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To: Dennis Roth who wrote (1)9/30/2005 4:09:17 PM
From: Dennis Roth  Respond to of 1740
 
Bill contains incentives for new coal-conversion plant (CTL)
By MARY CLARE JALONICK - Associated Press Writer - 9/30/05
helenair.com

WASHINGTON — A provision in federal energy legislation that would pave the way for a South African energy company to build a coal-conversion plant in Montana is moving through Congress.

Sasol Limited executives are in the United States this week scouting out locations for one or two new plants that would convert coal to liquid energy — gasoline, diesel, natural gas and other fuels. Montana, Wyoming and Illinois are potential sites.

Rep. Denny Rehberg, R-Mont., co-authored a provision with John Shimkus, an Illinois Republican, that would ease environmental controls and smooth the permitting process for plants converting coal to liquid fuel.

The language was part of a larger bill approved by a House committee this week. The legislation is designed to spur the construction and expansion of refineries in the wake of Hurricane Katrina and escalating gas prices.

Rehberg's amendment would define coal to liquid energy plants as ‘‘refineries'' and subject them to the same incentives refineries would receive under the bill.

‘‘I'm serious about making coal-to-liquids happen,'' Rehberg said. ‘‘We need to look at not only increasing the number of refineries in this country, but also at expanding the types of refineries.''



To: Dennis Roth who wrote (1)10/12/2005 6:51:31 AM
From: Dennis Roth  Read Replies (1) | Respond to of 1740
 
Coal-to-fuels plant would be big polluter, group says
By MIKE DENNISON - IR State Bureau - 10/12/05
helenair.com

HELENA — Contrary to claims by Gov. Brian Schweitzer, a large coal-to-liquid fuels plant in Montana would be a major polluter and won’t do much to offset foreign fuel imports, says a memo prepared for one of the state’s leading conservation groups.

The memo, prepared for the Northern Plains Resource Council, says a plant the size being promoted by the governor would create thousands of tons per year of sulfur dioxide, carbon dioxide, hydrogen sulfide, solid waste and other pollutants — as well as use huge amounts of water.

The memo was written by John Smillie, program director and researcher for the Western Organization of Resource Councils in Billings, an umbrella group that does training and planning for NPRC and several other similar groups in the region.

He based most of his numbers on the experience of a similar plant in South Africa, owned and operated by Sasol, an international petrochemicals firm.

One of the governor’s top advisers, however, said Tuesday that processes used at the South African plant is “old technology’’ and that Schweitzer believes newer technology can convert coal to diesel fuel more cleanly.

“The governor has said from the beginning, if this cannot be done cleanly, he’s not interested in it,’’ said Eric Stern, senior counselor to the governor. “The question is, ‘Does the party doing it make that commitment?’ We’re going to make that commitment.’’

Sasol officials themselves “admit that they would never use that (old) technology right now,’’ he added.

For several months, Schweitzer has been promoting the idea of using Montana coal to produce diesel fuel, using a “Fischer-Tropsch’’ process first developed in Germany during World War II.

He became interested in the process after talking to U.S. defense officials in Washington, D.C., who have said they would buy the fuel to run military equipment and machinery.

Eastern Montana has massive, undeveloped coal fields, and using them to produce diesel fuel can help ease the country’s dependence on foreign oil, provide thousands of jobs, and do it all with minimal environmental impact, Schweitzer has said.

The NPRC memo argues otherwise, saying the South African plant has been a huge polluter, citing information from the company’s own reports. It also says Sasol is in the process of substituting natural gas for coal in its plant that produces liquid fuels, to reduce the pollution caused by using coal.

“That plant was so polluting that they are now converting it to natural gas (instead of coal), to cut the pollution,’’ said Helen Waller, a Circle-area farmer and NPRC member. “We are not aware of any (synthetic fuels) plant that has been built anywhere else using any sort of technology that would cut out the pollution.’’

Waller and several other environmentalists and farmers plan to meet today with Schweitzer’s staff, to ask how the governor can claim a coal-to-liquid fuels plant would be mostly pollution-free.

“If the governor or his staff know something we don’t know, this is his opportunity to level with us,’’ she said.

Stern said some leading environmental groups have given “positive reviews’’ to converting coal to fuel, if the process can “sequester’’ pollutants such as carbon dioxide and mercury.

“He’s talked with a number of environmentalists nationally,’’ Stern said of Schweitzer. “We look forward to having a continued discussion with environmentalists.’’

Northern Plains, based in Billings, has frequently opposed development of coal and coal-bed methane, a form of natural gas. It often argues that such development threatens agricultural land use in eastern Montana.

Waller said the state should concentrate on developing cleaner energy that will help rather than threaten agriculture, such as biofuels, wind power and ethanol.

The memo said if the coal-to-fuels plant produces 100,000 barrels of fuel a day — a very large plant — that is only 0.45 percent of the country’s total consumption.

