Synthetic fuels or Syn fuels are not new. The processes and chemistry involved in manufacturing these alternative fuels were developed in the 1920s and the oil embargo of the 1970s renewed interest in their development. Recently new technologies and processes have renewed interest in producing syn fuels that are alternatives sources of energy to fossil fuels. A declining reserve of fossil fuels, environmental regulations and increasing activism, and new technologies and discoveries have driven the syn fuel industry over the past few years. Syn fuels burn cleaner than fossil fuels because they do not contain harmful aromatics or sulfur compounds. Both legislation and regulatory requirements continue to encourage greater us of syn fuel products.
Syn fuels come from a variety of sources and scientists use a variety of methods and processes to manufacture them. The coal-based synthetic fuel industry is significant, with 57 plants encompassing 86 production units turning out 80 million tons annually (Morey, 2002, 23). The coal-based synthetic plant process coal in a manner that makes it burn more efficiently, or cleanly. In 1999, total production of coal-based syn fuels was 4 million tons compared to 80 million today, a growth that is related to tax credits from the federal government for companies that produce syn fuels and a ôwider and more sanguine acceptance among consumers for using the productö (More, 2002, 23).
The tax credits that go to companies that produce syn fuels are part of the Crude Oil Windfall Profit Tax Act of 1980. When it became apparent the U.S. should explore alternative sources of energy than oil, this Act included a tax credit of $27 per ton of output of these fuels (Morey, 2002). In 1996 the IRS lowered restrictions on these credits which fueled interest among manufacturers. Not everyone is convinced the tax credits are being used to develop cleaner burning fuels. Writing for Mother Jones
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