I'm posting this mainly because I need help understanding the business model being followed by the company below, and to get clarification on some aspects of the synthetic fuels industry.
To the best of my understanding, it costs anywhere from $5-35 per barrel to produce synthetic fuels such as gasoline and diesel, using proven coals-to-liquids refining processes. Those costs translate to maybe $1 per gallon on the retail market, give or take a nickel or two.
Back when oil was cheap - under $30/barrel, Congress passed legislation to provide tax credits for synthetic fuels producers because their costs to produce usable fuel were higher than petroleum fuel producers. But as the price of oil rose above $30/barrel, the tax credits for synfuel production diminish. I'm not real clear on the details of these tax credits, which is one reason for posting the diary.
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