Oct 21, 2011
Synthetic fuels producer secures fundingBack
© Reuse this
Environmental energy company USA Synthetic Fuel Corporation (USFC) has signed an agreement with New York-based institutional investor Kodiak Capital Group, in terms of which Kodiak has committed to invest up to $20-million over a six-month period, subject to certain conditions, at the company’s discretion.
USFC is focused on building ultraclean British thermal unit (BTU) converters designed to enable the US’s solid hydrocarbon resources to be transformed into low-cost synthetic fuel (synfuel) products such as pipeline-quality synthetic natural gas, transportation fuel (diesel, jet, and petrol), hydrogen and electricity.
“We are pleased to receive this commitment from Kodiak, a well respected team that has shown confidence in our growth strategy. “This agreement provides added flexibility to raise addi- tional capital, at very short notice, at a modest discount. The availability of additional working capital will help us grow the business strategically as we leverage our relationships,” said USFC president and CEO Dr Steven C Vick.
Further, the company is in the process of advancing two projects at which the BTU technology will be used. The Lima Energy Project is being designed to convert solid hydrocarbon feedstock into synthetic gas (syngas) and electrical power, and may produce hydrogen and liquid transportation fuels as by-products. When fully operational, the project, based in Lima, in Ohio, US, is designed to produce eight-million barrels a year of syn- gas and 516 MW of electrical power. The project includes the precombustion capture of carbon dioxide (CO2) that will be compressed into a liquid and sold to a third party, which will sequester the CO2 in a carbon capture and storage (CCS) programme.
In addition, the Cleantech Energy project has been designed as an ultraclean gasification and BTU conversion facility, located near a source of hydrocarbons in Wyoming, US, and should produce 30.6-million barrels a year of pipeline-quality syngas. The project will also capture CO2 produced during syngas manufacture, and will use it in enhanced oil recovery operations or CCS applications.
Further, USFC’s BTU converters are in development and are designed to produce 100 000 bbl/d of low-cost synfuel. The company has established the long-term business objective of manufacturing and delivering two-million barrels a day of low-cost synfuel in the US by 2030.
The company intends to use the proceeds of this transaction for general working capital, including advancing the Lima Energy and Cleantech Energy ultraclean BTU converter projects.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Sasol and Synfuels News
Compressor and generator hire company Rand-Air, which is part of international engineering group Atlas Copco, played a significant role in the recent timely delivery of mission-critical equipment as well as services to petrochemicals producer Sasol Synfuels’ nitrogen...
JSE-listed speciality chemicals group African Explosives and Chemical Industries’ (AECI’s) wholly owned water, energy and air solutions subsidiary ImproChem recently expanded its technology offering and market reach to provide water, energy and air quality management...
Two groups of environmental rights organisations have given notice of their intention to seek consent to be admitted as friends of the court (amici curiae), in court proceedings launched in May by energy and chemical company Sasol and crude oil processing and...
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...