Headwaters Inc. announces phase II feasibility study contract for direct coal liquefaction plant in Assam, India

15-Oct-2007

Headwaters Incorporated announced phase II of its feasibility study contract with Oil India Limited (OIL) for a planned coal based liquid fuels refinery expected to use a high rank bituminous coal from Assam, India.

In this feasibility study Headwaters CTL, LLC (HCTL) will confirm the reactivity and liquid yields from low ash Assam coals under HCTL's coal liquefaction process conditions and provides techno-economic evaluation of constructing a 44,000 BPD syncrude plant in the North-East Region of India.

OIL and Coal India Limited, both government-owned companies, have formed a joint task force to review the availability and continuous supply of 3.5 million tons of coal over a period of 30 years from Assam, Arunachal Pradesh and Meghalaya. The coal would be used to supply a commercial coal liquefaction plant in the North-East.

The 16-month feasibility study is funded by OIL and the Oil Industry and Development Board (OIDB) and will serve as a decision point for launching the front end engineering design phase, during which license negotiations with HCTL and other process vendors will be initiated. HCTL will work with a local engineering firm to study the local logistic in constructing a coal-toliquids facility in the North-East of India.

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