OIL FROM COAL

New Zealand Herald, Volume LXX, Issue 21561, 4 August 1933, Page 5

OIL FROM COAL

INTEREST IN AUSTRALIA! • INFORMATION SOUGHT COSTS AND RETURNS }. [Fnoir otrn own correspoxdrxt] SYDNEY, July 27 ' Immediate steps have been taken by the Commonwealth Government t'o obtain information about the British scheme for the extraction of oil from coal by the hydrogenation process, as - outlined by cable messages last week, fn making an announcement to that effect the Minister of Development, Senator McLaohlan, said that if hydro- %• genation could bo successfully -intro- jj duced into Australia for extracting oil from coal, it would be of tremendous * value to the country. The Government would sympathetically consider advances for any sncli scheme in Australia if it was proved to be economical, the Minister said. It was far from clear from the cables what was the exact nature nf the process and the amount of expenditux'e necessary, and he had asked for more detailed information. Investigations of the hydrogenation process sonio months ago had shown that an enormous capital expenditure would be involved.

The Economy Aspect While admitting that practical tests 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. Rivett, said that the economic possibilities would need to bo thoroughly investigated. In 1930 Dr. Rivett, after investigations in England arid 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 Marchi last. Dr. Rivett adheres to the maint points contained in the summary of: his report. These are as follows: — (1) The preparation of crude oil by the hydrogenation of black coal in technically well developed, hut cannol# compete economically on equal termu with the obtaining of natural oils, from the earth. There may, however, well bo other considerations, which make -it worth while from a Commonwealth point of view, to" encourage the coal work, in spite of the economic conditions attaching to it. (2) To keep down the costs of tfoa finished product the coal from oil industry, if developed at all, must bis on a largo scale. Its almost inevitable association with other industries using hydrogen and carbon dioxide means tliat many other considerations must be taken into account than those whicb are immediately obvious. (3) Distribution of its, product will be a big factor in an Australian oil 1 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. High Cost of Plant Mr. Rogers reported ' that the industry would hare 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 wotild probably cost £12,000,000 in AustraliaBased upon comparative English .estimates, the production costs, including interest, would probably amount, to, la 3d a gallon of petrol. Imported Splint could be landed in Australian ports, with duty and other charges paid, at the same price or even a little lower. 1110 industry would enjoy no advantage in' distribution expenses, for most of the product would be transported by nea to the main markets. In A ustralia, as in England,. siud Mr. Rogers, the successful application of the process seemed to depend on a Government subsidy. However, numy arguments might be advanced in favour of the industry even in the face oi: a certain loss. As a measure for relieving unemployment, however, it did not seem to bo very attractive. It was to be hoped that by accumulated experience and research in the operation or high-pressure processes, such economies would bo. made that commercial application of the process Would be pdssiblo in Australia. '■