Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-23
COMPANIES POOL
new OIL PROCESS
Germany, England and United
States Share Secrets
of Method.

BY the Associated Press.
LONDON, May 23.-Secrets Of ex-
tracing oil from coal by the hydro
genation process have been pooled by
indust-ialists. in Germany, England and
the United States.
At the moment the process lacks COM
mercial utility, unless under Govern
ment subsidy, because Of the enormous
world production Of oil. But its poten-
tial value. especially for purposes OF
National defense, Is great, as modern
armies and navies are mechanical.
The companies which have entered
into this agreement are the Standard
I.-G. Co., subsidiary of the Standard
Oil of New Jersey, the Royal Dutch
Shell group, the Imperial Chemical In
dustries Of England, and the 1.-G. Far
beindustry of Germany.
Originated In Germany.
The process is of German origin, dis
covered there in 1918. But other scien-
fists have been working along closely
related lines, both in England and the
United States.
In the latter country basic patents in
INCORPORATION of Gil were taken over
by the United States Government dur
ing the World War, and now are the
property Of the Chemical Foundation
Inc, which has the power to license
them to all applicants Independently Of
the action Of the I.-G. Standard, Shell
and Imperial group. These independent
American patents cover the basic pro-
cess of INCORPORATION, which consists
in producing chemical changes by high
pressure In an atmosphere of hydrogen
under high temDeratiIre
The methods of applying this process
to coal were developed in Germany by
Friedrich Bergius after the World War.
The constant legal expense occasioned
by the need to protect process which
at the moment was not commercially
useful, IL said TO have decided the In
ternational exchange of secrets The
announced plan IS for each OF the COM
panies to have all the knowledge Of the
others.
Agree on Limitations.
II Is understood, however, that each
company has agreed that it will pro-
duce by INCORPORATION only a certain
proportion Of the oil used in its coun-
try, thus providing only limited COM
petition for other oils.
to prefer having a hand in control of
the process to fighting it. with possible
profits in its sale through their dis
tributing organizations.
The final form Of the International
Holding Co. has not been settled nor
the capital. but since it undertakes
only to control licenses for the use of
the patents that sum may be only
nominal.
Commercially Feasible.
The process is of greater interest to
Britain and Germany than to the
United States, for the latter has its
vast supplies Of natural oil. Britain
and Germany, however, each felt the
pinch for of during the war when out
side supplies were dif1cult.
It Is commercially feasible, although
not perhaps economically sound, to pro-
duce oil from coal now in Great
Britain, which has a 12-cent tax on
gasoline, If It is untaxed-
Whether 1t is produced depends upon
the government attitude. The coal in
dustry badly needs resuscitation and,
aside from its defensive angle, this may
influence the governments decision.
Production of this oil untaxed will,
Of course, operate as a tariff barrier
and provide sheltered industry.
The gasoline so produced has been
tested by the admiralty and pronounced
ut.
Process Described.
There has been considerable Discus
sion of the project and the government
has announced that it is looking into
1t. The nations bill for imported pc
troleum products last year was more
than f42 200, 900.
This is the process, roughly:
The first stage in INCORPORATION Is
the washing of the raw pit coal; the
second is the grinding OF the rough
slack, which then is mixed with a pro-
portion of oil, which is in itself the
product OF previous cycle of produc-
ton. The coal. being now ground and
mixed with oil, is injected into heavy
steel vessels, where 1t meets hydrogen
under pressure.
The process Is continuous one, the
time Of contact In the vessels being
suitably arranged, after which there is
sues from the vessels % petrol, ca
heavier oils Diesel, etc, which are
used IN the next process, 80 sludge
lash and uncovered coaD and 90 gas.
the proportion Of motor spirit to heay-
Ter oils being variable at will. The
petrol goes to the refinery In the or
binary way. The heavier oils are again
put into the cycle Of production to make
more petrol, or can be refined separate
ly, If required. The sludge, which also
contains oil, has the oil recovered from
1t and the latter is recycled, while the
gas goes back and Is used for making
the bulk of the hydrogen used in the
process. The remainder of the hydro
gen Is made from coke in the ordinary
way.