Proposals To Produce Chemicals From Coal

Press, Volume XCVIII, Issue 28986, 29 August 1959, Page 15

Proposals To Produce Chemicals From Coal

(new Zealand Press Association)

DUNEDIN, August 28. A United States firm of chemical engineers considers it could economically produce chemicals from West Coast coal and make its products competitive on an export market, Professor j. I. Graham, formerly of the University of Otago School of Mines and Metallurgy, said today. He said the plan had been discussed at a high Government level.

Discussing the need for such an industry, Professor Graham told the Institute of Chemistry conference that overseas investors were interested in New Zealand. The big reserves of coal on the West Coast were not, at present, being used efficiently. The cost of transporting the coal was as much again as the cost of mining it

Coal-gas could be used to produce ammonia which would sell at about £ 19 a ton—a figure competitive with imports. _ Charleston lignite contained about 6 per cent, sulphur and it could be burnt to produce cheap electricity—about ,5d a unit —and the sulphur recovered. Recovering the sulphur would add materially to the requirements of New Zealand and save overseas funds, he said.

Production of less than 29.000 tons of ammonia a year would not be economic, according to overseas firms.

One American firm considered it could produce 50,000 tons of ammonia from Charleston lignite. Most of the ammonia would have to be exported as New Zealand s present consumption is about 3500 tons a year. Professor Graham advocated a carbonisation plant at Ngakawau near Westport. It could treat 500 tons of Buller coal a day and this

would give the extra 9000 tons of tar required by the Ministry °£ Works and other concerns above production by gas-works The gas produced in the carbonisation could be used for the ammonia industry. Oxygen would be required in the process, and the main cost in this—electricity—would be reduced by burning Charleston lignite and recovering the sulphur.

The complete conversion of coal into oil was "very attractive” but it did not yet appear to be economic, he said. Tests had shown that by high-pressure hydrogenisation, Stockton coal could produce more oil a ton than most other coals tested.

New Zealand could produce from coal many commodities at present imported at considerable cost in overseas funds—tar, bitumen creosote, phyhallic anhydride’, pentachlorophenol, nitrogen compounds and various raw materials ,? r .the plastics industry and liquid fuels.

Mr W. G. Hughson, of the Dominion Laboratory, Wellington, gave a paper appraising the coking qualities of New Zealand coal. He suggested a West Coast ‘ n “i? str y Producing 500,000 to 1,0)0.000 tons of metallurgical coke a year. Exports to Australia, South Africa, India and Japan were feasible. West Coast coals were of excellent coking quality, but half the them had too high a sulphur content. Research into eliminating the sulphur would be worthwhile.

'Mr Hughson suggested further prospecting and drilling at Paparoa, and sending samples of known deposits for tests overseas.