Fairbanks EDC to Conduct CTL Study

24 May 2008

Alaska Journal of Commerce. Fairbanks (Alaska) Economic Development Corp. (EDC) has signed a contract with Hatch, Ltd., a Toronto-based engineering firm, to conduct a $550,000 screening study on a possible coal or biomass-to-liquids plant in Fairbanks.

The hope is that the alternative fuels plant might lower the cost of energy in Interior Alaska by manufacturing liquids fuels from sources other than crude oil, which is now selling as prices near $130 per barrel. Electricity would also be produced as a byproduct of plant operations.

“Energy is just costing too much. It is driving people and businesses away from our community. This study is the first step toward finding or creating cheaper fuel to ease the burden on our families,” said Jim Dodson, president of the FEDC. “By lowering the cost of energy we can also attract new businesses to Fairbanks and grow our economy.”

The Fairbanks CTL plant would produce 20,000 to 40,000 barrels per day of fuels using coal or biomass as a carbon feedstock. Jet fuel, diesel and home heating oil would be the primary products produced in a Fairbanks plant, under the FEDC plan. The concept also involves 60 to 200 MW of power being produced as well as use of waste heat in local space heating.

The study presumes coal will be the primary feedstock, but it also will explore a case involving 1,000 tons per day of biomass supply.

The contract calls for two scenarios to be developed, one involving a plant to make liquid fuels derived from coal or biomass with the additional capability of producing power, and a second where natural gas can be added to the feedstock to maximize the conversion of carbon to useful products.

Resources

• Fairbank Energy Plan, Gasification