Think Tank Urges Kentucky To Use Caution on Coal-To-Liquid

FRANKFORT, Ky. (AP) - He had nice things to say about Kentucky's chances of doing well in the coal-to-liquid fuel movement, but a senior policy analyst with a national think tank told lawmakers to move cautiously.

Kames Bartis of the California-based RAND Corporation told the House Appropriations and Revenue Committee yesterday that converting coal to liquid fuel holds promise for helping thecountry to wean itself from oil dependance.

Bartis also said there are major challenges, such as what to do with the carbon dioxide produced in the process, the uncertainty of what it would really cost to build a coal-to-liquid plant and the impact if oil prices dropped dramatically.

Bartis said a few large-scale demonstration plants should be built to test the technology and its economic feasibility.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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