New & portable FT for diesel. Should know the cost, etc by July 1.:
Diversified Energy and Velocys Selected to Develop Portable Fuel Unit for the U.S. Department of Defense
(12/11/2007)
Team wins contract to develop portable renewable fuel production system
PLAIN
CITY, Ohio, December 11, 2007 – Diversified Energy Corporation (DEC)
and Velocys Inc. have been selected by the U.S. Department of Defense
(DOD) to design a portable renewable fuel production system based on
DEC’s breakthrough HydroMax gasification technology and Velocys’
advanced Fischer-Tropsch approach. The goal of the DOD
funded effort is to develop a transportable system that can convert
waste products generated at military installations into 50 to 500
barrels per day of high performance renewable fuels, such as diesel and
aviation fuel.
DOD is the single largest fuel consumer in the country, with an annual fuel budget of $9 billion. Forward operating military bases generate scores of waste material and have an enormous demand for fuel products. As
a result, an opportunity exists to incorporate advanced energy
conversion technologies that can utilize waste materials to generate
high performance fuels; thereby, reducing the logistical burden of fuel
transportation for military operations. These benefits will ultimately result in lower military operating costs and markedly improved energy security.
DEC’s
HydroMax gasification technology, under license from Alchemix
Corporation, will be used to convert waste products (biomass,
solid-waste, etc.) into a synthesis gas, also known as syngas. A
Velocys microchannel Fischer-Tropsch unit will then convert the syngas
into diesel and jet fuel for a variety of military applications. This
DOD Small Business Innovative Research (SBIR) Phase I project will
include bench-scale test data analysis, conceptual design of a
transportable fuel production system, economic analysis, and a detailed
assessment of system modularity and transportability.
“We
are extremely pleased to be working with the U.S. Department of Defense
to advance and commercialize technologies that will improve energy
security and stabilize military fuel costs,” said Phillip Brown, DEC
President and CEO. “Our HydroMax gasification technology offers a
highly efficient and economical approach for converting waste material
into valuable energy products for military use.” Velocys Business
Development Manager Jeff McDaniel commented: “Working with Diversified
Energy on this critical DOD fuel project is ideal for Velocys as our
technology integrates nicely with DEC’s HydroMax gasification approach. Our
gas-to-liquids technology is one-tenth the size of conventional systems
and, as a result, we are able to achieve the transportability objective
outlined by the DOD.”
At
the conclusion of the Phase I SBIR effort, the DEC/Velocys team will
compete for a Phase II project that will fund development of a
prototype integrated fuel production system.