Montana's Coal Cowboy

Lesley Stahl Reports On An Ambitious Fuel Plan

(CBS) 
The Fischer-Tropsch process does have a track record, along with a sinister history. It was first put into wide-scale use in the Nazi era, when Hitler had few oil-rich allies. Ninety percent of his Luftwaffe planes ran on coal-based fuels

Later on, South Africa, also isolated because of Apartheid, used the process.

"So, here you have these horrible regimes, and now we want to take their technology. There's something kind of … spooky," Stahl said.

"Science is neutral," said Schweitzer. "They were pushed against the wall, because they couldn't get oil. We're pushed against the wall because the oil is so expensive."

The price tag to get his plan rolling - $1.5 billion - is a bargain, the governor says, now that crude is trading around $60 a barrel.

Dr. Robert Williams, a senior energy scientist at Princeton, agrees.

"At the oil prices that we expect for the long-term, it would be economic," Williams said.

Stahl told Williams about the jar of diesel Schweitzer showed her. Is this synthetic fuel going to be that clean and smell that good?

"Oh, yes. The Fischer-Tropsch diesel is a superb fuel," said Williams. "Not only is [it] cleaner than conventional diesel, but it also leads to improved engine performance."

And he explained why the process works environmentally.

"The reason this works and is much cleaner is you're not burning coal. You’re instead gasifying coal," Williams said.

"And, therefore, things don't go up into the atmosphere?" Stahl asked.

"Well, when you gasify coal, you can take the pollutants out," Williams explained.

"You're saying before the coal is ever burned in any way, you can separate out the bad stuff?" Stahl asked.

"You do that very early on," Williams replied.

The new Fischer-Tropsch plants, Schweitzer says, wouldn't have the traditional smoke-belching smokestacks associated with today’s coal-fired power plants. But he does acknowledge there would be some emissions.

"There would be less than one percent than you get in a plant like this," the governor said, pointing at smoking smokestacks in the background. "This is old coal technology. We're talking about the new way."

But even in the new way there’s an environmental problem, and it’s a big one: carbon dioxide, which, while not a poison, is the No. 1 cause of global warming.

"Carbon dioxide will be generated at a rate that would lead to greenhouse gas emissions that are twice those for conventional crude oil," said Williams.

Williams says this process will produce twice as much carbon dioxide than traditional petroleum if you vent the CO₂ to the atmosphere.

But Schweitzer has promised not to do that. "This spent carbon dioxide, we have a home for it. Right back into the earth, 5,000 feet deep," the governor explains.

He plans to sell that carbon dioxide to oil companies that use it to boost the amount of oil they can pump. "It's called enhanced oil recovery. It's worth money to the oil business," Schweitzer said.

The sales pitch keeps coming: Schweitzer says the fuel will not only be cleaner, it’ll be cheaper, too.

"We can produce this fuel for about $1 a gallon. We have gas taxes, depending on what state you're in, of 60, 70, 80 cents a gallon. So, do the math," he said.

"You know, it sounds almost too good to be true," Stahl said.

"Well, that's what got me excited," Schweitzer replied.

He’s been so excited, he’s been traveling the country selling his big idea. But back home they say he can be arrogant.

"Are you a little, let’s say cocky?" Stahl asked.

"When I have a vision, I get single-minded about it. I say, 'I’m going to continue to work on this until we get her done,' " Schweitzer said.

That cowboy bravado is just what you might expect from a guy who grew up roping calves on a Montana ranch.

"We have a little bit different way of looking at the world. And I think it's about self reliance," Schweitzer said.

And, yet, the cowboy is a bit of a geek who went to graduate school to study soil science. In the 1980s he went to work in Saudi Arabia - land of the sheiks - running farm projects.

Schweitzer says the Saudis embarked on an ambitious agricultural program to become self sufficient in food, to wean themselves off our wheat. Now, he wants to wean America off their oil.

He got into politics as a Democrat. But in his ads in the 2004 governor's race, he looked as un-like John Kerry as possible and even picked a Republican running mate.

In red state Montana, Schweitzer squeaked out a four-point win. But today he has a 65 percent approval rating, buoyed by his good ol’ boy persona and his image making. That includes his dog, Jag, who goes with him everywhere, even on the state plane.