BioSyn Resources, LLC to build a 4th Generation 300-barrels-per-day Gas-To-Liquids Commercial Demonstration Plant

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Taking advantage of the huge price differential between natural gas and crude oil, BioSyn announces the implementation of the 4th phase of its integrated biomass-centric feedstock-flexible biorefinery project ahead of schedule starting with the construction of a 300-bpd 4th generation GTL commercial demonstration plant.

The respective prices of natural gas & crude oil are caused by disparate market forces. The extremely low natural gas prices are a local phenomenon largely unaffected by the interplay of international market forces & global geopolitical events.

After reaching a conclusion that the likelihood of the huge price differential between natural gas and crude oil will continue for the long term, BioSyn decided to implement ahead of schedule the 4th phase of its integrated biomass-centric feedstock-flexible biorefinery project, starting with the construction of a 300-bpd fourth generation gas-to-liquids demonstration plant. The demonstration plant will provide BioSyn and its process licensors, engineering and EPC contractors with techno-economic data and operational experience to proceed with full scale commercial facilities.

A fourth generation Fischer-Tropsch technology features a much smaller plant footprint and significantly lower economies of scale. It also features a product slate characterized by more than 95% C5-C18 fraction of more than 50% isoparaffinic structure and absence of oxygenates. This obviates the need for high CAPEX hydrocracking facility that is required in 3rd generation GTL plants the Fischer-Tropsch blocks of which produce largely waxy products.

With the maturation of hydraulic fracturing and horizontal drilling technologies, the vast reserves of natural gas trapped in gas shale formations underlying vast areas of continental United States are now unlocked for long term production. With gas prices hovering south of $15.00 per barrel of oil equivalent (BOE), and crude oil prices hovering north of $100.00 per barrel, the door for technical arbitrage opportunity opened up for the conversion of natural gas to drop-in infrastructure-ready transportation fuels.

Current estimates of national inventory of gas reserves at the end of 2011 stand at about 300 trillion cubic feet (TCF). The estimated U.S. future gas supply for the year ending in 2010 was 2,170 TCF, which is equivalent to about 361 billion BOE. This is more than the proven oil reserves of Saudi Arabia, which was only 262.6 billion barrels at the end of 2011.

“Petroleum based transportation fuels are tethered to highly volatile world prices of crude oil, which we predict will continue to maintain an upward trajectory for the long term. This gives rise to an unusual local phenomenon: the unprecedented widening of the price differential between natural gas and petroleum based transportation fuels,” said Mr. Reloj, BioSyn’s CEO.

“The respective prices of natural gas and crude oil are caused by disparate market forces. The extremely low natural gas prices are a local phenomenon largely unaffected by the interplay of international market forces and global geopolitical events,” adds Mr. Reloj.

BioSyn’s technology architecture for its 4th generation GTL plant involves the use of carbon dioxide as co-feedstock with natural gas.

In addition, the plant will produce excess hydrogen which, for BioSyn’s future large scale plants, will be used as fuel for carbon-neutral power plants.

About BioSyn

BioSyn is a development company engaged in designing and developing technology architectures for biomass-centric feedstock-flexible refineries that will produce ultraclean RFS2-compliant green transportation fuels. Its business philosophy and business model call for the use of best in class and commercially established unit conversion processes supplied by leading process licensors known in the petroleum and petrochemical industries.

Prior to the completion of the construction of its refineries, BioSyn manufactures and markets the analogue versions of the ultraclean transportation fuels to be produced by its future refineries.

The transportation fuels are infrastructure ready, also referred to as “drop-in” fuels. This means that these fuels can be mixed in any proportion with conventional petroleum based fuels without need for engine modification.

Contacts

Pat Loontjer
PR Director
BioSyn Resources, LLC
402-598-7227
pat.loontjer(at)biosynresources(dot)com
http://www.biosynresources.com

Fred Lagergren, Col USAF (Ret)
Director for Military Fuels Development
BioSyn Resources, LLC
402-740-7766
fred.lagergren(at)biosynresources(dot)com
http://www.biosynresources.com
Deo C. Reloj, Jr.
Chief Technology Officer
BioSyn Resources, LLC
402-253-0328
dcrj(at)biosynresources(dot)com
http://www.biosynresources.com

For Release 4:00 AM EDT, April 27, 2012

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Deo Reloj
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