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Syntroleum and Sustec in Coal-to-Liquids Gasification/Fischer-Tropsch Joint Venture

Syntroleum Corporation and Sustec AG, a private company based in Basel, Switzerland, have entered into a Memorandum of Understanding that provides for exclusive joint business development of projects that will integrate Sustec’s gasification technology (from its Future Energy GmbH portfolio company) with Syntroleum’s Fischer-Tropsch (FT) technology.

The joint venture is aimed at converting coal and other carbonaceous materials such as petroleum-coke, residual fuel oil and biomass into synthetic fuels and chemicals. Each company will own 50% of the joint venture.

Under terms of the joint venture, Syntroleum and Sustec intend to commit exclusive licensing agreements to their respective technologies to a separate business unit that will develop jointly-owned coal-to-liquids (CTL) production facilities and other non natural gas-to-liquids projects world-wide.

This business unit will be the sole vehicle of both companies for developing and licensing projects utilizing integration of gasification with Fischer-Tropsch (IGFT) technologies from both companies. Syntroleum and Sustec also intend to pursue joint technology development under the new venture.

FE’s GSP Gasifier

Sustec’s Future Energy GSP gasification technology is an entrained-flow pressure gasification system that gasifies a stream of pulverized coal (or atomized liquid fuel or a fuel slurry) with oxygen. Different implementations of the gasifier technology can handle different feedstocks, such as biomass. The gasification reaction takes place under high temperature and pressure.

In Future Energy’s two test facilities for 3MW and 5MW systems, the gasification pressure ranges from 5 to 26 bar, and the gasification temperature ranges from 1,400º to 1,600º C.

The GSP method offers very high carbon conversion (greater than 99%), and produces a tar-free synthesis gas. That gas will then be converted into synthetic transportation fuels and other specialty chemicals utilizing Syntroleum’s Fischer-Tropsch technology.

Syntroleum Corporation owns a proprietary FT process for converting natural gas or synthesis gas derived from coal into synthetic liquid hydrocarbons. The company plans to use its technology to develop and participate in natural gas and coal monetization projects in a number of global locations. Syntroleum and its current licensees will continue to pursue gas-to-liquids projects separately from this venture. Syntroleum and Sustec will commence negotiation on definitive documents for the establishment of the joint venture.



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