OIL FROM COAL

Poverty Bay Herald, Volume LXIII, Issue 18955, 4 March 1936, Page 15

OIL FROM COAL

HYDROGENATION PROCESS PROSPECTS IN DOMINION "Tho only way the coalmining industry in New Zealand, especially on the Avcst icoast, can hope for a revival in consumption is by the establishment of a hvdrogenntion plant, producing oil from coal," said Mr. W. llardie, chairman of directors of tho WcstportStoc'kton Coal Company, Limited, at tho annual meeting at Christ church.

Mr. llardie said that in six years Imperial Chemical Industries' hydrogenation plant at Billingham, Fmglahd, had increased its daily use oi coal from 10 tons to 4000 tons. The plant was producing over 50 per cent more petrol than was anticipated. The plant for petrol production alone was using- over 500,000 tons of coal a year, and was producing over 1,000,000 gallons of petrol a week. This was only :>, per cent of the requirements Oi Great Britain ito-day. The total cost of the plant was about £4,. r >oo,ooo, not £3.000,000 to £10,000,000, as generally thought. Improvements had been made since the plant .started producing petrol, and the cost of any similar plant would now be considerably less. The British Government granted a minimum effective preference for home produced motor spirit of 4d per gallon for nine years. Petrol was being produced at 4d a gallon, although depreciation on plant, etc., must lie added to that figure. "The most suitable coal for this process is a high grade bituminous coal," said Mr. llardie. "Very largo deposits of this grade of coal have been proved to exist in the West CoastBuller district. Oil can be produced in New Zealand from such it plant just as cheaply as it is being produced in England to-day. The coal in the Buller district is a vastly superior coal and cleaner than the. coal they are using for the production of oil from the Durham fields in England. The industry would give employment to thousands of miners and others, apart from its national aspect, should the country at any time be handicapped for the want of oil supplies." Mr. llardie said that the company's results last year were very disappointing. There had been a strike at the mine, an increase in mining costs caused through decreased output, more costly mining regulations, a f> per cent increase in miners' wages, which came into force in April of last year, and severe cutting of prices. As the cooperative mining companies were not paying the 5 per cent increase in wages to their employees, they were in a position to cut prices, which was seriously affecting the company's business.