Siting Synthetic Fuel Plants

In the U.S. today a number of tentative synthetic fuel plants have been sited by a number of major corporations. Each of these for a number of reasons have deferred construction. The only synthetic fuel plants under active development are those being built with the Energy Research and Development Administration (ERDA) under the authority of the Non-nuclear Energy Research and Development Act of 1974 (Public Law 93-577). Under this Act in joint sponsorship with industry, a series of coal conversion pilot and demonstration plants are being built to produce environmentally acceptable fuels from high sulfur coals. Before entering into a discussion of the factors associated with the siting of the ERDA coal conversion program, the difference between a pilot plant and a demonstration plant should be explained. The terms pilot plant and demonstration plant iridicate a size of plant rahter than technology. A pilot plant will vary from an "add-on" to an existing facility to an independent unit. Demonstration plants are a wholly independent, self contained plants, capable of independent operation to demonstrate the environmenta1, economic, and technica1 feasibility of a technology. These plants are from one-third to one-tenth the scale of a commercial operation and often described as plus 1000 tons per day of coal consumption. Their purpose is stated in the Act (Section 6, (3)(E),) "to accelerate the commercial demonstration of technologies for producing syncrude and liquid petroleum products from coal: Provided. That the Administrator shall invite and consider proposals from potential participants based upon Federal assistants and participation through guaranteed prices or purchase of the products .... " In site selection and plant design it has been suggested that special interest groups should be allowed to dictate the site and specify the design. Under the present program the industrial partner who is contributing 50 percent