orO/7 pace sy ntllaetic fae]lts report OIL SHALE 0 COAL 0 OIL SANDS VOLUME 26 - NUMBER 4 - MARCH 1989 CI) QUARTERLY Tell Ertl Repository Arthur Lakes Library Colorado School of Mnss 0 THE PACE CONSULTANTS INC. Peg. U.S. Pot. OFF. Pace Synthetic Fuels Report Is published by The Pace Consultants Inc., as a multi-client service and Is intended for the sole use of the clients or organizations affiliated with clients by virtue of a relationship equivalent to 51 percent or greater ownership. Pace Synthetic Fuels Report is protected by the copyright laws of the United States; reproduction of any part of the publication requires the express permission of The Pace Con- sultants Inc. The Pace Consultants Inc., has provided energy consulting and engineering services since 1955. The company experience includes resource evalua- tion, process development and design, systems planning, marketing studies, licensor comparisons, environmental planning, and economic analysis. The Synthetic Fuels Analysis group prepares a variety of periodic and other reports analyzing developments in the energy field. THE PACE CONSULTANTS INC. SYNTHETIC FUELS ANALYSIS MANAGING EDITOR Jerry E. Sinor Post Office Box 649 Niwot, Colorado 80544 (303) 652-2632 BUSINESS MANAGER Horace 0. Hobbs Jr. Post Office Box 53473 Houston, Texas 77052 (713) 669-7816 Telex: 77-4350 CONTENTS RIGHLIGIITS I. GENERAL PROJECT ACTIVITIES Ammonia from Peat Plant Commissioned in Finland 1-1 New Zealand to Sell Its Share of Synfuel Plant 1-2 CORPORATIONS ICF Wins DOE Support Contracts 1-3 GOVERNMENT DOE Eases Alternative Fuels Requirement 1-4 Reagan, Before Stepping Down, Rejects Oil Import Fee 1-4 New Group to Address Earth Sciences and Mineral and Energy Resources 1-4 Advanced Materials Program Could Benefit Synthetic Fuels I_S ENERGY POLICY AND FORECASTS lEA Sees Nine Percent Growth in Oil Demand by 1993 16 AGA Says Natural Gas Prices to Rise In 1989 1-8 AGA Study Calls for 33% Increase in Gas Use in 20 Years 1-9 API Says National Energy Policy Cannot be Built on Conservation Alone 110 NDCF Calculates True Cost of Imported Oil 1-11 NCA Calls for National Energy Policy 1-12 ECONOMICS Merrow Defines Cost Improvements Potential for Synfuel Plants 1-13 INTERNATIONAL International Synfuels Agency Proposed 1-17 DOE Signs Agreement with Australia Covering Alternative Fuels 1-18 Free Trade Agreement Should Not Hurt Oil Sands Projects 1-18 ENVIRONMENT Greenhouse Emissions Tabulated by State 120 Will Report Argues Against Coal-Derived Methanol 1-22 National Academies Call for Reduction In Fossil Fuel Use 123 RESOURCE Saudi Arabia Reports Huge Increase In Oil Reserves 1-24 RECENT GENERAL PUBLICATIONS/PATENTS 1-25 COMING EVENTS 1-26 SYNTHETIC FUELS REPORT, MARCH 1989 ha OIL SHALE PROJECT ACTIVITIES Gary Refinery Reopens to Process Unocal Syncrude 21 Unocal's Parachute Creek Project Still Striving for Breakeven 2-1 CORPORATIONS Shell Australia Buys Interest in Yaamba Project 2-3 LLNL Proposes 100 TPD Pilot Plant 2-3 GOVERNMENT Hazardous Material Begs May Complicate Life for Oil Shale Projects 2-6 Need for Oil Shale Mining and Material Handling Research Emphasized 2-6 ECONOMICS HYCRUDE Estimates Production Costs for Eastern Shales 