AFC and University of Witwatersrand Sign Exclusive Agreement to Commercialize Fischer-Tropsch Fuels and Chemical Feedstocks in the Americas
Alternative Fuels Corporation (AFC), a wholly-owned subsidiary of G4G Resources Ltd. and the University of Witwatersrand, Johannesburg, South Africa (Wits) signed an exclusive representation agreement to commercialize the Fischer-Tropsch-based fuel and chemical production process developed by the Centre of Materials and Process Synthesis (COMPS) located at The University of Witwatersrand, Johannesburg, South Africa.
The Wits COMPS F-T technology, which relies on a combination of a fixed bed catalytic system and an interconnection of units implementing a one-pass process, is modular and scaleable, and offers a 20-30% lower capital cost per barrel than first-generation F-T plants, with lower requirements for water and approximately 30% less CO2 output.
COMPS has recently commissioned 2 commercial scale pilot plants in China and Australia. Both plants are now producing at design capacity and planning is now underway for commercial scale production facilities. (Earlier post.)
The agreement grants AFC exclusive rights to market the Wits conversion technology in the Americas. The agreement follows AFC’s announcement of 13 May 2009 on the agreement with Turtle Island Recycling Corporation for waste material as feedstock for the production of fuels and chemical feedstocks in Sarnia, Ontario.
The term of the agreement is 10 years, renewable for a further 10 years at the end of the first period. For each individual production plant, AFC and COMPS will work together in partnership, with technical expertise to be provided by COMPS personnel. COMPS will receive compensation in the form of royalties based on the capital costs of plants and product produced.