Economic evaluations of direct, indirect and hybrid coal liquefaction

The various geopolitical problems associated with oil have rekindled interest in coal, with many countries working on projects for its liquefaction. This study established the feasibility of coal liquefaction through a technical and economic examination of direct coal liquefaction (DCL), indirect coal liquefaction (ICL) and hybrid coal liquefaction (HCL) processes. An economic efficiency analysis was prepared involving costs of initial investment, annual operating and raw coal purchase and revenues from the sale of major products as key variables. For the raw materials, products and investments, analyses of net present value (NPV), internal rate of return (IRR) and sensitivity were carried out. The processes' IRRs were found to be 22.26% (DCL), 18.43% (ICL) and 20.90% (HCL). NPVs were $4.720m (DCL), $3.811 m (ICL) and $4.254 m (HCL), and payback periods were DCL 3.3 years, ICL 4.2 years, and HCL 3.6 years. As a result of the sensitivity analysis, factors greatly affecting the earning potential of coal liquefaction included product prices, raw coal prices, and construction costs, which showed similar effects in each process.