A BCA for Transitioning the U.S. Navy from Petroleum to Synthetic Fuel Resources

Abstract

Objectives The purpose of this study is to show the conditions where domestic coal to liquid (CTL) fuel production facility investment is financially practical, as well as those where it is financially impractical. This analysis develops cost estimates, provides business case analysis and reviews global estimates for developing a coal to liquid synthetic fuel production facility. It identifies and qualifies risks and sensitivities. It also examines various projected coal and crude oil markets and how each case influences the decision to pursue a synthetic fuel program. It concludes with a decision matrix comparing the pursuit of a synthetic fuel program with maintaining the status quo of the use of fuel from petroleum.