OIL FROM COAL

Evening Post, Volume CXXIII, Issue 101, 30 April 1937, Page 15

OIL FROM COAL

COST OF PRODUCTION

■ At. first glance it seems ■ feasible to make up the loss of business1 in coal to' oil fuel and electricity by turning the coal into oil, and recovery of valuable by-products lost in smoke. But the processes of turning coal into oil, especially petr.ol, while practicable in the laboratory, may be commercially uneconomic. Dr. Herman, of the Electricity Commission of Victoria, has been investigating the possibilities of producing oil from coal—and the Commission uses abundant coal in generating electricity at Yallourn. He has come to the conclusion that the only real justification for the oil-from-coal' industry would be for providing some additional security fur our, oil supplies in time of war.' Dr. 'Herman held that in time of war the cry "was for conserving man-power in industry so that every possible man could be released for the front. The additional employment of men required in oil-from-coal plants in Australia would be a disadvantage, just at the time, and the only time, when such plants would be called upon to. supply really vital, needs. " , ■ , ... Dealing with the suggestion that olk from-coal plants would'" absorb 'uhe'nv ployed coal miners, Dr. Herman said the output per person employed in the New South Wales coalmines was about 500 tons per annum. The quantity of black coal required for 150,000 tons of hydrogenated oils was about 600,000 tons, and the estimated cost to the' community for that output would be £ 2 250 000 above the costs of imported oils, equal to £1900 yearly for every 'person employed in winning the necessary coal. ■ A plant to produce 45,000,000 gallons of Australia's existing requirements of 468,000,000 gallons annually would involve a capital cost of til.uuu,----000 and a production cost of about Is 5d a'gallon, compared with the average cost of imported petrol in the last four years of 4.1 d per gallon. The estimated, requirement in 1940 of 500,000 gallons of nil, if produced in Australia by hydrogenation, would involve £H°r 000 000 in capital expenditure, and cost about £25,000.000 per annum in some form of subsidy. ■ ' ■ , .