Producing Diesel Fuel from Coal

The project envisages the development of a coal-to-liquids (CTL) complex in Tajikistan to convert domestic coal into synthetic diesel and other marketable products. The strategic analytical paper identifies the Ziddi coal deposit, located approximately 72 km from Dushanbe, as the preferred feedstock base.

The recommended technological route is indirect coal liquefaction (ICL), combining coal gasification with Fischer–Tropsch synthesis. The proposed process includes coal preparation and beneficiation, gasification, syngas cleaning and conditioning, Fischer–Tropsch synthesis, hydrocracking and final product separation.

Option A, recommended as the initial development phase, targets annual production of 250,000 tonnes of synthetic diesel. The indicative product slate also includes 60,000 tonnes of gasoline, 20,000 tonnes of synthetic wax, 27,000 tonnes of jet fuel or kerosene, and LPG and other products.

The paper estimates total investment at approximately USD 703 million, annual revenue at approximately USD 325 million, an indicative IRR of 12–18%, and a payback period of 8–12 years. Construction is estimated to take 3–4 years.

The proposed roadmap covers feasibility studies, coal testing, technology partner engagement, financing, engineering and infrastructure development, followed by construction and commissioning. Subsequent expansion options envisage diesel production capacities of 500,000 and 1,000,000 tonnes per year.

All technical, financial and scheduling figures are preliminary estimates from the strategic analytical paper and remain subject to feasibility studies, engineering design, environmental assessment and financing arrangements.

Estimated total investment for Option A: USD 703 million.

Indicative investment breakdown:
• Process equipment: USD 299 million.
• Inventories, interest during construction (IDC) and working capital: USD 156 million.
• Installation and electrical works: USD 105 million.
• Engineering and management: USD 71 million.
• Building construction: USD 64 million.
• Land and site preparation: USD 8 million.

Potential financing arrangements considered in the paper include strategic equity participation, a joint venture with a technology partner, and external debt financing. A strategic partner equity stake of 30–51% is considered as a possible structure.

The financing structure, lenders, equity contributions and commercial terms have not been confirmed.

The project aims to reduce Tajikistan’s dependence on imported diesel fuel by developing domestic coal-to-liquids production.

Its strategic value includes higher-value processing of domestic coal, diversification of the industrial base, development of chemical co-products, and the creation of technical capabilities in gasification and Fischer–Tropsch synthesis.

A phased approach would allow the initial 250,000-tonne-per-year diesel facility to serve as a platform for subsequent expansion and the potential development of a broader petrochemical cluster.

The strategic analytical paper identifies potential government support measures, including investment facilitation, interagency coordination, possible tax and customs incentives for eligible equipment, and an investment agreement potentially providing state guarantees.

These measures are presented as proposed or potential support mechanisms. Their availability, eligibility criteria, scope and duration must be confirmed under applicable legislation and project-specific agreements. No project-specific incentive approval or state guarantee is evidenced in the paper.

Indicative economic effects for Option A:
• Production of 250,000 tonnes of synthetic diesel per year.
• Additional production of gasoline, synthetic wax, jet fuel or kerosene, LPG and other products.
• Estimated annual revenue of approximately USD 325 million.
• More than 800 jobs.
• Potential substitution of imported diesel and development of domestic industrial supply chains.
• Training and skills development in coal processing, gasification and Fischer–Tropsch synthesis.

These are preliminary projections rather than guaranteed outcomes. The paper does not provide a verified project-specific tax revenue forecast.