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Environmental Issues of Synthetic Transportation Fuels from Coal Environmental Issues of Synthetic Transportation Fuels From Coal December 1982 NTIS order #PB83-161919 — — Preface This volume contains papers written for OTA to assist in preparation of the report Increased Automobile Fuel Efficiency and Synthetic Fuels: Alternatives for Reducing Oil /reports. OTA does not endorse these papers. in several instances, the OTA report reaches somewhat different conclusions because of additional information which was obtained later. These papers, however, may prove valuable for readers needing more detailed or specific information than could be accommodated in the final assessment report, and are being made available for such purposes. —. ENVIRONMENTAL ISSUES OF SYNTHETIC TRANSPORTATION FUELS FROM COAL SUMMARY REPORT by Michael A. Chartock Michael D. Devine Martin R. Cines Martha W. Gilliland Steven C. Ballard Science and Public Policy Program University of Oklahoma, Norman, Oklahoma Submitted to Energy Office Office of Technology Assessment Contract No. 033-4840.0 May 1981 — PREFACE AND DISCLAIMER This Summary Report on Environmental Issues of Synthetic Trans- portation Fuels from Coal was prepared by an interdisciplinary team of the Science and Public Policy Program, University of Oklahoma, under contract with the Office of Technology Assessment, U.S. Congress. Martha W. Gilliland, Executive Director, Energy Policy Studies, Inc., Omaha, Nebraska, is a subcontractor con- tributing to the overall report. This summary is based on materi- als presented in a Background Report which is available separately. The analyses and conclusions presented in these reports do not necessarily reflect the views of the Office of Technology Assessment or the University of Oklahoma and are the sole responsibility of the authors. i ENVIRONMENTAL ISSUES OF SYNTHETIC TRANSPORTATION FUELS FROM COAL SUMMARY REPORT Page INTRODUCTION . ● 000 9**** ● 9* ● ● ● ● ● ● ● ● ● ● ● ● 1 1.0 OVERVIEW OF ENVIRONMENTAL CONCERNS ● ● ● ● 9 ● ● ● ● 9 ● 9 5 1.1 MINING . ● ● ☛☛ ● *mm ● ● ● ● ● ● ● ● ● ● ● ● .7 1.2 COAL LIQUEFACTION AND REFINING. 9 ● ● ● ● ● ● ✎ ● ● ● ● ● 8 Air . ● ● e** ● .* ● ● ● ● ● ● ● 9 ● ✎ ● ● .9 Trace Compounds . ● ● ● ● ● ● ● ● ● ● ● ● .12 Water ● *O ● ● ● ● ● ● ● ● ● ● ● ● .13 Solid ● 9* ● ● ✎ ● ● ● ● ● ● ● 9 ● ● 15 Other .** ● ● ● ● ● ● ● ● ● ● ● ● .16 1.3 PRODUCT TRANSPORT AND END-USE ● ● ● ● ● ● ● ● . ● ● ● ● .18 2.0 ARE THERE SIGNIFICANT ENVIRONMENTAL DIFFERENCES THE COAL LIQUEFACTION PROCESSES? . ● **9 ● 9 ● ● ● ● ● .24 2.1 EMISSIONS DURING “ROUTINE” OPERATING CONDITIONS ✘ ● ● ● ● .29 Air Emissions . S*** ● ** ● ● ● ● ● .29 Water Effluents . ● *** 9*9 ● ● ● ● ● .29 2.2 UPSET/ACCIDENT RISKS. ● 9*** ● ** ● ● ● ● ● .30 2.3 ENVIRONMENTAL HEALTH RISKS. ● ● . ● ☛☛☛ 9** ● ● ● ● ● .33 2.4 PRODUCT AND CONVERSION EFFICIENCY DIFFERENCES . ● ● ● ● ● .36 2.5 UPGRADING AND REFINING. ● ● ☛☛☛ ● ☛☛ ● ● ● ● ● .42 3.0 WHAT ARE THE IMPORTANT LOCATIONAL FACTORS AFFECTING ENVIRONMENTAL IMPACTS? . ● . ● *** ● **** ● ● ● .46 3.1 COAL CHARACTERISTICS. ● ☛☛☛ ● **e* ● ● ● .46 ii 3.2 REGIONAL DIFFERENCES IN ENVIRONMENTAL IMPACTS . ● .50 Air Resources . ● . ● ● . ✎ .55 Water Resources and Aquatic