Syntroleum Announces Successful Completion of Coal-to-Liquids DemonstrationLast update: 11/8/2007 11:08:01 AMSyntroleum Process(R) Tested With Live Coal Synthesis Gas TULSA, Okla., Nov 08, 2007 (BUSINESS WIRE) -- Syntroleum Corporation (SYNM), a synthetic fuels technology leader, has successfully completed a demonstration of its proprietary technology designed to convert coal into clean synthetic liquid fuels. The test run utilized synthesis gas produced from coal and Syntroleum's proprietary cobalt catalyst technology in the conversion process. The 2,500-hour bench-scale test run was recently completed at Eastman Chemical Company's Kingsport, Tennessee facility. The demonstration proved that fuels made from coal have the same superior synthetic Fischer-Tropsch (FT) qualities as those made from natural gas. The demonstration also proved that Syntroleum's proprietary cobalt-based catalyst performs robustly under real-world coal-to-liquids (CTL) conditions, as was predicted from earlier extended life tests performed by Syntroleum. "We have now proven that the Syntroleum Process(R), and specifically our cobalt catalyst, performs very well on live coal syngas in a commercial environment," said Jack Holmes, CEO of Syntroleum. "This is a great step for Syntroleum and we continue to believe that this technology will help pave the way to lowering our country's reliance on foreign sources of oil, by producing domestically sourced synthetic diesel and jet fuel. This successful demonstration under the most challenging condition of live coal derived syngas is also very important for the future of our Biomass to Liquids technology. The syngas produced from gasifying such biomass feedstocks as corn stover, wood by-products, and chicken litter is more difficult to clean up than natural gas-based syngas but much easier than coal-based syngas. By demonstrating the commercial viability of our cobalt catalyst for coal, we have also addressed its suitability for any renewable feedstock. These results in conjunction with the Air Force's successful testing of our Fischer-Tropsch jet fuel last fall and the recent certification of FT jet fuel for the B-52 H Stratofortress bomber create a unique opportunity for Syntroleum to supply synthetic jet fuel from several sources to help the Air Force meet its target of providing 50 percent of its needs with a 50/50 synthetic blend by 2016." As previously announced, Syntroleum has contracted to deliver 500 gallons of renewable synthetic jet fuel for testing by the Air Force. This fuel will be made using Syntroleum proprietary Biofining(TM) technology using a mixture of low grade animal fats and greases as provided by Tyson Foods. Based on preliminary testing, Syntroleum believes this renewable fuel has almost identical properties to the natural gas-based FT jet fuel used in the certification tests. Syntroleum has finalized a non-confidential white paper addressing details and results of the coal synthesis gas test. The white paper can be found on Syntroleum's website at About Syntroleum Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Biofining(TM) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel. Together with Tyson Foods, Syntroleum is focused on siting, engineering and constructing a plant that produces clean renewable synthetic diesel and jet fuel using low grade fats and greases as feedstock. The 50/50 venture - known as Dynamic Fuels - plans to announce the plant site in the fourth quarter of this year, with production beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. . This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical facts. These forward-looking statements may include statements relating to the Syntroleum(R) Process, the Synfining(R) Process, our renewable fuels Biofining(TM)technology, plans to use the Company's various technologies, operational activities of the Company, commercialization of the Company's technologies, certification of Fischer-Tropsch and renewable fuels, performance and use of Syntroleum's cobalt catalyst, and performance and use of fuels derived from the Syntroleum process and technology test results. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. Syntroleum undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Important factors that could cause actual results to differ from these forward-looking statements include the potential that debt or equity financing for anticipated plants or related natural gas liquids or oil and gas projects may not be available, the schedule for development, construction and operation of proposed plants may not be met, anticipated appropriation and expenditure of federal monies does not occur, commercial-scale plants do not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants experience technological and mechanical problems, the potential that improvements to Syntroleum's various technologies currently under development may not be successful, the impact on plant economics of operating conditions (including energy prices), construction risks, risks associated with investments and operations in foreign countries, our dependence on strategic relationships with manufacturing and engineering companies, volatility of energy prices, the ability to implement corporate strategies, including the continued availability of adequate working capital, competition, intellectual property risks, our ability to obtain financing and other risks described in the Company's filings with the Securities and Exchange Commission. (R) "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office. SOURCE: Syntroleum Corporation
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