2007 0.80 4.57 3.04 2.28 1.52
EIA U.S. High 2007 1.70 9.70 6.47 4.85 3.23
EIA Global Ref 2007 2.40 13.70 9.13 6.85 4.57
EIA U.S. Ref 2009 0.20 1.48 0.99 0.74 0.49
4% Decline 3.00 17.12 11.41 8.56 5.71
8% Decline 7.00 39.95 26.63 19.97 13.32

everything from 1753 Mb/d in equivalent fuels supply will be limited to only a few Mb/d
CTL capacity (Figure 3). However, empirical (Figure 3). This prevents CTL from becoming a
experience from Sasol indicates that realistic viable mitigation plan for liquid fuel shortages on
conversion ratios are in the order of 11.5 barrels/ a global scale.
ton coal. This puts a strict limitation on However, it is still possible for individual
future CTL capacity imposed by future coal pro- nations to derive signicant shares of their fuel
duction volumes, regardless of other factors supply from CTL, but those nations must
such as economics, emissions or environmental also have access to equally signicant coal pro-
concerns. duction capacities. The worlds coal reserves are
Future CTL production will ultimately be lim- unevenly distributed with the vast majority located
ited by coal production and the share that can be in a small number of countries [63]. Combined
diverted to liquefaction. How large this share can with the fact that most coal is consumed in the
become is dependent on alternatives and priorities, same country as it was produced due to un-
but assuming that 10% of world coal production favourable long distance transportation proper-
can be diverted to CTL, the contribution to liquid ties, the number of countries that can sustain

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
M. HOOK AND K. ALEKLETT

Figure 3. Estimated coal consumption as a function of CTL capacity for four different conversion rations ranging from
1 to 3 barrels/ton. Current world coal production can be converted to 1754 Mb/d, depending on assumed conversion
ratio. However, practical experience indicates that the low or mean cases are the most realistic.

signicant CTL projects in the future becomes further justied by the likelihood of ICL as
quite limited. the primary candidate for future large-scale CTL
industries. The differences between coal consump-
tion estimated from Sasol experience and other
6. CONCLUSIONS
assessments are small. Generally, CTL conversion
ICL seems to be the more likely option for future ratios are in the order of 12 barrels/ton coal.
CTL projects, based on its higher exibility, better Comparing empirical coal consumption esti-
environmental capabilities and stronger support- mates and conversion ratios with various CTL
ing experience and infrastructure. Furthermore, forecasts gives a reasonable agreement, although
the fuel properties seem to benet ICL compared EIA [68] and SSEB [65] show signicant optimism
with DCL, especially if end-use efciencies are without more than vague justications. In general,
considered instead of just process efciencies. many future CTL scenarios assume conversion
Estimated costs between the two system types ratios much higher than Sasol, thus resulting in
seem similar and do not favour either approach. signicantly lower coal consumption. This bias
However, more meticulous economic studies are might be a case of questionable optimism or per-
required for a comprehensive discussion but the haps even a result of wishful thinking. Another
lack of commercial DCL experience is proble- possible explanation is that certain parts of the
matic. process, for instance heating process water and
Estimates for coal consumption of coal lique- producing process heat, have been omitted.
faction have been presented in many studies In our compilation and analysis, we nd that
[8,22,59,61]. A pragmatic estimate can be derived the coal consumption is a major factor for CTL
from the Sasol experience, and used as a com- feasibility. Signicant CTL production requires
plementary approximation in addition to more equally signicant coal production and resources.
purely technical assessments. This estimate is We anticipate that only a few countries or regions

Copyright r 2009 John Wiley & Sons, Ltd. Int. J. Energy Res. (2009)
DOI: 10.1002/er
A REVIEW ON COAL-TO-LIQUID FUELS AND ITS COAL CONSUMPTION

can realistically develop a large-scale CTL in- coal amounts will create serious environmental
dustry. Effectively, CTL will be limited to the impact due to mining. Obtaining public accep-
dominating coal reserve holders that can divert tance, and later political acceptance, for CTL
shares of their production to liquefaction. might become challenging because of its unavoid-
The U.S. has the worlds largest coal reserves able environmental impact.
and has been subjected to many CTL feasibility In order to offset decline in existing oil pro-
studies and projects. In 1980, Perry [71] pointed duction for just 1 year, around 1040% of the
out that the construction of a synthetic fuels world coal production is required (Table IV).
industry will be very costly and will provide only a Clearly, this cannot be regarded as feasible in any
small amount of increased energy independence. realistic case. Even if technical efciencies were
This situation has obviously not changed as achieved, signicant shares of world coal would
Couch [22] states that replacing only 10% of the disappear into CTL plants for a relatively modest
U.S. transport fuel consumption with CTL would contribution to world oil supply. If a 10% share of
require over U.S.$70 billion in capital investments world coal production could be diverted, it would
and about a 250 Mton of annual coal production limit the CTL production to only a few Mb/d at
increase. Achieving required increases in coal most. Consequently, it is unrealistic to claim that
production has been deemed questionable by other CTL provides a feasible solution to liquid fuels
studies [66,67]. Correspondingly, Milici [61] con- shortages created by peak oil. For the most part, it
cluded that the U.S. coal industry only could can only be a minor contributor and must be
handle liquefaction of 5464 Mton coal annually combined with other strategies.
without premature depletion of the coal reserves,
and states that attempts to replace all oil imports NOMENCLATURE
would deplete the national coal reserves by 2100.
The resulting volumes of synthetic fuels are insig- b/d 5 barrels per day
nicant compared with the present and expected BTL 5 biomass-to-liquids
demand. CTL 5 coal-to-liquids
World oil production currently stands at more DCL 5 direct coal liquefaction
than 80 Mb/d [63]. The total cost for replacing a FT 5 FischerTropsch
signicant amount of the worlds oil production by GTL 5 gas-to-liquids
CTL would be astronomical, regardless of the ICL 5 indirect coal liquefaction
chosen system approach. Necessary investments
for a large CTL industry are evidently colossal, but
the greatest issue lies perhaps in coal consumption.
ACKNOWLEDGEMENTS
Coal will account for a large part of the costs, and
with the required volumes being vast, accom- The authors thank Dr Herbert West for providing
panying changes in coal price and additional inspiration. Simon Snowden at the Liverpool University
costs of increasing coal feedstock production will has our sincerest gratitude for assisting with proof-
greatly affect the future economics of CTL. This is reading and valuable comments. They also thank the
a topic that deserves more attention in future reviewers for very helpful remarks that greatly improved
this article.
studies.
In addition, the social and environmental
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