Ecosystems. ● ● ● .55 Terrestrial Ecosystems. ● . ● . ● ✎ ✎ ✎ .57 Linkages Between Air, Water, and Land Resources: Acid Rain . ● ● ● ✎ ● .62 Overall Ecological Characteristics. ● ● ● .64 3.3 LOCAL FACTORS AFFECTING ENVIRONMENTAL IMPACTS . ● ● ● .65 4.0 ARE OUR INSTITUTIONAL MECHANISMS ADEQUATE TO ENSURE ENVIRONMENTAL PROTECTION? . ● . ✎ ✎ ✎ ● 71 4.1 MONITORING DIFFICULTIES . ● ● ● ✎ .72 4.2 ENVIRONMENTAL STANDARDS AND COMPLIANCE INCENTIVES ● ● ✎ ● .74 Construction Quality Control. ● ● ● ● ● ● ● ● 9 ● ● ● ✎ .75 Environmental Standards . ● ● ● ✎ ● ● ✎ ✎ ● ● 9 ● ● .76 Industry Consensus Standards. ● ● ● ● ● ✎ ● ● . ● ● ● ✎ .77 4.3 PUBLIC PERCEPTIONS. ● ● ● ● ● ✎ ● ● . ● ● ● ● .78 4.4 ENVIRONMENTAL RESEARCH PROGRAMS ✎ ● ● ● ● ● ● ✎ . ✎ ● ● ✎ .82 Technical Research Gaps . ● ● ✎ ● ✎ ● ● ● ● ● ● ● ✎ .83 Social and Policy Research Gaps ✎ ✎ ● ✎ ● ✎ ✎ ● ✎ ● ● ● .83 Research Program Organization . ● ✎ ● ✎ ● ● ● ● ✎ ● ✎ ● .85 5.0 WHAT ARE THE ENVIRONMENTAL RISKS OF AN ACCELERATED SYNFUELS COMMERCIALIZATION PROGRAM? . ● ● ● ● ● ● ● ● s ● 86 5.1 RISKS DUE TO TECHNICAL UNCERTAINTIES. ● . .88 5.2 DIFFICULTIES IN MONITORING. ● ● . ● ● ● ● ● ● ● ● ● 90 5.3 REGULATORY LAG. , . ● ● ● ● ● ● ● ● ● ● “ ● ● ● “ 93 5.4 IMPACTS FROM RAPID CONSTRUCTION . ● ● ● ● ● ● 94 REFERENCES . ● . ● ● ● ● ● ● ● ● ● ● ● s ● ● ● ● ● ● 97 iii LIST OF FIGURES Page 1-1 : Coal Liquefaction Alternatives. , . 3 1-2 : Surface Area Requirements for Coal-Strip Mining etc. 8 1-3 : Range of Air Pollution Emission Levels ● **. ● .* 10 1-4 : Size Ranges of Coal-Fired Power Plants with Emission Equal etc. 11 1-5 : Relative CO2 Emissions from Combustion of Various etc. ● .*. 23 2-1 : Simplified Direct Liquefaction Process-Waste Stream Sources etc. 24 2-2 : Simplified Indirect Liquefaction Process-Waste Stream Sources etc. 25 2-3 : Comparison of Product Outputs . 38 2-4 : Range of Product Outputs from the Exxon Donor Solvent Process . 39 2-5 : Comparison of Conversion Efficiencies . 40 3-1 : Distribution of Coal Resources in the Coterminous 48 States . 48 3-2 : Direct Coal Liquefaction Favors Bituminous Coals Due to Hydrogen Requirements for Oxygen Removals . 50 5-1 : Time Schedule for Two Direct Coal Liquefaction Processes . , 87 5-2 : Synfuel Plant Construction Labor Requirement Near Owensboro, Kentucky . 95 5-3 : Workforce Schedules for Coal Gasification Projects. 96 iv LIST OF TABLES Page l-l: Selected Environmental Issues for Coal Synfuels. 6 1-2: Summary of Transportation End-Use Problems . 20 2-1: Estimated SO2 Emissions from the Flare in the SRC II etc. ● *** ● **** 32 2-2: Efficiency of Refining SRC II Liquids: . ● ● . ● . 44 3-1: Regional Conditions Affecting Environmental Impacts . ● . ● . ● s ● . 51 3-2: Factors Contributing to Regional Environmental Sensitivity to Synthetic Fuel Development . 54 3-3: Air Quality Characteristics and Problems . ● . 56 3-4: Water Resources and Aquatic Ecosystems: Characteristics and Problems . 58 3-5: Annual Pattern of Land Use for Coal Surface Mining Projected in 1985 . 59 3-6: Terrestrial Ecosystems: Characteristics and Problems . ● . ● ● . ● ● ● . ● ● ● ● ● ● ● 61 3-7: Examples of Potential Contributors to Acid Rain . 63 3-8: Local Factors Affecting Environmental Impacts . 