To: Dennis Roth who wrote (514 ) 4/19/2008 7:22:17 AM From: Dennis Roth Read Replies (1) | Respond to of 1740 Plans grow for Oakland fuel facility Friday, April 18, 2008 10:42 PM CDTjg-tc.com By ROB STROUD, Staff Writer rstroud@jg-tc.com MATTOON — The planned Illinois Clean Fuels project will mine coal and convert it to synthetic transportation fuel in the Oakland area, but coal will not be the plant’s only input. Stephen Johnson, founder and president of Portland Ore.-based American Clean Coal Fuels, said his plant is designed to provide an alternative to the world’s rapidly dwindling oil supply. He said switching from oil to coal, another depletable resource, for transportation fuel would be like “jumping from the frying pan into the frying pan.” Consequently, Johnson said the plant will start production with a blend of coal and biomass from municipal sewage as inputs. He said his long-term goal is for the low emission fuel to be derived from 100 percent renewable biomass, possibly using a high-yield prairie grass as the supply. “We believe it’s absolutely an achievable goal,” Johnson said on Friday during a presentation at Coles Together’s annual meeting. American Clean Coal Fuels reports its planned Oakland facility will produce 414 million gallons of synthetic diesel and jet fuel per year. Coal to supply the plant would be mined locally from Embarras Valley Coal Association land. The plant and mine would create 600 full-time jobs. Johnson said the plant is designed to help deal with the twin threats of global warming and a peaking oil supply. He said global oil consumption has reached 86 million barrels a day and is not declining, whereas oil companies have not discovered more oil than has been consumed annually since 1981. “We are really facing a major impending shortage of conventional transportation fuels. The bottom line is we are running out of oil,” Johnson said. He later said, “It’s time for us to respond to it in a large scale and in the most responsible way we can.” Like the proposed FutureGen power plant, Johnson said his facility would use gasification technology to convert coal to synthetic gas. He said the plant will use Fischer-Tropsch technology to convert this gas into the synthetic transportation fuel. He said the carbon dioxide emissions will be sequestered for later use in oil field recovery. Steve Jenkins, vice president for gasification services for CH2M Hill Inc. in Tampa, Fla., said gasification technology dates back to the late 18th century, when it was used to light London street lamps. He said Fischer-Tropsch technology dates to the 1920s, when the process was invented by its namesake chemical engineers. Johnson said Fischer-Tropsch has been used to create transportation fuels in South Africa since the 1970s, but has become much more economical in recent years. He said oil prices of more than $45 a barrel have motivated investors to look at this alternative fuel concept, which requires a large capital expenditure for plant construction. Past estimates from American Clean Coal Fuels have valued the Oakland project at $1.8 billion. Executive Director Cindy Titus of the Charleston Area Chamber of Commerce asked about the timetable for this project. Johnson said he is preparing to close on financing for the project. He estimated it will take two years to handle the engineering work and get the necessary state permits, and then two and a half years to build the facilities. “We are probably looking late in 2012 at the earliest for bringing the plant on line,” Johnson said. Contact Rob Stroud at rstroud@jg-tc.com or 348-5734.