Capito to seek ethanol-style mandate for coal-to-liquids

http://www.wvgazette.com/News/200805270535

May 28, 2008
Capito to seek ethanol-style mandate for coal-to-liquids

By The Associated Press

Rep. Shelley Moore Capito wants Congress to mandate domestic production of 6
billion gallons of liquid fuel from coal annually by 2022.
The Republican congresswoman said Tuesday the requirement is part of
legislation she plans to introduce next week.

"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 in a statement. "The technology is
there, but we've under-invested.''

The legislation is modeled on ethanol fuel targets already enacted by
Congress and would require steady increases in the amount of aviation fuel,
motor vehicle fuel, heating oil and boiler fuel sold in the U.S., Capito
said.

Multiple sites in West Virginia are under consideration for coal-to-liquids
plants, along with sites in Ohio, Kentucky and several other states.

While coal-to-liquids isn't used in the U.S., it's been around for decades.
Germany relied on coal for liquid fuel during World War II and South Africa
has long relied on coal for about 30 percent of its transportation fuel.
More recently, China and other countries have been investing in
coal-to-liquids technology.

Environmental groups oppose the idea. They contend the process could
generate too much carbon dioxide and increase coal mining.

Capito, however, said modern technology can convert coal to clean,
sulfur-free synthetic oil and fuel for about $35 to $45 a barrel.

Crude oil prices were hovering around $130 a barrel Tuesday.

"Coal-to-liquids can be clean, it can be produced domestically, it will
create American jobs, it's economically viable and it's the right thing for
West Virginia,'' Capito said.

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