Headwaters signs two license agreements to construct direct and indirect coal-to-liquids demonstration plants

24-Aug-2005

Headwaters Incorporated announced that its subsidiary Headwaters Technology Innovation Group (HTIG) has completed two license agreements for construction of direct and indirect coal-to-liquids demonstration plants. The proposed project is to build two 30,000 ton per year (approx. 700 bpd) demonstration (demo) coal-to-liquids (CTL) plants in Inner Mongolia, China.

The indirect CTL plant will be built first and will include a coal gasifier and a Fischer-Tropsch plant. UK RACE Investment Limited (RACE) will invest the $40 million needed to design and build the ICL plant. The DCL plant will be added later to demonstrate the hybrid DCL/ICL concept. The primary goal of the demo plant is to verify the catalyst performance and reactor design of the CTL technologies. The experience gained through the demo plant can then be used for large coal-to-liquids facilities planned by RACE in Inner Mongolia as well as by Headwaters, such as the projects previously announced in North Dakota and Arizona.

In addition to the license fees, HTIG will be paid for the process design of the Fischer-Tropsch synthesis portion of the demo plant. HTIG will also complete the mechanical design of the proprietary reactor and separator and will provide inspection services for the fabrication of this equipment outside of China. And HTIG will provide consulting services through a service contract.

Technologies available to convert coal into transportation fuels include indirect liquefaction (Fischer-Tropsch), direct liquefaction, and co-processing heavy oil with coal. Headwaters is uniquely positioned to pursue any of the three technologies depending upon the specific situation.

https://www.chemeurope.com/en/news/48470/headwaters-signs-two-license-agreements-to-construct-direct-and-indirect-coal-to-liquids-demonstration-plants.html