Syntroleum breaks ground on synthetic fuels plant

Petroleum News Alaska Staff

Syntroleum Corp., a Tulsa, Okla.-based developer of a proprietary process for converting natural gas into synthetic fuel, broke ground Aug. 20 for a 70-barrel-per-day demonstration plant at the Port of Catoosa.

Syntroleum said the $36 million complex is being built under the Ultra-Clean Fuels Program managed by the Department of Energy’s National Energy Technology Laboratory.

When completed, the plant will produce ultra-clean synthetic diesel for use and demonstration in the Washington, D.C., metropolitan bus fleet, as well as in government vehicles in Denali National Park and other locations.

The plant is scheduled for completion in mid-2003.

DOE, Marathon Oil Co. and Syntroleum are funding the project. Integrated Concepts and Research Corp. is the prime contractor for the project and will manage the test programs for the fuels.

“Syntroleum is bringing exciting technology to convert stranded gas to clean, transportable distillate fuels,” said William Lawson, associate director for the U.S. Department of Energy. “From an industry perspective it enables companies to monetize natural gas in a way not yet common. From a U.S. energy security perspective, it further diversifies potential sources of useful transportation fuels. And from an environmental standpoint, low sulfur transportation fuels will help meet our requirements for cleaner air.”