Syntroleum

Syntroleum Corporation (NASDAQ: SYNM) is a United States company engaged in development and commercialization of proprietary Gas to liquids (GTL) and Coal to liquids (CTL) processes known jointly as the Syntroleum Process.

Syntroleum was incorporated in 1984 by Kenneth Agee. It became a publicly held company on Nasdaq in August, 1998, when it merged with publicly traded SLH Corporation.

The Syntroleum process produces synthetic fuel by the Fischer-Tropsch process (referred to as FT fuel), which can use natural gas, coal, or biomass as feedstocks. One of the unique features of the Syntroleum process is that it uses air instead of oxygen to produce synthesis gas from natural gas in the gas to liquids process.

Syntroleum’s recent announcement regarding its renewable synthetic fuels venture with Tyson Foods is the latest example of its leadership in the industry. Together with Tyson, Syntroleum will construct the world’s first renewable synthetic fuels plant utilizing its Bio-synfining technology and Tyson sourced agricultural feedstock. With an investment of over $150 million and the creation of over 300 jobs, the initial 75 million gallon per year plant will not only have a positive impact on the local economy where the plant is located, but will contribute much needed incremental clean and environmentally friendly fuel to our nation’s transportation fuel supply.

Biomass also continues to emerge as a significant potential source for clean, renewable fuels. The USDA and the DOE estimate that over 1.3 billion dry tons per year of biomass can be produced—enough to produce biofuels to meet more than one-third of the current demand for transportation fuels. Syntroleum’s Fischer-Tropsch and Bio-synfining processes are ideally suited to produce ultra-clean, renewable fuels from biomass, and the company is pursuing projects in this area.

Air Force certification program

Syntroleum has been working with the U. S. Air Force to develop a synthetic jet fuel blend that will help the Air Force to reduce its dependence on imported petroleum. The Air Force, which is the U.S. military's largest user of fuel, began exploring alternative fuel sources in 1999. On December 15, 2006, a B-52 took off from Edwards AFB for the first time powered solely by a 50-50 blend of JP-8 and Syntroleum's FT fuel. The seven-hour flight test was considered a success. The goal of the flight test program was to qualify the fuel blend for fleet use on the service's B-52s, and then flight test and qualification on other aircraft.

On August 8, 2007, Air Force Secretary Michael Wynne certified the B-52H as fully approved to use the FT blend, marking the formal conclusion of the test program.

This program is part of the Department of Defense Assured Fuel Initiative, an effort to develop secure domestic sources for the military energy needs. The Pentagon hopes to reduce its use of crude oil from foreign producers and obtain about half of its aviation fuel from alternative sources by 2016. With the B-52 now approved to use the FT blend, the USAF will use the test protocols developed during the program to certify the C-17 Globemaster III and then the B-1B to use the fuel. To test these two aircraft, the Air Force has ordered 281,000 gallons of FT fuel. The Air Force intends to test and certify every airframe in its inventory to use the fuel by 2011. They will also supply over 9,000 gallons to NASA for testing in various aircraft and engines.

Energy Opportunity Ltd. Investment in Syntroleum

On July 15, 2010 it was reported that Energy Opportunity Ltd out of the British Virgin Islands made the commitment to purchase $10 million in Syntroleum stock. The commitment was to purchase stock in Syntroleum over a 24 month period. Energy Opportunity was limited to a purchase no more than 4.9% of Syntroleum stock ownership. This was reported ahead of opening of the Dynamic Fuels Refinery in Geismer, Louisiana scheduled for August 2010. Dynamic Fuels is the joint venture between Syntroleum and Tyson with Dynamic Fuels refinery estimated to produce 75 million gallons of renewable fuels per year.

Syntroleum & Tyson Foods Open First U.S. Commercial Scale Advanced Biofuels Plant

On November 8, 2010 the announcement was made that operations were underway at Syntroleum & Tyson Food’s Dynamic Fuels facility in Geismar, Louisiana with the new plant nationally recognized as the very first “Commercial Scale” Biofuels plant to open in the United States.

Production at the Dynamic Fuels facility began in early October, 2010 producing an initial estimate of 2,500 barrels of commercially renewable product per day with a ramp up of 39 million gallons of renewable product per year. The company also announced during their Q3 2010 earnings call that Dynamic Fuels was producing jet fuel at the facility for the United States Air Force. It was also stated that during marketing efforts for the new Dynamic Fuels plant major oil, chemical & consumer companies in the United States and internationally expressed significant interest in products produced at the facility. Upon the commencement of full operations the company had agreement on commercial terms with buyers for 100% of fuel’s diesel, naphtha and LPG products.

Dynamic Fuels Reaches Full Production Capacity

On March 15, 2011 Syntroleum made the official announcement that the Dynamic Fuels plant in Geismar, Louisiana had reached full production capacity and was producing at design rates of 75 million gallons per year or 5,000 barrels per day. The company stated the Dynamic Fuels facility was running three hydro-processing reactors at designed flow rates and had achieved 100% conversion of 20 different renewable feedstocks into ASTM quality diesel. The Dynamic Fuels facility is able to produce high quality products ranging from Jet Fuel to Summer Grade Diesel.

External links

• Syntroleum Company Website
• [1] Wright Patterson Air Force Base Tests Syntroleum R-8 Blend
• [2]pl:Syntroleum