Eastman CEO: Coal Gasification Long-Term Solution for Natural Gas Crisis.Business Editors
WASHINGTON--(BUSINESS WIRE)--July 10, 2003
J. Brian Ferguson, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Eastman Chemical Company Eastman Chemical Company is a United States based chemical company, engaged in the manufacture and sale of chemicals, plastics and fibers. Eastman has 16 manufacturing sites in 10 countries, supplying its products throughout the world. (NYSE NYSE
See: New York Stock Exchange :EMN EMN Equity Market Neutral (investing)
EMN École Nationale de la Magistrature (French National School for the Training of Judges and Prosecutors)
EMN Electromagnetic Noise ), told a United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Senate committee today that coal gasification Coal gasification
The conversion of coal or coal char to gaseous products by reaction with steam, oxygen, air, hydrogen, carbon dioxide, or a mixture of these. is one of the long-term solutions to help the U.S. overcome a growing natural gas crisis.
In written and oral testimony before the Senate's Energy and Natural Resources Committee, Ferguson said American industries are suffering from soaring natural gas prices and need both long- and short-term solutions to make them more competitive. The committee met to hear testimony on the impact of soaring natural gas prices and possible solutions.
"Short-to-medium term solutions include reducing natural gas demand and increasing natural gas production," Ferguson said. "Long-term, however, federal environmental, energy and economic policies must achieve better alignment.
"It is economically unsustainable to continue policies that drive natural gas demand while simultaneously limiting access to natural gas supplies without providing a balancing energy alternative," said Ferguson. "One of the long-term alternatives to help alleviate this natural gas crisis is tapping into America's vast coal reserves - through the use of competitive coal gasification technology - to reduce natural gas demand."
Coal gasification, which uses a chemical process to turn coal into a syngas
Syngas (from synthesis gas) is the name given to a gas mixture that contains varying amounts of carbon monoxide and hydrogen generated by the gasification of a carbon containing fuel to a gaseous product with that can be used like natural gas, promises to reduce the demands on natural gas, Ferguson said.
Ferguson explained that European chemical manufacturers derive most of their raw materials from globally traded oil feedstocks; U.S. manufacturers are tied primarily to natural gas. "As a result, the current situation threatens the entire U.S. chemical industry as we try to compete with this now disadvantageous dis·ad·van·ta·geous
He explained that coal gasification technology, similar to what Eastman has operated reliably for 20 years, is not only competitive but also environmentally superior to other clean coal technologies. The power industry, however, needs incentives from Congress before commercially adopting this technology.
"Even though Eastman believes that coal gasification is ready for further commercialization right now, some additional market incentives such as the Clean Coal Power Initiative and the proposed clean coal tax credits are useful and necessary inducements," he said.
With headquarters in Kingsport, Tenn., Eastman manufactures and markets chemicals, fibers and plastics. The company has approximately 15,800 employees in more than 30 countries and had 2002 sales of $5.3 billion.