Economic uncertainties of the synfuels industry

Journal Article · Fri Jan 01 04:00:00 EST 1982 · Energy (Stamford, Conn.); (United States)

OSTI ID:6347935

Picardi, A C

Some sources of uncertainty which affect the economic feasibility of synfuels plants, and the synfuels industry, include regulations on the rate of return and prices, byproduct and coproduct markets, environmental regulations, financial incentives, plant start-up delays, and cost scale-up uncertainty. The issues are defined and the most likely effect on plant decisions, plant investment, and the eventual structure of the industry are discussed. The major byproducts are sulphur, ammonia and metallurgical coke in some cases. Sulphur, ammonia and solids are products inherent in synfuel production and may contribute substantially to plant revenues. Typical coproducts are coke (from solvent-refined coal processes) and ethylene. With many processes, the byproducts and coproducts are so significant as to make the difference between profitable and unprofitable operation and hence the difference between deciding to go ahead with a project and abandoning it. It is impossible to say now how uncertainty in byproduct and coporduct marketing will affect the technology mix of the industry, except that plants will tend to be built where transportation costs of bulky byproducts to markets will be minimized, all else equal.

• Research Organization: MIT, MA, USA
• OSTI ID: 6347935
• Journal Information: Energy (Stamford, Conn.); (United States), Journal Name: Energy (Stamford, Conn.); (United States) Vol. 7:1; ISSN ENGYD
• Country of Publication: United States
• Language: English

Related Subjects

090100* -- Hydrocarbon Fuels-- (-1989)
10 SYNTHETIC FUELS
29 ENERGY PLANNING, POLICY, AND ECONOMY
530100 -- Environmental-Social Aspects of Energy Technologies-- Social & Economic Studies-- (-1989)
ALKENES
AMMONIA
BY-PRODUCTS
COKE
ECONOMIC ANALYSIS
ECONOMICS
ELEMENTS
ETHYLENE
HYDRIDES
HYDROCARBONS
HYDROGEN COMPOUNDS
INDUSTRY
MARKETING RESEARCH
NITROGEN COMPOUNDS
NITROGEN HYDRIDES
NONMETALS
ORGANIC COMPOUNDS
SRC PROCESS
SULFUR
SYNTHETIC FUELS INDUSTRY