Converting coal to a liquid fuel (CTL) – a process referred to as coal liquefaction – allows coal to be utilised as an alternative to oil. There are two different methods for converting coal into liquid fuels:
Direct liquefaction works by dissolving the coal in a solvent at high temperature and pressure. This process is highly efficient, but the liquid products require further refining to achieve high grade fuel characteristics. Indirect liquefaction gasifies the coal to form a ‘syngas’ (a mixture of hydrogen and carbon monoxide). The syngas is then condensed over a catalyst – the ‘Fischer-Tropsch’ process – to produce high quality, ultra-clean products.
An array of products can be made via these processes – ultra-clean petroleum and diesel, as well as synthetic waxes, lubricants, chemical feedstocks and alternative liquid fuels such as methanol and dimethyl ether (DME).
Coal-derived dimethyl ether (DME) is receiving particular attention today as it is a product that holds out great promise as a domestic fuel. DME is non-carcinogenic and non-toxic to handle and generates less carbon monoxide and hydrocarbon air pollution than LPG. DME can also be used as an alternative to diesel for transport, as well as for on and off-grid power applications.
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