Investors Wary of Diesel From Coal

  • (Photo courtesy of the US Geological Survey)

The price of gasoline and diesel fuel from
foreign oil is making people think about other ways
to fill up. Lester Graham reports the coal industry
is pushing the idea of making diesel out of coal
from the US:

Transcript

The price of gasoline and diesel fuel from
foreign oil is making people think about other ways
to fill up. Lester Graham reports the coal industry
is pushing the idea of making diesel out of coal
from the US:

The technology to make diesel fuel out of coal has been around for a while. Germany
used it in World War II.

Recently, researchers at Rutgers and the University of North Carolina developed a
more efficient way to convert coal to diesel.

So, what’s stopping coal-to-diesel? Money and risk.

Coal to diesel is feasible – if the price of oil is above $50 a barrel. Oil is around $143 a
barrel right now. So, the money is good.

Phil Gonet is president of the Illinois Coal Association. He says now investors want
some government assistance.

“That guarantees that investors will at least get their money back if OPEC starts to play
around with the world price of oil.”

And make diesel from foreign oil cheaper than diesel from domestic coal.

For The Environment Report, this is Lester Graham.

Related Links