THE TRUTH ABOUT OIL FROM COAL

Manawatu Times, Volume LIV, Issue 6947, 28 June 1929, Page 4

THE TRUTH ABOUT OIL FROM COAL

so FAR NOT SUCCESS COMMERCIALLY

(By Reginald Clarry, M.P.)

There is so much nonsense talked about solving the problem of the coal industry—work for unemployed miners and providing for our large foreign imports of oil by utilising our home coal resources—that it is desirable to face a few of the facts before these economic ideals grow by constant repetition into immediate expectations. This is rendered all the more necessary by the tendency of public opinion to reproach either the Government for not lending State aid or industrial interests for their lack of enterprise. Far be it from any one to throw cold water on any research work.in this field but the truth is that so far no process whose primary object is to obtain oil products from coal has yet been proved an economic success on a.commercial scale.

In general terms, there are three methods of coal treatment which produce oil products. The most widely known but perhaps not the oldest is the high temperature carbonisation of coal, used by town gas undertakings at gas works in which the main product is gas of a requisite quality, coke, tar, and ammonia being by-products. The oils are embodied in that wonderful product—tar. Similar high temperature are used in coke over practice, with, of • course, some variation of treatment and procedure, and in this case metallurgical coke is the main product; gas, tar, and the hydro-carbons in the gas are . regarded as the by-products. The distillable oil products in the gas works process amount to about four gallons per ton of coal, and the coke ovens can produce about six gallons per ton. The next method which is receiving publicity,, and about which so much misunderstanding exists, is the low temperature carbonisation of coal—the possibilities of this form of treatment have intrigued research chemists and engineers for 25 years, and a tremendous amount of experimental data and patents stand to their credit.

.Undoubtedly there are as many as 10(0 different processes—between twenty and thirty being the subject of company flotations involving not less than £5,000,000 capital—yet the public have not had an opportunity of seeing a successful balance sheet—successful, in the sense of attaining and combining

both the commercial and economic ideals of production of oil from coal. But when the inventor or promoter in his enthusiasm begins to make exaggerated claims of quantities and possibilities, combined with estimates of profits on an extensive commercial scale of operation, it is time for the

public to use discernment and discrimination.

The national aspect of oil from coal has a great public appeal, and when we read of the declining markets and customers for our coal, and at the same time see that approximately 2,000 million gallons of oil are imported annually, and that certain processes advertise that they can produce this oil—the public may be excused for thinking that all will soon be well.

We will assume, and it is a fair assumption, that sixteen gallons of distillable oil products are obtained from each ton of coal treated by low tem-

perarture carbonisation, and that a largo plaqt to deal with 500,000 tons anually is installed. This plant should, therefore, produce eight million gallons of oil. This sounds big, but, unfortunately, eight million gallons would only represent a part of our anual increase in oil consumption. On this basis of consumption, if it were possible or practical to subject half the total coal consumed —in domestic grates, industry, factories, gasworks, generation of electricity, coke ovens, etc. —to a process of low temperature carbonisation, wo should still bo a long way short of producing our requirements of oil. Of course, every little helps, and con-

rtibutions, however small, must be on no account discouraged. But do not lot us run away with the idea that our coal and oil problems are as good as solved, when actually wo are only touching the fringe of them. Again, when considering the commercial side of the operations of a plant or process, it will be found that, apart from, the successful marketing of the smokeless fuel, an estimated value is invariably given to the gas byproduct, and this figure, more often than not, represents the difference between profit and loss on the working operations, but if the gas can be definitely sold to a large consumer, such as a gasworks, where it can bo standardised for town supply, or to a steel works, then the point has been met. Unfortunately, however, in nearly all cases, there aro physical difficulties in making such arrangements, so that, in the estimated balance-sheet of working, costs, the gas by-product has to stand at a value which can seldom be realised in practical working.