Coal-to-Liquids Technology Vital to America’s Future Energy Security
Washington,
Jun 3, 2008 -
Skyrocketing fuel prices are affecting every aspect of our daily lives. We all know the impact it is having on our family budgets, but it also having a dramatic impact on many government budgets, from school districts to the armed forces. We must develop a comprehensive national strategy for energy policy that focuses on real solutions for our short- and long-term energy needs.
First, we must focus on increasing supply to the market by responsibly using our own resources in Alaska and the Outer Continental Shelf. Then, we must focus on viable and proven alternatives like coal-to-liquids fuel. In the long-term, we must focus on the next generation of technology, both discovered and as yet unknown alternatives. Throughout that strategy we must encourage greater conservation and efficiency.
In 2007, the U.S. Air Force spent $8 billion on fuel, despite reducing fuel consumption by more than 10%. For every $10 increase in the price of a barrel of oil, U.S. taxpayers must pay an additional $600 million in added Air Force fuel costs. As a result, the Air Force is actively exploring synthetic fuels, including coal-to-liquids, as a solution to meet the military’s energy needs.
I am pleased that my colleagues and I were able to ensure this critical Air Force research program was fully funded in the National Defense Authorization Act for Fiscal Year 2009 (H.R. 5658). Using the Fischer-Tropsch process, coal can be converted into ultra-clean, high-grade liquid jet and diesel fuel. The fuel created through this process is virtually sulfur-free and burns cleaner than traditional fuels.
Giving the Air Force the ability to use this alternative source of energy will ease pressure on domestic oil supplies. It will also help create the necessary infrastructure to speed development of coal-based fuels for commercial use. Coal-to-liquid fuels present an exciting opportunity for greater American energy independence and economic development in Kentucky.
The process of turning coal into liquid fuel is not a new technology. In the 1940s, Germany used coal-to-liquid technology to meet nearly ninety percent of its energy needs. Today, South Africa uses coal to produce thirty percent of its transportation fuels. China and India, two countries where demand for fuel is growing fastest, are already making strategic investments in coal-to-liquid facilities.
Coal deposits throughout the U.S. contain more energy than all of the world’s oil combined. With adequate investment, coal-to-liquid technology could produce 2.6 million barrels of oil per day in the U.S. by 2025. Doing so would make significant strides towards achieving energy security while increasing available supply and reducing the market pressures that are driving up all our fuel costs.
The implementation of coal-to-liquid technology could have enormous benefits for Kentucky as a source of thousands of jobs and for our nation as a source of clean, stable, affordable fuel. Chairman Nick Rahall (D-WV) and I introduced legislation (H.R. 370) that would promote construction of coal-to-liquids plants in the U.S. The energy crisis we face today will only be effectively addressed by a strategic investment plan that promotes the use of our domestic resources, conservation and new technology.
