CTL drawbacks
The conference brought out drawbacks to CTL development, the greatest being the need to combine it with capture and storage of carbon dioxide, which the process emits. Producing diesel fuel from coal generates 850 g/mile of CO2 compared with 500 g/mile from oil and requires large quantities of water. Gasoline from coal also emits more greenhouse gases than gasoline from oil.
Cost is another drawback. Based on the experience of South Africa's Sasol, the cost of CTL was evaluated at $67-82/bbl, excluding the cost of CO2 capture.
"It is cheaper than extraheavy oil production," said Alain Quignard, who manages new projects and new motor fuel resources at IFP. He told OGJ: "From coal onwards, one finds the refining processes applied to heavy oil and deep conversion products."
CTL deemed 'credible' fuel option despite drawbacks