The Benefits and Challenges of Producing Liquid Fuel from Coal: The Role for Federal Research

Opening Statement By Chairman Nick Lampson

I am pleased to welcome our panel of witnesses here this morning. As you may recall, during our Committee mark up at the end of June, Chairman Gordon committed to hold a hearing on the topic of liquid fuel production from coal.

I am pleased that we are able to host such an expert panel of witnesses today to discuss the barriers and benefits of using our abundant coal resources to produce liquid transportation fuels.

I understand that many supporting the coal-to-liquid technology do so at least in part because this technology could help to decrease oil imports. There is no question that we must reduce our reliance on foreign oil supplies, and I have worked to ensure the federal government continues to play a critical role in the development of bio-based fuels as an alternative to petroleum for transportation fuel.

Achieving greater energy independence will take collaborative work from a range of experts. We need to fully explore all of our options for diversifying our fuel use. I sincerely hope that the urgency to achieve greater fuel supply diversity, energy independence and fuel use efficiency will not lead us to turn a blind eye toward the pressing issue of global climate change.

I recognize there may be economic and strategic benefits of advancing coal-to-liquid technologies from both the regional and global perspectives. I am also interested in learning more about the possibility of combining coal with biomass to produce liquid transportation fuels. I further understand that converting coal into transportation fuels helps to reduce the emissions coming from our tailpipes.

However, I also am aware that there are significant environmental challenges associated with using coal to produce liquid fuels. I believe it is essential that we continue to examine our energy strategies with attention to the issue of global warming and other environmental concerns such as management of our water resources.

I am also interested in the price implications of creating a second market for coal that will compete with coal’s use in electricity generation and in the projected lifespan of our coal reserves.

We cannot build a coal-to-liquid industry overnight and nor should we fully embrace CTL technology as part of our energy strategy until we have thoroughly examined all of the relevant concerns and plotted our next steps sensibly and in a manner that puts our federal resources to good use.

Again, I would like to welcome our witnesses and say I look forward to your testimony and your recommendations for this Committee.

At this time, I would like to yield to my distinguished colleague from South Carolina, and our Ranking Member, Mr. Inglis for an opening statement.

Witnesses

Panel

1 - Dr. Robert L. Freerks
Director of Product Development Rentech Corp. Rentech Corp.
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2 - Mr. John Ward
Vice President, Marketing and Governmental Affairs Headwaters, Inc. Headwaters, Inc.
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3 - Dr. James T. Bartis
Senior Policy Researcher RAND Corporation RAND Corporation
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4 - Mr. David G. Hawkins
Director, Climate Center National Resources Defense Council National Resources Defense Council
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6 - Dr. Richard D. Boardman
The Secure Energy Initiative Head Idaho National Laboratory Department of Energy Idaho National Laboratory Department of Energy
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5 - Dr. Joseph Romm
former Acting Asst. Secretary of Energy Office of Energy Efficiency and Renewable Energy Senior Fellow, Center for American Progress Office of Energy Efficiency
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