OIL FROM COAL

Otago Daily Times, Issue 22023, 4 August 1933, Page 16

OIL FROM COAL

AUSTRALIA INTERESTED “ TREMENDOUS VALUE.” (From Our Own Correspondent.) 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 hydrogenation process, as outlined by cable messages last week. In making an announcement to that effect the Minister for Development (Senator M’Lnehlan) said that if hydrogenation could bo 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 capital expenditure would be involved.

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. Kivett) said that the economic possibilities would need to be thoroughly investigated. It is of interest to note that in 1930 Dr Rivett, 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 ns late as March last. Dr Rivett adheres to the main points contained in the summary of his report. These are ns 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 coal'from oil industry, 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. S. 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 Rogers reported that the industry would have to bo 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 be 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 of 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, such economies would be made that commercial application of the process would be possible in Australia.