“Production of even 1 million barrels per day would not increase supply enough to prevent world oil prices from increasing, let alone bring them down,’’ the memo said.



To: Dennis Roth who wrote (1)11/21/2005 11:55:27 AM
From: Dennis Roth  Read Replies (3) | Respond to of 1740
 
Seeking Clean Fuel for a Nation, and a Rebirth for Small-Town Montana

By TIMOTHY EGAN
Published: November 21, 2005
nytimes.com
[ photo of Gov. Brian Schweitzer with his dog Jag at link ]

HELENA, Mont., Nov. 15 - If the vast, empty plain of eastern Montana is the Saudi Arabia of coal, then Gov. Brian Schweitzer, a prairie populist with a bolo tie and an advanced degree in soil science, may be its Lawrence.

Rarely a day goes by that he does not lash out against the "sheiks, dictators, rats and crooks" who control the world oil supply or the people he calls their political handmaidens, "the best Congress that Big Oil can buy."

Governor Schweitzer, a Democrat, has a two-fisted idea for energy independence that he carries around with him. In one fist is a shank of Montana coal, black and hard. In the other fist is a vial of nearly odorless clear liquid - a synthetic fuel that came from the coal and could run cars, jets and trucks or heat homes without contributing to global warming or setting off a major fight with environmental groups, he said.

"Smell that," Mr. Schweitzer said, thrusting his vial of fuel under the noses of interested observers here in the capital, where he works in jeans with a border collie underfoot. "You hardly smell anything. This is a clean fuel, converted from coal by a chemical process. We can produce enough of this in Montana to power every American car for decades."

Coal-to-fuel conversion, which was practiced out of necessity by pariah nations like Nazi Germany and South Africa under apartheid, has been around for more than 80 years. It is called the Fischer-Tropsch process. What is new is the technology that removes and stores the pollutants during and after the making of synthetic fuel; add to that high oil prices, which have suddenly made this form of energy alchemy feasible. The coal could be converted into gasoline or diesel, which would run cars, or into other types of fuel.

With coal reserves of about 120 billion tons, Montana has one-third of the nation's total and a tenth of the global amount. Most of it is just under the prairie grass in the depopulated ranch country of eastern Montana. Mr. Schweitzer wants to plant coal-to-fuel factories in towns that have one foot in the grave. It may not provide enough fuel to wean the West off imported oil, but it may be enough to show the rest of the country that there is another way, he said.

"This country has no energy plan, no vision for the future," said Mr. Schweitzer, who spent seven years in Saudi Arabia on irrigation projects. "We give more tax breaks and money for oil, and what do we get? Three-dollar gas and wars in the Middle East. If you want to control the destiny of this country, it's going to be with synthetic fuels."

For now, the governor's ideas are just speculative. Although several energy companies have expressed interest in building coal-to-fuel plants, no sites have been chosen or projects announced. Because it would be such a novel, financially risky undertaking, companies have been hesitant to go the next step. But Mr. Schweitzer hopes for a breakthrough, with several plants up and running within 10 years, and he says he does not need legislative approval to give the go-ahead if companies commit.

The governor has met with the president of Shell Oil, the chairman of General Electric and other captains of big energy, as well as with smaller companies that develop synthetic fuels.

"This is not a pipe dream," said Jack Holmes, the president and chief executive of Syntroleum, an Oklahoma company that has a small synthetic fuels plant and wants to build something bigger. "What's exciting about this process is you don't have to drill any wells and you don't have to build any infrastructure, and you'd be putting these plants in the heartland of America, where you really need the jobs."

Certainly jobs are a big motivating factor. Montana is a poor state and ranks last in average wages. Mr. Schweitzer, whose approval rating is near 70 percent, says thousands of good-wage jobs can be gained in towns that are dying.

He is also promoting wind energy and the use of biofuels, using oil from crops like soybeans as a blend. The governor signed a measure this year that requires Montana to get 10 percent of its energy from wind power by 2010, a goal he said would be reached within a few years. Still, the Big Sky State, with a population under a million, has fewer people than the average metro area of a midsize American city, and its influence is limited. The governor acknowledged as much.

"I'm just a soil scientist trying to get people in Washington, D.C., to take the cotton out of their ears," Mr. Schweitzer said with somewhat practiced modesty. "But if we can change the world in Montana, why not try it?"

By some estimates, the United States has enough coal to take care of its energy needs for 800 years. The new, cleaner technology stores the pollutants in the ground or processes them for other uses.

The United States imports about 13 million barrels of oil a day. To replace that oil would be a monumental undertaking, with hundreds of coal-to-fuel plants. But Mr. Schweitzer points to South Africa, where a single 50-year-old plant provides 28 percent of the nation's supplies of diesel, petrol and kerosene. But the South African plant uses old technology that does not remove the pollutants.

