Annex II research tasks to be performed

1. Describe and Quantify the Economic Impacts and Implications of the Development and Deployment of Coal-to-Liquid Facilities in China

An initial report on the economic impacts of the development of CTL facilities in the Ordos Basin was finalized in 2009. An initial objective was to develop insight into the potential development of a CTL sector in the U.S. based on insights gained from the Chinese experience. We are combining information gained from the Chinese with CTL analysis conducted at the National Energy Technology Laboratory to consider the current financial feasibility of CTL operations (including biomass) in the U.S. Other analysis considers implications for the coal sector in China. Analysis of the economic factors related to the development of a sequestration program for the full CO2 load from the coal conversion activities that surround the Ordos Basin uses approaches developed to assess potential sequestration programs in the U.S. in the context of the Chinese experience.

2. Development of Alternative Coal Gasification Technologies Database

A database of alternative coal gasification technologies and implementations in China will be developed. This database will include U.S. and Chinese technology descriptions, estimates of scale and investment levels, and assessments of the technological impacts of these emerging technologies. U.S. and Chinese data sources will be utilized, distilled, and reported. Reporting protocols and data acquisition and (if required) translation methods will be established and used to populate the initial database.

3. Geologic Carbon Management Options

Subtask: Assessment of Geologic Carbon Sequestration Options in the Ordos Basin

The DCL and other coal conversion plants generate highly concentrated CO2 streams that are an ideal candidate for storage. The potential to effective consolidate and manage the CO2 from multiple sources to be transported to and stored in multiple sinks will be analyzed using a spatial model with economic components. The model is based on U.S. factors and cost estimates but could be applied to the Ordos basin with appropriate information on transportation routes and published data and other appropriate sources subject to current restrictions on the release of geologic data in China.