MOTOR FUELS FROM LIGNITE TO BE STUDIED

Money is on the way for a preliminary study of combining two methods of converting lignite to transportation fuels at the Great Plains synfuels plant near Beulah, N.D. The Dakota Gasification Co. board of directors approved $60,000 to pay for half of the study on the feasibility of converting the plant to a hybrid coal liquefaction unit. The other half will come from the Lignite Research Council's research funds administered by the North Dakota Industrial Commission.

July 8, 1991

2 min read

Money is on the way for a preliminary study of combining two methods of converting lignite to transportation fuels at the Great Plains synfuels plant near Beulah, N.D.

The Dakota Gasification Co. board of directors approved $60,000 to pay for half of the study on the feasibility of converting the plant to a hybrid coal liquefaction unit. The other half will come from the Lignite Research Council's research funds administered by the North Dakota Industrial Commission.

The cost to convert the plant to liquid fuels production would be substantial, possibly $750 million or more, Dakota Gasification said.

The 6 month study will use computer data analysis to determine how much the prices of oil, gasoline, and diesel fuel will have to rise to make conversion to transportation fuels profitable at Great Plains.

One technology would take raw gas produced at the plant and convert it to transportation fuels instead of natural gas. That process is being used by a South African company, Sasol, at its plants.

The other technology would convert lignite directly into transportation fuels.

Converting the plant to liquid fuels would not affect byproducts now produced at the plant. Great Plains processes North Dakota lignite into gas sold to four pipeline companies for resale in the eastern U.S.

Dakota Gasification wants the study because forecasts show the price of gas will remain less than that of transportation fuels.

So transportation fuels may offer a greater opportunity for profits.

Dakota Gasification, which owns and operates the synfuels plant, is funding its share of the study cost through Basin Cooperative Services. Both are subsidiaries of Basin Electric Power Cooperative, a regional power supplier headquartered in Bismarck, N.D.

The study is being conducted by Mitre Corp., Washington, D.C.