Federal legislation that will mandate U.S. production of 6 billion gallons of liquid fuel from coal by the year 2022 will be introduced in Congress next week by U.S. Rep. Shelley Moore Capito, R-W.Va.
We couldn’t be happier.
With high gasoline prices continuing to crunch the wallets of all Americans, it’s about time coal-to-liquids technology became a directive instead of a dream.
The Clean Coal-Derived Fuels for Energy Security Act is modeled after ethanol targets enacted in recent years and will require steady increases in the amount of aviation fuel, motor vehicle fuel, heating oil and boiler fuel sold in the U.S.
“There is no single or easy solution to our nation’s energy needs,” Capito said. “But without increased domestic production of energy we will continue to subject ourselves to the massive fluctuations in global energy prices that have led prices to their record highs.”
Having lectured about the potential benefits of CTL technology for two years — to the U.S. and the southern West Virginia Southwest Virginia coalfields — we are pleased to finally see firm action being taken.
While developments toward coal-to-liquids technology have been occurring since 2005, the rising cost of gasoline necessitates our leaders work even harder to promote the swift and efficient production of CTL plants.
Coal-to-liquid plants are expensive — in the billion-dollar plus category. But once the infrastructure for such technology is put in place the rewards will be tremendous. Coal can be made into fuel for about $35 to $45 a barrel. This week crude oil prices hovered around the $130 mark.
Do the math.
Although there are environmental concerns about CTL technology, with the right incentives and research we believe the U.S. can produce clean, sulfur-free synthetic oil and fuel from coal.
In addition to the price relief such a product could bring, Capito also cited estimates that indicate a coal-to-liquids plant with an output of 10,000 barrels per day can support 200 direct jobs on site, 150 jobs at the supporting coal mine and 2,800 indirect jobs throughout the region. Plant construction would also generate an additional 1,500 temporary jobs.
“Our nation’s coal reserves are larger than the combined oil reserves of the rest of the world. We’ve seen enough excuses and it’s time to get serious about coal-to-liquids,” Capito said. “The technology is there, but we’ve under-invested.”
Amen. The advancement of CTL technology could be an enormous economic boon to coal-producing states such as West Virginia and Virginia, while helping all Americans with cheaper prices at the gas pumps.
We strongly support the bill to be introduced by Rep. Capito, and ask all our members of Congress to champion this vital legislation.
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