Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

SRC-II Demonstration Project. Phase zero, task number 3: deliverable number 8. Volume 5. Conceptual commercial plant: economic analysis

Technical Report ·
DOI:https://doi.org/10.2172/5602893· OSTI ID:5602893

The SRC-II Conceptual Commercial Plant (CCP) is designed to process 33,333 tons of coal per day, and yield approximately 100,000 barrels per day of fuel oil and fuel-oil-equivalent product (Btu basis). For the base case analysis, all products from the SRC-II plant were assumed to be sold at the same price per million Btu's. In actual practice, some lighter products will probably sell at a premium over their fuels value because of their greater utility as a chemical feedstock. Key assumptions specified by DOE for the base case and key financial and operating characteristics assumed are given. The calculated base case SRC-II price (expressed in 1978 dollars) required to meet the DOE-specified parameters is $22.55/bbl ($3.76/MMBtu). In 1988 dollars at the time of plant start-up the price is $40.45/bbl ($6.74/MMBtu). The derived SRC-II price is most sensitive to thermal efficiency, followed by plant capacity, capital investment and coal prices: a 1% increase in thermal efficiency would permit a reduction of 1% in the price; a 10% increase in capacity would permit a reduction of 6.4% in the price; a 10% reduction in capital would permit a 4.4% reduction in price; and a 10% increase in coal cost would result in a 4% increase in product price. The potential ethane and propane production of 1.9 billion pounds per year would carry a significant price premium over fuel value.

Research Organization:
Pittsburgh and Midway Coal Mining Co., Denver, CO (USA)
OSTI ID:
5602893
Report Number(s):
FE-3055-T2(Vol.5)
Country of Publication:
United States
Language:
English