News Releases for March 2006
March 15, 2006
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Hoeven: Department Of Defense To Study Conversion Of North Dakota Coal Into Military Fuel
BISMARCK, N.D. – Gov. John Hoeven today announced that the Department of Defense will study the use of North Dakota lignite in a coal to liquid plant that will produce jet fuels for the military. Joining Hoeven today for the announcement was Michael Aimone, Assistant Deputy Chief of Staff for Logistics, Installations and Mission Support, Headquarters U. S. Air Force.
Aimone is the Air Force lead for the Scully Financial Service study which is looking at North Dakota and Ohio as test sites to determine the feasibility and costs associated with production of jet fuel from coal. The Scully study will look at a hypothetical 30,000 bbl/day site in North Dakota that would produce both power and liquid fuel. The results will then be used by the military to determine a long-term strategy for purchasing the new fuel.
"North Dakota has the only plant in the country that is turning coal into natural gas, so it is logical to look to our state to convert coal into liquid fuels," Hoeven said. "We have met with Secretary Mike Wynne as well as other top Air Force officials a number of times to impress upon them the benefits that North Dakota can offer the military in the development of a coal-to-liquids plant."
Gasification, which mixes coal and oxygen to produce a gas, has a number of advantages. For example, impurities such as mercury, sulfur and carbon monoxide are more easily removed than in conventional processes. In addition, the "syngas" produced from the gasifier can be used to produce electricity or highly refined fuels such as jet fuel much more cleanly than current technologies, which benefits the state both economically and environmentally. The Air Force is pursuing the increased use of such alternative fuels to both reduce its dependence on foreign oil as well as to reduce pollution.
"To further promote the use of alternative fuels, the Scully Financial Services will conduct a business case analysis centered on lignite coal, found right here in North Dakota, and Ohio coal," Aimone said. "The results of this study will help North Dakota, the Air Force and the nation determine the best economic and environmentally sound way ahead."
North Dakota currently has coal reserves that could produce as much as 20 billion barrels of liquid fuel, according to the Air Force. At one North Dakota power plant site, which has already been in operation for 20 years, there is enough easily mined coal to power two 600 megawatt plants and, in addition, a 30,000 bbl/a day coal to liquid facility for more than 100 years.
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