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Arch Coal Takes 25% Stake in DKRW Advanced Fuels; Shoots for “Significant” Role in Coal-to-Liquids

Arch Coal, the US’s second-largest coal producer, has acquired a 25% equity interest in DKRW Advanced Fuels, LLC. In exchange, Arch has agreed to extend its existing option agreement with DKRW Advanced Fuels, to work with DKRW Advanced Fuels to secure coal reserves for two additional coal-to-liquids (CTL) projects outside of the Carbon Basin, and to invest $25 million in the company.

DKRW Advanced Fuels is a subsidiary of Houston-based DKRW Energy LLC and the principal developer of the Medicine Bow Fuel and Power coal-to-liquids project in the Carbon Basin of southern Wyoming. The Medicine Bow CTL plant will initially produce about 11,000 bbl/day of transport diesel and other fuels.

The Medicine Bow project is being planned as a mine-mouth coal-to-liquids facility that will use coal from Arch’s Carbon Basin reserves in southern Wyoming as a feedstock. DKRW has already selected GE’s coal gasification technology and Rentech’s Fischer-Tropsch (FT) technology for the Medicine Bow CTL plant, and has entered a construction agreement with SNC-Lavalin. (Earlier post.)

In addition, DKRW Advanced Fuels has signed a letter of intent with a regional oil and gas producer that plans to use carbon dioxide generated by the facility for enhanced oil recovery.

We believe that our strategic partnership with DKRW Advanced Fuels positions Arch to play a significant role in the emerging coal-to-liquids industry.

—Steven F. Leer, Arch Coal Chairman and CEO

As part of the transaction, Arch and DKRW Advanced Fuels completed an extension of the existing option agreement on approximately 180 million tons of Carbon Basin coal reserves relating to the Medicine Bow coal-to-liquids project, and entered into a new agreement whereby Arch and DKRW Advanced Fuels will explore potential reserves and project opportunities of similar size to Medicine Bow in two other coal basins.



I was recently in Wyoming on a 7 day backpack. Wyoming has s an incredibly small population but makes up for it with its incredibly high level of pollution. Nice to have a national sacrifice area just to the north of where I live. File this under "black coal congress".

allen Z

you are a riot.
___Much of it comes from coal fired power plants and drilling operations. The electricity is exported mainly to California. Diesel exhaust from drilling ops also foul the air. They are also trying to run the drilling derricks on natural gas instead of high sulfur fuel oil.


I thank the congress.I have three chikdren in the military and would prefer domestic fuel to middle eastern fuel my kids will have to fight for.

This project is sequestering co2.This can buy us time to get to cleaner technologies.The amount of energy needed is to massive to be replaced by any perfect replacement at this time.

Keep in mind world war three would be environmentally destructive.The middle east is a gordian knot.The only answer is to smash it or disengage from it.

Paul Dietz

This project is sequestering co2.

Well, it'll be sequestering the CO2 that is produced in the gasification/FT synthesis process itself, but not the CO2 produced from burning the liquid fuel in vehicles. This will make it comparable to fuels derived from petroleum in CO2 impact, rather than twice as bad.

BTW, I'm seeing references to a new flue gas CO2 extraction process (based on absorption into chilled ammonia) that is superior to the MEA (monoethanolamine) absorption process and has a projected cost of only about $15/tonne of absorbed CO2. This process, which also scrubs other acid gases like SOx and NOx, would increase the cost of electricity from a powdered coal steam plant by only ~10% or so, and could be retrofitted on existing powerplants.


We could adress the CO2 issue by simply banning all future coal electric plants. Nuclear is cost competitive and far cleaner, and that leaves more coal for liquid fuels production.


I agree with the last comment. Let's get all electricity from nuclear and save coal for liquids to add to the limited supply of biofuels. Add to that a fossil carbon cap, sequestration and electricity cogeneration if technically feasible and mixing coal/biomass feedstock. If done right GHGs could be cut and coal reserves could last longer.

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