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RED-75-394 1 (1975-02-27)

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     ROEPrOLLY: CZNC?%AL Or T-L UNI[f D STATS

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E- 15i/ I


JUL    8 1975


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Dear Senator ;:el ] , on


LM090541


      In a   fttf r  dii, eed  April  25,  1975,  vcu  askeo..._ tapt  we  iraKn
a Ii.ited r -vIC, w uI the, ftctcr. ]eau ino to t!I,decIsion to
locate-a coal iiqu litica,.ion plant in Catiettsourq, hertucK.
Your ofice .was briefed on the res-lts of our incmtirIcs into
this aro! , arto as you reoucstc? a, a summa.arv of our f i' i, nos
f o I 1 os. 

BacKQroUno

      'I   Of(ice of Coal kiesearcn was establishec in l-o6l in
the Departient of rte Interior to cevelop tcchn-cqi, fur new
noa  r, re c fi c t  re t  rrotnccn  r.   i , n  -, ic, ,   r-cr'a ri  , --nc:  ,t ii-
zin6 cO,      . r,€.r te r, L. y t 1 Cul qa1,iz tio Act CIL 1- 4 .

!orrt a to tu,:- r n-rvy Feser ch C 1nu Lbv   h nt A' e. A r t,.n
eI.r'ct f v e  3ar,t;.)ry  ,  1V- .  l,  r, i  i'y  o  thr  C, I rc' c.
O.   f o;I.'-  tr ,rr  ,,red  to icnvr'rr  t - n frCt-   rC  iF  t:  . ' VI -
O f tr,-rw 1  ( c r '  rrF  IC,nP.  and  i I iz   i rf,  ur  . r  t  r  A. 7-i7tr rt
A   r,i   I-tr -r cr ioer F C.s, n r I,'.


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      3ince its e staoltshnent, the Divisor'- research Ottort
have boen directed priwar ily toward ccnvertino ccal to lore
environme7nt',]ly acceptable eneroy forms, snecifica] ly to
s* nt Jt i   _ l 1wever.  in   recent vear  f-mr n J-. n..  h,-n
q i en to research aimed at cor .'rt i r coa to sy'n the tic ci,
and electricity. A more co.aj:rehensive discussion ot Fe(eral
cczI  rr .rerc . ,'. t i t ic i c! i %E i nc   i.C- re er ! t, t,,
.-ic.r, ar   s  F brar, 18,  1 -75,  e t l jeCi   er a lnr   1 r ,,-.1  .- L-
Status andAProblcms to be Lesolvcd (FFX,-/5-322).

    i-o1project,

      d ydrocarbon 1esearch Incorporcted developo  a orocess
(H-Coel process) for convertinQ coal to heavy fuel -il. 'mnIs
nrocess was based oni a tcChniCuu2 Lt ; cu pre violyUs IV,]rV(,,
to uocraae heavy oil. The H--Coal proect is a three-i hosfo
project tcr desionina, constructinq, anc operating a 6U0-ton
per uay pilot olant for testinq the commercial potential cI
the H-Ccal pr~oss. It is the largest ot five- Ene-ry fL-
search ef- erst to develor icvanced prccesses for convertircm


                                                        FED-,'5- 394




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