Gas-to-Liquids Demonstration

RNS Number : 9221G

Oxford Catalysts Group PLC

10 February 2010

 



10^th February 2010

OXFORD CATALYSTS GROUP PLC

("Oxford Catalysts" or "the Group" or "the Company")

Gas-to-Liquids Demonstration at Petrobras

Oxford Catalysts Group PLC, the leading technology innovator for clean synthetic fuels, is pleased to announce that its US subsidiary, Velocys Inc., has signed a Joint Demonstration and Testing Agreement ("JDTA") with Petróleo Brasileiro S.A. ("Petrobras"), alongside its existing partners Toyo Engineering Corporation ("Toyo Engineering") and MODEC, INC. ("MODEC"), which provides for the construction and operation of an integrated Gas-to-Liquid ("GTL") demonstration plant based on the Group's technology.

Petrobras is the Brazilian national oil company and the largest company in Latin America, Toyo Engineering is a global Engineering, Procurement and Construction ("EPC") company, and MODEC is the world's second largest owner/supplier of Floating Production Storage and Offloading vessels ("FPSOs") to the oil industry.

The GTL demonstration plant, which will be located at the Petrobras facility in Fortaleza, Brazil, will incorporate the Group's microchannel reactor and catalyst technologies for the key Steam Methane Reforming ("SMR") and Fischer-Tropsch ("FT") sections of the plant. It will be operated for nine months, after its construction and delivery in early 2011 and the subsequent commissioning and testing periods. The total cost of the plant, estimated at several tens of millions of dollars, will be covered by Toyo Engineering and MODEC, whilst Petrobras will be responsible for the installation and operating costs of the demonstration.

Following successful demonstration, it is expected that the first commercial deployment of the Group's small scale GTL technology will be on an FPSO, for example, to mitigate flaring of associated gas resulting from the development of offshore oil fields.

The Group will be working to manufacture its reactors with Kobe Steel, Ltd., one of Japan's leading steel makers, with whom it has been collaborating for over a year.

Roy Lipski, CEO of Oxford Catalysts Group said:

"This represents a crucial milestone in the development of our small scale GTL technology, and a very significant commitment by Toyo Engineering, MODEC and Petrobras to its demonstration and commercialisation.

"Signing the JDTA is an important step forward in our engagement with our partners, and strong confirmation of their confidence in our technology and support for its deployment.

"We are delighted to be demonstrating our small scale GTL technology first with Petrobras, one of the world's single largest users of FPSOs."

Yutaka Yamada, President and CEO of Toyo Engineering said:

"The size and cost advantages of microchannel technology offer the best opportunity to develop offshore GTL as a practical way of producing commercially significant quantities of synthetic fuels on FPSO vessels."

Kenji Yamada, Chairman and CEO of MODEC said:

"This cooperative development project will not only greatly enhance the environmental performance of classic oil FPSOs, it will also promote the monetisation of waste gas, and create an opportunity for the introduction of a new generation of FPSOs in marginal gas field developments."

- Ends -

For further information, please contact:

Roy Lipski, CEO, Oxford Catalysts	01235 841 700
Jonathan Marren / Oliver Stratton, KBC Peel Hunt (Nomad and Broker)	020 7418 8900
Billy Clegg / Alex Beagley, Financial Dynamics	020 7831 3113

Notes to Editors

Oxford Catalysts designs and develops technology for the production of clean synthetic fuels from both conventional fossil fuels and renewable sources such as biowaste. The Group is primarily focused on the emerging market for distributed smaller scale production of synthetic fuels via Fischer-Tropsch ("FT") synthesis − a market that has the potential of producing as much as 25 million barrels of fuel a day.

The FT reaction is used when converting natural gas, coal or bio-mass into clean high-performance liquid synthetic fuels, processes known as GTL, CTL and BTL respectively. The Group is the recognised world leader in the design and development of high-activity catalysts and associated novel chemical reactors for the small scale production of synthetic fuels. (The Group's reactor technology − known as microchannel process technology − is marketed under the brand name of Velocys).

Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 90 employees with facilities near Abingdon, Oxfordshire, UK and Columbus, Ohio, USA.

www.oxfordcatalysts.com 

www.velocys.com

About Toyo Engineering

The Toyo Engineering Corporation, headquartered in Chiba, Japan, is a global Engineering, Procurement and Construction ("EPC") firm that specialises in the petrochemicals, chemicals, energy and environmental industries.

www.toyo-eng.co.jp 

About MODEC

MODEC, INC., headquartered in Tokyo, Japan, is the world's second largest owner/provider of Floating Production Storage and Offloading vessels ("FPSOs") to the oil industry.

www.modec.com

About Petrobras

Petróleo Brasileiro S.A. ("Petrobras") is a state-controlled semi-public Brazilian multinational energy company, headquartered in Rio de Janeiro. With some $128 billion of revenues in 2008 and more than 74,000 employees, Petrobras is the largest company in Latin America. It controls significant oil and energy assets in 27 countries. Since 2007, it has announced the discovery of several vast deepwater offshore oil fields in the pre-salt area.

www.petrobras.com

About Kobe Steel

Kobe Steel, Ltd. ("KSL"), headquartered in Kobe, is one of Japan's leading steel makers, operating worldwide under the brand of KOBELCO. Included amongst the numerous activities of the Kobe Steel Group, is the supply of machinery and precision equipment. The group had over ¥2,177 ($ 24.2) billion of revenue in 2008 and more than 31,000 employees.

http://www.kobelco.co.jp/english

 

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