News | November 30, 2007

Syntroleum Announces Successful Completion Of Coal-To-Liquids Demonstration

Tulsa, Okla. - Syntroleum Corporation, 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, 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 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.

SOURCE: Syntroleum Corporation