http://enn.com/news/wire-stories/2001/09/09212001/ap_45009.asp
- 9/21/2001 - ENN.com
No, it's not corn or barley: Project would make ethanol from coal

Friday, September 21, 2001

By Dale Wetzel, Associated Press

BISMARCK, N.D. - Rather than corn or barley, North Dakota's newest 
ethanol project might rely on coal.

Dakota Gasification Co., which runs the Great Plains synthetic fuels 
plant near Beulah, N.D., has applied for state research money to 
study whether lignite, a type of coal, can be used profitably to make 
ethanol. The process would use bacteria to convert lignite to 
ethanol, a widely used fuel additive. Ethanol increases the energy 
value of gasoline and helps it to burn more cleanly.

Ted Aulich, a process chemist at the Energy and Environmental 
Research Center at the University of North Dakota, said 
coal-to-ethanol research has been going on for years. "Just going by 
what I've seen in some of the technical literature, it sounds like 
these guys are pretty convinced it is commercially viable," Aulich 
said. "I don't see any reason why it can't be."

Most U.S. ethanol plants process corn or other agricultural products. 
None of the nation's 57 ethanol plants rely on coal, according to the 
Renewable Fuels Association, a Washington, D.C.-based organization 
that promotes ethanol.

The method for converting coal to ethanol relies on technology 
developed by Bioengineering Resources Inc. of Fayetteville, Ark. The 
company has licensed the technology to an Ohio firm that hopes to 
work with Dakota Gas in the project. "The idea is there. The 
potential is there," said Daryl Hill, a Dakota Gas spokesman. "Now 
what we have to do is see if it's going to work."

Dakota Gas and its partner, Metropolitan Energy Systems Inc. of 
Cincinnati, have applied for $5 million in state aid. The plan calls 
for expanding the Great Plains plant to produce ethanol. Developers 
say the project would create 100 new permanent jobs, use 500,000 tons 
of coal each year, and manufacture 30 million gallons of ethanol 
annually.

Nationally, the ethanol industry is in the process of expanding. 
Thirteen plants are under construction nationwide, the Renewable 
Fuels Association said. Most ethanol plants being planned would 
continue manufacturing ethanol from corn, but others contemplate 
using wood chips, sugar cane fiber, and rice straw.

The California Energy Commission, in a study published in August, 
estimated that national ethanol production will double by 2005 to 
more than 4.4 billion gallons annually.

Market demand for ethanol has been rising due to high oil prices, 
clean-air regulations, and the need for a fuel additive to replace 
MTBE, or methyl tertiary butyl ether. MTBE helps gasoline to burn 
more cleanly, but some say the petroleum-based chemical tends to leak 
from fuel storage tanks into water supplies.

California, the nation's largest gasoline market, is phasing out 
MTBE, and ethanol producers are hoping to fill the void.

Copyright 2001, Associated Press

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