Controlling federal costs for coal liquefaction program hinges on management and contracting improvements

Technical Report · Wed Feb 04 04:00:00 EST 1981

OSTI ID:6611535

Staats, E B

Two pilot plants to demonstrate direct liquefaction processes for producing synthetic liquids and solids from coal became operational during 1980. The plants were financed jointly by the Federal Government and private industry. The Federal Government's share of the cost of one plant was 87 percent; on the other, costs were shared equally. Construction of two more larger facilities is scheduled to begin in 1981. Foreign government investment is high in one plant but private contractor investment is low for both. Both operational pilot plants encountered design and construction problems attributable to DOE's premature commitment to contracting and to poor construction and contract administration by the contractors. The problems greatly increased cost and schedule slippages. Should similar problems be encountered on the planned demonstration facilities, costs to the Federal Government could be enormous. GAO makes recommendations to DOE to control cost growth and management of future coal liquefaction and other energy projects and to enhance the prospects for successful future commercialization.

• Research Organization: General Accounting Office, Washington, DC (USA)
• OSTI ID: 6611535
• Report Number(s): PSAD-81-19
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
010405* -- Coal
Lignite
& Peat-- Hydrogenation & Liquefaction
COAL INDUSTRY
COAL LIQUEFACTION PLANTS
CONSTRUCTION
COST
DEMONSTRATION PLANTS
FUNCTIONAL MODELS
INDUSTRIAL PLANTS
INDUSTRY
MANAGEMENT
NATIONAL GOVERNMENT
NATIONAL ORGANIZATIONS
PILOT PLANTS
PLANNING
PROGRAM MANAGEMENT
US DOE
US ORGANIZATIONS