The government of the Crow Tribe has signed a 50-year deal with Australian-American Energy Co. to build and operate a plant to convert coal into liquid fuel. The plant would be supplied by new coal mines on the Crow reservation in Montana.
The quadrupling of oil prices in the last decade has suddenly made coal-to-liquid (CTL) financially appealing: while oil costs approximately $130/barrel, the Oil and Gas Journal has projected that CTL fuel can be produced for $67 to $82 a barrel. The ultimate cost would be determined by prices of water and energy sources, as
the process uses massive amounts of both water and electricity. CTL fuel also releases twice as much carbon dioxide as more conventional fossil fuels.
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Denny
