Coal to liquid fuels?

Glenn, Ken, Don, Al, other oil people,

Below is an email ad I received promoting the production of gas from coal. The 100 billion barrel reserve in PA again raises the question of the coal gassification rates that can be expected with existing or foreseeable technology. Any comments on this?

Dennis Feucht

      Hershey Philbin Associates
      Press Release
      Client: WMPI PTY., LLC
      FOR IMMEDIATE RELEASE
      June 28, 2004
     Press Contact:
      Karen Gross
      717-975-2148
      kgross@hersheyphilbin.com
     

AMERICANS REACT TO HISTORIC GAS PUMP PRICES
"Coal to liquid fuels technology is fundamental to the future costs of transportation fuels."
       
     
      "Clearly the time has come to utilize the domestic resources we have in the U.S. to reduce our dependency on foreign sources for clean transportation fuels," Rich said. (Michael Smith/Getty Images)
        
     
(Gilberton, PA) -- As Americans react to the highest gas pump prices in history, John Rich, Jr., president of WMPI PTY., LLC, says the new coal to liquid fuels processing plant he envisions could be on stream and reducing foreign oil dependency by 2007.

But only when financing is finalized to build the $600 million Pennsylvania production facility.

Last year the U.S. Department of Energy offered financial assistance to help finance the construction of a clean burning, sulphur-free transportation fuel processing plant from coal waste at a Gilberton, PA site.

This plant will produce 60 million gallons of fuel a year, which would go a long way toward checking foreign oil prices.

The international technology team Rich organized has been in place for several years. The process is already a proven success in South Africa. However, it's taking longer than anticipated to get the Pennsylvania plant, the first in the U.S., up and running.

"Everybody's pushing for passage of the Energy Bill in Washington," Rich said. "There are incentives in the bill that will help attract investment to the coal-to-liquid fuels process as well as other domestic energy alternatives."

While Congress debates, pump prices continue to soar and consumers are reacting.

About half of Americans reported that higher gas prices are causing financial hardship on their families and seriously impacting on their lifestyles. Americans are cutting back on household expenditures, driving farther to find better pump prices and canceling summer vacations.

"This is not acceptable and we're working to do something about it," Rich, a third generation Pennsylvania coal region energy businessman added.

A recent Gallup poll shows that 65 percent of Americans earning less than $30,000 a year say that gas prices are causing a financial hardship, while 50 percent of those earning between $30,000 and $49,999 a year, 45 percent of those earning between $50,000 and $74,999 a year, and 30 percent of those earning $75,000 a year or more reported hardship.

"We are increasingly dependent on foreign oil sources, particularly Middle East sources," Rich says. "We have to start seriously moving away from dependency," Rich says.

Websites are springing up, such as www.boycottgasoline.com, blasting oil companies. Groups in California are trying to boycott gasoline and get a "fuel revolt" proposition on the ballot this fall. With the increased gasoline prices, a "gas roots" effort is being pushed with a populist zeal.

"The state of Pennsylvania has about 34 billion tons of in-ground coal reserve," Rich says, "For each ton we get about three barrels of product. This equates to the state of Pennsylvania having about 100 billion barrel reserve, which is larger than Iraq's reserves."

"We are exploring capital sources now," Rich added. "Clearly the time has come to utilize the domestic resources we have in the U.S. to reduce our dependency on foreign sources for clean transportation fuels."

WMPI PTY., LLC, plans to build the United States' first coal-to-oil plant located in Gilberton, PA. The impact of coal-to-oil technology resonates through core issues facing the U.S. today including, positive and expanding economic impact on coal producing states, positive environmental impact, reduction of U.S. dependency on foreign oil, and positive economic impact for the "at the pump" consumers. For more information visit www.ultracleanfuels.com or contact Karen Gross at 717-975-2148 or kgross@hersheyphilbin.com.

###
SOURCES:

COMMODITIES REPORT: Oil and gas prices reach new records
http://www.twincities.com/mld/twincities/business/8750624.htm

'Gas roots' protest over pump prices
http://www.csmonitor.com/2004/0525/p01s01-usec.htm

Gallup Poll: Public Expects Gas Prices to Rise
http://www.gallup.com/content/print.aspx?ci=11959
Received on Fri Jul 2 14:59:44 2004