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PROCESSES The process of producing synfuels is often referred to as Coal-To-Liquids (CTL), Gas-To-Liquids (GTL) or Biomass-To-Liquids (BTL), depending on the initial feedstock. Synthetic crude may also be created by Upgrading Bitumen (a tar like substance found in Tar Sands ), or synthesizing liquid Hydrocarbon s from Oil Shale and Synthesis Gas , a mixture of Carbon Monoxide and Methane . The best known synthesis process is the Fischer-Tropsch Synthesis which was used on a large scale in Germany during World War II . Other processes include the Bergius Process , the Mobil Process and the Karrick Process . An intermediate step in the production of synthetic fuel is often Syngas , a Stoichiometric mixture of Carbon Monoxide and Hydrogen , which is sometimes directly used as an industrial fuel. COMMERCIALIZATION Sasol The leading company in the commercialization of synthetic fuel is ), Malaysia (Shell Bintulu) and New Zealand (Motor-fuel production at the New Zealand Synfuel site has been shut down since the mid nineties, although production of methanol for export continues {Link without Title} . This site ran on the Mobil process converting gas to methanol and methanol to gasoline). Commercialization in the United States Numerous US companies ( TECO , Progress Energy , DTE , Marriott ) have also taken advantage of coal-based Synfuel Tax Credits established in the 1970s , however many of the products qualifying for the subsidy (for example slurries or briquettes) are not true synthetic fuels since they are not the portable, convenient, end-user liquids that the credit was established for. The coal industry currently uses the credit to increase profits on coal-burning powerplants by introducing a "pre-treatment" process that satisfies the technical requirements, then burns the result the same as it would burn coal. Sometimes the amount gained in the tax credit is a major factor in the economic operation of the plant. The synfuel tax credit has been used primarily in this manner since the cheap gas prices of the 1980's killed any major efforts to create a transportation fuel with the credit, and its continuation is seen as a major "pork project" win for coal industry lobbyists, to the tune of $9 billion per annum.http://www.time.com/time/magazine/article/0,9171,1167738,00.htmlThe total production of such synfuels in the US was an estimated 73 million tons in 2002. The United States Department Of Energy projects that domestic consumption of synthetic fuel made from coal and natural gas will rise to 3.7 million Barrels per day in 2030 based on a price of $57 per barrel of high sulfur crude ( Annual Energy Outlook 2006, Table 14, pg52 ). ECONOMICS Synthetic fuels require a relatively high price of crude oil in order to be competitive with petroleum-based fuels without subsidies. However, they offer the potential to supplement or replace petroleum-based fuels if oil prices continue to rise. Several factors make synthetic fuels attractive relative to competing technologies such as Biofuels , ethanol/methanol or Hydrogen :
ENVIRONMENTAL ASPECTS Liquified coal emits twice as much carbon dixoide as burning oil, so Carbon Sequestration is proposed to prevent an adverse impact on Greenhouse Gas emissions. Administration Backs Making Liquid Fuel from Coal SEE ALSO
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