Will Help Build Conversion Facilities

The United States Air Force -- determined to wean itself off dependence on foreign oil -- hopes to build what would be the first of many plants designed to convert coal to a cleaner-burning synthetic fuel.

The Associated Press reports USAF officials want to build the pilot facility in Malmstrom AFB in central Montana... and are putting the authority of the Air Force behind them, as they seek to attract outside investors in the project who might overwise be skitterish about putting money into such a venture otherwise.

While coal-sourced fuel blends, derived through the Fischer-Tropsch process, are somewhat cleaner than straight petroleum-based Jet-A, the Air Force readily admits that's not its main motivation in pursuing such efforts. The USAF wants a stable fuel source... preferably, one far away from the Middle East.

"We're going to be burning fossil fuels for a long time, and there's three times as much coal in the ground as there are oil reserves," said Air Force Assistant Secretary William Anderson recently. "Guess what? We're going to burn coal."

There are roadblocks, however... not the least of which is the sky-high pricetag on coal-to-liquids conversion facilities, which can run as high as $5 billion a pop. Critics also point out the process to convert coal to liquid fuel is environmentally "dirty" in and of itself... negating the 'green' benefits of the end-result biofuel blend.

"We don't want new sources of energy that are going to make the greenhouse gas problem even worse," House Oversight Committee Chairman Henry Waxman said in a recent interview. "They'd like to have (coal-to-liquids) because of security concerns -- a reliable source of power. They're not thinking beyond that one issue. (Climate change) is also a national security concern."

Nevertheless, the Air Force is now taking bids from outside developers. That process is due to wrap up in May, with construction expected to take four years after a developer is selected.

There are currently only two coal-to-liquid facilities in the world, both in South America. A third is expected to come online by the end of 2008 in China. None of those areas are known for their clean air... unlike Montana.

In the end, however, political and economic factors may win out over such concerns. Anderson wants the Air Force to fuel half its North American fleet with a synthetic-fuel blend by 2016. That works out to 400 million gallons of coal-based fuel annually... insuring the builders of conversion plants would have a steady customer.

Furthermore, Anderson says he expects other industries to follow the Air Force's lead -- including long-haul trucking customers, and commercial airlines.

"Because of our size, we can move the market along," he told the AP. "Whether it's (coal-based) diesel that goes into Wal-Mart trucks or jet fuel that goes into our fighters, all that will reduce our dependence on foreign oil, which is the endgame."

FMI: www.af.mil