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Motor Fuel From Culm is State Man's Goal
Product Could Run Diesel Engines
The Sunday Times
April 2, 2000
The dramatic rise in fuel prices during the last several months has placed renewed emphasis on
finding alternative energy sources to decrease the nation's dependency on foreign oil.
That's just fine with a Schuylkill County businessman who says his company has the ability to
make an "ultraclean" liquid motor fuel from the unsightly culm piles that still cover much of
Northeastern Pennsylvania's landscape.
John Rich, Jr., president of Waste Management and Processors, Inc.,
Gilberton, wants to build a
plant which, through a complicated refining process, would use culm to produce what he maintains is
an environmentally safe product that can be added directly to existing diesel fuel supplies.
The goal of the project is two-fold, says Mr. Rich, who is also part-owner of the Gilberton Power
Company, which runs a coal co-generation plant in Schuylkill County.
REDUCE DEPENDENCY - First, the liquid fuel could be used to run diesel-powered vehicles. The fuel
would serve as a viable alternative to help reduce America's dependence on the Organization of
Petroleum Exporting Countries and other foreign oil producers.
Secondly, removal of the culm would reclaim otherwise unusable land throughout Northeastern
Pennsylvania for future economic development.
"Think of it as a major environmental reclamation project which just happens to produce some
clean fuel in the process," said the 47-year-old Mr. Rich. "OPEC knows it's a seller's market and they
can do what they want with us. But with this, we can develop an alternative and keep the money we
spend overseas here."
PROVEN RECORD - The project is based on technology currently being used in South Africa so
Mr. Rich says it has a proven track-record.
In fact, SASOL -- a South African energy company -- and Texaco are interested in partnering
with Mr. Rich.
While the idea may be worth-while, it's also expensive, said Mr. Rich, whose ultimate goal is to
produce up to 5,000 barrels of fuel a day, selling at $1.10 a gallon.
Mr. Rich said his company can afford some of the project, which will cost over $300 million, but
he is looking for government assistance for the rest.
KEY FUNDS UNAVAILABLE - Nearly $47 million in state tax credits have been earmarked for the
project and the federal Department of Energy has also agreed to provide a $7.8 million matching
grant to help fund it.
The state funding, however, as well as participation by SASOL and Texaco, is predicated on the
receipt of another $87 million in federal funding which so far has been unavailable.
U.S. Rep. Tim Holden, whose 6th Congressional District includes
Gilberton, has been trying for
several years to generate funding for the project.
Mr. Holden introduced the Foreign Oil Displacement Act about three years ago, which would
include funding for Mr. Rich's project.
Because energy prices were so low in the past, such funding was perceived as "corporate welfare"
and the bill has never passed.
"Frankly, this would be very good for the coal regions but I haven't been able to get much support
for the bill since oil prices were very low," he said.
That changed this winter as oil prices shot up to over $30 a barrel.
OPEC has since agreed to increase production but most experts believe that won't have a
dramatic reduction on fuel prices in the near future.
"I talked to (U.S. Energy) Secretary (Bill) Richardson about it the other day and I plan to meet
with him in the next two weeks," Mr. Holden said. "Now, we realize how dependent we are on foreign
oil."
While he wasn't familiar with Mr. Rich's project, Kevin McDonald, president of Citizens Alert
Regarding the Environment, a local environmental organization, agreed more must be done to
produce energy from alternative fuel sources like solar power and wind power.
If Mr. Rich's project could ultimately remove culm and produce a clean, environmentally friendly
fuel in the process, he would support it.
However, Mr. McDonald had some doubts and said he would have to learn more about it before
drawing any conclusions.
"Certainly, to get rid of the unused culm and put it to use would be to the benefit of the people.
That's one way of looking at it," he said.