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Coal liquefaction

Process of converting coal into liquid hydrocarbons

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Through Coal, Petrochemical and Germany

Coal liquefaction has played a significant historical role, particularly in countries lacking domestic oil reserves. It was extensively developed in Germany during the early 20th century and used to supply fuels during World War II. In the 1950s, South Africa adopted CTL technology through the state-owned company Sasol to enhance energy security, a practice that continues to this day. In recent decades, countries such as China have expanded coal liquefaction projects to meet growing energy demands.

While coal liquefaction can contribute to energy independence, it raises environmental concerns, particularly regarding high carbon dioxide emissions and water consumption. Ongoing research focuses on improving efficiency, integrating biomass, and incorporating carbon capture technologies to mitigate environmental impacts. Despite economic and ecological challenges, coal liquefaction remains a topic of global interest, especially in regions with abundant coal reserves and limited access to crude oil.

Historical background

Coal liquefactions originally was developed at the beginning of the 20th century. The best-known CTL process is Fischer–Tropsch synthesis (FT), named after the inventors Franz Fischer and Hans Tropsch from the Kaiser Wilhelm Institute in the 1920s. The FT synthesis is the basis for indirect coal liquefaction (ICL) technology. Friedrich Bergius, also a German chemist, invented direct coal liquefaction (DCL) as a way to convert lignite into synthetic oil in 1913.

Coal liquefaction was an important part of Adolf Hitler's four-year plan of 1936, and became an integral part of German industry during World War II. During the mid-1930s, companies like IG Farben and Ruhrchemie initiated industrial production of synthetic fuels derived from coal. This led to the construction of twelve DCL plants using hydrogenation and nine ICL plants using Fischer–Tropsch synthesis by the end of World War II. CTL provided 92% of Germany's air fuel and over 50% of its petroleum supply in the 1940s, partially mitigating the lack of fuel for the Nazi military.

The DCL and ICL plants effectively complemented each other rather than competed. The reason for this is that coal hydrogenation yields high quality gasoline for aviation and motors, while FT synthesis chiefly produced high-quality diesel, lubrication oil, and waxes together with some smaller amounts of lower-quality motor gasoline. The DCL plants were also more developed, as lignite – the only coal available in many parts of Germany – worked better with hydrogenation than with FT synthesis. After the war, Germany abandoned its synthetic fuel production as it was made responsible for losing the war, as well as prohibited by the Potsdam Conference in 1945.

In the 1950s, South Africa developed its own CTL technology. The South African Coal, Oil and Gas Corporation (Sasol) was founded in 1950 as part of industrialization process that the South African government considered essential for continued economic development and autonomy. South Africa had no known domestic oil reserves at the time, and this made the country very vulnerable to disruption of supplies coming from outside, albeit for different reasons at different times. Sasol was a successful way to protect the country's balance of payment against the increasing dependence on foreign oil. For years its principal product was synthetic fuel, and this business enjoyed significant government protection in South Africa during the apartheid years for its contribution to domestic energy security.

Although it was generally much more expensive to produce oil from coal than from natural petroleum, the political as well as economic importance of achieving as much independence as possible in this sphere was sufficient to overcome any objections. Early attempts to attract private capital, foreign or domestic, were unsuccessful, and it was only with state support that the coal liquefaction could start. CTL continued to play a vital part in South Africa's national economy, providing around 30% of its domestic fuel demand. The democratization of South Africa in the 1990s made Sasol search for products that could prove more competitive in the global marketplace; as of the new millennium the company was focusing primarily on its petrochemical business, as well as on efforts to convert natural gas into crude oil (GTL) using its expertise in Fischer–Tropsch synthesis.

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