Syntroleum and Marathon begin work on ultra-clean fuels project

Petroleum News Alaska Staff

Syntroleum Corp. said Sept. 10 that it is “progressing plans” with Marathon Oil Co. to develop a gas-to-liquids project under a U.S. Department of Energy program to produce ultra-clean fuels. Syntroleum said a contract award is expected in the fourth quarter for the construction phase of the project, and that a request for proposals has been issued.

Work on the $36 million project, of which DOE will fund $16 million, has already begun. Syntroleum said that Marathon is partly funding the project and is also providing technical and project management personnel to work with Syntroleum.

Certain items of equipment from the Syntroleum pilot plant at BP’s Cherry Point, Wash., refinery are being dismantled for shipment to a site at Port of Catoosa near Tulsa, Okla., where the new 70 barrels per day stand-along fuels production facility will be built.

The program is expected to be completed early in 2004.

Ultra-clean synthetic fuels from the project will be initially tested in fleet vehicles in Washington, D.C., and Denali National Park.

Tim Tipton, Marathon’s vice president of technology, said: “Apart from the prospect of producing ultra-clean transportation fuels critical for improving urban air quality, the technology offers a means to avoid flaring of gas associated with oil production in many parts of the world.”