In this country there is a small factory in North Dakota that converts coal to natural gas. And Pennsylvania is moving forward on a plan to produce diesel from coal. Neither of these plants would come close to the scale of the plants Mr. Schweitzer is envisioning in Montana, where it would cost upward of $7 billion to build a plant that could turn out 150,000 barrels of synthetic fuel a day, for about $35 a barrel.

One surprising thing, thus far, is that many people in the environmental community have not rejected the coal-to-fuel idea out of hand. Environmentalists like the process for producing clean fuels from coal. They say the technology is there and it can be done in coal-rich empty quarters of eastern Montana, North Dakota or Wyoming.

Still, they worry about strip mining the ranch country and about whether there will be a global commitment to make synthetic fuels the clean way rather than in a dirtier way along the lines of a plan in China, where the government has joined with major global oil companies to build about a dozen coal-to-fuel plants.

"It's a very interesting moment in energy history," said Ralph Cavanagh, an energy policy expert at the Natural Resources Defense Council, one of the nation's most powerful environmental groups. "Certainly this process can be done. This is a promising direction. The question is, Are we going to do it clean?"

Because there is no federal mandate to process coal in a way that reduces the emissions that can cause global warming, Mr. Cavanagh says he fears that any new coal operations will simply add new pollutants to the atmosphere. Coal plants without the cleaning technology are the biggest source of man-made carbon dioxide, a gas that is considered a central contributor to the warming of the earth, according to many studies.

There is another problem as well. Some Montana ranchers and environmentalists who fought big coal-mining proposals in the 1970's are worried about what new mining will do to the grasslands.

"The governor's idea is a big one," said Helen Waller, a farmer who is active with the Northern Plains Resource Council, a Montana environmental group. "I'm not sure it's the best one. I don't think there's any such thing as clean coal. And even if there were, it would require a lot of productive ranchland to be ripped up."

Mr. Schweitzer said the mining could be done in a way that restored the land afterward. "I call it deep farming," he said. "You take away the top eight inches of soil, remove the seam of coal, and then put the topsoil back in."

But given Montana's history of abuse by mining companies - the giant open-pit mine in Butte is the most visible legacy of a bygone era - some Montanans remain skeptical.

"I just think there's a better way that doesn't involve tearing up productive ranchland," Ms. Waller said.



To: Dennis Roth who wrote (1)2/2/2006 9:25:55 AM
From: Dennis Roth  Read Replies (1) | Respond to of 1740
 
Montana's plant pursuit

By MATT GOURAS
Associated Press writer Thursday, February 02, 2006
casperstartribune.net

HELENA, Mont. -- One of the energy companies Gov. Brian Schweitzer is courting to build a coal-to-fuel plant in Montana says the company is still evaluating possible sites, but that Montana has "tremendous potential."

In a letter to Schweitzer, Michael Hayes, governmental affairs manager with the South African oil and gas company Sasol Ltd., said major factors in determining where it may eventually build a plant include a reliable source of coal and the ability to get plans through the regulatory process. Other factors include a transportation infrastructure capable of shipping the coal and fuel, and a community that provides Sasol employees a good quality of life, he said.

"Clearly Montana is a great state with tremendous potential in many areas, and we appreciate your display of some of that potential," Hayes wrote Schweitzer in a letter dated last week.

On Wednesday, Schweitzer was in Atlanta talking to another energy company about building in Montana. Officials with the Atlanta-based Southern Co. have met with Schweitzer before.

The governor, who said he is more optimistic than ever about getting a coal-to-fuel plant in Montana, also has plans to meet again today with General Electric about a similar plant.

"If you are going to make a business deal, you have to visit with folks. You have to go their offices as well as having them come up here," Schweitzer said.

Schweitzer is touting the state's vast coal holdings in southern Montana as a potential supply for producing diesel fuel, using a "Fischer-Tropsch" process first developed in Germany during World War II.

The governor said he expects President Bush will endorse domestic production of synfuels, which will boost Montana's case.

Executives from Sasol were in Montana last year touring coal fields with Schweitzer.

Hayes said Sasol is still evaluating its options and that if a site is chosen, it would take about four years to get the plant running. The company has proposed a facility capable of producing 80,000 barrels a day of ultra clean diesel and other derivatives.

Such a fuel plant is a major goal for Schweitzer, who has said it could be done with modern technology in a way that is friendly to the environment.

Environmentalists are skeptical, and the Northern Plains Resource Council produced a memo that said such a plant would create thousands of tons per year of pollutants. The plant, the memo stated, would also use huge amounts of water.

In his letter to Schweitzer, Hayes disputed evidence used by environmentalist groups, saying negative reports refer to combined pollutants from a number of its aging refineries, chemical operations and other operations.

"These emissions can in no way be correlated to a new facility using a state-of-the-art gasifier or state-of-the-art Fischer-Tropsch facility," Hayes wrote.

Hayes said its planned U.S. plant would meet air quality and other standards, and would be cleaner than most, if not all, coal users of similar size.