SYNM -Syntroleum Initiating Testing Program with Coal-Derived Synthesis Gas
Tuesday November 29, 8:17 am ET
TULSA, Okla.--(BUSINESS WIRE)--Nov. 29, 2005--Syntroleum Corporation (Nasdaq:SYNM - News) announced that it has signed an agreement to conduct laboratory-scale demonstration of Syntroleum's Fischer-Tropsch (FT) catalyst with coal-derived syngas produced at an established gasification facility.
During the last two years at Syntroleum's 70 barrel per day gas-to-liquids (GTL) facility at the Port of Catoosa near Tulsa, Okla. Syntroleum utilized its proprietary FT-410 cobalt catalyst to successfully demonstrate the Syntroleum® Process by producing ultra-clean diesel and jet fuels from natural gas feedstock for various U.S. government programs.
This new testing program will demonstrate the effectiveness of the Syntroleum FT catalyst with proven coal-derived syngas clean-up and treatment processes for use in a coal-to-liquids (CTL) application. Syngas, which consists of hydrogen and carbon monoxide, is the building block for many chemical processes including FT ultra-clean fuels produced from the Syntroleum® Process.
"This testing program is an important step for Syntroleum in demonstrating that our proven natural gas-to-liquids technology is also applicable to coal-to-liquids as well," said Ken Roberts, senior vice president of business development for Syntroleum. "We see this as an opportunity to develop our position toward participation in future coal-to-liquids plants."
The testing protocol will include two bench-scale FT reactors and gas sampling connections to the clean syngas production flow. The testing program is planned to begin in January and run for approximately six months. Syntroleum specialists will work with the personnel from the gasification company in this program funded by Syntroleum.
"Coal-to-liquids technology has the potential of providing a tremendous source of ultra-clean fuels from abundant coal reserves in the United States and other regions of the world," Roberts said. "The U.S. has the world's largest estimated recoverable coal reserves equaling over 268 billion tons. If only 5 percent of this coal were converted to FT liquids, it would be equivalent to the entire oil reserves currently held by the U.S.
"As the U.S. seeks energy independence and security of supply, Syntroleum believes that advancement of technologies such as the Syntroleum® Process is essential to achieve that goal. Our 20-year history in gas-to-liquids is a foundation for successful transition into coal-to-liquids in the coming years."
Syntroleum Corporation owns a proprietary GTL process for converting natural gas or synthesis gas derived from coal into synthetic liquid hydrocarbons. The company plans to use its technology, as well as other third party gas processing technologies, to develop and participate in gas and coal monetization projects in a number of global locations.
This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, statements relating to the impact of the energy bill on Syntroleum and the coal-to-liquids industry, the testing, certification, characteristics and use of synthetic fuels FT catalyst and alternative fuels, the Syntroleum Process and related technologies and products, GTL or coal-to-liquids plants using the Syntroleum Process, government support for the construction and operation of such plants, the economic use of such plants and the continued development of the Syntroleum Process. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. Although Syntroleum believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that commercial-scale GTL plants will not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants will experience technological and mechanical problems, the potential that improvements to the Syntroleum Process currently under development may not be successful, the impact on plant economics of operating conditions (including energy prices and government support for such plants), construction risks, risks associated with investments and operations of GTL and coal-to-liquids plants, the ability to implement corporate strategies, competition, intellectual property risks, Syntroleum's ability to obtain financing and other risks described in the company's filings with the Securities and Exchange Commission.
® "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office
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Contact:
Syntroleum Corporation, Tulsa
Mel Scott, 918-592-7900
mscott@syntroleum.com
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Source: Syntroleum Corporation
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