65 3-9: Survey of Sites Selected for Coal Liquefaction Projects at Advanced Stage . ● ● ● . ● ● ● ● s 67 3-lo: Initial Site Requirements Specified for Coal Liquefaction Demonstration Plangs . ● . ● ● ● Q ● ● 68 3-11: Siting Criteria for Coal Conversion Facility . 70 4-1: Difficulty in Detecting Environmental Hazards . 73 4-2: Range of Public Perceptions of Synthetic Fuels Industry . ● ● ● ● ● ● 81 4-3: Selected Technical Information Gaps . ● ● . 84 5-1: Health Risks Potentially Resolved during a Normal Development Schedule . ● . ● ● ● ● 91 5-2: Typical Latency Periods in Cancer Detection ● . 93 v ENVIRONMENTAL ISSUES OF SYNTHETIC TRANSPORTATION FUELS FROM COAL SUMMARY REPORT INTRODUCTION Environmental impacts from large-scale commercialization of coal liquefaction are important to government, industry, the pub- lic, and a variety of interest groups. This report reviews envi- ronmental issues associated with coal liquefaction processes by ad- dressing the following topics: ● A comparison of the environmental differences among technologies; “ A comparison of the impacts among different coal regions; ● A description of the uncertainty of synfuels data and environmental effects; and ● An identification of problems aggravated by accelerated development schedules. Section 1 summarizes expected environmental impacts from major steps in the liquefaction process--that is, mining, liquefaction, and end-use. The technologies are compared in Section 2, empha- sizing how the differences may affect environmental issues. Sec- tion 3 identifies impacts affected by locational differences, while Section 4 explores institutional issues. The concluding section (5) discusses environmental risks intensified by rapid commercial- ization programs. As indicated in Figure 1-1, after coal is mined, prepared, and shipped to a conversion facility, there are two basic methods of getting liquid fuels from coal --the direct and the indirect routes --both based on chemistry developed in Germany before World War II. The direct way (or hydrogenation method) involves fracturing the complex coal molecules and adding hydrogen to the fragments; the smaller the fragments and the more hydrogen added, the lighter the liquids produced. On the other hand, the indirect method first converts (by incomplete combustion) the coal to a medium-Btu gas, primarily carbon monoxide and hydrogen. After purification, the carbon monoxide and hydrogen are combined catalytically to produce the liquid fuel--either methanol (methyl alcohol) or hydrocarbons, depending upon the catalyst. Today there are three direct processes in the advanced pilot plant stage: 1 ● Solvent Refined Coal II (SRC II); ● H-Coal; and “ Exxon Donor Solvent (EDS). They differ mainly in their mechanical features (e.g., reactor de- sign) and in whether or not the hydrogenation is done catalytical- ly. Each requires: (1) Preparation of a coal slurry--ground coal plus solvent; (2) Preheating the coal slurry near reactor temperature; l~e SRC I process also is a direct process producing liquid products. Because it has been developed to produce a clean solid fuel and because it is closely related to the SRC-11 process, it is not emphasized in this report. 2 Extraction Sizing
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