Converting coal to gasoline is not a dream. Constructed by the Carbide and Carbon Chemical Co. (later to become Union Carbide), the Institute plant in West Virginia could process 300 tons of coal daily. From 1952 to 1956, the plant produced chemicals from coal with hydrogenation conditions.
The Institute plant was a symbol to many in the Eisenhower administration and Congress that large-scale synthetic fuel plants could become the responsibility of the private sector. However, after government funding ended, this technology did not prosper in an era of cheap crude oil and cheap gasoline.
However, as oil becomes increasingly expensive, the idea of getting usable petroleum from coal is becoming economically interesting again. It has been estimated that the cost of producing gasoline from coal would require oil prices over $40 a barrel to break even. We are clearly well past that point now.