29 Economies of Beneficiatlon Plus Hydroretorting Reported 2-12 TECHNOLOGY Oil Shale Attrition Affected by Temperature 2-17 Oil Shale Mining Research Receives Support 2-18 Will Tests New Albany Shale in ROPE Process 2-20 Amoco Patents Static Mixer Retort 2-23 Unocal Patents Arsenic Removal Process 2-25 INTERNATIONAL JOSECO Extends Retorting Runs Through March, 1989 2-28 Performance of U'fl'-3000 Retorts Improved in Estonia 2-28 Status of World Oil Shale Processes Tabulated 2-29 ENVIRONMENT Treasury Department Satisfied with Monitoring Results for Unocal Project 2-33 New Data Show Permeability Reduction in Shale Waste Piles 2-34 WATER Piceance Basin Water Rights Slated for Sodium Mining Project 2-37 Companies File Water Right Applications in the Piceance Basin 2-37 Requirements Listed for Colorado Water Projects 2-39 RESOURCE Utah Oil Shale Leases Expire 2-41 New Battle Expected Over Colorado Wilderness Areas 2-41 USGS Reports on Solid Bitumens in Piceance Creek Basin 2-41 Controversy Over Unpatented Oil Shale Claims Continues 2-44 SOCIOECONOMIC AGNC Calls for Assistance to Unocal Project 2-48 RECENT OIL SHALE PUBLICATIONS/PATENTS 2-50 STATUS OF Oil. SHALE PROJECTS 2-52 INDEX OF COMPANY INTERESTS 2-67 II SYNTHETIC FUELS REPORT,. MARCH 1989 III. OIL SANDS PROJECT ACTIVITIES NewGrade Energy at 66 Percent Capacity 31 Suncor Schedules Major Cutbacks 3-1 BI-Provincial Upgrader Lets Engineering Contracts 3-1 Eyehill Project Passes One Million Barrel Mark 3-2 Canadian Syncrude Record Set 3-2 Amoco Sees No Go-Ahead for Primrose OSLO Activities Get Under Way CORPORATIONS ORS Reduces Yearly Losses 35 Sceptre Reduces Capital Outlays for 1989 3-5 Imperial to Buy Texaco Canada, Shed Assets 3-6 Gulf Canada Marks Oil Sands Developments 3-6 GOVERNMENT Government Aid Considered for Oil Mining Project 3-8 ENERGY POLICY & FORECASTS The Future Belongs to Heavy Oil and Tar Sands 3-12 Canadian Heavy Oil to Look West for Markets 3-14 Canada NEB Forecast Notes Improvement In Oil Sands Outlook Since 1986 3-15 ECONOMICS Small Scale ART Process Economical for Oil Field Upgrading 319 TECHNOLOGY LR-Cokhig Process Applied to Oil Sands and Asphaltenes 3-23 Blends Tested for Canadian Gasolines of the Future 3-25 Consortium to Study Wood-Beaver Process with Beneficiated Sands 3-28 INTERNATIONAL USSR Tests Combination Electromagnetic and In Situ Combustion Process 3-32 Venezuela Creates Development Plan for Million BPD from Orinoco 334 Duri Steamflood Increases Output 3-38 ASVAHL Develops Suite of Upgrading Processes 3-38 ENVIRONMENT Tacluk Processor Slated for PCB Cleanup 344 Treasury Gives Monitoring Results on Forest Hill Project 344 Utah Leases Canceled 3-46 Southern Orinoco Delta Said Favorable for New Heavy Crude Discoveries 3-46 Fort McMurray Prepared for OSLO Project Boom 3-48 RECENT OIL SANDS PUBLICATIONS/PATENTS 3-49 STATUS OF OIL SANDS PROJECTS 3-51 INDEX OF COMPANY INTERESTS 3-73 Ill SYNTHETIC FUELS REPORT, MARCH 1989 IV.