484.    ---------------.[CHAUX, R.]  Hope Long Deferred.  Vol. 37, 1937, p. 267.

                  Editorial calling attention to possible misleading statements that have been published in the official report of the committee appointed in 1937 by the Australian Government to advise upon the economics of establishing a hydrogenation plant in Australia.  The committee has announced the conclusion that if interest on capital is charged at 3 ½% and 15 yrs. is allowed for amortization, the total cost of hydrogenated gasoline from bituminous coal will be 13.8 d. per imperial gal.  If, following the Imperial Chemical Industries practice, the interest is charged at 6% and amortization is effected in 10 yrs. the cost of the gasoline is as high as 17.3 d. per gal.  The operating costs, inclusive of coal at 14s.6d. per ton, are estimated as 8.4d. per gal.  Admittedly, Australian costs are higher than English costs, but the committee has calculated that under English conditions the figures for total costs would be respectively 10.5 d. per gal. and 12.75 d. per gal.  These figures appear high.  It has been stated in certain interested quarters that the committee’s report establishes the fact that the capital cost of a Fischer-Tropsch plant is not lower than that of a hydrogenation plant for the same output.  The committee found that the cost of building a Fischer-Tropsch plant would be about ₤100 per ton of output per yr., while that for hydrogenation would be only ₤73 per ton per yr.  The estimates we have ourselves had the privilege of examining would show a very different picture for the Fischer-Tropsch plant.  We should much like to know upon what basis the Australian figure was determined.  The investigators state that they were last in Europe in 1936, when only a small experimental Fischer-Tropsch plant was in operation, and the investigators admit that it was not possible for them to obtain any cost of operation or, presumably, of erection.  It would be very unfortunate if the opinions expressed in this report were allowed to influence those who are considering the inception of a chemical industry in this country based on the production of hydrocarbons by the Fischer-Tropsch process.  This process can be operated in much smaller units than the hydrogenation process and with a much less highly trained staff.  It would be possible to situate these plants throughout the country at collieries possessing coking coal and thus bring into being another and widespread chemical industry.