The major problem plaguing the synfuels industry is the financing of large capital requirements in a technologically unproven field. This is exemplified by the two to three billion dollar investment required by oil shale development. Despite an unquestionable resource which is well characterized and a wealth of information from processes which have undergone extensive pilot development work, financing of a project is difficult because of the risk.

In recent studies on a worldwide basis as a background for evaluating the Cottonwood Wash Project in the Uinta basin, Utah, we have shown that the concept of small scale or modular development of this type of resource can lead to acceptable economics with a substantially higher probability of actual completion. This small scale or modular system approach may be applied to other synfuel developments.

This paper discusses Uinta basin oil shale resources and current developments and evaluates the economics of small scale or modular development for the Cottonwood Wash Project processes. This evaluation shows the effects of such a development in reducing the project's economic and technical risks.

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