By Conor Griffith

July 16, 2019 - While coal and natural gas are often competitors in the arena of power generation, this isn’t always the case as exemplified by a new kind of fuel production facility breaking ground in Mason County in the fall of 2019.

West Virginia-based Domestic Synthetic Fuels plans to break ground in October on a new fuel conversion center, which, with the help of natural gas, will convert the Mountain State’s coal into gasoline, low-sulfur diesel and even aviation fuel.

While the needed 200 acres have been purchased from the Mason County Development Authority and the West Virginia Department of Environmental Protection already approved the draft construction permit for the project, representatives from DS Fuels plan a series of community meetings to explain the project and its benefits to residents.

“We plan to host a series of open houses in the community to help explain the project. We want to be as transparent as possible in explaining this project to our neighbors,” said Kevin Whited, president of DS Fuels. “I’m from West Virginia. We have West Virginians unemployed, and the coal industry has been decimated. We’re not the solution to revive it, but we’re going to be part of it.”

The process to be utilized at the new facility mixes coal with a catalyst and hydrogen derived from natural gas and subjects the mixture to heat and pressure to produce ultra-low-sulfur diesel fuel, gasoline and other liquids. A similar facility in China has been in operation since 2008, but this will be the first of its kind in the United States.

The resulting fuel from this process burns cleaner than those refined from petroleum and are just as effective in vehicles. What’s more, DS Fuels plans on selling the byproducts of the conversion process— solid residue, sulfur and ammonia— while also making use of recycled materials.

As a bonus, Whited said the Mason County facility will differ from previous coal-to-liquids projects proposed for the state. The technology is more advanced, and the environmental impact is lessened because the direct method used does not actually burn coal, but subjects it to heat and pressure.

Whited said this facility represents a $1.2 billion investment and the needed funds have been secured. He chose Mason County out of a desire to bring jobs and economic development to the region and because the site had easy barge access along the Ohio River and is in close proximity to supplies of coal and natural gas.

The coal will be brought in from Kanawha County and is expected to generate more than 100 mining jobs there to feed the facility. This is in addition to the 130 direct jobs to staff the plant once in operation and thousands of temporary construction jobs to build it.

With construction set to begin in a few months, the plant’s estimated completion time is scheduled for late 2022 or early 2023. Once in operation, the new facility and its process will use 2,500 tons of thermal coal and 23 million cubic feet of natural gas to make 10,750 barrels of fuel per day. Estimates are that this facility will generate about $300 million in revenue on an annual basis.

Leaders in both industry and Mason County expressed their support for DS Fuels’ project.

“The facility serves a vital role,” said Chris Hamilton, senior vice president of the West Virginia Coal Association. “For decades, we’ve been looking at ways to expand the coal usage, coal development, activities and how we can expand the overall fossil fuel portfolio.”

Hamilton added that any type of synthetic fuel derived from coal, such as those DS Fuels plans to produce at its new plant, contributes to this objective.

“This first-of-its-kind facility in the U.S. will impact not only coal and natural gas sectors, but also downstream industries,” said Rebecca McPhail, president of the West Virginia Manufacturers Association. “West Virginia is the perfect fit for DS Fuels.”

The heads of the state’s oil and gas trade organizations— Charlie Burd of the Independent Oil and Gas Association and Anne Blankenship of the West Virginia Oil and Natural Gas Association— also expressed their support for Whited’s project since it would help further the goal of energy independence and that plant is well-suited to the state’s experienced workforce in regards to these fuel sources.

“Opportunities like this don’t come along every day,” said Mason County Commissioner Tracy Doolittle. “When you have infrastructure of this size being built, the impact will be felt throughout the entire community. It’ll give our citizens hope. It provides a brighter future to look forward to for the youth, the old and shows that Mason County can still thrive.”

Sandy Dunn, a real estate broker with Homestead Realty, said the new plant can benefit the whole state since it will make use of both coal and natural gas. She said it also presents an opportunity for local workers to find good jobs without moving far from home.

Sam Nibert, another Mason County commissioner and a vocational teacher at the Mason County Career Center, said this plant represents a win not only for the local economy but for the local students come graduation.

“We’ve had students finishing trade school with successful records. Last year, we had students graduate from high school on a Friday, and were working in a real-life scenario within a three-day period,” Nibert said.

“Any time students can be trained to enter the workforce at this capacity, a no-lose situation is created. For us, that’s always a win. This is a once-in-a-lifetime opportunity to see an industry arrive in Mason County and to grow with the community.”