• 3 hours Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 5 hours Libya’s NOC Restarts Oil Fields
  • 6 hours US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 3 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 3 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 4 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 4 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 4 days Kinder Morgan Delays Trans Mountain Launch Again
  • 4 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 5 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 5 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 6 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 6 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 6 days Nigeria Among Worst Performers In Electricity Supply
  • 7 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
  • 7 days China Unlikely To Maintain Record Oil Product Exports
  • 7 days Australia Solar Power Additions Hit Record In 2017
  • 7 days Morocco Prepares $4.6B Gas Project Tender
Alt Text

The Death Of Europe’s Coal Industry

A recent report suggests that…

Alt Text

Federal Regulators Deal Huge Blow To The Coal Industry

The Federal Energy Regulatory Commission…

This Project Could Signal A Turnaround For The Coal Industry

This Project Could Signal A Turnaround For The Coal Industry

Investment opportunities are created by solving people's problems. And a major energy development this week could solve one of the biggest issues going in the commodities sector.

That's happening in Botswana, where developers unveiled one of the largest projects ever seen in an obscure but growing segment of the energy industry.

Coal-to-liquids. Related: Policy, Coincidence Or Conspiracy: What’s Really Holding Oil Prices Down?

Project backers in Botswana said they will go ahead with a massive investment in coal-to-liquids operations, projecting a total budget of $4.2 billion for a coal-to-liquids plant capable of producing 20,000 barrels of petroleum fuel per day -- along with a subsidiary facility to produce by-product fertilizer.

And things now appear to moving fast with the project with developers Coal Petroleum (a private Botswana company) and South Africa investment firm Kumvest saying that construction will begin during 2016. Related: SPR To Be Used To Raise Cash For US Gov

At the proposed scale of the project, this will be one of the largest coal-to-liquids projects being advanced outside of China (a nation that's undergoing a major push for such technology). And if it is successful, it will have some notable impacts.

First, it will be a huge boost for Botswana's energy sector which right now relies 100 percent on imports of liquid fuels to meet the country's demand of 7.5 million barrels per year.

It also provides a way to monetize Botswana's massive -- but stranded -- coal reserves which have gone largely undeveloped because of the lack of transport infrastructure to major regional sales points in southern Africa. Related: These Private Equity Giants Are Selling Their Shale... To China

And if all of that is successful, it could offer a solution to problems the entire coal industry is facing right now.

That's because coal use is falling in key markets like Europe with power generators switching en masse to sources like renewables and liquefied natural gas leaving a lot of coal deposits stranded due to economic rather than geographic reasons.

If coal-to-liquids technology can gain momentum and profile through megaprojects like the one in Botswana, it could become an option for re-developing the flagging coal sector globally. Watch to see how this critical benchmark project proceeds.

Here's to solving with solvents,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • zipsprite on October 30 2015 said:
    4.2 billion $ would buy a lot of solar panels in sunny Botswana.
  • R. L. Hails Sr. P. E. (ret.) on October 31 2015 said:
    There is a spectra of coal to energy, chemicals, and fuels; some have existed since WWI. All separate the classic direct combustion extothermic reaction and typically combine a hot coal gas with air, oxygen, and water at temperature, pressure and in the presence of catalysts. The final product is transported via a wire, pipe, road, railroad, or even a plane. They all tend to be expensive, require advanced technologies, and have a large CO2 emission although this is offset by high efficiencies.

    The key to coal's future is climate change. If coal combustion is a serious threat to mankind, there is no answer. The advanced societies will regress to the standard of the most primitive societies with all the social unrest this will create. There is no economical alternative to carbon combustion (with a limited exception of uranium fission.).

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News