|Company will now offer a complete, end-to-end gas to liquids (GTL) plant technology license and support services to the natural gas industry |
Santa Barbara, CA - November 9, 2011 - Carbon Sciences, Inc. (CABN), the developer of a breakthrough technology to make liquid transportation fuels from natural gas and carbon dioxide, today announced that the company will now offer a complete, end-to-end GTL plant technology license and support services to the natural gas industry.
The commercial viability of GTL technology has been proven by some of the largest oil & gas companies in the world. After investing $19 billion in a world scale GTL plant in the State of Qatar and creating more than 52,000 jobs, Royal Dutch Shell announced the first commercial shipment of GTL fuel products on June 13, 2011. Named Pearl GTL, the plant is capable of producing 260,000 barrels per day of oil equivalent products using only natural gas instead of crude oil. According to Shell, Pearl GTL will produce enough liquid fuels to fill over 160,000 cars a day and enough synthetic base oil each year to make lubricants for more than 225 million cars.
More recently in September 2011, Sasol, the South African energy and chemical giant, announced plans to build the first United States GTL plant in Louisiana to produce GTL transportation fuels and other products. The Sasol project is expected to cost $10 billion and will create over 5,000 new high-paying direct and indirect jobs.
Byron Elton, CEO of Carbon Sciences, commented, “The days of cheap, easy oil have passed, and the era of natural gas is upon us. We recently attended the annual GTL conference in London to meet with industry colleagues and congratulate Shell on its history making GTL success. The consensus at the conference was that oil prices will remain strong and natural gas prices are expected to remain low, leading to a lucrative future for gas to liquids technology. Forecasts show that total recoverable global natural gas resources will last over 250 years. Shell, Sasol and others in our industry have proven the economics of GTL technology that will free us from crude oil by tapping into the vast reserves of natural gas to power the needs of the world.”
Mr. Elton continued, “At the scale that Shell operates, it must focus on very large fields, which account for only a small number of gas fields in the world. Its particular GTL technology does not scale down economically for small and medium sized gas fields. This is the market opportunity that we are addressing with our end-to-end GTL solution.”
A typical GTL plant consists of three core components: 1) syngas generation, which converts natural gas into syngas, 2) Fischer-Tropsch processing, which converts syngas into hydrocarbons, and 3) liquid fuels upgrading, which converts hydrocarbons to liquid fuels such as gasoline, diesel, and jet fuel. It is generally accepted in the industry that the syngas portion of a GTL plant is the most expensive.
Carbon Sciences’ proprietary catalyst technology is aimed at reducing the cost of syngas production by eliminating the expensive requirements for oxygen and steam. Instead, the company’s syngas technology uses freely available carbon dioxide to react with natural gas. To provide a complete GTL technology solution, Carbon Sciences will integrate its proprietary syngas technology with Fischer-Tropsch technology and liquid fuels upgrading technology licensed from other companies to deliver an end-to-end GTL plant design. This complete solution will be available for licensing to the natural gas industry for use in small to medium size GTL plants. Carbon Sciences will begin the commercial process by offering pre-feasibility and feasibility study services.
“We are very excited about our expanded business plan and we look forward to delivering value directly to the owners of natural gas resources”, concluded Mr. Elton. “While we believe our unique syngas technology will ultimately benefit world scale GTL plants, such as Shell’s Pearl GTL, our initial target market is small to medium size gas fields. This focus will allow us to address a market ignored by the big players with billion dollar budgets.”
About Carbon Sciences, Inc.
Carbon Sciences has developed a breakthrough technology to make liquid transportation fuels from natural gas. We believe our technology will enable the world to reduce its dependence on petroleum by cost effectively using natural gas to produce cleaner and greener liquid fuels for immediate use in the existing transportation infrastructure. Although found in abundant supply at affordable prices in the U.S. and throughout the world, natural gas cannot be used directly in cars, trucks, trains and planes without a massive overhaul of the existing transportation infrastructure. Innovating at the forefront of chemical engineering, Carbon Sciences offers a highly scalable, clean-tech gas-to-liquids (GTL) process to transform natural gas into transportation fuels such as gasoline, diesel and jet fuel. The key to this cost-effective process is a breakthrough methane dry reforming catalyst that consumes carbon dioxide. Our proprietary catalyst is now undergoing rigorous commercial testing to meet the needs of the natural gas industry and will be available for use in pre-feasibility studies of new GTL plants.