Office Of Coal Research Program As It May Be Applied To Lignite

The Office of Coal Research Program has been outlined in our Annual Report for a number of years and reported on by various members of the OCR staff as well as by our contractors. The program is national in scope and is intended to develop new and improved uses for our Nation's coal resources and to maintain coal in a favorable economic position, vis-a-vis, the other energy forms. A program has been developed that includes conversion of coal to gas, gasoline and other petroleum-type products, and to electricity. These projects are only one facet of the OCR program albeit an important one. In many of the conversion projects we have underway, original development work has been done with bituminous and sub-bituminous coal. It is the intention of this paper to present a general outline as to how lignite might fit into one or more of these projects as a raw material. Our national lignite reserves are vast in scope and this has been recognized in the OCR program by development of a project specifically for lignite and by including lignite as a test raw material in many other projects. Project Lignite is intended to develop the Cop Acceptor Process for conversion of lignite to a high B.t.u. gas. In this effort we have included the design, construction, and operation of a lignite gasification plant at Rapid City, South Dakota. The work is being conducted by the Consolidation Coal Company and is an outgrowth of their laboratory development of this process. The first portion of our effort included a detailed economic study of a somewhat arbitrary grouping of States designated Market Area A that could be expected to use gas manufactured in a lignite gasification plant. The area included the Dakotas, Minnesota, Nebraska, and Iowa. This geographical area could readily be served if a process could be developed for converting North Dakota's lignite reserves, estimated at 351 billion tons, to high B.t.u. gas. Our study showed that Market Area A had a potential commercial- industrial market of one trillion cubic feet of gas a year. To meet this demand, we believe that part of the load can be obtained from commercial lignite-to-gas plants. At the time of our original study, we concluded that gas could be delivered to the city gate in Market Area A at about 45¢. As a result of price escalation in the interim, our estimate today might be slightly higher, but not significantly so, since some parts of the process appear better today than they did at the time of the original projection.