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<div> <font class="Apple-style-span" color="#000000" face="arial"><span class="Apple-style-span" style="font-size: small;">Tom,</span></font></div>
<div><font class="Apple-style-span" color="#000000" face="arial"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-tab-span" style="white-space:pre"> </span>Thanks for the feedback. I understand the costs of pilot vs. developed plants,but the ratio here seems high. </span></font></div>
<div><font class="Apple-style-span" color="#000000" face="arial"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-tab-span" style="white-space:pre"> </span>There is a large coal to power gasifier plant being built in Mississippi by DOE and the Southern Companies to demonstrate clean coal operations and it has run into massive cost and time overruns and soured the community on clean coal costs. This may be the same type of influence over future plants where perceived costs are a major deterrent to considering gasification. Some of Kholsa's investments are also out there with the same aura. </span></font></div>
<div><font class="Apple-style-span" color="#000000" face="arial"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-tab-span" style="white-space:pre"> </span>There are areas which are still immune or at least for some time from the lowered oil and gas prices, but these will eventually matriculate through the energy matrix and affect projects that are based on replacing them. There are projects that can be based on input income, i.e., disposal fees that will survive however. </span></font></div>
<div><font class="Apple-style-span" color="#000000" face="arial"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-tab-span" style="white-space:pre"> </span>I look at the major oil companies that have the capability of constructing coal to liquid fuels plants at any time and haven't. I am of the opinion that in most cases, with exceptions for the Shell Indonesian GT</span></font><span class="Apple-style-span" style="font-family: arial; font-size: small; ">L operations, they are well aware of the real value of their products, the political structure and vagaries of the pricing and are not willing to take risks of this magnitude. </span></div>
<div><span class="Apple-style-span" style="font-family: arial; font-size: small; "><span class="Apple-tab-span" style="white-space:pre"> </span>During the Arab Oil Embargo days of the 70's, the US spent $68 billion on synfuels without producing a single commercial plant except for the Plains Gasification facility in North Dakota which still operates today. Congress got tired of pumping money into it (US Synfuels Corporation) and shut off the funding. </span></div>
<div><span class="Apple-style-span" style="font-family: arial; font-size: small; "><span class="Apple-tab-span" style="white-space:pre"> </span>In New Mexico, there were a series of coal to methane gasification facilities planned with most of the major oil companies having their planned operations and they never came to pass. I can only imagine the amount of investment that would have been lost if they had. </span></div>
<div><font class="Apple-style-span" color="#000000" face="arial"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-tab-span" style="white-space:pre"> </span></span></font></div>
<div style="font-family:arial;color:black;font-size:10pt;clear:both;"><font class="Apple-style-span" face="arial">Sincerely,</font><br>
<div><font class="Apple-style-span" face="'Comic Sans MS', sans-serif">Leland T. "Tom" Taylor</font></div>
<div><font class="Apple-style-span" face="Arial, Helvetica, sans-serif">Thermogenics Inc. </font></div>
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-----Original Message-----<br>
From: Tom Miles <tmiles@trmiles.com><br>
To: linvent <linvent@aol.com>; gasification <gasification@lists.bioenergylists.org>; erin <erin@trmiles.com><br>
Sent: Fri, Dec 5, 2014 3:35 am<br>
Subject: RE: [Gasification] Karlsruhe Institute of Technology bioliq® pilot project<br>
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<div class="aolmail_MsoNormal"><span style="font-size:11.0pt;font-family:">Tom,</span></div>
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<div class="aolmail_MsoNormal"><span style="font-size:11.0pt;font-family:">You can say that any pilot project is pricey. If the intent is proof of concept then the costs won’t represent a commercial production facility. Even the first few plants will require some subsidy to compete with fossil fuels so it really depends on the long term vision of the public funding agencies. </span></div>
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<div class="aolmail_MsoNormal"><span style="font-size:11.0pt;font-family:">We have already seen some investors back out of a couple of biomass projects because of low cost shale gas. They were probably just in it to develop the project and would leave anyway. </span></div>
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<div class="aolmail_MsoNormal"><span style="font-size:11.0pt;font-family:">Tom Miles</span></div>
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<div class="aolmail_MsoNormal"><b><span style="font-size:11.0pt;font-family:">From:</span></b><span style="font-size:11.0pt;font-family:"> <a href="mailto:linvent@aol.com">linvent@aol.com</a> [<a href="mailto:linvent@aol.com?">mailto:linvent@aol.com</a>] <br>
<b>Sent:</b> Friday, December 05, 2014 10:35 AM<br>
<b>To:</b> <a href="mailto:gasification@lists.bioenergylists.org">gasification@lists.bioenergylists.org</a>; <a href="mailto:erin@trmiles.com">erin@trmiles.com</a><br>
<b>Subject:</b> Re: [Gasification] Karlsruhe Institute of Technology bioliq® pilot project</span></div>
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<div class="aolmail_MsoNormal"><span class="aolmail_apple-style-span"><span style="font-family:">Rather pricey system for 1 ton/day yield. It only proves that with enough money, any process can be made to work technically, but economically? There are much less expensive ways to do this. Wonder if there will be a #2 system. Going to get rough to put these deals together with the dropping crude oil pricing. </span></span></div>
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<div class="aolmail_MsoNormal"><span style="font-size:10.0pt;font-family:">Sincerely,</span></div>
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<div class="aolmail_MsoNormal"><span style="font-size:10.0pt;font-family:">Leland T. "Tom" Taylor</span></div>
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<div class="aolmail_MsoNormal"><span style="font-size:10.0pt;font-family:">Thermogenics Inc. </span></div>
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<div class="aolmail_MsoNormal" style="margin-bottom:12.0pt">-----Original Message-----<br>
From: Erin Rasmussen <<a href="mailto:erin@trmiles.com">erin@trmiles.com</a>><br>
To: 'Discussion of biomass pyrolysis and gasification' <<a href="mailto:gasification@lists.bioenergylists.org">gasification@lists.bioenergylists.org</a>><br>
Sent: Thu, Dec 4, 2014 12:35 pm<br>
Subject: [Gasification] Karlsruhe Institute of Technology bioliq® pilot project</div>
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<div class="aolmail_MsoNormal">This is a nice write-up of the Bioliq biomass to fuel project:</div>
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<div class="aolmail_MsoNormal"><a target="_blank" href="http://www.biologynews.net/archives/2014/12/01/bioliq_complete_process_chain_is_running.html">http://www.biologynews.net/archives/2014/12/01/bioliq_complete_process_chain_is_running.html</a></div>
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<div class="aolmail_MsoNormal" style="text-autospace:none">more from the Karlsuher Institut für Technologie web page:</div>
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<div class="aolmail_MsoNormal"><a target="_blank" href="http://www.kit.edu/kit/15985.php">http://www.kit.edu/kit/15985.php</a></div>
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<div class="aolmail_MsoNormal">And the bioliq project web site <a target="_blank" href="http://www.bioliq.de/">http://www.bioliq.de</a></div>
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<div class="aolmail_MsoNormal">Erin Rasmussen</div>
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<div class="aolmail_MsoNormal">TR Miles Technical Consultants Inc. <a target="_blank" href="http://www.trmiles.com/">http://www.trmiles.com/</a></div>
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<div class="aolmail_MsoNormal">and BioEnergy Discussion Lists <a target="_blank" href="http://www.bioenergylists.org/">http://www.bioenergylists.org/</a></div>
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<div class="aolmail_MsoNormal"><a href="mailto:erin@trmiles.com">erin@trmiles.com</a></div>
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