Xfuels Inc (XFLS)

[TheGuy87]

Fischer Tropsch Wax & Email from Cycle

From shareholder letter 7/21/20
“Cycle continues to develop its mobile GTL (Gas to Liquid) system and is presently in negotiations to deploy the first pilot plan here in Alberta. The pilot system will produce approximately 5 metric tons (approximately 1320 gallons) of C5+ hydrocarbons plus Fischer Tropsch wax. FT synthetic waxes are made using carbon monoxide and hydrogen as feedstock, producing hydrocarbons of consistently high purity and quality creating a very high value product on the average of $US2000/m3. The structure of the wax results in many desirable properties and is often used in hot melt adhesives, printing inks and coatings, polymer processing and polishes and textiles. The system will be used as a pilot to determine follow-on larger systems in both the US and Canada”.

Email response 7/22/20

Good Moring Josh thank you for your interest in our company and greetings to a fellow oilman. As the release states we are in negotiations on this project I don’t have a start or end date as of yet. I had this question earlier as well from another shareholder it seems somehow when we published this release this info was dropped somehow. The Pilot will produce 5 tons/day of C5+ hydrocarbons. Typically its about 30:30:30 with 10% being light ends 30% C5-C10 30% C11-C20 and 30% C21 and higher the latter is the wax. We look at these products as diluents and high value chemical feedstock rather that the traditional Gasoline, Diesel and jet fuel/kerosene. What people don’t realize about those products are they are blends, usually proprietary blends. Cycles business plan is to sell into that blending market which is much larger and easier to penetrate than the consumer market.



Of course we are looking at bringing on more systems we have spend 15 years developing this technology mostly to make it robust enough to be able to function under conditions in the field. As a mobile plant there are considerations that needed to be addressed that a fixed plant would not encounter. As a fellow oilman you know what these conditions are in our business and a plant of these type would not be accepted by field personal if it became to complicated or needy.



Thank you again for your interest in our company we also believe we have great things ahead and we are finally coming into our groove.



Best regards

Mike McLaren- CEO



Suite 417

203-304 Main Street

Airdrie, Alberta

T4B 3C3



Phone: [phone]

Fax no: [phone]



www.cyclenrgy.com




Fischer Tropsch process explained

https://en.m.wikipedia.org/wiki/Fischer–Tropsch_process


https://www.deurex.com/waxes/fischer-tropsch-waxes/general-information/