Sunday, April 27, 2008

Coal and Fuel

As oil costs soar, Air Force hunts for cheaper fuel

By DAVE MONTGOMERY
McClatchy Newspapers


WASHINGTON -- Squeezed by the soaring cost of jet fuel, the Air Force is converting its gas-guzzling fleet of aircraft to synthetic fuels and encouraging the creation of a liquefied-coal industry that could tap the nation's vast coal reserves.

This could mean a lucrative new market for coal-producing states such as Texas, Wyoming, Kentucky, Montana, Illinois, Pennsylvania and West Virginia. But advocates of liquefied coal face a counterattack from environmentalists in the debate over global warming and must prove that they can produce an ecologically friendly product with a low carbon footprint.

Air Force officials have been testing synthetic fuels based on coal or natural gas. They plan to certify the fleet of nearly 6,000 aircraft to fly on a 50-50 blend of synthetic fuel and traditional petroleum-based jet fuel by 2011.

Assistant Air Force Secretary Bill Anderson said the search for affordable, cleaner-burning alternative fuels was driven by economic and national-security concerns. The Air Force wants to comply with President Bush's mandate to end America's dependence on foreign oil while escaping soaring fuel prices.

For the Air Force, which consumes more than half of all the fuel the U.S. government uses, the cost of fueling fighters and transports is stratospheric. Every $10 increase in the price of a barrel of oil costs the Air Force $600 million, Anderson said.

Last year, the Air Force spent $5.8 billion to buy 2.6 billion gallons of fuel. In 2003, the service spent about half that -- $2.9 billion -- to buy slightly more fuel, nearly 3 billion gallons.

Air Force officials have successfully flight-tested their 50-50 synthetic fuel blend on B-52 bombers and C-17 transports. They'll soon start testing it with Lockheed Martin's F-22 Raptor, a stealthy twin-engine fighter that can fly at supersonic speeds.

A B-1 Lancer bomber became the first synthetic fuel-propelled plane to break the sound barrier in a test March 19 at Dyess Air Force Base in Texas.

The synthetic fuel is developed from a technology known as the Fischer-Tropsch process, which can convert coal, natural gas or biomass into clean-burning fuel stripped of impurities such as mercury, sulfur and carbon dioxide. Most of the flight tests have used natural gas, but Air Force officials think that their long-term energy strategy lies in liquefied coal, because the fossil fuel is so abundant in the United States.

The U.S. has 27 percent of the world's coal supply -- 493 billion tons -- and sometimes is referred to as "the Saudi Arabia of coal." Texas is the fifth-largest coal-producing state in the nation, unearthing more than 45.9 million tons annually, mostly from lignite mines scattered through East Texas. It ranks ninth in total coal deposits, with 12.4 billion tons.

Despite its availability, coal seldom has been seriously considered as an alternative energy source because converting it to liquid is so expensive.

However, liquid coal is getting a fresh look as crude-oil prices soar past $100 a barrel.
Although advocates say that the conversion process will result in an ecologically clean product, many environmental groups and their supporters in Congress think that expanding the use of coal will worsen carbon emissions and global warming.

"Across the board there is going to be opposition from the environmental movement," said John C. Topping, president of the Climate Institute in Washington.

The Air Force tentatively plans to lease underused property at Malmstrom Air Force Base in Montana for the construction of a coal-to-liquid fuel plant. By partnering with private enterprise, Air Force officials hope to foster the development of subsequent plants to create a full-fledged coal-to-liquid industry that could supply military and commercial aviation.

The Air Force's efforts have energized supporters on Capitol Hill, where coal-state lawmakers are pushing legislative initiatives to help promote liquefied-coal development.

At least a dozen lawmakers are members of a Coal-to-Liquids Caucus, which was formed in March 2007 by Sens. Jim Bunning, R-Ky., and Barack Obama, D-Ill. Obama, who's running for president, now says that he won't support liquefied coal unless it emits 20 percent less carbon than conventional fuels.

Sen. John Cornyn, R-Texas, calls the Air Force initiatives a "win-win" that would "better utilize America's domestic energy supply" and increase job opportunities in Texas. Cornyn said he may move forward with legislation "to remove impediments" to coal-to-liquid expansion.

DAVE MONTGOMERY, 202-383-6016

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