AUSTRALIAN PROJECT

Evening Post, Volume CXVI, Issue 27, 1 August 1933, Page 7

AUSTRALIAN PROJECT

"TREMENDOUS VALUE"

(Special to the '/Evening Post.") SYDNEY, July 27. Immediate steps have been taken by the Commonwealth Government to obtain information about the British scheme for the extraction of oil from coal by the hydrqgenation process, as outlined by cable messages last week. In making an announcement to that effect the Minister for Development (Senator MeLachlan) said that if hydrogenation could be successfully introduced into Australia for extracting oil from coal, it would be of tremendous value to the whole country. The. Government would sympathetically consider advances for any such scheme in Australia if it was proved to be economical. It was far from clear from the cables what was the exact nature of the process and the amount of expenditure necessary, and he had asked for more detailed information. Investigations of the hydrogenation some months ago had showed that an enormous capj-tali expenditure would be involved. While admitting that practical test 3 of hydrogenating coal and tar to obtain petrol had definitely proved thoroughly workable, the chief executive officer of the Council of Scientific and Industrial Research (Dr. A. C. Eivett) said that th,e economic possibilities would need to be thoroughly investigated. It is of interest tq. note that in 1930 Dr. Eivett, after investigations in England and America, prepared a special report on the question of obtaining oil from coal, while the fuel adviser attached to the council submitted a report as late as March last. POINTS FKOM A REPORT. Dr. Eivett adheres to the main points contained in the summary/ of his report. These are as follows:— 1. The preparation of crude oil by the hydrogenation of black coal is technically well developed, but cannot compete economically on equal terms with the obtaining of natural oils from the earth. There may, however, well be other considerations which make it worth while from a Commonwealth point of view to encourage the coal work, despite the economic conditions attaching to it. . 2. To keep down the costs of the finished product the oil-from-coal indus.try, if developed at all, must be on a large scale. Its almost inevitable association with other industries using hydrogen and carbon dioxide means that many other considerations must be taken into account than those which are immediately obvious. 3. Distribution of its product will be a. big factor in an Australian oil industry, and the present entrenchment of the flow of oil companies in this respect makes it desirable that their assistance be secured for any local development. Mr. Eogers reported that the industry would have to be established, if at all, with black coal as the raw material. A plant with a capacity to handle 1000 tons of coal a day would probably cost £12,000,000 in Australia. Based upon comparative English estimates, the production costs, including interest), would probably amount to Is 3d a gallon of petrol.' Imported spirit could be landed in Australian ports, with duty and other charges paid, at the same price, or even a little lower. The industry would enjoy no advantage in distribution expenses, for most of the product would bo transported by sea to the main markets. In Australia, as in England, the successful application of the process seemed to depend on a Government subsidy. However, many arguments might be advanced in favour of the industry even in the face of a certain loss. As a measure for relieving unemployment, however, it did not seem to be very attractive. It was to be hoped that by accumulated experience and research in the operation of high-pressure processes, Wch economies would be made that commercial application of the process would be possible in Australia.