DKRW to Acquire Coal Reserves for Coal-to-Liquids Facility
10 March 2005
Houston-based DKRW Energy has signed an option agreement with Arch Coal to acquire undeveloped coal reserves in the Carbon Basin of Carbon County, Wyoming to provide the feedstock for a integrated power and coal-to-liquids (CTL) facility to be located near Medicine Bow, Wyoming.
DKRW announced plans for the $2.75B facility last year, and plans to have it online between 2008 and 2010.
The acquisition of the coal is a major step. DKRW plans the facility to be located by the coal field, reducing or eliminating the need for rail transport of the mineral. The company estimates using 6 million tons of coal per year in the plant.
The integrated gasification facility (which seems like it will be an advanced IGCC (coal-based Integrated Gasification Combined Cycle)-style plant) will create a synthesis gas from the coal.
A conceptual drawing of an IGCC system (from the Gasification Technologies Council is to the right.
Some of this syngas will flow to a Fischer-Tropsch liquefaction system to produce 33,000 barrels per day of synthetic diesel and naptha. The rest of the gas will support a 350 MW power generation system.
Over the next few months, DKRW will be selecting its technology providers for the coal gasification and Fischer-Tropsch liquefaction technologies, as well as selection of electric power generation and transmission equipment, EPC contractors, and the securing of financing.
DKRW was formed in January 2002 by four principals (Doyle, Kelly, Ramm, White), three of whom had been executives at Enron (which spectacularly filed for bankruptcy in December 2001).
Wow... 33,000 barrels a day. Just curious do you have any idea how big this market currently is?..what the production rate is?
Posted by: Joe Deely | 10 March 2005 at 04:56 PM
I’m looking for some more detailed data on that, and trying to find it broken out by feedstock. (Coal, biomass, heavy oil, etc.)
Not very big at this point. Gasification and Fischer-Tropsch play a much larger role in Africa (Sasol is an African company) and Asia, but it’s still relatively small, I think. But I’m looking.
I’m also looking for updated energy and emissions lifecycle studies of the different processes.
Posted by: Mike | 10 March 2005 at 10:39 PM
Dear Producer: I want to know more as I think this is one great idea. It sounds like a boon to the problem america has with energy dependence and lack of domestic supplies of fuel. Please let me know more about the process and if you are looking for help or partners.
Posted by: Jim | 04 May 2005 at 06:11 PM
This technology works, is cost effective and needs to be moved forward rapidly--Write your governors, senators, presidents, and anyone else you can think off. Montana is spearheading this technology--It's time to build the plants--not to do R&D on it--Lot's of information on Montana's governor website
Posted by: Tom Bergquist | 20 September 2005 at 09:01 AM
I wonder if they are going to use Rentech's FT process. They are out of Denver and it looks to me to be a good fit.
What do you think?
Posted by: crawdadds | 04 October 2005 at 08:25 AM
This sounds like a big step towards keeping America's money in America. I like it, also i am interested in working at location with the construction aspect of this project, can you please provide to me contact information for the General contractors assisgned to this job please?
Sincerely Abel Hinojosa thanks.
Posted by: Abel Hinojosa | 08 February 2008 at 03:24 PM