DKRW Advanced Fuels

DKRW Advanced Fuels is a company which aims to develop coal-to-liquid fuel projects. One of its major shareholders is Arch Coal.

DKRW Advanced Fuels is the parent company of Medicine Bow Fuel & Power, which proposes to build the Medicine Bow Plant, a coal-to-liquids project in Carbon County, Wyoming, USA. In a media release the company states that "the project will use Carbon Basin coal via intermediate methanol to produce gasoline that meets critical energy needs in an environmentally responsible manner."

DKRW Advanced Fuels is a subsidiary of DKRW Energy, which in addition to synthetic fuels develops wind power and liquified natural gas projects. . In 2006, Arch Coal, Inc. acquired a 25% equity interest in DKRW Advanced Fuels. In exchange, Arch agreed to extend its existing option agreement with DKRW Advanced Fuels, to work with DKRW Advanced Fuels to secure coal reserves for two additional coal-to-liquids projects outside of the Carbon Basin, and to invest $25 million in the company.

An Arch Coal press release stated:
 * "As part of the transaction, Arch and DKRW Advanced Fuels completed an extension of the existing option agreement on approximately 180 million tons of Carbon Basin coal reserves relating to the Medicine Bow coal-to-liquids project, and entered into a new agreement whereby Arch and DKRW Advanced Fuels will explore potential reserves and project opportunities of similar size to Medicine Bow in two other coal basins."

In the wake of the late 2008 financial market meltdown DKRW Energy's chairman, Bob Kelly, told Reuters that "things have tightened up" and that companies proposing coal-to-liquids projects would have to go back to the drawing boards. In the wake of the banking industry collapse and dramatic drop in share prices, the oil price dropped from over $145 a barrel to $75 a barrel. "Everybody's got to evaluate their positions ... We have to wait to see how the capital markets evolve," Kelly said.

Personnel

 * Robert C. Kelly, Chairman
 * Jon C. Doyle, Chief Executive Officer

Contact Details
Two Riverway, Suite 1780 Houston, Texas 77056 USA Phone: 713-425-6520 Fax: 713-355-3201 Email: mjimenez AT dkrwenergy.com Website: http://www.dkrwadvancedfuels.com

Related SourceWatch Articles

 * Coal-to-Liquids
 * Coal-to-Liquids Coalition
 * Coal-to-Liquids Fuel Promotion Act of 2007