Sens. Bunning and Obama push CTL

ARLINGTON, Va., March 8 (UPI) -- U.S. Sen. Jim Bunning, R-Ky., called for increased invesment in coal-to-liquid technology at the U.S. Energy Forum in Arlington, Va.

"Scale of investment, uncertainty in oil prices and a complicated environmental permitting process have prevented the industry from taking root in the United States," Bunning said.

Bunning and Sen. Barack Obama, D-Ill., co-introduced a bill in January called the Coal-To-Liquid Fuel Promotion Act of 2007. It would allow the Department of Energy to provide loan guarantees for construction, planning and permitting of CTL plants. It would also expand investment tax credits and provide the Department of Defense funding and authorization to purchase, test, and integrate these fuels into the Strategic Petroleum Reserve and military fuel supplies.

Coal-to-liquids technology was created by the Germans during World War II and further developed and is currently being used, in South Africa. Bunning said the technology is more than mature enough to be implemented in the United States -- all that's needed is investment from the private sector.

The U.S. Air Force, which has significantly invested in CTL, has already conducted several tests using a half Fischer-Tropsch and half J-8 fuel in the B-52 plane. Further tests are planned using 100 percent Fischer-Tropsch fuel and using the 50/50 blend in other planes and vehicles.

The synfuel made from coal is low in sulfur, nitrous-oxide and partical emissions. Another benefit to the military is that the lower burning tempture reduces the heat signature of jet engines.

The most important reason to invest in CTL, Bunning said, is that its "a secure domestic fuel source and the American economy and military are too reliant on foreign fuel sources."