By the Journal of Commerce

A Canadian-based minerals company focused on gold exploration and environmentally friendly fuel technology announced plans March 11 for a green fuel commercial plant.

Silverado Green Fuel Inc., a subsidiary of Silverado Gold Mines Ltd. in Vancouver, British Columbia, initially planned to build a demonstration plant. Now work is underway to scale up for a full-sized facility. The technical and development plan in progress will identify costs, budgets and technical issues, company officials said.

Based on utilizing Mississippi lignite, Silverado will generate a step-by-step green fuel facility design and implementation action plan, the company said.

Considerable hydrothermal treatment research has already been done with numerous low-rank coals from around the world.

However, understanding the unique properties of Mississippi lignite is critical in fine-tuning commercial production of green fuel, company officials said. Consequently, the firm is providing a $150,000 grant to the Mineral Industry Research Lab at the University of Alaska at Fairbanks to use their expertise and unique mini-reactor apparatus to develop this data.

Great Northern Engineering of Palmer, which has provided technical and engineering guidance during technology development, was awarded a contract for $21,500 to help with the initial commercial feasibility study.

The work being carried out at the University of Alaska and at Great Northern Engineering will be integrated into the Silverado green fuel facility design and implementation action plan, the company said.

Despite escalating costs for equipment and materials caused by rising fuel costs, Silverado estimates that its green fuel can be produced commercially for less than $20 per barrel, on an oil equivalent energy basis. Costs are coal and site specific.

Company officials said the fuel will be commercially produced virtually emission free in respect to particulate matter, sulfur and heavy metals. Carbon dioxide generated during production can be recovered efficiently and sold for enhanced oil recovery.

According to Silverado, the green fuel can be used to power oil-fired power plants and industrial boilers. It is also a good feedstock for some advanced gasifiers to produce synthesis gas, which can be fired in turbines to generate power in IGCC plants and catalytically reacted to yield transportation fuels, petrochemicals and fertilizers. Synthesis gas can be further processed to yield only hydrogen, the only feedstock that truly does not produce any carbon dioxide when combusted or reacted in fuel cells.