- COAL PROJECT ACTIVITIES Liquid Phase Methanol Plant Achieves Record Run 4-1 Eastman to Expand Chemicals from Coal 4-1 British Gas and Osaka Gas Extend Work on MRS Gasification Process 4-2 Coal Upgrading Projects Proceed in Wyoming 4-2 Colstrip Project May Add Coal Conversion Unit 4-3 Shell to Join 501's LFC Project 44 Great Plains Operates Smoothly After Privatization 44 CORPORATIONS ETSI Pipeline Sponsors to Get $235 Million from BN and KCSRC 4-6 GOVERNMENT New Ceramic Membranes to be Studied as Gas Cleanup Devices 4-7 DOE Awards Contract for High Energy Density Fuels from Mild Gasification 4-7 DOE Drops One, Adds Three New Awards Under CCI Round One 4-8 ENERGY POLICY AND FORECASTS ACS Lobbies for Clean Coal Research 49 ECONOMICS Virginia Power Site-Specific Study Compares Economics for Gasification 4-10 TECHNOLOGY Fossil Resins Could be Valuable Coal Byproduct 4-15 Reichi Patents Carbon Fuel Process Based on Boudouard Reaction 4-17 INTERNATIONAL China Approves Chemicals from Coal 4-19 Beijing Weathers Coal Gas Crisis 4-19 Voest-Alpine Meltdown-Gasifier for Pig Iron Production Commercialized 4-19 India Builds 18 TPD Fluidized Bed Gasification Pilot 4-19 Commercial interest Seen in CRE Spouted Bed Gasifier 4-21 Report from European Working Group on UCG Due in April 4-25 Design Improvements Made to HYCOL Gasifier 4-28 Non-Slagging Cyclone Gasifier Developed in the United Kingdom 4-29 Poland Develops Two-TPD Liquefaction PDU 4-31 Ube Ammonia-From-Coal Plant Finds Market for Gasifier Slag 4-32 Fixed Bed Gasifier Combined Cycle Demo Plant Built in India 434 Victorian Brown Coal Offered for Industrial Development 435 ENVIRONMENT Contract Let to Study Waste Products from Advanced Coal Technologies 4-38 GRI User's Manual Available for Gasification EH&S Information System 4-38 RESOURCE NCA Says Record Coal Production Trend to Continue 439 Difficulties of European Coal Producers Summarized 4-40 RECENT COAL PUBLICATIONS/PATENTS 4-44 STATUS OF COAL PROJECTS 4-50 INDEX OF COMPANY INTERESTS 4-79 IV SYNTHETIC FUELS REPORT, MARCH 1989 V. APPENDIX Table 1 Government Approvals Needed for Water Development Projects 5-2 Table 2 Government Approvals Needed for Water Development Projects 5-3 Testimony by Colorado State Department of Natural Resources 5-5 v SYNTHETIC FUELS REPORT, MARCH 1989 wGmJdHrs Capsule Summaries of the More Significant Articles in this Issue New Zealand to Sell its Share of Synfuel Plant The New Zealand Government has agreed to sell its 75 percent share of New Zealand Synthetic Fuels Corporation Ltd. to Petrocorp Ltd. The value of the transaction (page 1-2) is said to be approximately $225 million. Amnn.fr.-From-Peat-Plant Cnn..tlnisd in Fb.lsn.l Kemira Oy has built the world's only• ammonia-from-peat plant at Oulu, Finland. The plant uses the German High-Temperature-Winkler process for gasification of peat in a pressurized fluidized bed. A brief description of the project is given on page 1-1. Oil IRA Sees Nine Percent Growth in Demand by 1993 The International Energy Agency predicts total world oil demand, outside com- munist areas, to rise to over 54 million barrels per day by 1993. Most of the increase will be in North America, but there will be relatively strong increases in Europe and the Pacific region also. See page 1-6 for a short summary of the outlook. AGA Says Natural Gas Prices to Rise in 1989 The American Gas Association predicts an increase in natural gas prices of about six percent in 1989.