Solid fuels conversion costs for Texas - Coal and lignite utilization in electric power generation and other industries. Final report

This study of solid fossil fuel conversion costs for Texas describes processes for converting dirty solid fossil fuels (lignite, coal) into clean usable energy products (e.g., synthetic gas, electricity). Capital and operating costs are presented and analyzed for each process described. Expected increases in capital costs for these costly investments are striking when compared to costs of similar technologies in 1973. Generally speaking, capital costs in constant 1975 dollars are expected to be twice as high in 1985 as they were in 1973. A boiler and fuel handling system for the production of usable heat (steam) from solid fuel may cost from 1.5 times to 7 times or more as much as the equivalent system for the utilization of gas or oil. Larger systems have smaller ratios of coal/lignite system costs to gas/oil system costs than small systems. Consequently, solid fossil fuels are much cheaper sources of heat base load electricity generation than natural gas and oil products. However, natural gas and oil products are currently slightly cheaper sources of heat for many industrial fuel burning installations with conventional technology. Because of high transportation costs, western subbituminous coal, while cheaper than natural gas, is significantly more expensive than Texas lignite. The market potential for lignite gasification will depend primarily on the price of natural gas. A near doubling of the current well head price for new natural gas (in constant 1975 dollars) seems necessary to stimulate widespread investments in lignite gasification. This stimulation, of course, will be significantly affected by boiler fuel restrictions and air quality standards as well as supply costs of natural gas. Coal liquefaction provides clean fuels, but much further research and development is still needed.