The Air Force has announced that it’s goal is to derive 50% of it’s fuel needs from synfuel produced from coal by 2016. To move closer to this reality, the Air Force is seeking proposals from developers for constructing a coal gasification facility on the Malmstrom Air Force property near Great Falls, Montana.

The Malstrom Air Force base is 700 acres. The plan is that the successful developer will sign a long-term lease with the Air Force to use the property. The area has abundant coal reserves. The facility will use coal as feedstock, and gasifiy it to produce synthetic gas (syngas). The syngas will be converted to a clean jet fuel using the Fischer-Tropsch process.

The estimated cost for a 25,000 bbl per day CTL facility is $2 billion. The net cost of synfuel produced is estimated at $40 to $50 / bbl not including an additional $10 / bbl for disposal of CO2.

A study prepared by the National Energy Technology Laboratory for the Department of Defense and the U.S.Air Force concludes that a gasification plant that uses a feed of 85% to 90% coal and 10% – 15% biomass to produce jet fuel will produce 20% less CO2 than a conventional petroleum refinery operation. This is based on a 7,500 BPD plant in Illinois using Illinois No. 6 coal. The biomass evaluated in the study is switchgrass, poplar trees and corn stover.

It would be necessary for the first coal-biomass gasification plants to use corn stover as the biomass feed, because there is not an adequate supply of switchgrass or poplar trees. It’s estimated that the agricultural production of switchgrass or poplar trees could be sufficient to justify larger plants within two years.

The study is based on a Fischer-Tropsch facility producing jet fuel ‘A’ from the syngas. The jet fuel ‘A’ produced from coal gasification and FT has been tested by the Air Force since 2006. The Air Force has stated that it’s objective is to provide 50% of the jet fuel it needs by 2010.