The promise of GTL technology

Gas-to-liquids (GTL) technology may finally be on the verge of a breakthrough. The economic promise of converting abundant supplies of natural gas to clean-burning liquid fuels has long been apparent. However, it has taken a perfect storm of high energy prices, a demonstrated need for alternative sources of energy, and a commitment to reducing emissions to make this come about.

High fuel prices appear to be here to stay, and the US Department of Defense (DOD) has stated its intent to find alternative fuel sources in the interest of national security. The environmental benefits of GTL fuels are a welcome byproduct.

For the past 4 years, Tulsa-based Syntroleum Corp. has been engaged in research and development efforts with the DOD focused on producing a high-performance alternative fuel for military applications. These efforts reached a milestone last month.

On Sept. 19, a US Air Force B-52 Stratofortress Bomber aircraft successfully tested new ultra-clean jet fuel in a landmark flight from Edwards Air Force Base in California. The plane lifted off from Edwards with a 50/50 blend of traditional JP-8 jet fuel and FT jet fuel supplied by Syntroleum Corp. using its Fischer-Tropsch technology.

The significance of this is that this marks the first time that FT jet fuel has been tested in a military aircraft with its high-performance specifications. This was the first of several planned test flights.

The fuel was produced at Syntroleum’s FT facility near Tulsa, where it has produced over 400,000 gallons of ultra clean products. This flight test is part of the DOD’s Assured Fuel Initiative, an effort to develop secure domestic sources for the military’s energy needs. The Pentagon hopes to reduce its use of crude oil and foreign producers and get about half of its aviation fuel from alternative sources by 2016.

Jack Holmes, president and CEO of Syntroleum, noted, “This test is a significant milestone for Syntroleum. The acceptance of our FT fuels further validates the quality and integrity of our product, and we believe the successful completion of this test provides Syntroleum with an opportunity for additional long-term contracts with the military.”

Holmes, who wrote about GTL technology in the July 2005 issue of OGFJ, believes commercial markets will open up to the fuels as well. The fuels meet or exceed all current and proposed US and European environmental regulations, he says, and can be used as pure fuels or as a premium blending stock. The fuels are fully compatible with today’s engines, filling stations, and other infrastructure (including trucks, trains, and liquid fuel pipelines).

The jet fuel used in the B-52 test was produced from natural gas, but the company believes the fuel can also be produced from the country’s vast domestic coal resources. Holmes believes that GTL and CTL (coal to liquids) technology offer the opportunity to diversify the nation’s energy supply and increase domestic job growth.

This is the kind of forward thinking energy executives and entrepreneurs need to be doing.