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.