Koppers--Totzek economics and inflation

Journal Article · Sat Jan 01 00:00:00 EST 1977 · Energy Commun.; (United States)

OSTI ID:5173707

Mitsak, D M; Michaels, H J; Kamody, J F

This paper presents cost data for a large ''grass-roots'' Koppers-Totzek (K-T) plant designed to gasify Eastern bituminous coal to produce 140 billion Btu per day of 300 Btu per cubic foot fuel gas at sufficient pressure (170 psig) to supply industrial customers within an approximate 100 mile radius. The effects of coal price, return on equity, and capital structure on the cost of K-T gas are examined. In addition, however, the effects of general price inflation (10% per year) on the future costs of K-T gas and on an alternate fuel such as oil are presented. The large ''grass-roots'' K-T plant considered in this paper requires a mid-1976 plant investment of 367 million dollars, with total capital requirements estimated to be 454 million dollars. The calculated selling price of K-T gas ranges from $3.00 to $3.70 per million Btu for coal costing $15 to $25 per ton. Coal gasification plants do require a great deal of capital investment, but so does the exploration and development of new sources of oil, natural gas, and other energy forms. Furthermore, location of coal resources are well established and the development of a coal gasification industry can be done completely with American resources and labor.

• Research Organization: Koppers Co., Inc., Pittsburgh
• OSTI ID: 5173707
• Journal Information: Energy Commun.; (United States), Vol. 3:5
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
01 COAL, LIGNITE, AND PEAT
COAL GASIFICATION PLANTS
ECONOMICS
KOPPERS-TOTZEK PROCESS
BITUMINOUS COAL
ENERGY SOURCE DEVELOPMENT
INVESTMENT
BLACK COAL
CARBONACEOUS MATERIALS
COAL
COAL GASIFICATION
ENERGY SOURCES
FOSSIL FUELS
FUELS
GASIFICATION
INDUSTRIAL PLANTS
294001* - Energy Planning & Policy- Coal
010404 - Coal
Lignite
& Peat- Gasification