Photo of Burt Davis and Rodney Andrews

CAER researchers Burt Davis and Rodney Andrews

Researchers Get Coal-to-Liquid Funds

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LEXINGTON, Ky. (Aug. 15, 2008) − Congressmen Hal Rogers and Geoff Davis today unveiled more than $1.426 million in federal funds to support research at the University of Kentucky Center for Applied Energy Research (CAER) on refining coal into liquid transportation fuels.

The funding will help advance ongoing research into the Fischer-Tropsch method of converting coal into liquid fuels by allowing the center to build a "mini-refinery."

“As the national average for a gallon of gas hovers around $4, I think it’s high time we stop looking to foreign countries for our energy and start looking at alternative sources of transportation fuel right here at home.  Given our country’s vast coal reserves, coal-to-liquids technology is an extremely promising domestic alternative to petroleum-based transportation fuel,” stated Rogers.  “Now is the time to more fully develop the science that would enable diesel-reliant consumers and the U.S. military to utilize this clean, coal-based fuel.  The Center for Applied Energy Research at the University of Kentucky has proved time and time again that it is at the forefront of energy research, and I am confident UK CAER researchers will use these funds well to expedite the commercial availability of this technology and the creation of high-paying energy sector jobs throughout Kentucky.”

Davis stated, “The fact that we can no longer rely on unstable foreign regimes to supply the energy resources we need has never been clearer.  It is time to put all our options on the table and implement a comprehensive energy strategy that will explore our domestic resources, develop alternative fuels and invest heavily in future fuel technology.  Coal-to-liquid technology could have enormous benefits for Kentucky as a source of thousands of jobs and for our nation as a source of clean, stable, affordable fuel.  The Center for Applied Energy Research is working at the tip of the spear on new ways to develop clean and efficient energy.  I am confident that the University of Kentucky and the center will use these funds to develop solutions to our energy crisis."

"Energy independence is an absolute must if this nation hopes to remain globally competitive," said UK President Lee T. Todd Jr. "Thanks to Congressmen Rogers and Davis, this appropriation will ensure Kentucky remains a key player in the energy independence game.  The funds will provide UK’s Center for Applied Energy Research the additional resources it needs to leverage its innovative advancements in coal-to-liquid technology.  That's good news for UK, good news for Kentucky's energy industry, and, most importantly, good news for Kentuckians."

"These are the researchers who will lead us to energy independence. I am thrilled that we can leverage our scarce state funds for this greater good and I look forward to continued collaboration with the UK Center for Applied Energy Research on this and other projects," said Len Peters, secretary of the state Energy and Environment Cabinet.

The new allocation provides for the mini-refinery building, for utilities and infrastructure, and to integrate an existing slurry column reactor used in the Fischer-Tropsch process.  The ultimate cost of the refinery will be around $12 million.

The Kentucky Energy and Environment Cabinet has pledged an additional $350,000 in support for the project.

The mini-refinery will help reduce costs of the process and help produce a more environment-friendly liquid fuel.  The project will help manage and reduce carbon dioxide emissions from coal-to-liquid facilities and from use of the fuels.

The goal of the project is to develop facilities and personnel to sustain a coal synfuels industry in Kentucky.

Congressmen Rogers and Davis secured the $1.4 million for CAER in the fiscal year 2008 federal appropriations process.  Through their continued leadership on this project the House Appropriations Committee has approved an additional $1 million for fiscal year 2009.  The fiscal year 2009 appropriations process is not completed and funds can only be awarded after they are included in a bill passed by both houses of Congress and signed by the president.