MORE INFO Hydrogen from Coal RD&D Plan [2.88MB PDF]

DOE had also successfully partnered with industry to develop liquid phase methanol technology. The project was successfully demonstrated at a capacity of 250 tons of methanol per day at a facility located in Tennessee. During its demonstration period, the facility produced nearly 104 million gallons of methanol from coal-derived synthesis gas with a demonstrated plant capacity in excess of 300 tons of methanol per day, more than 15 percent greater than the plant's design rate. As a result, the technology is still being utilized to provide a portion of the facility’s methanol feedstock requirements. 

R&D Needs
Based on past research, many of the technical challenges associated with conversion of coal to low-carbon fuel alternatives have been addressed. However, achieving greater reductions in carbon dioxide emissions is one of the key challenges that remain. One option being explored is the co-feeding of biomass with coal. Co-feeding allows biomass to take advantage of the economies of scale associated with coal, while helping to reduce the carbon dioxide emissions of coal by integrating it with a renewable feedstock. While there has been some commercial testing of co-gasification of coal and biomass, these tests have not been conducted on the range of coal and biomass types available and at varying concentrations. Specifically, the impacts of coal-biomass mixtures on gasification kinetics, operating conditions, gasifier effluent components and concentration, downstream processes, and capability to feed the mixture across a pressure gradient and into a gasifier, must be addressed.

Benefits
Production of low-carbon fuels from coal and coal-biomass mixtures offers several benefits.  These fuels will reduce the amount of petroleum that the United States imports because they are produced from domestic resources.  These fuels are also considered "drop-in" fuel substitutes, which can be used in existing engines with little or no modification required.