Synthetic Fuels Corporation
Encyclopedia
The Synthetic Fuels Corporation was a U.S. government-funded corporation established in 1980 by the Synthetic Fuels Corporation Act to create a financial bridge for the development and construction of commercial synthetic fuel
manufacturing plants (such as coal gasification
) that would produce alternatives to imported fossil fuel
s. The Great Plains coal gasification plant in Beulah, ND, still producing natural gas and sequestering carbon in 2009 , was built with the support of the Department of Energy and applied for further support by this corporation, partly as a result of efforts by Reagan's Energy Secretary James B. Edwards
. The corporation was abolished in 1985.
The original intention of the corporation was to partner with industry (primarily oil and gas companies) to create a market for domestically-produced synthetic liquid fuels
, with a goal of producing 2 Moilbbl of liquid fuel per day within five years. Critics of the Synthetic Fuels Corporation point to its failure to achieve its goals as a reason to prevent government from interfering with free markets. The purported objective behind the Synthetic Fuels Corporation was to move research and development of synthetic fuels out of the Department of Energy
and into a public-private partnership
that would produce tangible results in a short period of time. Many believe that the drop in worldwide oil prices in the early 1980s
played a primary role in obviating the need for the corporation, at least from a short-term economic perspective.
Synthetic fuel
Synthetic fuel or synfuel is a liquid fuel obtained from coal, natural gas, oil shale, or biomass. It may also refer to fuels derived from other solids such as plastics or rubber waste. It may also refer to gaseous fuels produced in a similar way...
manufacturing plants (such as coal gasification
Coal gasification
Coal gasification is the process of producing coal gas, a type of syngas–a mixture of carbon monoxide , hydrogen , carbon dioxide and water vapour –from coal...
) that would produce alternatives to imported fossil fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...
s. The Great Plains coal gasification plant in Beulah, ND, still producing natural gas and sequestering carbon in 2009 , was built with the support of the Department of Energy and applied for further support by this corporation, partly as a result of efforts by Reagan's Energy Secretary James B. Edwards
James B. Edwards
James Burrows Edwards is a politician and administrator from South Carolina. He was the first Republican to be elected the Governor of South Carolina since Reconstruction.-Early life and career:...
. The corporation was abolished in 1985.
The original intention of the corporation was to partner with industry (primarily oil and gas companies) to create a market for domestically-produced synthetic liquid fuels
Synthetic fuel
Synthetic fuel or synfuel is a liquid fuel obtained from coal, natural gas, oil shale, or biomass. It may also refer to fuels derived from other solids such as plastics or rubber waste. It may also refer to gaseous fuels produced in a similar way...
, with a goal of producing 2 Moilbbl of liquid fuel per day within five years. Critics of the Synthetic Fuels Corporation point to its failure to achieve its goals as a reason to prevent government from interfering with free markets. The purported objective behind the Synthetic Fuels Corporation was to move research and development of synthetic fuels out of the Department of Energy
United States Department of Energy
The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
and into a public-private partnership
Public-private partnership
Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...
that would produce tangible results in a short period of time. Many believe that the drop in worldwide oil prices in the early 1980s
1980s oil glut
The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s Energy Crisis. The world price of oil, which had peaked in 1980 at over US$35 per barrel , fell in 1986 from $27 to below $10...
played a primary role in obviating the need for the corporation, at least from a short-term economic perspective.
See also
- Synthetic Liquid Fuels ProgramSynthetic Liquid Fuels ProgramThe Synthetic Liquid Fuels Program was a program run by the United States Bureau of Mines to create the technology to produce synthetic fuel from coal. It was initiated in 1944 during World War II...
- Dakota Gasification CompanyDakota Gasification CompanyThe Dakota Gasification Company started in 1984 in Beulah, North Dakota with the Great Plains Synfuels Plant. The plant uses lignite coal to make synthetic natural gas using coal gasification. 16 thousand tons of coal are processed daily. The synthetic natural gas is piped to the Northern Border...
- Colony Shale Oil ProjectColony Shale Oil ProjectColony Shale Oil Project was an oil shale development project at the Piceance Basin near Parachute Creek, Colorado. The project consisted of an oil shale mine and pilot-scale shale oil plant, which used the TOSCO II retorting technology, developed by Tosco Corporation...
External links
- CNN, "Glenn Beck: U.S. is a suicidal superpower"
- New York Times, "Search for New Oil Sources Leads to Processed Coal"
- National Archives, Executive Order 12346 establishing the Synthetic Fuels Corporation
- World Energy Council, "Sustainable Energy for the 21st Century: A Market Perspective"
- Heritage Foundation, "Remember the Synthetic Fuels Corporation?"
- Great Plains Biofuels Plant History from former Department of Energy employee